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0UNIT 1 McDonalds Business Model: The Three-legged StoolLesson One AudioScript McDonalds Corporation (MCD) is one of the leading fast-food restaurant chains in the world, touching the lives of people every day. As the worlds largest chain of restaurants, it primarily sells hamburgers, chicken, french fries, milkshakes, soft drinks, etc. The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald. Initially, they just owned a hotdog stand. But after establishing the restaurant they served around 25 items, which were mostly barbecued. It became a popular and profitable teen hangout. Their introduction of the “Speed Service System” in 1948 established the principles of the modern fast-food restaurant. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc on April 15, 1955. In effect, Kroc opened his first and the overall ninth restaurant in Chicago, Illinois, and gave birth to McDonalds Corporation. In 1958, the restaurant chain sold its 100 millionth hamburger. In 1960, Kroc renamed his company as “McDonalds Corporation”. In 1961, Kroc convinced the McDonald brothers to sell the business rights to him in the company. Thus he purchased the brothers equity for a sum of $2.7million and led to its worldwide expansion.As McDonalds expands successfully into many international markets, the company became a symbol of globalization and the spread of the American way of life. Its prominence also made it a frequent subject of public debates about obesity, corporate ethics and consumer responsibility.Lesson Two AudioScriptSince setting up the first McDonalds in China, the Western restaurant chain has been expanding steadily and successfully. So far, other than the home market the United States China is the No. 1 growth market for McDonalds, with over 1000 restaurants and over 60,000 employees.China also represents one third of all capital expenditures in the Asia-Pacific, Middle East and Africa region, where the fast-food giant is in 37 markets. According to Skinner, vice-chairman and CEO of this worlds largest fast-food company, “Weve been steadily growing with China for the past 20 years and are very excited for what the future holds,” he says.In 1990, McDonalds chose Shenzhen, a pioneer Special Economic Zone in Guangdong province bordering Hong Kong, to open its first 500-seat store in the developing market. McDonalds quickly won over the local consumers, due to its many attractions like its Ronald McDonald clown, Golden Arches or the yellow “M” logo, Big Mac, the smiling attendants and the quick service. The success of the Shenzhen outlet prompted McDonalds to expand its chain nationwide. And McDonalds has not stopped from aggressively increasing the number of its outlets in China. The mainlands fast-food market is growing at a rate of 16 percent per year.“We are going to continue our growth at a faster rate in China. China is a huge market with great opportunities for businesses around the world, and its no different for McDonalds,” Skinner adds.Home Listening International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more nations. Usually, private companies 1) _undertake_ such transactions for profit; governments for profit and for political reasons. It refers to all business activities which involve cross 2) border_ transactions of goods, services and resources between two or more nations. Transaction of economic resources include capital, skills, people, etc. for international production of physical goods, and services such as finance, banking, 3) _ insurance construction, etc.The increase in international business and in foreign 4) investment_has created a need for executives with knowledge of foreign languages and skills in cross-cultural communication. Americans, however, have not been well trained in either area and, consequently, have not enjoyed the same level of success in 5) _negotiation_ in an international arena as their foreign counterparts. Negotiating is the process of communicating back and forth for the purpose of reaching an agreement. It involves persuasion and compromise, but in order to 6) _participate_in either one, the negotiators must understand the ways in which people are persuaded and how compromise is reached within the culture of the negotiation. In studies of American negotiators abroad, several traits have been 7 identified that undermine the negotiators position, two of which, in particular, are directness and 8) impatience. Furthermore, American negotiators often insist on realizing short-term goals. Foreign negotiators, on the other hand, may value the relationship established between negotiators and may be willing to invest time in it for long-term benefits.9) In order to solidify the relationship, they may choose indirect interactions Clearly, perceptions and differences in values affect the outcomes of negotiations and the success of negotiators. 10) without regard for the time involved in getting to know the other negotiator. For Americans to play a more effective role in international business negotiations, they must put forth more effort to improve cross-cultural understanding. UNIT 2 Made in ChinaLesson One AudioScriptWhy buy products made in China? One of the most important reasons is that buying goods from China saves Americans over $100 billion annually. This is mostly due to the fact that Chinese workers are paid substantially less than comparable American employees, as the cost of living is much higher in the U.S. American buyers (small companies, major corporations, as well as every size in between) team up with Chinese suppliers to establish a genuine win-win situation for all involved parties, as well as both countries. The Chinese suppliers make money because they are selling their “Made in China” products, and the American buyers are happy because they