Vocabulary

to finance a business – финансировать дело

it’s in place here to mention – здесь уместно упомянуть

to be in full swing – быть в полном разгаре

suffice it to say that... – достаточно сказать, что...

parent company – материнская компания

subsidiary – филиал, дочерня компания

assembly plant – сборочный цех

advanced technology – передовая технология

to be in close touch with – находиться в тесной связи c

spare parts – запасные части, запасные детали

domestic appliances – предметы домашнего обихода

grass-cutter – газонокосилка

to keep abreast with the time – для того, чтобы идти в ногу со временем

as regards – что касается

to expand international links – развивать, расширять международные связи

in the latter case – в последнем случае

input (contribution) – вклад

to earn (to get) a good salary – получать хорошую зарплату

to afford – позволить себе

to save money – экономить, откладывать, копить деньги

public relations – связи с общественностью

to perform one's duty – выполнять обязанность

communal work – общественная работа

headquarters – штаб-квартира

to be engaged – быть занятым

to aim at – иметь целью, стремиться

to be in close touch with – находиться в тесной связи

therefore – поэтому, следовательно

Answer the following questions.

1. For what purpose did Mr. Baker borrow a large sum of money from the bank? 2. In what state was Mr. Baker's business? 3. What is the structure of the company? 4. How many employees work for the company? 5. What is the strength of the company? 6. How much is his capital worth? 7. What do you know about public relations activities carried out by some members of the staff?

Licensing

When a company is small it can’t sometimes enter a foreign market. It can sign a licensing agreement with a foreign firm. A license is a legal agreement in which one firm gives another a right to manufacture and sell its product. A company that obtains this right pays the licenser a royalty. Royalty is a certain percentage of the income from the sale of the product.

Businesses that have patents or trademarks usually can use licensing to protect them against counterfeiters. The licensee gains a successful product and the know-how. The licenser often controls the quality of the goods which the licensee produces, because high quality guarantees the reputation of the licenser. The licensee chooses the selling strategies because he knows more about how to sell the product in the foreign market.

Companies that want greater control over their product have to manufacture it at home and then export it to the foreign countries. In this case exporters must examine the market. Some firms can sell their products to an export/import merchant who takes all the selling risks. In other cases the company may use an export/import agent who sells the product to wholesalers or retailers in the foreign country. Sometimes the exporter may set up its own sales offices and branches abroad. This is more expensive, and only large firms can afford it.