【Unlocking Word Meanings】
Read the following words/expressions found in today’s article.
1. foray / ˈfɔr eɪ / (n.) – an initial attempt
Example: He made an unsuccessful foray into the restaurant business years ago.
2. exemption / ɪgˈzɛmp ʃən / (n.) – a state of being free from a restriction
Example: Some companies are given exemptions to rules.
3. state-of-the-art / steɪt ʌv ði ɑrt / (adj.) – describing something recent and of the highest quality, especially in technology
Example: The company decided to invest in state-of-the-art design equipment.
4. deregulation / diˈrɛg yəˌleɪ ʃən / (n.) – the process of removing government constraints
Example: Deregulation can encourage investors to take more risks.
5. import /ɪmˈ-ˈpoʊrt/ (v.) – to bring in something from another country
Example: They had to import equipment from the United States for the project.
Read the text below.
American technology giant Apple Inc. can soon establish its first retail store in India.
This development came after India loosened its regulations regarding foreign investments. One such regulation, which was the greatest barrier to Apple's foray into the Indian market, was the requirement that 30% of foreign-owned stores’ content must be from India. This regulation was modified to include a three-year exemption that allows foreign companies to open stores in India. Five years can be added to the exemption if the company sells state-of-the-art items, like Macs and iPhones.
Apple can gain much from the deregulation. With the change in policy, Apple will be able to open official stores in India instead of relying on franchise resellers. Although India initially contributed to only 1% of global iPhone sales, Apple reported a 56% increase in country sales during its last fiscal quarter in 2015. This translates to roughly two million units sold in 2015. Profits also came in from after-sale and repair services sought by local customers. Considering the slow growth of its business in China, Apple may look to India as a replacement market.
India will also make substantial gains from Apple's long-term strategy. Apple's plans to construct a $25-million office complex, in addition to a new local office committed to Apple Maps, will provide employment for thousands of local workers. The company's plans to import, restore, and sell used phones in the country will likewise require local labor.
Enjoy a discussion with your tutor.
· What are some foreign companies that have opened stores in your country?
· What are the implications of foreign competition on local companies?
· Why do some countries impose heavy regulations on foreign companies?
· What are the possible advantages/disadvantages of deregulation on an industry?