商务英语口译 Unit 1 Passage 3.docVIP

Passage 3 Yesterday we went through the main ponts of the proposal joint venture. Now you have seen the factory. Shall we discuss technology transfer briefly? Ah, Im just coming to that. If you want the products to compete successfully on the international market, youll have to acquire advanced technology. Certainly, the technology to be imported should be advanced and appropriate to Chinas needs. Excuse me, Mr. Zhao, when you say imported technology, what does the word technology refer to? Naturally it doesnt merely refer to industrial property. Know-how is also included. We agree, but the know-how we promise to transfer to the joint venture company is what we are adopting in our production at the moment, and youll pay for it in the form of royalties apart from a certain initial down payment, right? Yes, and at the same time we also expect that in the duration of the joint venture , you can continue offering us your improved technological expertise. As to the price of technology, the minimum generally accepted is 5% of the sales price of all licensed items made and sold during the term of the agreement, in addition to an initial down payment of USD100,000. Im afraid both the royalty rate and the initial down payment amount are too high. Im sure you can understand that the company will have a tough time in the initial stages of cooperation----low yield, possibly unstable quality, high expenses. How could the joint venture bear such a heavy additional load each year? This would certainly break the back of the company. The initial down payment cannot be reduced, but we may consider lowering the royalty rate a bit little. In addition, even the sum of USD100,000 hardly covers all the expenses spent on technological information, drawings , personnel training, etc; not to mention the travelling expenses well have to pay for this job of technology transfer. Well, it could work if the first two years of production were exempt from royalty and if the rate came down to 3% of