are purchasing fine quality, inexpensive products for their business, therefore reducing their overall costs. If such an American buyer is in the retail industry, the low prices are passed on to the consumer, all while paying an American worker to unpackage, monitor, maintain and sell the item. As you can see, the trade market with China has more benefits than its given credit for by the advocates for homegrown goods. There is much more to helping the economy of our country than insisting that we only purchase products that have been “Made in the USA.” Keeping the world economy spinning while simultaneously supporting corporate America and the small businesses that make this country great is what will keep this country strong in the future.Lesson 2 AudioScriptMention “Made in China” and what pops up in your mind? The picture may soon change as China is taking action worldwide to getting more consumers to reach for “Made in China” products. A 30-second commercial rolled out on November 23, 2009 on CNN in the United States, CNN in Asia and CNN Headline News. With the theme “Made in China, Made with the world”, the ad uses only products that are “Made in China”, from running shoes, high fashion, to air planes. The groundbreaking ad is part of a global campaign against common stereotypes about Chinese products and seeks to boost the image of Chinese goods around the world.In the ad, a series of goods with the “Made in China” label are shown being made with the help of top foreign firms. An MP3 player is described as “Made in China with software from Silicon Valley.” A fashion shoot includes clothes labeled “Made in China with French designers.” And a refrigerator bears the text “Made in China with European styling.” These are all Chinese-made products, designed by or containing shared technology with other countries, and highlight the fact that Chinese companies work with overseas firms to produce quality products.Home ListeningTodays leading Chinese brands must learn how to create and manage their brand value on a global scale. It is time for them to re-think their global brand 1) _ strategy, and follow the best practices of the worlds most powerful multi-national brands. While we are still several years away from a Chinese brand appearing on Interbrands Best Global Brands, the lessons from the 2) _annualRanking are clear great brands know their strengths and weaknesses and plot effective strategies to 3)_ sustainand improve their value in the future. With the downturn of the global economy, the transformation the “Made in China” label and the acceptance of Chinese brands overseas can not be made 4) _overnight The first challenge is to improve the quality and safety of all Chinese products. The definition and enforcement of strict 5) standards and the active engagement in environmental protection is a social responsibility for any global player, and a pre-requisite for changing consumer 6) _perceptions overseas.The Chinese government can play a very special role in these difficult times.Leadership means taking short term actions to spur 7) _domesticdemand and enhance the competitiveness of exports. But leadership also means creating a national agenda like 8)_ innovation_in Japan, design in Korea or engineering in Germany that serves as a guiding light for Chinese companies eager to make their brand mark on global markets. Now is the 9) _critical moment for Chinese government and business_Leaders to consider the next stage of growth. This transformation must not only take place in areas such as technology, quality control and international cooperation, but in brand creation and brand management. Asian companies like Toyota, Sony, Samsung and Hyundai 10) _which have already traveled the globalization path know that brand value is the key to unlocking shareholder value.UNIT 3Recession and Jobs: Surviving the RecessionLesson One AudioIts official the British economy is in recession. Government figures released Friday show the economy contracted by a larger than expected 1.5 percent in the last three months of 2008, after a 0.6% drop in the previous quarter.Britains finance chief, Chancellor Alistair Darling acknowledged the economy had taken a sharper downturn than anticipated.“If you look at todays figures, what youre seeing is a very significant fall in industrial production, and thats been caused because world trade has really fallen away very, very rapidly over the past few weeks and months,” said Chancellor Darling.What started as a crisis in the financial sector in Britain continues to infect the wider economy. Unemployment is accelerating sharply, with nearly two million people now out of work, the housing market remains severely depressed and retail sales are weak. For the U.K. Fridays figures show the biggest decline in nearly 30 years.But, Chancellor Darling was quick to point out that Britain is certainly not alone.“Were facing this problem everywhere,” he said. “America has been in recession for a year now, even Germany, Italy, Japan. Countries in the Far East are seeing a substantial slowdown in growth.” The British government has moved to bail out failing banks and has put in place a multi-billion dollar stimulus package to shore up the ailing economy, including a cut in the national sales tax and help for businesses, homeowners and low-income families.Lesson One AudioScript The global economic slowdown is hitting the auto industry hard. Demand for cars is down and car makers are having to cut costs. The latest casualty in this crisis is the U.S. giant Chrysler. It has just announced it will slash its white-collar workforce by a quarter. This means 5,000 employees will lose their jobs. Chryslers CEO Bob Nardelli e-mailed his workers with a very gloomy message: “These are truly unimaginable times for our industry. Never before have auto industry