V. Read and translate the following texts.

International business operations

International business operations, by their very nature, are complex, risky and require special understanding. Foreign busi­ness operations are more complex because the host country's econ­omy may be different from the domestic economy.

One of the most common forms of international business is to import and export merchandise. Importing is particularly preva­lent in the retailing industry. Big companies have legions of buyers who scour the world, looking for merchandise to import. Smaller companies also handle imported goods, although they may pur­chase them through wholesalers in their country rather than direct­ly abroad.

The low-risk approach to international marketing is export­ing. Manufacturers often enter foreign markets by exporting. This enables them to test a market with small shipments before investing in expended production capabilities or foreign manufacturing fa­cilities.

Two basic approaches can be taken to exporting. Indirect ex­porting is handled by intermediaries such as buying and exporting agents who buy the products directly from their own name. Indirect exporters typically have no contact with customers in their foreign markets.

Direct exporting is handled directly by manufacturers and requires a great commitment of both managerial and financial resources. One of the least risky ways to export indirectly is through an export trading company, which buys everything from manufac­tured goods to raw materials and then resells these products in for­eign markets. The manufacturer receives a guaranteed price, and the trading company assumes all the risk.

Companies that want to export their products may do so direct­ly by calling on potential customers overseas, or they may rely on intermediaries in their country or abroad. Working through some­one with connections in the target country is particularly attractive to smaller companies and to those with little experience in interna­tional business. But many countries now have foreign trade offices that help importers and exporters interested in doing business with­in their borders.

Vocabulary

domestic economy – внутренняя экономика

prevalent – распространенный, общепринятый, общеупотребительный

legion – масса, множество

production capabilities – производственные возможности; производственный потенциал

manufacturing facilities – производственное оборудование; производственные помещения

approach – подход

intermediary – посредник

to assume risk – принимать на себя риск

Import-export transactions

An import-export transaction usually requires a lot of compli­cated documentation. Many different arrangements have to be made and this can be difficult when one firm is dealing with another on the other side of the world.

Many specialists may be involved in import-export transac­tions.

1. A shipping agent or foreign forwarder (forwarding agent) will take responsibility for the documentation and arrange for the goods to be shipped by air, sea, rail and road.

2. Airlines, shipping lines, railway companies will actually transport the goods.

3. Both the importer and exporter's banks will be involved in arranging payments if a letter of credit or a bill of exchange is used.

4. Customs and Excise officers may need to examine the goods, check import or export licenses and charge duty, and VAT.

5. A Chamber of Commerce may need to issue a Certificate of Origin, if this is required by the importer's country.

6. An insurance company to insure goods in transit.

7. A lawyer if a special contract has to be drawn up.

A lot of different documents may be needed, including Bill of Lading, Sea (Air) Waybill, Shipping Note, Dangerous Goods Note and others. Some of these documents can be replaced by computer­ized procedures or photocopies.

Many import and export deals are arranged through an ex­porter's agent or distributor abroad – in this case the importer buys from a company in his own country and the company imports the goods. Alternatively, the deal may be arranged through an import­er's buying agents. In this case the exporter sells directly to a com­pany in his own country, who will then export the goods.

Prices for the exports may be quoted in the buyer's currency, the seller's currency or in a third «hard» currency. The price quot­ed always indicates the terms of delivery which depend on the kinds of goods being traded and the countries between which the trade is taking place. While choosing methods of payment exporters and importers prefer security of payment when dealing with unknown firms in distant countries.