Soft Skill

Name : Chandra Hermawan

NPM : 30107377

Class : 3DB06

MULTINATIONAL CORPORATION

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:

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 definitions 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 restrictive trade law ? is ? law ? that ? a controls the number of goods imported or exported

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)

Practice English 2

AN ACCOUNTING OVERVIEW

Accounting is frequently called the “language of business” because of its ability to communicate financial information abaout an organization. Various interested parties, such as managers, potential investors, creditors, and the government, depend on a company’s accounting system to help them make informed financial decisions. An affective accounting system, therefore, must include accurate collecting, recording, classifying, summarizing, interpreting, and reporting of information on the financial status of an irganization.

In order to achieve a standardized system, the accounting process follows accounting principles and rules. Regardless of the type of business or the amount of money involved, common procedures for handling and presenting financial information are used. Incoming money (revenues) and outgoing money (expenditures) are carefully monitored, and transaction are summarized in financial statements, which reflect the major financial activities of an organization.

Two common financial statements are the balance sheet and the income statement. The balance sheet shows the financial position of a company at one point in time, while the income statement shows financial performance of a company over a period of time. Financial statement allow interested parties to compare one organization to another and/or to compare accounting periods within one organization. For example, an investor may compare the most recent income statements of two corporations in order to find out which one would be a better investement.

People who specialize in the field of accounting are known as accountants. In the United States, accountants are usually classified as public, private, or governmental. Public accountants work independently and provide accounting services such as auditing and tax computation to companies and individuals. Public accountants may earn the title of CPA(Certified Public Accountant) by fulfilling rigorous requirements. Private accountants work solely for private companies or corporations that hire them to maintain financial records, and governmental accountants work for governmental agencies or bureaus. Both private and governmental accountants are paid on a salary basis, whereas public accountants receive fees for their services.

Through effective application of commonly accepted accounting systems private, public, and govermmental accountants provide accurate and timely financial information that is necessary for organization decision making.

Comprehension

1. Answer the following question about accounting. Question with asterisks cannot be answered directly from the text. Why is accounting called the “language of business”?
2. How is a standardized accounting system achieved?
3. What are revenues and expenditures?
4. What do the balance sheet and income statement have in common? How are they different?
5. *How might the information contained in financial statements be useful to managers? *How might creditors use this information?
6. How are accountans classified in the United States?
7. What kinds of services do public accountants provide?
8. What is a CPA? *Do you have a similar type of position in your country? *Explain.
9. *Which type of accounting-public, private, or governmental-appeals to you the most? *Why?
10. *What are some management decisions that might be based on accounting information?

Answer :

1. According is called the “language of business” because of its ability to communicate financial information about on organization.
2. In order to achive a standardized accounting system the accounting process follows accounting principles and rules.
3. Revenues are incoming money and expenditures are outgoing money.
4. The balance sheet and the income statement are two common financial statement. They are different, the first shows the financial position of a company of one point of time, while the second shows the financial performance of a company over a period of time.
5. The information contained in financial statements might be usefull to creditors in help them to find out whether the company will be able to repay the credit on time or not.
6. In United States, accountants are classified as public, private, and governmental.
7. Public accountant provide accounting services such as auditing and tax computation to companies and individuals.
8. A CPA is a Certified Public Accountant. Yes, we had. Formerly faculty of economic graduates of 5 elite universities got ‘Drs….AK’ degree.
9. Personal question
10. In some company financial decision making might be based on accounting information. For example the management want to expands its business to build a bigger factory to introduce new variety of goods.

* Circle the letter of the answer that best completes each of the sentences below.

1. Accounting information is used by ______to help them make financial decisions.

a. managers

b. potential investors

c. creditors

d. all of the above

2. Regardless of the type of business or the amount of money ivolved :

a. all companies use identical accounting systems

b. balance sheets are more important than income statements

c. common procedures are used in handling financial information

d. no standardized accounting system is employed

3. Business monetary transactions are summarized in :

a. bank books

b. financial statements

c. computers

d. cash registers

4. Public accountants may earn the title of CPA by :

a. becoming governmental accountans

b. paying a fee

c. fulfilling rigorous requirements

d. obtaining a Bachelor of arts degree in accounting

5. Private and governmental accountatnts are paid on a____basis.

a. salary

b. monthly

c. fee

d. weekly

Vacabulary Exercises

A. Subtitute appropriate terms for the italicized words or phrases in the sentences below.

status agencies monitored maintain independently

procedure fee hire rigorous solely

1. Many accounting departments have strict enterance requirements; only the most qualified applicants are allowed to enter these

programs. rigorous

2. The particular method used to process employee insurance claims may vary from company to company procedure

3. The stock market is closely watched every day. monitored

4. Rather than expand into foreign lines, the dress shop manager chose to deal only with domestic fashion designers. solely

