MULTINATIONAL CORPORATIONS
A company often becomes involved in international trade by exchanging goods or services with another country-importing raw materials it may need for production or exporting finished products to a foreign market. Establishing these trade relationships is the first step in the development of a multinational business. At this stage, however the corporation’s emphasis is still on the domestic market. As trade expands, the corporation’s dealing with companies or people outside the “home country” of that corporation increase.
The corporation then begins to view the whole world as a base for production and marketing operations. The next step in the development of a multinational business is focusing on the world market. The company may establish a foreign assembly plant, engage in contract manufacturing, or build a foreign manufacturing company or subsidiary. Therefore, a multinational corporation is a company that is primarily based in one country and has production and marketing activities in foreign countries.
Since World War II, multinational corporations have grown rapidly. The names and products of many of the multinational have become well-known in the world marketplace: International Business Machines (IBM), Royal Dutch Shell, Panasonic, Coca-Cola, and Volkwagen. Coca-Cola, for example, now has operations in more then 180 countries.
A multinational corporation operates in a complex business environment. Cultural, social, economic, political, and technological system vary from country to country. In order to operate successfully, a multinational company needs a basic understanding and appreciation of the foreign business environment.
Comprehension
A. Answer the following questions about multinationals. Questions with asteris (*) cannot be answered directly from the text.
1. What is the first step in the development of a multinational business?
2. Where is the comapany’s emphasis when it is simply trading with other countries?
3. What market does a multinational corporation focus on?
4. A company may establish its manufacturing operations in foreign countries? What are three forms that these operations may take?
5. What is a multinational corporation?
6 When have multinationals grown rapidly? *Why do you think they have experienced this period of rapid growth?
7. *What are some products that are produced by the following multinational corporations: IBM, Coca-Cola, Panasonic, Shell, and Volkswagen?
8. *Why does a multinational corporation operate in a more complex business environment than a domestic company?
9. *What are some of the social and political factors that can vary from country to country?
10. Why does a multinational corporation need a basic understanding of foreign business environments? *How can a multinational gain this understanding?
Answer:
A. 1. The first step (it) is establishing the trade relationship with another country.
2. The companies emphasis (it) is still on the domestic market.
3. A multinational corporation (it) focuses on the world market.
4. The three forms (they) are: It may establish a foreign assembly plant, engage in contract manufacturing, and build a foreign manufacturing company or a subsidiary.
5. A multinational corporation (it) is a company that is primary based in one country and has production and marketing activities in foreign countries.
6. Multinationals (they) have grown rapidly since World War II. Because during the war many countries knew what recurces are scarce or abundant in other countries.
7. IBM: International Business Machines, Royal Dutch Shell oil, Panasonic electronic, Coca-Cola softdrink, Volkswagen automobiles.
8. Because a multinational corporation focuses on the world market, and each country has its own system: culturally, economically, politically and technologically. Where as a domestic company only operates in one country which its system its already familiar.
9. Socially: In Japan life time employment system is applied, where as in Indonesia contract system employment is used.
Politically: Thailand is monarchism, Indonesia is democratic.
10. In order to operate successfully. This understanding can be gained through market research.
B. Determine which of the following statement are true and which are false. Then put T
or F in the blanks. Rewrite false statements to make them true.
1. T Multinaltional corporations have grown rapidly since 1945.
2. F Any company engaged in international trade is a multinational business.
3. T In order to operate successfully, a multinational company needs to be aware of national and international business environments
4. F A multinational corporation focuses on its “home country,” or domestic market.
5. F A multinational company does not establish factories in foreign countries.
Vocabulary Exercises
A.Write down any terms that you did not understand in the reading. Find each term in the reading, look at its context, and try to figure out the meaning. Discuss these terms with your classmates.
B.Look at the terms in the left-hand colomn and find the correct synonyms or definiti-
Ons in the right-hand colomn. Copy the corresponding letters in the blanks.
1. j corporation (line 5) a. chiefly; principally
2. e expand (line 6) b. function in; work in
3. g view (line 8) c. change
4. i stage (line 5) d. a company having more than half of its stock
owned by another company
5. a primarily (line 13) e. increase the dimensions of
6. h base (line 8) f. growth; expansion
7. c vary (line 21) g. see; look at
8. d subsidiary (line 21) h. foundation
9. b operate in (line 20) i. a step in development
10.f development (line 4) j. a type of business organization formed by an
association of stockholders
C.Fill in the blanks in the following paragraph with the most appropriate terms form the
list.
base operate in appreciation of expands
vary corporation development subsidiary
staged involved in view relationship
During the development of a corporation, the organizational structure may vary over time and pass through a number of stages . As the corporation grows, it expands its operations. It might become involved in setting up a subsidiary . Although the corporation still has a primary or “home base ,” establishment of a subsidiary allow the company to enter into new relationship with a view toward increasing its production and marketing capabilities.
