new insights into business ocr small (835551), страница 16
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One option is to start by working with local experts such as sole agents orm ulti-distributors, who have a specialist knowledge of the market and sell on behalfof the company. This often leads to the company opening a local branch or salesoffice. Another option is to sell, or give permission to use, patents and licences fortheir products. They may wish to start by manufacturing in the export market, inwhich case they can either set up a local subsidiary or a jo in t venture with a localpartner.Read the text opposite about BARCO, a Belgian electronics firm. Which ofthe methods mentioned above did BARCO use to establish itself on the Indianmarket?Read the text again and list the advantages and disadvantages of exportingto India.VocabularyD isadvantagesThe market is growingHigh import duties1 Find words in the text which have a similar meaning to the words andexpressions listed below.1234567886A dvan tagescomplicated (para 1) complex.put together (para 1)a change (para 2)particular segment (para 3)take advantage of (para 6)difficulties (para 6)a complicated official system (para 6)lateness (para 7)Import ExportP r o f i l e :В I RGO4of Belgium1 After three years travelling aroundAsia as head of BARCO’sactivities in the region, JoostVerbrugge is convinced that Indiais one of the most exciting longterm market opportunities in theworld and one of the mostcomplex.
Since 1994, BARCO,best-known for its digitalprojectors for computers, has gonefrom a relatively low level ofexports to India to selling aboutBFr 200m of products there ayear, half exported from Europe,half assembled on the spot*. Thatis a small but significant part ofits total BFr 23bn turnover lastyear.2 Expansion in India has takenplace at the same time as a shift inBARCO’s strategic focus, and itsemergence* as one of Belgium’sfastest-growing companies.3 Created in 1934 as the BelgianAmerican Radio Corporation, thecompany moved out of consumerproducts in the 1980s. Itconcentrated instead on highvalue niche markets such ascomputer projectors and specialistdisplay systems.4 From its base in Kortrijk, Flanders- Belgium’s Dutch-speakingregion - it has exported to Indiafor more than a decade, originallyselling kits for video monitors tothe national television station,through local agents.
Four yearsago, it set up its own sales andservices office in New Delhi.5 It now has a smaller sales office inBangalore, a software house inChennai and a projector assemblyplant in Noida, near New Delhi.Having invested about BFr 100m,and now employing 150 people inIndia, it plans a further salesoffice in Mumbai and acomponents factory in Noida.‘That is quite a lot for a smallcompany like BARCO,’ says Mr.Verbrugge. ‘It’s mainly investmentfor the future. The market ispartly there now, and we areconvinced it will definitely bethere in a few years.’But for those wanting to exploitthe potential*, obstacles remain.Although India has made effortsto open its economy in recentyears, Mr.
Verbrugge says itremains more closed than otherfast-growing markets such asChina when it comes tobureaucracy, import duties and taxbarriers.‘It is not unusual to have importduties of 40% on things that youwould consider normal workingtools, like a printer for a PC,’ hesays. ‘As well as the high importduties, you have a famous - orshould I say infamous bureaucracy.’ This can haveimportant practical effects. Mr.Verbrugge says that BARCOwould like to assemble more of itsproducts within India, but thiswould mean importingcomponents* from 20 differentcountries, creating huge amountsof paperwork and delays.Although India is welcoming toforeigners, Mr.
Verbrugge saysthere are also cultural hurdleswhich can initially be deceptive.‘On a first visit India seems easierthan China or Japan because*on the spot: in the place m entioned*emergence: appearing fo r the first tim e*potential: possible opportunitiesОOSpeople speak English. Only afteryou start operating there do yousee all the complexities. There aresensitivities between states,between religions, between strata*of society.’ Such differences alsomake the country fascinating.‘India is a hundred differentworlds living next to each other inthe same country,’ Mr. Verbruggesays.9 These practical and culturalcomplexities were largely behindBARCO’s decision to set up itsown sales office in thesubcontinent.
‘Much more isneeded than just having an agentwith a fax and a phone. You haveto understand the marketplace,how Indian business works.’10 But the opportunities presented byIndia outweigh* anydisadvantages. ‘If you can affordto miss a fifth of the world’spopulation, you can afford not tobe there,’ says Mr. Verbrugge. Tthink any company serious abouthaving a worldwide market sharecan’t be absent from India.’The Financial Times*a component: a part used to make s.th.*strata: levels4o outweigh: to be more im p o rta n t than87u n it nineComplete the following passage, which describes the experience of theFrench car manufacturer Peugeot in the Indian market, with words from Keyvocabulary, Reading and Vocabulary 1, in the correct form.Peugeot signed a joint venture agreement to produce cars in India in 1994. Theysaw this as a great opportunity for them to 1 e x p lo it.
this vast and quicklygrowing market. They planned to 2_________ 22,000 cars by 1997 and 60,000by the year 2000. In reality production in 1997 was just 2,000.Automotive group Maruti, which had been working with Suzuki since 1984, hadestablished an extraordinary dominance in the country's economy car sector. Thestrongest3___________________ for a foreign competitor therefore, appeared tobe in the market for upper-range cars.
Peugeot opted for its 309, a mid-range carin Europe but one which represents between 40 and 60 months' salary for theaverage worker in India. In spring 1995 4__________occurred when Indianauthorities argued that certain parts imported for production were still on a list ofbanned products which are taxed separately and Peugeot had to pay high5__________to import them.But in spite of all the 6_________ this market presents, Peugeot has not given upon the country. As one executive explains ‘We will expand by granting7__________to local manufacturers in the future.'Vocabularydevelopment:compoundadjectives 1Adjectives can be formed by combining two words, for example long-term(para 7).