5. Although the consultant’s charge for services was high, his guidance and advice were well worth the money. fee

6. The financial condition of a company is reflected in its financial statements. status

7. When the business began to expand, a second bookkeeper was brought in to help keep the books. maintain

8. In the United States there are numerous organizations that provide services at the local, state, and national levels. agencies

B. Complete the sentences with the noun, verb, and adjective forms provided.

1. Communication/to communicate/communicative

a. Supervisor should strive for two-way communication with their employees.

b. By using an overhead projector, the guest speaker was able to communicate his statistical information clearly.

c. Because of the clerk’s highly developed communicative skills, she was given a position that required her to deal directly with customers

2. Information/informed/informative

a. The owner informed his employees that they would all receive a 5 percent pay increase.

b. Getting Acquainted with Accounting, by John L. Carey, is very informative book.

c. Financial information is essential for organizational decision making.

3. Allowance/allowed/allowable

1. The supervisor lost control of his staff members after he allowed them to override his decisions.
2. When the factory was built 50 years ago, little allowance was made for remodeling and expansion.
3. Althought allowable, smoking was discouraged in the lunch room.

4. Fulfillment/fulfill/fulfilling

1. At times the assembly line worker felt a lack of profesiomal fulfillment
2. When he was promoted to production supervisor, however, his job became much more fulfilling.
3. Before the accountant could became a CPA, she had to fulfill a number of requirements.

5. Standars/has standardized/standard

1. The standard paper size in United States for business letters and memorands is 8,5 x 11 inches.
2. The computer department has standardized its procedures for storting and retrieving data.
3. Nowadays rigorous standards are enforced in the area of food processing and packaging.

C. Fill in the blanks below with the most appropriate terms the list.

parties financial statement reflected standardized allows

whereas interpretations informed communicates rigorous

An income statement is one example of a financial statement, it communicates financial information about a company over a period of time. A standardized format

Is used to present the financial information. This allows interested parties to compare one income statement to another in order to make informed financial decisions. But there is still a great deal of risk involved in financial decision making because the information reflected in an income statement is object to variety of interpretations.

Look at the reading to answer these questions.

What does each of the following refer to?

LINES WORDS REFERENTS

1 its accounting

4 them whereas parties

19 another corporation

21 one organization

Practice English 3

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 (asstes – 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 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 + ONWERS’ 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 information about the asstes, liabilities, and owners’ equity of a company at a specific time (for example, on Desember 31, 1993). It is made up of two parts. The first part lists the company assets, and the 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 accounts payable and income taxes payable) and long-term 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 decision making. Externally, it gives potential investors data evaluating the company’s financial position.

Comprehension

1. Answer the following questions about the balance sheet. Question whit asterisk (*) cannot be answered directly form 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 assets and liabilities?

5. How is owners’ or stockholders’ equity determined?

6. How can the relationship between assets, liabilities, and owners’ equity be represented?

7. Does the accounting equation always remain in balance?*Why or why not?

8. How can a business use a balance sheet?*As a manager, how would you find a balance sheet useful?

Answer.

A. 1. The final product of accounting process is the balance sheet.

2. A balance sheet is a final statement that a provide a summary of what a

company owns and what it owes on a particular day.

3. It provides information for a specific point in time, for example, on June 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’ is stockholders’ equity is determined by subtracting liabilities from

Assets.

6. It can be represented by the fundamental accounting equation assets equal

Liabelities 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 sheet is useful for a business, because it provide a financial picture of a company or a particular day.

1. Complete the balance sheet by writing in the correct terms from the list below.

Assets Current liabilities Long-term liabilities

Liabilities Fixed assets Current assets

Stockholders equity
International Manufacturing, Inc.Balance SheetDecember 31, 1993
AssetsCurrent assetsCash $ 49,400Account receivable 1,600Inventories 53,000

Total $ 104,000

Fixed assets

Property $ 15,000

Buildings 50,000

Equipment 10,000

Total $ 75,000

Total assets $ 179,000

Liabilities Current liabilitiesAccount payable $ 30,000Income tax payable 19,000Total $ 49,000

Long-term liabilities

Bonds $ 20,000

Long-term notes 40,000

Total $ 60,000

Total liabilities $ 109,000

Stockholders’ equity

Common stock $ 47,000

Retained earnings 23,000

Total $ 70,000

Total liabilities and $ 179,000

stockholders’ equity

Vocabulary Exercises

Everyone can see

There's a change in me

They all say I'm not the same

Kid I use to be

Don't go out and play

I just dream all day

They don't know what's wrong with me

And I'm too shy to say

It's my first love

What I'm dreaming on

When I go to bed

When I lay my head upon my pillow

Don't know what to do

My first love

He thinks that I'm too young

He doesn't even know

Wish that I could tell him what I'm feeling

'cause I'm feeling my first love

Mirror on the wall

Does he care at all

Does he ever notice me

Does he ever found

Tell me teddy bear

My love is so unfair

Will I ever found away

An answer to my pray

For my first love...