How to enter foreign markets

1. All of the means for supplying foreign markets may be subsumed in just two activities: (1) exporting to a foreign market or (2) manufacturing in it.

2. Exporting

Most firms began their involvement in overseas business by exporting — that is, selling some of their regular production overseas. This method requires little investment and is relatively free of risks. It is an excellent means of getting a feel for international business without committing any great amount of human or financial resources. If management does decide to export, it must choose between direct and indirect exporting.

3. Indirect exporting (The exporting of goods and services through various types of home-based exporters) is simpler than direct exporting because it requires neither special expertise nor large cash outlays. Exporters based in their home country will do the work. Management merely follows instructions. Among the exporters available are (1) manufacturers' export agents, who sell for the manufacturer;

(2) export commission agents, who buy for their overseas customers;

(3) export merchants, who purchase and sell for their own account; and

(4) international firms, which use the goods overseas (e.g. mining, construction, and petroleum companies).

4. Indirect exporters, however, pay a price for such service: (1) they will pay a commission to the first three kinds of exporters; (2) foreign business can be lost if exporters decide to change their sources of supply; and (3) firms gain little experience from these transactions. This is why many companies that begin in this manner generally change to direct exporting.

5. A company may move directly to foreign production for a number of reasons, all of which are linked to the desire to either increase profits and sales or protect them from being eroded by competition.

Foreign Manufacturing

When management does decide to become involved in foreign manufacturing, it generally has six distinct alternatives available, though not all of them may be feasible in a particular country. These are:

1. Wholly owned subsidiary.

2. Joint venture.

3. Licensing agreement.

4. Franchising.

5. Contract manufacturing.

6. Management contract. (It is utilized by both manufacturing and service companies to earn income by providing management expertise for a fee).

Exercise 3. Give English equivalents to the following words.

прямий експорт	прямой экспорт
зарубіжний ринок	зарубежный рынок
виробництво за кордоном	производство за рубежом
досвід	опыт
національні експортери	национальные экспортеры
зарубіжний клієнт	зарубежные клиенты
платити комісійні	платить комиссионные
збільшувати прибутки	увеличивать прибыль
спільне підприємство	совместное предприятие
ліцензійна угода	лицензионное соглашение

Exercise 4. Choose the correct alternative in each of the following sentences:

1. We would he grateful for your advice/advices on this matter.

2. Thank you for the information/informations concerning the schedule.

3. Could you supply the usual bank and trade reference/references?

4. Please accept our sincere apology/apologies for the delay.

5. We have excellent storage facility/facilities.

6. 'The annual account/accounts must be submitted not later than January 31st.

7. We close our book/books for the financial year on June 30.

8. We won't make a profit, but at least it will make a contribution to overhead/overheads.

9. I understand they are in debt/debts at the moment.

10. Let us have a note of your expense/expenses as soon as you get back.

11. We have no knowledge/knowledges of the proposal to increase import duty.

12. We have made substantial progress/progresses since we last spoke to you.

Exercise 5. Read the sentences below. Decide which of the following uses of would best fits each sentence:

a. past habit

b. refusal

o. hypothetical or conditional situation

d. polite request or offer

e. past form of will - especially in reported speech

1. We would be very happy to send you further information. …………………………………

2. He would often spend the entire weekend at the office. …………………………………

3. Would you let us know your decision аt your earliest convenience? …………………………………

4. In that situation we wouldn't be able to hold the price down. …………………………………

5. She said she would phone again tomorrow. …………………………………

6. Occasionally he would work late into the night. …………………………………

7. Would you fill in this form, please? …………………………………

8. Life would be much easier if we had better equipment. …………………………………

9. I'm afraid they wouldn't agree to our terms. …………………………………

10. They told us they would let us know soon. …………………………………

11. Would you like some more coffee? …………………………………

12. The problem was that they wouldn't accept any changes to the contract. ………………………………

Exercise 6. Rewrite the following sentences. They are the words of a negotiator reporting what happened at a meeting:

1. agree I'm they price the increase wouldn't afraid to ……………………………………………………

2. the renegotiate they they to contract said would prefer ………………………………………………..

3. would better a also be new us agreement for …………………………………………………………..

4. chance it terms give would the to us negotiate new …………………………………………………..

5. insert able we be to a penulty would clause …………………………………………………………..

Exercise 7. Answer the questions to the text in writing.

1. How can businesses enter foreign markets?

2. What is the difference between direct and indirect exporting?

3. What are the six distinct alternatives available in foreign manufacturing?

Варіант 3

Exercise 1. Read the following words and word combinations. Memorize them.

employment agency	кадрове агентство	кадровое агентство
Job Center	Центр з працевлаштування	центр по трудоустройству
applicant	людина, що шукає роботу	человек, который ищет работу
blue-collar worker	"синій комірець", робочий	«голубой воротничок», рабочий
vacancy	вакансія	вакансия
at short notice	в короткий термін	в короткий срок
internal advertising	внутрішня реклама	внутренняя реклама
classified ads	оголошення за темами	объявления по темам
performance	результати роботи	результаты работи
accurate assessment	точну оцінку	точная оценка
induction period	ознайомчий період	ознакомительный период
promotion	просування	продвижение
recruitment	вербування	вербовка
clerical employee	конторський службовець	конторський служащий

Exercise 2. Read and translate the text (paragraphs 2 and 3 translate in writing).

METHODS OF RECRUITMENT JOB

CANDIDATES IN THE UNITED KINGDOM