Text Analysis
Look at the reading to answer these questions.
1.What does each of the following refer to?
LINES WORDS REFERENTS
2 it a company
5 this stage first step
17 IBM International Business Machine
2.Match the connective words or phrases with the appropriate functions.
c however (line 5) a. summarizing
d then (line 8) b. illustrating
a therefore (line 12) c. contrasting
b for example (line 18) d. sequencing information
3.Summarize the two general steps in the development of a multinational corporation.
a. establishing these trade relationship. (line 3-5)
b. focusing on the world market. (line 8-10)
4.Sometimes the definition of a term takes this form:
a controls the
A restrictive trade law → is → law → that → number of goods
imported or exported
that
term being defined → verb to be → class→ which → definition
This type of definition is known as a formal definition. In a formal definition the term or word being defined occurs first. It is followed by the verb to be (usually is ar are). Next the class states the general group that the term belongs to:
TERMS CLASSES
multinational corporation company
typewriter business machine
absolute advantage theory of specialization
After the class, either that or which is used. Finally, the definition itself includes information distinguishing this term other members of its class.
Write formal definitions for multinational corporation (page 56), corporation (page 57), and subsidiary (page 57).
a. A multinational corporation is a company that is primatily based in one country and has production and marketing activities in foreign countries.
b.
c.
5.Formal definitions may be shortened to a more general form, which includes less information. This is often called a semiformal definition. The class, that or which, and the verb to be are omitted.
A restrictive trade law → controls → the number of goods imported or exported
Term being defined → verb → definition
Change the formal definition from the previous exercise into semiformal definitions.
a A multinational corporation is primatily based in one country and has production and marketing activities in foreign countries.
b.
c.
TENSES
Pr – Present; Ps-Past; S-Simple; C-Continuous; F-Future; Pf-Perfect
1. Pr.S - He writes many letters everyday. (habitual action)
2. Ps.S - He wrote m.1 yesterday. (occurred in the past)
3. Pr.C - It is writing m.1 now. (is occurring right now)
4. Ps.C - He was writing m.1 when it rained yesterday. (two actions in the
past).
5. Pr.F - He will write m.1 tomorrow. (will happen in the future).
6. Ps.F - He would write m.1 yesterday, but he didn’t have time.
7. Pr.Pf - He has written m.1 already (has just happened now).
8. Ps.Pf - He had written m.1 when it rained yesterday. (two actions in the past)
9. Pr.Fc - He will be writing m.1 when you visit him tomorrow. (in the future)
10.Ps.Fc - He would be writing m.1 when you visited him yesterday. (in the past)
11.Pr.FPf - He will have written m.1 when you come tomorrow (in the future)
12.Ps.FPf - He would have written m.1 when you come yesterday. (in the past)
13.Pr.Pfc - He has been writing m.1 for two days until now. (continuosly from past
until now).
14.Ps.Pfc - He had been writting m.1 for two days until yesterday (continuosly
from past to past)
15.Pr.Fpf.C - He will have been writing m.1 for two days will tomorrow. (until in the
future)
16.Pr.F.Pfc - He would have been writing m.1 for two days until yesterday. (until in
the past)
END
Selasa, 17 November 2009
Bhs inggris SoftSkill
Reading
THE BALANCE SHEET
Financial statements are the final product of the accounting process. They provide information on the financial condition of a company. The balance sheet, one type of financial statement, provides a summary of what a company owns and what it owes on one particular day.
Assets represent everything of value that is owned by a business, such as property, equipment, and accounts receivable. On the other hand, liabilities are the debts that a company owes-for example, to suppliers and banks. If liabilities are subtracted from assets (assets-liabilities) the amount remaining is the owners share of a business. This is known as owners’ or stockholders equity.
One key to understanding the accounting transactions of a business is to understand the relationship of its assets, liabilities, and owners’ equity. This is often represented by the fundamental accounting equation: assets equal liabilities plus owners’ equity.
ASSETS = LIABILITIES + OWNERS’ EQUITY
These three factors are expressed in monetary terms and therefore are limited to items that can be given a monetary value. The accounting equation always remains in balance; in other words, one side must equal the other.
