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DOCUMENT RESUME ED 355 758 FL 020 658 AUTHOR Stanley, John; And Others TITLE The Relationship between International Trade & Linguistic Competence (Report to the Australian Advisory Council on Languages and Multicultural Education). INSTITUTION Australian Dept. of Employment, Education and Training, Canberra. SPONS AGENCY Australian Advisory Council on Languages and Multicultural Education, Canberra. PUB DATE 90 NOTE 145p. PUB TYPE Reports Research/Technical (143) Viewpoints (Opinion/Position Papers, Essays, etc.) (120) EDRS PRICE MFO1 /PCO6 Plus Postage. DESCRIPTORS *Business Administration; Educational Needs; Foreign Countries; Global Approach; Industry; *International Trade; *Language Proficiency; *Language Role; *Language Skills; *Public Policy; Second Languages; Surveys IDENTIFIERS *Australia ABSTRACT A study of the importance of foreign language skills to the success of Australia's business and industry in exporting to non-English-speaking countries is reported. The study has three parts. The first describes a telephone survey of 50 Australian companies requesting information on crucial factors in export marketing and employee language needs, and a mail survey of 451 companies exploring in greater detail employers' perceptions of the relationship between foreign language skills and export success. The second part of the report, which is divided into five chapters, discusses issues related to the surveys and analysis of results, focusing on the findings' implications for directions in the Australian economy, management of new markets, estimation of language needs, and problems in relating the curriculum to industry's needs. A review of literature is also included in this section. The third part is a summary, with recommendations. Data collected from individual companies in the telephone survey and results of a survey of newspaper advertisements for positions with a non-English language requirement are appended. (MSE) *********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** .115.-1 4 ALIS't`211AW 4 rf ternationa1 IRA J.,inguistk Competence U.S. DEPARTMENT OF EDUCATION Office of Educational Researn and Improvement "PERMISSION TO REPRODUCE THIS EDUCATIONAL RESOIIRCES INFORMATION CENTER (ERIC) MATERIAL HAS BEEN GRANTED BY kfrintS document has been reproduced as received from the person or organization origmatmg d O Minor changes have been made to improve reproduction quality Points Of view Or opinions stated in this docu- rV ment do not necessarily reDrsertt official OERI position or policy TO THE EDUCATIONAL RESOURCES BpIr___CQPTAVAILAORt; INFORMATION CENTER (ERIC)." Department of Employment, Education and Training The Relationship between International Trade and Linguistic Competence (Report to the Australian Advisory Council and Multicultural Education) on Languages John Stanley David Ingram Gary Chittick Australian Government Publishing Service Canberra © Commonwealth of Australia 1990 ISBN 0 644 12747 3 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without written permission from the Director, Publishing and Marketing, AGPS. Inquiries should be directed to the Manager, AGPS Press, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601. John Stanley, David Ingram, Gary Chittick, Institute of Applied Linguistics, Brisbane CAE. Printed in Australia by R. D. RUBLE, Commonwealth Government Prier, Canberra FOREWORD Advisory Council This Report was commissioned by the Australian Education (AACLAME) to encourage on Languages and Multicultural planning discussion of the role of linguistic and cross-cultural in improving Australia's economic performance. Policy on Languages, a One of the key principles of the National AACLAME, has been policy being implemented under the auspices of cross-cultural studies. the practical aspect of languages and incorporation of language Ft.ids have been made available for the and at lower and cross-cultural emphases into MBA courses, languages of levels of education the study of a number of Following economic importance to Australia has been encouraged. retention of from these steps to promote the learning or utilisation in the languages, the present study examines their Such an approach is not intended to downplay economic sphere. for language the cultural, intellectual and social reasons them. teaching in Australia, but rather to supplement growing concern This Report was undertaken in the context of In a situation about Australia's international competitiveness. trading partners are in which two-thirds of P,ustralia's main is being non-English speaking and dependence on commodity trade language-intensive service overtaken as a source of growth by increasingly industries, linguistic planning must assume an So far, Australian important role in company strategies. There has been a good deal of responses have been slow. discussion about Australian companies' lack of an export done to help culture, but concrete analysis of what can be foster this culture has been in short supply. commmission a Awareness of these needs prompted AACLAME to trade and review of the relationship between international The review was undertaken by language competence in May 1989. John Brisbane College of Advanced Education's David Ingram, The consultants were asked to set Stanley, and Gary Chittick. language Australia's macro-economic directions and their and implications in the comparative context of the trade of major trading language pol_cies and approaches of a number languages by nations,, to examine the current utilisation of and type of Australian companies, and to indicate what level language skills should be developed in future. have produced is its One of the strengths of the work they issues Its survey of linguistic and economic comprehensiveness. Properly, it examines the Asia-Pacific is global in scope. and South America region, but the Middle East, Europe, and North This mapping of pathways for Australian are also included. significance with the export growth will be of even greater in 1992 and the unification of the European Economic Community the Eastern European entry on to the world economic stage of countries. iii AACLAME welcomes this addition to the debate on the role of languages in Australia's economic future and hopes to see it stimulate further progress in language learning and utilisation. The National Policy on Languages is built around four justifications for language learning: cultural and intellectual enrichment, economic advantage for the individual and the nation, equality of access and opportunity for those disadvantaged by language, and the facilitation of Australia's external relations. The Report provides cogent documentation for the arguments stated in the National Policy, and demonstrates the need to continue resource allocation and policy development in this vital area. Joseph lo Bianco Chairman AACLAME iv Contents Page vii to Report Introduction Part The Survey 1 27 Part II Directions of the Australian Economy Chapter 1 41 Managing New Markets Chapter 2 53 Estimating Language Needs Chapter 3 65 Meeting Future Language Needs Chapter 4 91 Literature Review Chapter 5 97 Part III Summary and Recommendations icppendix 1 Data Collected from Telephone Survey 107 of 50 Companies Appendix II Survey of Newspaper Advertisements for Positions 127 with a LOTE Requirement r.4 I INTRODUCTION TO REPORT la ,guage skills in This report is directed to examining the importance of foreign exporting to non- determining the success of Australia's business and industry sectors in English speaking countries. It is divided into three parts. The Survey, methodology and findings of the Survey. PART I Discussion of issues related to the Survey and analysis of survey results. PART II original Part II is divided into chapters according to the brief stated in the submission to review the nexus between language and trade. Thus: Chapter 1 Directions of the Australian economy. Managing new markets. This sets out the range of Chapter 2 situations in which language competence affects trade performance and illustrates how lack of language competence can damage or hinder trade. Estimating language needs in terms of the sectors of the Chapter 3 and level economy that have language needs and the type of skills needed. The academic-industrial divide and the problem of relating Chapter 4 the curriculum to the needs of industry. How future language needs will be met by developing new business and language education models. Literature review. Chapter 5 positions Summary and Recommendations. Tables of results of LOTE PART III advertised in press. Results of telephone survey. LOTE = Language(s) other than English. Note: vii PART I The Survey INTRODUCTION There are basically three different techniques for investigating the foreign language needs of industry and commerce. PARTICIPATING OBSERVATION Here the research worker observes one person or a group going through their working routine and records the language activities and the contexts in which they occur. The main disadvantage of this approach is expense and the difficulty of carrying it out extensively enough to allow statistically based generalization. DETAILED INTERVIEW In this case the research worker conducts an interview of approximately 20 minutes to construct a profile of the interviewee's LOTE needs, using fairly open-ended questions. This procedure was used initially in the present survey. Thirty companies were approached directly, the names of which had been extracted from the Kompass Directory. