29.International business

Lead-in: Is there any difference between international business and international trade? Key words and phrases: 1. business transactions – ділові операції 2. balance of trade – торговий баланс 3. balance of payments – платіжний баланс 4. inward and outward cash flow – потік готівки 5. merchandise and services – товари (торгівля) та послуги 6. tangible goods – матеріальні, реальні товари 7. assets – майно, актив 8. joint venture – спільне підприємство 9. debt – борг, зобов’язання 10.equity – звичайна акція, частка акціонера в капіталі підприємства

I nternational business is characterized by all business transactions that involve two or more countries and may be of governmental or private character.

The concept of international business includes the balance of trade (the relationship between exporters) and balance of payments (the difference between inward and outward cash flow). A company can engage in international business through various means, including exporting and/or importing merchandise and services, direct and portfolio investment, and strategic alliances with other companies.

Merchandise exports are tangible goods sent out of the country; merchandise imports are tangible goods brought in. Since these goods visibly leave and enter they are sometimes referred to as visible exports and imports.

Service exports and imports are international earnings other than those derived from goods sent to another country. Receipt of these earnings is considered a service export, whereas payment is considered a service import. Services are also referred to as invisibles.

International business comprises a lot of services: travel, tourism and transportation; performance of activities abroad; use of assets from abroad.

Foreign investment is the ownership of property abroad. Direct investment is a subset of foreign investment that takes place when control follows the investment. When two or more ownership share a direct investment, the operation is known as a joint venture.

Portfolio investment can be either debt or equity. The factor that distinguishes portfolio investment from direct investment is that control does not follow this kind of investment.

Countervailing forces influence the conditions in which companies operate their options for operating internationally. The main factors causing changes in the world trade and investment patterns are economic conditions, technology, wars and political relationships.

Comprehension:

1/What is international business characterized by?-- International business is all business transactions that involve two or more countries and may be of governmental or private character.

2.What does the concept of international business include?-- The concept of international business includes the balance of trade (the relationship between exporters) and balance of payments (the difference between inward and outward cash flow).

3.What is the difference between merchandise exports and merchandise imports?-- Merchandise exports are tangible goods sent out of the country; merchandise imports are tangible goods brought in

4.Describe services that comprise international business.-- International business comprises a lot of services: travel, tourism and transportation; performance of activities abroad; use of assets from abroad.

5,Give the definition of a joint venture.-- When two or more ownership share a direct investment, the operation is known as a joint venture.

6.Is there any difference between portfolio investment and direct investment?-- The factor that distinguishes portfolio investment from direct investment is that control does not follow this kind of investment.

7.What are the main factors that cause changes in the world trade?-- The main factors causing changes in the world trade and investment patterns are economic conditions, technology, wars and political relationships.

Summarizing.

Complete the following sentences to summarize the text above:

1. International business is characterized by all business transactions that involve two or more countries and may be of governmental or private character.…

2. Companies can engage in international business through… cvarious means, including exporting and/or importing merchandise and services, direct and portfolio investment, and strategic alliances with other companies.

3. Exports and imports are … international earnings other than those derived from goods sent to another country.

4. Travel, tourism and transportation a lot of services comprise international business.

5. Foreign investment is the ownership of property abroad …

There are many factors that cause changes in the world trade: economic conditions, technology, wars and political relationships.

True-false questions:

International business is characterized by all business transactions that involve two or more countries and may be of governmental or private character.	 Yes
A company can engage in international business through various means: exporting and/or importing merchandise and services, direct and portfolio investment, and strategic alliances with other companies.	 Yes
Merchandise imports are tangible goods sent out of the country.	no
International business doesn’t comprise performance of activities abroad.	no
Portfolio investment doesn’t differ from direct investment.	no 
Economic conditions, technology, wars and political relationships are the main factors causing changes in the world trade and investment patterns.	Yes 

Viewpoint:

As part of international business, does tourism play an important role in the economy of our country?

МЕЖДУНАРОДНЫЙ БИЗНЕС

Международный бизнес характеризуется всеми деловыми операциями, которые связаны с двумя или более странами и могут носить правительственный или частный характер.

 Концепция международного бизнеса включает в себя баланс торговли (отношения между экспортерами) и платежный баланс (разница между внутренним и внешним денежным потоком). Компания может заниматься международным бизнесом различными способами, включая экспорт и / или импорт товаров и услуг, прямые и портфельные инвестиции, а также стратегические альянсы с другими компаниями.

 Экспорт товаров - это материальные товары, отправленные за пределы страны; Импорт товаров - это ощутимые товары. Поскольку эти товары заметно уходят и вводятся, их иногда называют видимым экспортом и импортом.

  Экспорт и импорт услуг являются международными доходами, отличными от тех, которые получены от товаров, отправленных в другую страну. Получение этих доходов считается экспорт услуг, тогда как оплата считается импортом услуг. Услуги также называются невидимыми.

  Международный бизнес включает в себя множество услуг: путешествия, туризм и транспорт; Осуществление деятельности за рубежом; Использование активов из-за рубежа.

  Иностранные инвестиции - это собственность на недвижимость за рубежом. Прямые инвестиции - это подмножество иностранных инвестиций, которое происходит, когда контроль следует за инвестициями. Когда два или более собственности имеют прямые инвестиции, эта операция называется совместным предприятием.

   Портфельные инвестиции могут быть как долговыми, так и справедливыми. Фактор, который отличает портфельные инвестиции от прямых инвестиций, заключается в том, что контроль не следует за такими инвестициями.

   Компенсационные силы влияют на условия, в которых компании используют свои возможности для работы на международном уровне. Основными факторами, вызывающими изменения в мировой торговле и структурах инвестиций, являются экономические условия, технологии, войны политические отношения.

30. INTERNATIONAL TRADE

Lead-in: Why do most countries exchange goods and services? Key words and phrases to merit special attention – заслуговувати особливої уваги to impose restrictions – накладати обмеження currency – валюта, гроші comparative costs – порівняльні витрати demand and supply – попит та пропозиція terms of trade – умови торгівлі average price – середня ціна foreign demand – зовнішній попит domestic inflation – внутрішня інфляція deterioration of trade – погіршення торгівлі

International trade merits special attention because it differs in several crucial respects from the exchanges of goods and services that take place within a country. First, there are more obvious “barriers” to trade between countries than to trade within countries. These can be simply the result of differences in economic structure, tradition, language or natural resources, or they can be restrictions imposed by governments on the movement of imports, exports, labour and capital. Secondly, different countries use differ­ent currencies, and trade is only possible where the currency of one country can be exchanged for the currency of another one. This fact alone is of little consequence where the relationship between currencies is fixed, but in practice the relative values of currencies often change, presenting us with a whole series of additional economic problems. Finally, economic conditions and government policies normally vary more significantly between countries than between regions of a country. Thus buoyant demand in the UK might cause the purchase of more goods and services from abroad than foreigners buy from the UK, resulting in balance of payments problems in the UK.