B) Single out the main facts from the text and present them in a short review

THE EMERGENCE OF THE GLOBAL
ECONOMY

Prospective international managers must first realize there is no single way to enter a foreign market. Businesses must choose the model appropriate to their level of resources, market potential, and experience operating in the international sphere. The various categories of international business models include export/import businesses, independent agents, licensing and franchising agreements, direct investment in established foreign companies, joint ventures, and multinational corporations (MNC). The differences among these options are sometimes subtle in nature.

In the 1980s, the world's leading industrialized nations began an era of cooperation in which they capitalized on the benefits of working together to improve their individual economies. They continued to seek individual comparative advantages, i.e., a nation's ability to produce some products more cheaply or better than the others, but within the confines of international cooperation. In the 1990s these trends continued, and in many cases accelerated. Countries negotiated trade pacts such as the North American Free Trade Agreement (NAFTA), and the General Agreement on Tariffs and Trade (GATT), or formed economic communities such as the European Union. These pacts and communities created new marketing opportunities in the respective markets by decreasing trade duties and other barriers to cross-border commerce. They opened the door through which companies of all sizes and in various aspects of business entered the international market. The United States benefited extensively from the expanded global economic activity.

U.S. trade figures from the 1990s illustrate the rapid expansion of cross-border business. In 1992, the United States exported $448 billion worth of goods and services, while importing more than $532 billion worth from other countries. By 1998, exports had more than doubled (in current dollars) to approximately $930 billion, and imports approached $1.1 trillion. Adjusting for inflation, the value of exports grew over the seven-year period by 78 percent, and the value of imports rose by 77 percent.

Words you may need:

licensing – ліцензування

franchising agreement – франшизна угода

joint venture – спільне підприємство

subtle – тут: невеликий

confines – межі

cross-border commerce – міжнародна комерція

rapid – швидкий

to adjust – пристосовувати