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III. Back to the text.

3.1. Answer these questions using the active vocabulary of the Unit.

1. What is globalisation for a large number of smaller firms lacking financial and human resources?

2. Why do politicians and economists in western Europe look to small and medium-sized business to create jobs? Does small and medium-sized business live up to their expectations? Why?

3. Why do many companies choose not to move all their production offshore?

4. What did you learn about the Adidas and Puma companies? What does their example speak of?

5. How do some small European businesses which cannot move offshore adapt to the new conditions?

6. Consider the example of the Maerklin company. Why do you think it failed? What do you think should have been done instead of dividing the company into three warring camps? Do you think the strategy chosen by the company's new management will be effective enough? Why do you think so?

7. What industries are in decline in Italy? Why?

8. What strategies do they apply to overcome the difficulties?

9. Why do some firms reject outsourcing?

3.2. Make a detailed outline of the above article.

3.3. Explain the title of the article.

3.4. Summarise the article using your outline.

IV. Over to you.

4.1. Comment on he following:

Italian skills and its closely integrated production system outweigh savings in wages.

Do you know any examples of other countries reluctant to sacrifice their skills and production systems for savings in wages? What are they? Do you think such a stance has any economic sense? Justify your point of view.

4.2. Do you agree that private equity will play an important role in rescuing European industries? Give reasons for your answer.

4.3. Compare such countries as Germany, Italy, France from the point of view of their export structure. What do they have in common? How do they differ? What problems are they facing?

4.4. Consider

a) the strategies European firms choose to adapt to the challenges of a globalised economy;

b) the necessity of moving some of the production offshore;

c) the major outsourcing destinations of the world.

4.5. Analyse Italy's survival strategy. Do you happen to know any other strategies to survive a decline caused by economic globalisation? What are these strategies?

4.6. Supply details to prove that as jobs drain away to China and other parts of East Asia, small local businesses in Europe can also go global.

4.7. Provide arguments to support or refute the following idea:

Success stories such as Adidas and Puma are an inspiration to Europe's smaller companies as the winds of globalisation sweep around them.

V. Writing.

5.1. Write out of the article sentences representing the author's point of view on European small and medium-sized business. Comment on these ideas.

5.2. Write your comments on the following:

Many [firms] realise that they will have to go global, transforming themselves from manufacturing to marketing companies...

5.3. Analyse the example of the Maerklin company in Germany as it is described in the article.

5.4. Provide more examples to show how European small and medium-sized companies change their strategy to survive in a globalised economy.

5.5. Describe the situation in the Italian textile and clothing industries. What is the outlook for the industries in question? Justify your point of view.

5.6. Make a survey of China as a threat to European business.

Unit 6.

I. Pre-reading.

1.1. Before you read the article below, say what you know about business climate in France.