国际经贸英语实务 第12章.ppt

Chapter 12 Joint Venture 12.1 Background Information An equity joint venture is a liability-limited company formed by investors who make investments to the company respectively according to their share proportion as agreed in the agreement. The company is funded and operated jointly by investors who will assume responsibility for losses and profits according to the proportion of their shares in the venture. A Sino-Foreign equity joint venture is a liability-limited company formed by foreign companies, enterprises, other economic organizations or individuals together with Chinese companies, enterprises or other economic organizations according to the Law of the People’s Republic of China on Sino-Foreign Equity Joint Venture within the territory of the People’s Republic of China, on the principle of equality and mutual benefit, and subject to approval by the Chinese Government. Within the equity joint venture, matters such as the conditions for cooperation, the distribution of earning or products, the sharing of risks and losses, the manners of operation and management are decided according to the proportions of the shares of the investors. 12.2 Situational Conversation Section 1: Management of the Joint Venture H = Hollis; F = Fang H: Mr. Fang, what do you think of the specific sorts of toys to be produced? F: Toy robots, remote control electric toys, etc. Basically, toys of the latest design, of the greatest popularity. We want the products to be very competitive on the international market, don’t we? H: Certainly. We should produce those that are best in quality and very popular with the customers. What are our primary markets? Are we going to market domestically in China? F: I think our products are mainly for export. Our government encourages joint ventures to sell the products outside China. That’s because the joint ventures have to balance its foreign exchange receipts and payment. You know we need the foreign currency to import some of the materials. W