These adjectives are hyphenated only when they come before a noun.1 Complete the phrases below, using words from A and B. There is sometimesmore than one correct answer, and some words may be used more than once.AВenvironmentallyoldshortlowwellhighusera envLrcmmenbcdUjfashionedtermbudgetknownfriendlyleveltrainedfrLendkj_____ packagingb ____________________________ typewriterc ____________________________ opportunitiesd ____________________________ advertisinge ____________________________ personalityf ____________________________ decision-makingg ____________________________ softwareh ____________________________ staff2 What other adjectives of this type do you know?88"Import Export ■ListeningThe invoiceIn the context of international trade, the invoice provides information aboutgoods exchanged between the exporter and the importer.
It is prepared by theexporter and includes a description of the goods, their price and the quantitysupplied. It can act as proof of purchase, informing the buyer that the goodshave been sent.!HSj Listen to an explanation of the invoice below, and complete the missinginformation.TENNISENT C O M P A N Y4 0 1 9 B e a c h B o u le v a r d S o u t hExporter's name andL o s A n g e l e s , C a li f o r n ia 9 0 1 2 6addressT e le p h o n e : 6 1 5 . 8 9 0 . 9 0 0 0Fax: 6 1 5 .8 9 0 .9 0 7 7e - m a il : s a l e s @ m t e c . c o mInvoiceChampion Sport Ltd.Im porter's name andaddress71 Victoria LaneSt John’s WoodB 33.D a t e ...
J f c f e . . .1D a t e o f is s u eLondon NW1 3PPI n v o ic e N o ..................................................................... 2QUANTITYjAMOUNTDESCRIPTIONTennis RacketsDescription o f goods^ of ‘GX 12’ modelmodel5 of ‘Tennis Pro'Ex-works price:GX 12 model £78 eachTennis Pro model £116 eachS hipm ent term s,£All freight charges andexport packingInsurance from warehouseto warehouse£c.i.f. London£6Cost o f fre ig h t and£7insurance(if specifically8requested)c.i.f.
= cost, insuranceand freig h t. The porto f destination isTotal9Total a m o u n t payablenamed.The contents ofMarks & Nos.in d ivid u a l packages10 cardboard cartons 11 per cartonImport Licence No.Marks and num berson packages12N u m be r and type ofpackagesThe e xp o rt and/orim p o rt licencenum bersMETCS LTDLONDON1-16per proMetropolitan Tennis EquipmentR o b e rto M o ra /e o —Signature o f theexporter89u nit nineReadingThe bill of ladingThe bill of lading is a transfer document. The exporter writes the importer'sname on the bill of lading, and in this way the importer becomes the legalowner of the goods.©©CODE NAME: 'CONGENBILL', EDITION 1994___________BILL OF LADING" • ShipperTRANSEA & Co.TO BE USED WITH CHARTER PARTIES-# Consigneeb /l. No.689381ASIAN GOODS IMPORTING EMPORIUM0Notify Address©(* ) ©Star of the East©4Пi-Port of loadingVessel©TelefaxUnit 18, WalterstownIndustrial Estate, DoverPort of dischargeBangkok+1302487862+26448483DoverGross weightShipper's description of goods1000 kg• 100 cardboard cartons of porcelain items150 cardboard cartons of Christmas decorations150 kg200 cardboard cartons of rice cookers700 kgFreight payable as perCHARTER-PARTY d a te d ...........Q И I П П Г FN at the Port of Loading in apparent10/11/99О П I l i L LJ good order and conditionon boardthe Vessel for carriage to the Port of Discharge or so nearthereto as she may safely get the goods specified above.Weight, measure, quality, quantity, condition, contents andvalue unknown.FREIGHT ADVANCEReceived on account of freight:IN WITNESS whereof the Master or Agent of the said Vesselhas signed the number of Bills of Lading indicated below allof this tenor and date, any one of which being accomplishedthe others shall be void.PaidFOR CONDITIONS OF CARRIAGE SEE OVERLEAFFreight payable atPlace and date of issueBangkokBangkokNumber of original Bs/LSignature! ?arfc90Import ExportMatch the parts of the bill of lading opposite with the descriptions below.12345678The date of the contract between the exporter and the shipping company, gThe name of the importer.Details of the goods.The name of the ship.Money paid to the shipping company before the journey.The place where the goods are unloaded.The name of the shipping company.The place where the goods are loaded.Language FocusWhich sentence below refers to1 a future fact?2 a prediction not based on present evidence?3 a degree of probability or certainty?4 a decision made now?5 something decided before, an intention?6 a prediction based on present evidence?abcdefIs it urgent? OK, I'll do it right now.Next year, we're going to start exporting to Japan,His overseas trip will be a success.Exports are slowing down; there's going to be a recession,The market will definitely be there in a few years,This company will be 100 years old next year.►► For more information on will and going to, turn to page 167.Complete this dialogue between Steve, an export manager, and Bob, his agentin Australia, using will or going to and the verbs in brackets.Steve: Hello Bob, I'm phoning to check a few things with you about my trip nextweek.Bob: Hold on Steve, I 1_________ (get) the file out.
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