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With the new millennium we are all wondering which way the world is
heading. The frantic pace of global change often blurs our view of the road ahead.
However, amid all uncertainties, one thing seems clear: the world is becoming a
smaller place. Just look at the phenomena of the World Wide Web and global
satellite communications. Suddenly the other side of the planet is not so far away
anymore and as barriers fall, opportunities arise. A freer flow of both global
information and trade is helping us build relationships that not too long ago would
have seemed hopelessly remote and inaccessible. As world markets continue to
open up, the dairy in- dustry will benefit by forging global alliances: working
relation- ships between a supplier in one country and an end-user in an- other.
Global alliances go far beyond “I have this for sale. Will you buy it?” They
involve a frequent exchange of product specifications, technical know-how, market
intelligence and competitive intelligence. Global alliances let U.S. companies get
inside foreign markets and take advantage of the opportunities they offer. To un-
derstand the value of global alliances, consider this: about 96% of the world’s
population lives outside the United States. That is a lot of mouths to feed. People
in developing nations have a growing appetite and, over the long term, more and
more overseas markets will be looking for U.S. dairy products. Global alliances are
one way to meet that demand.
A global alliance may be a formal joint venture, with a seller and a buyer
creating and jointly owing a third company. It may be a three-or four-way
partnership, a chain between a U.S manufacturer, a trading company, an importer, an over- seas customer
and an end-user, or it may also be a two-way flow of products, where a U.S.
seller/exporter also imports products from its overseas customer.
No matter which form they take, global alliances offer limit- less
possibilities. Global alliances have helped U.S. whey manu- facturers spawn
numerous new products and applications world- wide, particularly in Japan and
Mexico. They will help U.S. manu- facturers and marketers enjoy vast
opportunities throughout South America when the European Union’s export
subsidies dry out. De- spite setbacks like Mexico’s financial crisis a few years ago
and the current economic turmoil in Asia, over the long term more and more
foreign markets will continue to emerge for a growing array of U.S. dairy products
in ever-greater volumes Still, global alliances are not for everyone. Like any meaningful relationship, they
require a big commitment of time and re- sources. You may need to relinquish
some control to your overseas partner. They also present a risk that you will rely
too much on your new partner or not enough. Nonetheless, for the sake of your
future success, I urge you to consider building global alliances. Long-term growth
in overseas markets is expected to outpace U.S. market growth by at least five-to-
one. In the rapidly expanding markets of the millennium, global alliances will
make a world of difference
. Scan text 1 and find synonyms for the following expressions:
a) to form alliance...
b) to spread out a product...
c) range of products...
d) to give over control unwillingly...
Exercise 2. Read text 1 and then decide if the statements be- low are
true (T) or false (F). Correct the false ones.
A. As barriers crash, opportunities increase.
B. Alliances involve relationships between suppliers and end- users inside
one country.
C. There is one common type of alliance.
D. Global alliances have vast opportunities throughout the world.
E. Alliances do not require a large amount of time and re- sources.