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VOCABULARY EXERCISES





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A. Look at the terms in the left-hand column and find the correct synonyms or definitions in the right-hand column.

1. corporation
  1. chiefly, principally
2. expand
  1. function in, work
3. view
  1. change
4. stage
  1. a company having more than half of its stock owned by another company
5. primarily
  1. increase the dimensions of
6. base
  1. growth; expansion
7. vary
  1. see, look at
8. subsidiary
  1. foundation
9. operate in
  1. a step in development
10. development
  1. a type of business organization formed by an association of stockholders

 

B. Fill in the blanks in the paragraph at the top of the next page with the most appropriate terms from the list.

base operate in appreciation of expands
vary corporation development subsidiary
stages involved in view relationships

 

During the ______ of a corporation, the organizational structure may ______ over time and pass through a number of ______. As the ______ grows, it ______ its operation. It might become ______ setting up a ______. Although the corporation still has a primary or “home ______”, establishment of a subsidiary allows the company to enter into new ______ with a ______ toward increasing its production and marketing capabilities.

 

APPLICATION

Discuss the following questions.

1. What are some of the potential dangers in the rapid growth of multinationals?

2. What are some of the 'benefits nations and individuals might receive because of the existence of multinationals?

3. Considering both the advantages and disadvantages, do you favor increased growth of multinational companies? Why or why not?

 

CLOSE EXERCISE

Fill in the blank spaces in; the paragraph with appropriate terms that complete the sentences. There may be more than one possible answer for each blank. Do not look back at the reading.

 

The corporation then begins to view __________ whole world as a base for ______________ and marketing operations. The next step ________ the development of a multinational business ________ focusing on the world market. The ________ may establish a foreign assembly plant, ________ in contract manufacturing or build a __________ manufacturing company or subsidiary. Therefore, a ______corporation is a company that is __________ based in one country and has _________ and marketing activities in foreign countries.

 

FOLLOW-UP ACTIVITIES

1. Find and bring magazine advertisements to class.

2. Look at the ads that have been brought in to see if they are for domestic companies or multinationals.

3. Discuss the foreign subsidiaries in your country.

4. Develop a questionnaire and interview a businessman about the role of multinationals in the world marketplace.


MANAGEMENT

Prereading ACTIVITY

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