Directions: Read the following passages. Answer the questions below each passage by choosing
A. B. C. or D. Mark your answers on ANSWER SHEET1.
Passage 1
A businessman may possess a technology for manufacturing a product which he believes would be well received in various foreign markets. His choices for international expansion would include exporting the product, manufacturing it abroad by his own company, manufacture abroad by a joint venture company, or a host country will welcome foreign manufacturer. Generally speaking, a host country will welcome foreign capital because of the expectation that the investment will result in local industrial development or an increase in local employment. On the other hand, host governments oppose unlimited introduction of foreign capital into their countries because of the possible adverse effects on their economies. Developing countries that have experienced economic control or exploitation by developed countries have become increasingly suspicious of foreign investment and have imposed restrictions against foreign investment. However, foreign manufacturers are not always willing to grant technical licenses to developing countries as a compromise (妥协) avoiding full foreign investment, because such licenses often mean an increase in international competition.
A joint venture is a system which cleverly combines the opportunities and advantages of doing business abroad. Needless to say, however, a certain risk is always inherent in a joint venture because of the need for carrying on business with a foreign partner in a foreign country where the language, customs, management philosophy and business environment will differ from those at home.
In order to take the initiative in negotiating a joint venture agreement, the businessman must find problems or advantages which are faced or desired by his foreign partner and which the proposed joint venture can solve or obtain. To the foreign investor, such advantages include (1) a reduced requirement of capital; ( 2 ) use of the local partner’s distribution (经销) power; (3) tax or other financial advantages available to joint ventures; (4 ) advantages stemming from the local partner’s contacts with the local government or bank and his abilities in terms of local labor management; and (5) the local partner’s abilities to procure (采办) materials and parts. From the point of view of the local partner, the foreign investor may be able to provide advanced technologies, sophisticated management know-how, and established marketing know-how.
( 362 words )
41. A businessman may expand his business abroad by every means except______.
A. exporting his product
B. establishing a joint venture to manufacture the product
C. granting a technical license to a foreign manufacturer
D. inviting foreign capital
42. Developing countries may impose restrictions against foreign investment for fear of ______.
A. foreign economic control and exploitation
B. the possible adverse effects on their economies
C. international competition
D. decrease of disemployment
43. A foreign investor may seek the advantages of a joint venture, not including ______.
A. advanced technologies
B. tax deduction
C. use of the local partner’s distribution power
D. the local partner’s abilities to procure materials and parts
44. The expression "to take the initiative" in the last paragraph means ____.
A. to take the advantage B. to take the first step
C. to take a positive position D. to take a rest
45. The passage is mainly about ____.
A. how to invest abroad
B. how to negotiate with a foreign businessman
C. joint venture abroad
D. foreign investment
41--45: D B ACC
