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Unit 9. Import Export

Unit 1. Company structures. | I. KEY VOCABULARY (SB: page 14) Learn and render | UNIT 3. Retailing | Unit 4 Franchising | Unit 5. International business styles | III. Japanese managing styles. | Unit 6 Banking | Unit 7. Business and Environment | Unit 12. CORPORATE ALLIANCES AND ACQUISITION | Unit 13. Marketing. |


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  6. Ex. 2 Read these original sentences and passages. Circle what you consider to be the most important ideas. Then write your own paraphrase of the sentence or passage.
  7. Ex. 2. In each list of steps below, one important step or stage is missing. Insert it where it belongs.

 

1. KEY VOCABULARY (SB: page 84) Learn

International trade is the exchange of goods and services between different countries. Depending on what the country produces and needs, it can exṕort (send goods to another country) and impórt (bring in goods from another country).

Governments can control international trade. The most common measures are tariffs (or duties) and quotas. A tariff is a tax on imp o rted goods. And a quota is the maximum quantity of a product allowed into the country during a certain period of time. These measures are protectionist as they raise the price of imported goods to ‘protect’ domestically produced goods. International organizations such as WTO (World Trade Organization) and EFTA (European Free Trade Association) regulate tariffs and reduce trade restrictions between member countries.

A country’s balance of trade is the difference between the values of its ' imports and ' exports. This includes visible imports / exports (goods) and invisible imports / exports (services). If a country imports more than it exports, it has a trade deficit. If it exports more that it imports, it has a trade surplus. The bigger the financial flows are, the higher the turnover is.

2. OVERSEES MARKETS.(SB: page 86) Learn

 

Companies can choose from various methods to establish their products in a foreign market. One option is to start by working with local experts such as sole agents or dealers, who have specialist knowledge of the market and sell on behalf of the company. This often leads to the company opening a local brunch or sales outlet. Another option is to sell, or give permission to use, patents and licenses for their products. They may wish to start by manufacturing in the export market, in which case they can either set up a local subsidiary or a joint venture with a local partner.

Further development of international trade presupposes such benefits for the partner countries as new jobs, higher living standards and closing economic, educational and technological gaps between people. Specializing in production of certain goods helps make best use of natural resources.

 

3. MARKETS AND SALES vocabulary. Text BARCO. (SB: ex. 1 page 86 - 87)

•market opportunities • to shift a strategic focus • consumer products

• a complex market • to exploit the potential • turnover- товарооборот

• fast growing markets- динамично развив рынки • manufacturing facilities • to face obstacles

• international markets • a strategic focus-план развития • tax barriers

• a niche market •to emerge as • strata of society

• a market share • assembling plants • sensitivities

•to assemble on the spot • bureaucracy

• sales offers • components- запчасти • delays

• sales reached a peak

• sales remained stable

• sales stood at …

• sales fluctuated

• sales leveled off

 

4. A COMPANY PROFILE: BARCO. (SB: page 87) Learn

 

BARCO has recently emerged as one of Belgium’s fastest - growing companies. Created in 1934 as a Belgian American Radio Corporation, the company moved out of consumer products and concentrated instead on high – value niche markets such as computer projectors and specialist display systems. BARCO has shifted its strategic focus from exporting digital High Tech products to assembling them on the spot. By moving manufacturing facilities, assembling plants and sales offices to India the company increased its turnover up to 23 bn BFr.

India is one of the most exiting long-term market opportunities in the world and one of the most complex ones. International companies who want to exploit the potential of Indian markets, face lots of obstacles. Although India has made efforts to open the economy in recent years, it remains more closed than other fast-growing markets such as China, when it comes to bureaucracy, import duties, tax barriers and delays. Although India is welcoming to foreigners and people speak English, there are also cultural hurdles or cultural clashes. There are sensitivities between states and religions, between strata of society. Such difficulties also make the country fascinating.

But the opportunities presented by Indian market overweigh any disadvantages. If you can afford to miss a fifth of the world’s population you can afford not to be there. Any company serious about having a worldwide market share can’t be absent from India.

 

 

 

5, SHIPMENT TERMS(SB: page 89 – 90) Learn

The invoice – (счет, фактура) In the context of international trade, the invoice provides information about goods exchanges between the exporter and the importer. It is prepared by the exporter and includes a description of the goods, their price, and the quality supplied. The invoice can act as a proof of purchase, informing the buyer that the goods have been sent. à By looking at the invoice you can get the complete information about the shipment (перевозимая партия товара): the exporter’s and the importer’s name and address, date of issue, the port of destination, quantity and description of goods. Special shipment terms are used for identifying shipment costs, insurance and freight (груз).

The bill of lading or consignment note (накладная, коносамент) is a transfer document. It is sent together with the fright (the goods consigned), giving details of the consignment, the consignor and the consignee. When signed by the consignee, the last becomes the legal owner of the goods.


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