Round-table session

1) Scan the texts in Readings I-III and make use of the material discussed in the unit. Use the Internet and other sources to find as much necessary information as you need about globalisation

2) Discuss in pairs the following questions

• What do you think are advantages of globolisation – for individuals and for nations?

• There is an opinion that people are becoming too much alike. Do you agree? Why or why not?

• What are the most serious challenges the world will face in the twenty first century?

3)Present your ideas about globolisation and its influence on people’s life.

4) Hold a Questions & Answers (Q&A) session.

Reading comprehension 4 (units 9-10)

1. Read the article and the questions to it.

2. For each question 1-5, choose one answer (a, b, c or d) marriage in name only

Japanese mergers. Tokyo

Salarymen find it hard to shift their allegiance

Here is another reason why structural reform is hard for Japanese industry: employees are not good at transferring loy­alty to a new company. Resentments be­tween merger partners can fester for years. At Bank of Tokyo-Mitsubishi, formed in 1996 when Tokyo Bank merged with Mit­subishi Bank, a bigger but less prestigious institution, employees from Tokyo Bank were outnumbered three to one. Frus­trated by Mitsubishi Bank's stodgy prac­tices, many left; those that stayed were of­ten sidelined. Insiders say there are still unofficial Tokyo Bank "societies" in which they air grievances to each other.

Nissan Motor, before its latest tie-up with Renault, a French car maker, was also legendary for bitter internal rivalries. In 1966, Nissan, then the second-biggest car company in Japan, merged with Prince Motor, the fourth-biggest. Hostilities be­tween workers from Nissan and Prince lasted for years; even in the 1980s, older employees were still stamped with “Prince” or “Nissan” labels.

Nippon Steel, Japan's largest steel maker, had similar problems after it was formed in 1970 by a merger between Yawata Iron and Steel and Fuji Iron and Steel, even though the two had originally been part of the same company, Japan Iron and Steel, before it was broken up after the sec­ond world war. Nippon Steel is said to have kept separate personnel departments for the two sides for years. To this day, it scrupulously alternates its presidents be­tween people of Yawata and Fuji origin.

Dai-Ichi Kangyo Bank (DKB), created in 1971, also kept two personnel departments for 20 years: one for former Dai-Ichi em­ployees, another for ex-Nihon Kangyo folk. These days DKB is in a power struggle with its new partners, Fuji Bank and Indus­trial Bank of Japan, with which it has merged to create Mizuho Holdings, the world's largest bank. Employees at Mi­zuho complain that they get scolded for not fighting turf battles.

One reason why Japanese companies are prone to post-merger discord is their need to save face. Even when one is clearly stronger than the other, companies insist that theirs is a merger of equals. Preserving this balance creates false expectations. The latest example is the merger (due to take effect this autumn) between Japan Airlines, the top airline, with big domestic and in­ternational operations, and Japan Air Sys­tem, which runs mostly domestic flights. Despite clear disparities in strength and size, both say the merger will happen in a “spirit of equality”.

The time it takes companies to iron out details of their mergers provides plenty of time for rancour. Unlike America or Eu­rope, where mergers can be concluded within two or three months of announcement, Japanese ones may take two to three years. The final stage of Mizuho’s merger will take place this April, two-and-a-half years after it was originally announced. The merger of Sumitomo Chemical and Mitsui Chemical, announced in late 2000, is due to take place in October 2003. The government, which is hoping that more face-saving mergers will help mask the lack of reform in sagging industries, might want to bear these lessons in mind.

1. Which of the following best summarizes the opening and the second paragraphs?

1. Japanese workers’ loyalty to the firms they work in is the main barrier to the merger’s success.

2. The amount of workers of two merging companies should be equal to make the integrated company successful.

3. The discrepancies between workers of merged companies diminish with years.

4. Tokyo Bank merged with Mitsubishi Bank because Tokyo's numbers of employees was three times larger than Mitsubishi's and that was the key to success.

   2. In the third and fourth paragraphs, the author says that

      1. only big Japanese companies go through mergers, takeovers and buyouts successfully.

      2. all merged Japanese companies tend to have two personnel departments.

      3. the problem Japanese amalgamations face is workers' loyalty to their "original" companies.

      4. workers of Japanese merged companies always label each other with names of the companies of their origin.

   3. In the fifth paragraph, the author argues that

      1. as a rule, two joining companies fail due to the fact they are not equal in strength and size.

      2. a merged Japanese company always creates a spirit of equality and makes good use of it.

      3. only equal Japanese companies tend to merge to get a larger market share.

      4. Japanese companies try not to create false expectations in their attempt to save face.

   4. In the last paragraph , the author mentions the fact that

      1. American and European mergers are usually failures as they are concluded within a short period of time.

      2. Japanese mergers take place for a longer period of time (as compared to European and American ones) due to staff problems.

      3. Japanese government is really positive about face-saving mergers as it helps to hide some problems in industries.

      4. Japanese companies should copy American and European experience in merging.

   5. The article states that

      1. Japanese companies try not to merge with rivals as the process is too time-consuming.

      2. Japanese amalgamated companies face staff and management problems due to the fact the companies are too large in size.

      3. More and more Japanese companies tend to demerge because of internal problems with morale.

      4. Japanese workers face difficulties in establishing good relations in their new companies.