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Exercise 5. Use the graph to forecast Can-Am’s sales in Finland.

$

50000

30000

10000

We expect sales to fall to $20 000 in year 6.

a)We expect ............. in year 7.

b)We believe ........... in year 8.

c)We forecast that .......... in year 9.

ΘNow work through the recorded exercise.

ΘThe meeting continues. Thomas Willhite argues for a larger market.

Read the text

Willhite: Now, Mrs. Lamont, can you tell me what Can-Am’s share of the UK market is?

Lamont: About 18%, and we expect it to increase.

Willhite: And what is our share of the market in the rest of Europe?

Lamont: Er ... I’d have to check that.

Willhite: Well, I can tell you – it’s almost zero. Now let me ask you another question. What proportion of your sales are in the UK?

Lamont: About 85%.

Willhite: That’s what I thought. In other words, there is a huge, potential market in Europe that you’re ignoring.

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Nash: But just a minute, Thomas, it isn’t as simple as that. Despite the EC, Europe still isn’t one market. It’s a number of independent national markets. They are all very different, with different regulations, different distribution systems.

Willhite: I appreciate that there are problems, but it’s a market we cannot ignore. Our sales people tell me it’s worth 15 million dollars a year. Now we are strongly in favor of expanding our sales in this market.

Lamont: But we must consider costs. Think what it would cost to export to ... to four European countries. I mean the selling costs and the transportation costs! And payment would take longer. Financing international sales can be very expensive.

Willhite: I am well aware of the costs, but what about the cost of not competing in these markets. The cost of lost sales. We are not the only company in the market. Nash: Believe me, Thomas, I know the European market. And, personally, I’m against your suggestion. It isn’t feasible.

Willhite: Well then, let me tell you this. We calculate that Can-Am’s sales in the UK will be lower than you forecast, as much as 17% lower. We also calculate that our total sales will double if we sell throughout Europe. We can’t ignore an opportunity like that ... and neither can you.

Θ Now listen to the recorded conversation.

Exercise 6. These are the arguments used in the meeting, for and against selling outside the UK. Who put forward these arguments – Touchline or Can-Am?

Can-Am has an 18% share of the UK market. Touchline

a)Potential in the European market is huge.

b)The majority of sales are in the UK.

c)Europe is made up of a number of different markets.

d)Europe offers a potential market of 15 million dollars a year.

e)Sales could double in continental Europe.

f)Distribution would be more complicated.

g)We must compete with other producers.

h)Sales in the UK will not be as high as forecast.

i)Your idea is not possible.

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Exercise 7. Thomas summarizes the position with Touchline. Complete his summary with the words given below.

Revision of the file

Exercise 8. Insert prepositions where necessary.

1.Can-Am’s sales ... the European market are growing fast.

2.The annual revenue of the company comes ... export sales.

3.The company sells its products ... an exclusive distributor.

4.He invested $10000 ... an oil company.

5.Sales ... abroad have grown ... an annual rate ... 20% for the last few years.

6.Can-Am is competing ... rival companies from the USA.

7.Vice President of the company is concerned ... the present situation.

8.He contacted ... an expert from market research organization.

9.We are ... favour ... expanding our sales ... this market.

10.Our total sales will double if we sell ... Europe.

Exercise 9. Paraphrase the underlined phrases using your active vocabulary.

1.I know about this fact.

2.Several people in the Board said they didn’t support expanding on a new market.

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3.Wolf’s report supported an improvement in working conditions.

4.There seems to be only possible solution.

5.We’ll need to see an explanation in detail of these figures before we sign the country.

6.The number of people without work has become twice as many in the last five years.

Exercise 10. Give the summary of the file.

File 3

Glossary

Make sure that you know these words. Find Russian equivalents to them.

to put pressure on smb – to keep trying to persuade someone to do smth; to make smb do smth to take effect – to come into operation

to cancel (terminate) an agreement to end an agreement or arrangement that exists in law cancellation (termination) – when someone decides that an organized event will not happen or stops an order for something

notice of termination – information (notification) or warning about the ending of an agreement

to resolve (differences) – to find a satisfactory way of dealing with; to settle to get (much/little) response (reaction) – to get actions done in answer

to take legal advice – to get a sort of consultation from a lawyer

Mind the prepositions sales rise by 25% under the agreement

to discuss over the phone to put through

Can-Am is losing profits because its European distributor, Touchline Trading UK, is not competing effectively throughout Europe. Thomas Willhite, Can-Am’s International Vice President, has asked Touchline to change its policy. Touchline is unwilling.

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Θ After five months of unsuccessful negotiations, Can-Am’s Board of Directors decide to put pressure on Touchline. The Chairman instructs Thomas Willhite to prepare a letter. He dictates the following draft.

Exercise 1. Read the draft and correct the typist’s mistakes.

CAN-AM

CAN-AM SPORTS CORPORATION

CAN-AM CENTER

52 BLOOR STREET WEST

TORONTO

ONTARIO M5W 1A3

Telephone (416) 555-8000

Telex Number 053 3600

Fax (416) 555 8100

DRAFT

Mr. Colin Nash

Managing Director

Touchline Trading

13 Kingsway

London SW2B 6FA

United Kingdom

Dear Mr. Nash:

I am writing to inform you that Can-Am intends to cancel its distribution agreement with Touchline Trading. This cancellation will take effect from the first day of January 19.

As you know, we have conflicting views of how Can-Am’s position in the European market should be developped ... the future.

Discussions between us have failed to resolve these differences. Therefore, as required by the terms of our agreement, I hereby give you six months’ notice of termination, ... todays date.

Your’s sincerely,

Gregory Cornelsen

Chairman and Chiefs Executive Officer