The balance sheet expands the accounting equation by providing more informa- tion about the assets, liabilities, and owners’ equity of a company at a specific time (for example, on December 31, 1993). It is made up of two parts. The first part lists the company assets, andmthe second part details liabilities and owners’ equity. Assets are divided into current and fixed assets. Cash, accounts receivable and inventories are all current assets. Property, buildings, and equipment make up the fixed assets of a company. The liabilities section of the balance sheet is often divided into current liabilities
(such as bonds and long-term notes).
The balance sheet provides a financial picture of a company on a particular date, and for this reason it is useful in two important areas. Internally, the balance sheet provides managers with financial information for company decisionmaking. Externally, it gives potential investors data for evaluating the company’s financial position.
Comprehension
A.Answer the following questions about the balance sheet. Questions with asterisks (*) cannot be answered directly from the text.
1.What is the final product of the accounting process?
2.What is a balance sheet?
3.Does the balance sheet provide financial information for a long period of time (for example, January to June 1993) or does it provide information for a specific point in time (for example, on June 30, 1993)?
4.What is the difference between assets and liabilities?
5.How is owners’ or stockholders’ equity determined?
6.How can the relationship between assets, liabilities, and owners’ equity be repre- sented?
7.Does the accounting equation always remain in balance? *Why or why not?
8.How can business use a balance sheet? *As a manager, how would you find a balance sheet useful?
Answer:
1.The final product of the accounting process is the balance sheet.
2.A balance sheet is a final statement that provides a summary of what a company owns and what it owes on one particular day.
3.It provides information for a specific point in time, for example, on Jun 30, 1993.
4.Assets represent everything of value that is owned by a business, liabilities are the debts that is a company owes.
5.Owners’ or stockholders’ equity is determined by subtracting liabilities from assets.
6.It can be represented by the fundamental accounting equation assets equal liabilities plus owners’ equity.
7.Yes, it does. Because one side must equal the other. If not, it must be wrong with the recording.
8. A balance is useful for a business, because it provides a financial picture of a compa- ny on a particular day. It provides managers with financilal information for company decision making.
B.Complete the balance sheet by writing in the correct terms from the list bellow.
assets current liabilities long-term liabilities
liabilities fixed assets current assets
stockholders’ equity
International Manufacturing, Inc
Balance Sheet
December 31, 1993
Assets
Liabilities
Current assets
Current liabilities
Cash
$ 49,400
Accounts payable
$ 30,000
Accounts receivable
1,600
Income texes payable
19,000
Inventories
53,000
Total
$ 49,000
Total
$104,000
Long-term liabilities
Fixed assets
Bonds
$ 20,000
Property
$ 15,000
long-term liabilities
40,000
Buildings
50,000
Total
$ 60,000
Equipment
10,000
Total
$ 75,000
Total liabilities
$109,000
Stockholders' equity
Total assets
$179,000
Common stock
$ 47,000
Retained earnings
23,000
Total
$ 70,000
Total liabilities and
stockholders' equity
$179,000
Vocabulary Exercises
A. Write down any term that you did understand in the reading. Find each term in the reading, look at its context, and try to figure out the meaning. Discuss these terms with your classmates.
B. Look at the terms in the left-hand column and find the correct synonyms or definition in the right-hand column. Copy the corresponding letters in the blanks.
1. G property (line 6) a. assets equal liabilities plus owners’ equity
2. D equal (line 12) b. provide information item by item
3. F condition (line 2) c. indicate by words or symbols
4. B detail (line 21) d. have the same value as
5. A accounting equation (line 12) e. a series of transactions, changes, or functi-ons that bring about a particular result
6. H monetary (line 15) f. the existing circumstance
7. E process (line 1) g. anything owned by a person
8. C express (line 15) h. of or pertaining to money
C. Discuss the following questions with a partner. In giving your answers, try to use the italicized terms.
1.What is the difference between accounts receivable and accounts payable?
2.Why are accounts receivable and cash considered current assets while property and equipment are considered fixed assets? What do you think the difference between current and fixed assets?
3.The owners’ equity in a company equals assets minus liabilities. What is meant by owners’ (or stockholders’) equity?
4.If you were a manager, how would you use the balance sheet to evaluate you company’s financial condition?
5.What do you consider your personal assets? Do you have any liabilities? What are they?
Answer:
1.Accounts receivable is assets and accounts payable is liabilities.
2.Because they are easly changed into money.
3.Nett owning.
4.The manager know were the company is financial healthy.
5.Mobile.
Text Analysis
Look at the reading to answer these questions.
1.What does each of the following refer to?
LINES WORDS REFERENTS
1 they financial statement
9 this the owners’ share if a business
11 this the relationship of its assets
15 these three factors assets, liabilities and owners’ equity
2.In line 6, what are property, equipment, and accounts receivable examples of?
