Task 10. Practice reading the following words.

acumen [`ækjumən] / [ə`kju:mən] advance [əd`vα:nts] / [əd`vænts] the Basel Accords [`bα:zəl ə`kO:dz] branch [brα:nt∫] / [brænt∫] catalogue [`kætəlOg] category [`kætəgəri] / [`kætəgO:ri] to cause [kO:z] collaborative [kə`læbərətıv] commis­sion [kə`mı∫ən] conflict [`kOnflıkt] / [`kα:nflıkt] consortium [kən`sO:tiəm] to continue [kən`tınju:] conventional [kən`vent∫ənəl] determinant [dı`tə:mınənt] dynamic [daı`næmık] e-commerce [`i: `kOmə:s] / [`i: `kα:mərs] energy [`enəGi] / [`enərGi] environment [ın`vaıərənmənt] expansion [ık`spænt∫ən] ExxonMobil [`eksOn ] franchise [`frænt∫aız] General Motors [`Genərəl `məutəz] globalization [ֽgləubəlaı`zeı∫ən] grouped [gru:pt] increasing [ın`kri:sıŋ] the Kyoto Protocol [ki`əutəu `prəutəukOl] legal [`li:gəl] licence [`laısənts] manufacturer [ֽmænju`fækt∫ərə] multiple [`mAltıpəl] to navigate [`nævıgeıt]

to occur [ə`kə:] ownership [`əunə∫ıp] / [`əunər∫ıp] patent [`peıtənt] / [`pætənt] pathway [`pα:θweı] / [`pæθweı] perspective [pə`spektıv] / [pər`spektıv] physical [`fızıkəl] primary [`praıməri] to prove [pru:v] purchaser [`pə:t∫əsə] religious [rı`lıGəs] representative [ֽreprı`zentətıv] to require [rı`kwaıə] / [rı`kwaıər] respective [rı`spektıv] to respond [rı`spOnd] / [rı`spα:nd] Samsung [`sæmsAŋ] signatory [`sıgnətəri] / [`sıgnətO:ri] socio-cultural [`səu∫iəu `kAlt∫ərəl] / [`sousiou `kAlt∫ərəl] sole [səul] / [soul] Sony [`səuni] / [`souni] subsidiary [səb`sıdiəri] / [səb`sıdieri] success [sək`ses] technological [ֽteknə`lOGıkəl] therefore [`ðeəfO:] / [`ðerfO:r] through [θru:] Toyota [tOı`əutə] / [tOı`outə] transaction [] treaty [`tri:ti] typically [`tıpıkəli] uniform [`ju:nıfO:m] / [`ju:nıfO:rm] various [`veəriəs] vehicle [`vi:ıkəl] / [`vi:əkəl] wholly-owned [`həuli `əund] / [`houli `ound]

Task 11. Read the text.

International Business

With new technological advances in telecommunications, the business world continues to get smaller. Such modern phenomena as globalization, worldwide communication networks, multinational corporations, the global marketplace prove that, in one way or another, we are all interconnected in today’s world. Globalization is a result of the increasing success of international business ventures.

International business is a term used to collectively describe topics relating to the operations of firms with interests in multiple countries. It is a dynamic activity which changes, adapts and responds according to respective conditions.

In its simplest form, international business occurs when a business sells its product or service to a purchaser who lives in a different country, such as, through a mail-order catalogue or by way of an e-commerce transaction.

Apart from con­ventional trade it takes various forms such as transactions in patents, licences, know-how, joint-ventures, mixed commis­sions and many other forms.

There are many different pathways to international expansion. Such pathways are typically grouped into three categories:

1. Expansion without foreign ownership, for example, exports, franchises and licensing;

2. Collaborative ventures, such as, joint-ventures, partnerships and consortiums; and

3. Sole foreign ownership, consisting of representative, branch offices and wholly-owned subsidiaries.

Multinational corporations (MNCs) – large firms with physical presence in various countries – are important players in international markets. Well known MNCs include fast food companies Mc Donald’s and Yum Brands, vehicle manufacturers such as General Motors and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil and BP.

MNCs typically have subsidiaries or joint-ventures in a number of national markets. How these companies are organized and operate, and their lines of business are heavily influenced by socio-cultural, political, global, economic and legal environments of each country a firm does business in.

International business success requires more business acumen than managing a domestic enterprise. Experts in international business do not only deal with traditional business functions and values, but also must understand and work from a global perspective. They should learn how to navigate foreign business markets, as well as foreign cultural, social, and political environments.

From international trade to direct investment, business is conducted at different levels in different ways in different countries. Economic, political, social, religious and other conditions sometimes cause these differences. International treaties, such as the Basel Accords, the World Trade Organization, and the Kyoto Protocol often seek to provide a uniform framework for how business should be influenced between signatory states.

International business by its nature is a primary determinant of international trade. As is known, trade helps to prevent conflict. When countries begin to interact through trade, they are less likely to fight. International business, therefore, helps people understand cultural differences and thus, better understand the global work environment.