Практическое занятие 25

From local to global?

Setting up a business is quite a difficult process. It consists of several stages. If a company wants to produce some goods, it has to buy materials and employ workers. If the company does not have enough money to buy the materials and pay its workers, it needs to find an investor. The company also has to find customers to sell the goods to. If the company is not able to sell the produced goods, it will collapse.

If the company manages to sell the produced goods, it can pay back the investor, buy more materials and employ more workers. Thus the company can produce more goods and to give back more money to the investor.

In this way the company grows bigger and bigger. At some point the company starts to buy the materials from several suppliers and not only within its own country. It can buy materials abroad and can sell the goods to foreign customers as well. It can employ not only people of its own country, but any foreigners. To get closer to distant customers or to the suppliers, the company sets up new companies in other countries and produces the same goods there.

Gradually, the company starts to see the whole world as its customers and suppliers, and doesn't care about boundaries and nationalities. Other things are very important for the company now: 1) its product should be recognizable worldwide as the product of this company it should be the same all over the world wherever it is produced; 2) the product should be of the same quality.

This is how company gets global.

1. What must the company do if it wants to produce some goods?

2. Why does the company need to find an investor?

3. What will happen with the company if it cannot sell produced goods?

4. Why does the company set up new companies in other countries?

5. Where should company’s product be recognizable?

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