Assets
3.In line 7, what do suppliers and banks refer to?
To whom the company has depts..
4.In lines 5-7. two different phrases are used to incorporate example in the reading. What are these phrases?
a. Assets
b. Liabilities
5.Another method of clarification by example is the use of mathematical representations. From the reading, copy examples that use mathematical symbols.
a. The fundamental accounting equation.
b. Assets equal to liabilities plus owners’ equity.
6.In lines 28-31, two uses of the balance sheet are given. What are the key words that show each of these uses is in a different area? What uses does each word introduce?
KEYWORDS USES
Classification
Categories of the balance sheet can be classified to show the relationship between them. Fill in the following blanks based on the information provided in the reading and in Figure 1 (page 79).
Class: Assets Class: Liabilities
Members: Current assets Members: Current liabilities
Fixed assets Long-term liabilities
Class: Current assets Class: Current liabilities
Members: Cash Members: Accounts payable
Accounts receivable Income taxes payable
Inventories
Class: Fixed assets Class: Long-term liabilities
Members: Property Members: Bonds
Buildings Long-term notes
Equipment
Application
Using the information in the reading, answer the following questions. Give reasons to support your answers.
1.Which of the following is not a fixed assets: office equipment, machinery, marketable securities, land, and buildings? Why?
Marketable securities. Because its easy to change into money.
2.Are the following liabilities current or long-term: bank loans payable, accounts payable, mortgage bonds payable, taxes payable, and long-term notes payable? List each under the correct heading.
CURRENT LIABILITIES LONG-TERM LIABILITIES
Accounts payable Bank loans payable
Taxes payable Mortgage bonds payable
Notes payable
THE BALANCE SHEET
Financial statements are the final product of the accounting process. They provide information on the financial condition of a company. The balance sheet, one type of financial statement, provides a summary of what a company owns and what it owes on one particular day.
Assets represent everything of value that is owned by a business, such as property, equipment, and accounts receivable. On the other hand, liabilities are the debts that a company owes-for example, to suppliers and banks. If liabilities are subtracted from assets (assets-liabilities) the amount remaining is the owners share of a business. This is known as owners’ or stockholders equity.
One key to understanding the accounting transactions of a business is to understand the relationship of its assets, liabilities, and owners’ equity. This is often represented by the fundamental accounting equation: assets equal liabilities plus owners’ equity.
ASSETS = LIABILITIES + OWNERS’ EQUITY
These three factors are expressed in monetary terms and therefore are limited to items that can be given a monetary value. The accounting equation always remains in balance; in other words, one side must equal the other.
The balance sheet expands the accounting equation by providing more informa- tion about the assets, liabilities, and owners’ equity of a company at a specific time (for example, on December 31, 1993). It is made up of two parts. The first part lists the company assets, andmthe second part details liabilities and owners’ equity. Assets are divided into current and fixed assets. Cash, accounts receivable and inventories are all current assets. Property, buildings, and equipment make up the fixed assets of a company. The liabilities section of the balance sheet is often divided into current liabilities
(such as bonds and long-term notes).
The balance sheet provides a financial picture of a company on a particular date, and for this reason it is useful in two important areas. Internally, the balance sheet provides managers with financial information for company decisionmaking. Externally, it gives potential investors data for evaluating the company’s financial position.
Comprehension
A.Answer the following questions about the balance sheet. Questions with asterisks (*) cannot be answered directly from the text.
1.What is the final product of the accounting process?
2.What is a balance sheet?
3.Does the balance sheet provide financial information for a long period of time (for example, January to June 1993) or does it provide information for a specific point in time (for example, on June 30, 1993)?
4.What is the difference between assets and liabilities?
5.How is owners’ or stockholders’ equity determined?
6.How can the relationship between assets, liabilities, and owners’ equity be repre- sented?
7.Does the accounting equation always remain in balance? *Why or why not?
8.How can business use a balance sheet? *As a manager, how would you find a balance sheet useful?
Answer:
1.The final product of the accounting process is the balance sheet.
2.A balance sheet is a final statement that provides a summary of what a company owns and what it owes on one particular day.
3.It provides information for a specific point in time, for example, on Jun 30, 1993.
4.Assets represent everything of value that is owned by a business, liabilities are the debts that is a company owes.
5.Owners’ or stockholders’ equity is determined by subtracting liabilities from assets.
6.It can be represented by the fundamental accounting equation assets equal liabilities plus owners’ equity.
