Unit 4 international marketing

 

 

Text 1

INTERNATIONAL MARKETING

VOCABULARY

boundaries -границы

shift – изменение

to foster –стимулировать

to achieve benefits – получить выгоду, экономический эффект

opportunity – возможность

dwindling sales – сокращающийся сбыт

multinational – (adj.) международный, имеющий предприятия, офисы в разных странах; (n.) транснациональная корпорация

costs – затраты, расходы

to set up –открывать (завод), учреждать

barrier to trade – барьеры, ограничивающие торговлю

to restrict – ограничивать

output –выпуск изделий, продукции

unskilled – неквалифицированный

to force out – вытеснять

to use up - истощать

non-renewable resources – невозобновляемые ресурсы

host country – страна местонахождения (юридического лица)

grant – дотация, субсидия

 

International marketing is marketing across national boundaries. International marketing is not a revolutionary shift, it is an evolutionary process. Since the end of World War II, improved travel, communications and technology have fostered an increase in trade between nations.

A company choosing to enter international markets can achieve many benefits, but can also have many difficulties.

The main reason for companies to do international marketing is to have better business opportunity to increase sales and profits. These firms are limited in their home country or their opportunities are greater in the foreign countries.

Many companies have little chance for growth in the domestic market. Competition may increase, or demand may shift to a newer, better product. If sales are falling in one country the business may move to another country where sales are rising. The economic environment in the home country may be undesirable because of higher taxes. It is logical to turn to other markets in any of these cases. So, foreign markets may offer an opportunity for growth. A product having dwindling sales at home may be new and exciting in other countries.

There are some good reasons why companies become multinational.

· to produce goods in countries with low costs, such as low wages. For example, most sports clothing is produced in Asia because wages are lower than in Europe.

· to get raw materials which the firm may need for production.

· to produce goods nearer the market to reduce transport costs. For example, bricks are expensive to transport so the producer sets up a factory near the market in another country.

· to avoid barriers to trade put up by countries to reduce the imports of goods. For example, sales of cars made in Japan are restricted in Europe. Japanese manufacturers now make cars in Europe too.

· to expand into different market areas. For example, if sales are falling in one country the business may move to another country where sales are rising.

So, there is no doubt that the businesses benefit from becoming multinational. But what is the effect on the countries they operate in? There are both advantages and disadvantages to the countries as a result of multinationals operating there.

Advantages of multinationals operating in a country

· Jobs will be created which will reduce the level of unemployment.

· New investment in buildings and machinery will increase output of goods and services in the country.

· Some of the extra output may be sold abroad which will increase the exports of the country. Also, imports could be reduced as more goods are now made in the country.

· Taxes will be paid by the multinationals.

Disadvantages of multinationals operating in a country

· The jobs created are often unskilled. Skilled jobs, such as those in research and design, are not usually created in the countries receiving the multinationals.

· They may force local firms out of business. Multinationals are often more efficientand have lower costs than local businesses.

· Profits are often sent back to the multinational business “home country” and not kept in the country where they are earned.

· They often use up rare and non-renewable resources in the host country.

· As the businesses are very large they could have a lot of influence on both the government and the economy of the country. They might ask the government for large grants to keep them operating in the country.

To summarize: companies do international marketing to have better business opportunity to increase sales and profits.

WORD STUDY

 

Ex. 1. Study the different meanings of the words and use them to translate the sentences.

 

shift n. 1) смена, перемена

2) рабочая смена

3) рабочие одной смены

 

to shift v. 1) менять(ся)

2) передвигать(ся)

3) перемещать, переводить; переставлять, переносить

4) ухищряться, изворачиваться

 

1. Don't try to shift the blame onto anyone else; it's your fault.

2. She works the night shift.

3. An employee shall not be required to work more than one shift in each 24 hours.

4. The first shift went home, the second has not started their work yet.

5. Give me a hand to shift these chairs.

6. She shifted her gaze from me to Bobby.

7. The White House hopes to shift the media's attention away from foreign policy issues.

8. It was a clear attempt to shift the responsibility for the crime onto the victim.

9. The shift from one type of economic system to another is always difficult.

Ex. 2. Match the words with their definitions.

 

___ boundary	a) a large business company operating in several countries
___ to foster	b) the amount produced, as in a given period
___ multinational	c) something that indicates the farthest limit, as of an area; border
___ environment	d) a sum of money provided by a government, local authority, or public fund to finance educational study, overseas aid, building repairs, etc
___ barrier	e) not able to be restored, replaced, recommenced, etc
___ non-renewable	f) to promote the growth or development of
___ grant	g) external conditions or surroundings, especially those in which people live or work
___ output	h) a rule, problem, etc. that prevents people from doing something, or limits what they can do.

 

 

Ex. 3. Give English equivalents to the following words and phrases.

 

способствовать увеличению объема торговли _____________________________________

пересекать национальные границы _______________________________________________

объем продаж падает / растет ___________________________________________________

экономический климат _________________________________________________________

сократить транспортные расходы ________________________________________________

избежать торговых барьеров ____________________________________________________

сократить уровень безработицы __________________________________________________

увеличить выпуск товаров и услуг ________________________________________________

неквалифицированный труд _____________________________________________________

вытеснить местные фирмы с рынка _______________________________________________

невозобновляемые ресурсы _____________________________________________________

возможности экономической деятельности ________________________________________

 

Ex. 4. Match the verbs in column A with the nouns in column B.

 

A	B
to use up	a. sales of cars
to set up	b. barriers to trade
to restrict	c. non-renewable resources
to foster	d. benefits
to avoid	e. factories
to ask for	f. level of unemployment
to achieve	g. an increase in trade
to reduce	h. grants

Ex. 5. Replace the words in italics with their synonyms from the text.

 

marketing across national borders _______________________________________________

revolutionary change _________________________________________________________

to encourage an increase in trade between countries _________________________________

little opportunity for growth in the home market ______________________________

to cut down transport costs _____________________________________________________

sales of cars are limited ________________________________________________________

some of the additional output may be sold abroad ___________________________________

to increase production of goods and services ________________________________________

multinationals are often more productive ___________________________________________

to ask the government for large subsidies ___________________________________________

the jobs created are often unqualified ______________________________________________

Ex. 6. Make up sentences with the jumbled words.

 

1. marketing / is / international marketing / national / across / boundaries.

2. growth / many companies/ little chance / in / have / for / the domestic market.

3. demand / product / may / better / shift to/ a / newer.

4. in Europe / sales / cars / in Japan / are restricted / of / made

5. force / business / out / of / multinationals / may / firms / local.

6. often / multinationals / non-renewable / and / resources / use up / rare / in the host country.

 

COMPREHENSION