Вопрос № 348271 - Английский язык

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Companies that want greater control over their product have to manufacture it at home and then export it to the foreign countries. In this case exporters must examine the market. Some firms can sell their products to an export\import merchant, who takes all the selling risks. In other cases the company may use an export\import agent who sells the products to wholesalers or retailers in the foreign country. Sometimes the exporter may set up its own sales offices and branches abroad. This is more expensive and only large firms can afford it.

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Companies that want greater control over their product have to manufacture it at home and then export it to the foreign countries. In this case exporters must examine the market. Some firms can sell their products to an export\import merchant, who takes all the selling risks. In other cases the company may use an export\import agent who sells the products to wholesalers or retailers in the foreign country. Sometimes the exporter may set up its own sales offices and branches abroad. This is more expensive and only large firms can afford it.

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To go international a large firm can set up a joint venture with a company in another country. In this case two companies pool their resources to design, manufacture and sell the product. Both firms profit by the results of this arrangement. They also share responsibility. One of the firms provides the necessary funds and know-how for producing goods. In return it gets a foothold in the foreign market. The other firm obtains financial aid and technical assistance. And it takes responsibility for handling red tape and organizing sales in the local market.

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In an interlinked global economy, consumers are given the opportunity to buy the best products at the best prices. By opening up markets, a government allows its citizens to produce and export those things they are best at and to import the rest, choosing from whatever the world has to offer.

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There are some institutions and policies in the world that foster international trade. If these institutions did not exist, many companies would not at all be able to go international. The U.S. government created the Export - Import Bank (Eximbank) in order to reduce unemployment in the country. Eximbank makes loans to U.S exporters and foreign buyers of U.S. imports if private financing is not available. A firm can also buy insurance from the Foreign Credit Insurance Association (FCIA) to cover political risk (such as expropriation and loss due to war). The exporter can also buy insurance coverage on credit sales to foreign customer.

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When a company is small it cannot sometimes enter a foreign market. It can sign a licensing agreement with a foreign firm. A license is a legal agreement in which one firm gives another a right to manufacture and sell its product. A company that obtains this right pays the licenser a royalty. Royalty is a certain percentage of the income from the sale of the product. Businesses that have patents or trademarks usually can use licensing to protect them against counterfeiters. The licensee gains a successful product and the know-how. The licenser often controls the quality of the goods which the licensee produces, because high quality guarantees the reputation of the licenser. The licensee chooses the selling strategies because he knows more about how to sell the product in the foreign market.