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International business

International business
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The international corporation or global company has its origin. Usually it is the outgrowth of the great trading companies of the 17th and 18th centuries. In 1811 a New York statute said corporations could be created by the filing of documents. After that it became a matter of bureaucratic operations to become a corporation. By 1850 it was a very common thing in the United States and was under general statute in European countries as well. Since that time the corporate movement began. As the jet plane, satellite communications and computers began, it became possible for a company to control business in all the world.
The growth of international corporates operations is faster than the economic growth of the industrialized nations. There are some projects which predict that within a generation almost a half of the free words production will be internationalized.
This trend for internationalism presupposes some benefits such as new jobs, higher living standards and the closing of the gaps between people - economic, educational and technological. At the same time serious questions can be asked. Is it the most efficient way to use world researches? Can the international corporation be the best force for a better world? Is it politically stronger than government? Can it take care of the self interest and competitiveness on behalf of the greatest good? And in what way can the global company work toward easing the worlds crises - monetary, political, energy and food?
Active Vocabulary
multinational corporation міжнародна корпорація
global company міжнародна компанія
outgrowth продукт, наслідок
statute законодавчий акт
satellite communication супутниковий зв’язок
closing of the gaps заповнювати прогалини
jet plane реактивний літак
bureaucratic бюрократичний
Comprehension Questions
1. What is the origin of the multinational company?
2. When did the corporate movement begin?
3. Why did it become possible for a company to control enterprises on the other side of the globe?
4. How quickly is internationalism growing?
5. What can internationalism bring?
6. What problems can arise with internationalism?
7. What are your own answers and explanations to this problems?
Vocabulary Practice
Exercise 1. Choose the necessary word and put it in the sentence.
1 All countries must prepare for possible energy... in 1 internationalized
the future and save fuel. 2 bureaucratic
If you want to form a corporation today you must fulfil... operations.
When one deals with the currency of another country, it is
necessary to know the current... exchange rate. 3 statute
4.... is one factor to influence the growth of international business. 4 monetary
5. Some analysts state that most of the free worlds production 5 crisis
will be... internationalized within a generation. 6 satellite communication
6. In 1985 the... said that cooperatives could be created. 7 outgrowth
International corporation is very often an... of old trading companies.
Nick and Ann are having lunch. Nick is an executive in the international computer company.
Nick Do you like the idea of taking a month's trip to Europe and the Far East?
Ann What? You are kidding?!
Nick No. First of all I must say that it's a business trip. The company wants me to visit some of our operations. I should have meetings about the new computer I am developing. They think if we combine expertise we'll advance more quickly.
Ann Oh, Nick. It's great. Where are we going to?
Nick To nine countries. We have nine development laboratories. In fact, only now I
realize how large the company is, a real global company.
Ann But the company started here in America.
Nick Yes. In this sense, we're American. Each company has to be incorporated somewhere, here or in Japan or Canada or India. But our corporation is a real multinational one.
Ann What does it mean then?
Nick Well, we are in 126 countries and we have there 125000 employees.

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