7.Yes, it does. Because one side must equal the other. If not, it must be wrong with the recording.
8. A balance is useful for a business, because it provides a financial picture of a compa- ny on a particular day. It provides managers with financilal information for company decision making.
B.Complete the balance sheet by writing in the correct terms from the list bellow.
assets current liabilities long-term liabilities
liabilities fixed assets current assets
stockholders’ equity
International Manufacturing, Inc
Balance Sheet
December 31, 1993
Assets
Liabilities
Current assets
Current liabilities
Cash
$ 49,400
Accounts payable
$ 30,000
Accounts receivable
1,600
Income texes payable
19,000
Inventories
53,000
Total
$ 49,000
Total
$104,000
Long-term liabilities
Fixed assets
Bonds
$ 20,000
Property
$ 15,000
long-term liabilities
40,000
Buildings
50,000
Total
$ 60,000
Equipment
10,000
Total
$ 75,000
Total liabilities
$109,000
Stockholders' equity
Total assets
$179,000
Common stock
$ 47,000
Retained earnings
23,000
Total
$ 70,000
Total liabilities and
stockholders' equity
$179,000
Vocabulary Exercises
A. Write down any term that you did understand in the reading. Find each term in the reading, look at its context, and try to figure out the meaning. Discuss these terms with your classmates.
B. Look at the terms in the left-hand column and find the correct synonyms or definition in the right-hand column. Copy the corresponding letters in the blanks.
1. G property (line 6) a. assets equal liabilities plus owners’ equity
2. D equal (line 12) b. provide information item by item
3. F condition (line 2) c. indicate by words or symbols
4. B detail (line 21) d. have the same value as
5. A accounting equation (line 12) e. a series of transactions, changes, or functi-ons that bring about a particular result
6. H monetary (line 15) f. the existing circumstance
7. E process (line 1) g. anything owned by a person
8. C express (line 15) h. of or pertaining to money
C. Discuss the following questions with a partner. In giving your answers, try to use the italicized terms.
1.What is the difference between accounts receivable and accounts payable?
2.Why are accounts receivable and cash considered current assets while property and equipment are considered fixed assets? What do you think the difference between current and fixed assets?
3.The owners’ equity in a company equals assets minus liabilities. What is meant by owners’ (or stockholders’) equity?
4.If you were a manager, how would you use the balance sheet to evaluate you company’s financial condition?
5.What do you consider your personal assets? Do you have any liabilities? What are they?
Answer:
1.Accounts receivable is assets and accounts payable is liabilities.
2.Because they are easly changed into money.
3.Nett owning.
4.The manager know were the company is financial healthy.
5.Mobile.
Text Analysis
Look at the reading to answer these questions.
1.What does each of the following refer to?
LINES WORDS REFERENTS
1 they financial statement
9 this the owners’ share if a business
11 this the relationship of its assets
15 these three factors assets, liabilities and owners’ equity
2.In line 6, what are property, equipment, and accounts receivable examples of?
Assets
3.In line 7, what do suppliers and banks refer to?
To whom the company has depts..
4.In lines 5-7. two different phrases are used to incorporate example in the reading. What are these phrases?
a. Assets
b. Liabilities
5.Another method of clarification by example is the use of mathematical representations. From the reading, copy examples that use mathematical symbols.
a. The fundamental accounting equation.
b. Assets equal to liabilities plus owners’ equity.
6.In lines 28-31, two uses of the balance sheet are given. What are the key words that show each of these uses is in a different area? What uses does each word introduce?
KEYWORDS USES
Classification
Categories of the balance sheet can be classified to show the relationship between them. Fill in the following blanks based on the information provided in the reading and in Figure 1 (page 79).
Class: Assets Class: Liabilities
Members: Current assets Members: Current liabilities
Fixed assets Long-term liabilities
Class: Current assets Class: Current liabilities
Members: Cash Members: Accounts payable
Accounts receivable Income taxes payable
Inventories
Class: Fixed assets Class: Long-term liabilities
Members: Property Members: Bonds
Buildings Long-term notes
Equipment
Application
Using the information in the reading, answer the following questions. Give reasons to support your answers.
1.Which of the following is not a fixed assets: office equipment, machinery, marketable securities, land, and buildings? Why?
Marketable securities. Because its easy to change into money.
2.Are the following liabilities current or long-term: bank loans payable, accounts payable, mortgage bonds payable, taxes payable, and long-term notes payable? List each under the correct heading.
CURRENT LIABILITIES LONG-TERM LIABILITIES
Accounts payable Bank loans payable
Taxes payable Mortgage bonds payable
Notes payable
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