sales fallen at such a fast rate,” he wrote. Mr. Nardelli also had bad news for his blue-collar workers. Chrysler will also axe 1,825 workers at two of its assembly plants. This news will send a worrying message to other auto manufacturers around the world. The worst could be yet to come for American car workers. There is a deal brewing that could see a merger between Chrysler and one of its rivals General Motors. This could lead to tens of thousands more job losses as the new company makes deep cost cuts. Mr. Nardelli suggested that more structural changes are in the pipeline. “We cannot operate as we have in the past,” he warned. Chrysler is not in a position to restructure quickly. Ninety percent of its market is in the USA, and consumers are having huge problems getting car loans in the credit crunch. The company also depends on sales of its gas-guzzling sports utility vehicles. American car buyers today are choosing to buy smaller, more fuel-efficient cars.Home ListeningGraduate unemployment has increased by 44% in 12 months and is now at its1) highest in 12 years, according to research released today. Some 7.9% of students who left university in 2008 were out of work in January, the Higher Education Careers Services Unit (HECSU) found, up from 5.5% the 2) _previous year. HECSU warned the picture could be even worse for those graduating this year. The last time levels of 3)_joblessness_ were so high was in 199596. The research found that 4) _recruitment_in the public sector bucked the downward graduate employment 5) _trend_, with the number of graduates entering 6) _healthcare teaching and social work increasing.But 7) architecture and building graduates were hit particularly badly, 8) _reflecting the slump in the construction industry, with unemployment nearly tripling from 2.9% in 2007 to 8.5% for those who left in 2008. The proportion of civil engineering graduates without a job increased from 2.4% to 7%. 9) _The proportion of graduates employed in business or financial work fell to 7.5%, compared with 8.7% the year before. And the number working as financial and investment advisers or mortgage consultants dropped 19%, with only 1,700 of the 220,065 graduates surveyed getting that kind of job, compared with 2,100 in 2007. 10) _Among those who revealed how much they earned, the average salary was_19,677 up 2% from 2007._. But Scotland saw a rise of 5.6%, to an average of 19,953 higher than the 19,561 reported in the south-east, traditionally the highest-paid region after London.UNIT 4One World, One OceanLesson 1 Audio ScriptCoral reefs are sensitive undersea structures, made up of tiny animals called coral polyps. Reefs are important breeding grounds and shelters for fish and other sea life. These delicate ecosystemsalso protect coastlines, are critical sources of food for millions of people, and attract tourists. The largest coral reef ecosystem is the Great Barrier Reef, stretching along the northeast coast of Australia. This area contains 900 islands and comprises nearly 3,000 individual reefs. It covers an area bigger than Britain and is the largest living structure on Earth and the only one visible from space. The reef is home to 4000 types of mollusks and 1500 different types of fish. There are also 200 different species of birds. Aside from all of this, it is a very beautiful place and the temperature and climate are fantastic. If has definitely got tourist appeal and attracts two million visitors each year. Like other coral systems, the Great Barrier Reef is facing a range of environmental threats. Global warming, pollution, tourism, shipping accidents and overfishing have contributed to its decline. Earnest efforts are under way to protect the worlds reefs and restore them. But mans impact on the environment continues to make the future of coral reefs uncertain.Lesson 2 Audio Script Coral reefs are brightly colored structures. They are home to thousands of different species of fish, plants and other marine animals. Coral is actually made up of tiny animals called coral polyps. Millions of coral polyps stick together in colonies and form a hard outer shell. Over time, the colonies grow together and create large reefs. When coral die their skeletons are left behind, and new coral builds on top. One of the biggest threats to coral reefs is called “bleaching.” Coral bleaching happens when the temperature of water rises. Coral contains tiny algae, which are plant-like organisms. They give coral its bright color. Coral uses the algae to create food and grow. At high temperatures, corals get stressed and release algae. This causes the coral to whiten, or bleach. When coral bleaching occurs, the coral can die. A reef scientist, Terry Done, has predicted that a one degree rise in global temperature would cause bleaching of 82% of the reef, two degrees would cause 97% bleaching and 3 degrees would mean total devastation.Home ListeningThe study, from Stanford University in the United States, makes gloomyassessments about the future health of the worlds coral reefs. It finds that carbondioxide 1) _emissions_ are making seawater so acidic that coral reefs could begin todisintegrate within a few 2)_decades_. The report states that even ambitious plans to stabilize greenhouse gas emissions, thought by many to be the main 3) _cause_ of a warming climate, will not be enough to save the reefs. About a third of carbon emissions is soaked up by the worlds oceans, where it 4) _combines_ with seawater to form carbonic acid. The research comes as the Queensland state government in Australia 5) _announces_ a new plan to protect the Great Barrier Reef from 6) _agricultural pollution. The iconic reef is being damaged by pesticides and sediment from farms that seep into waterways. The Queensland government is to s
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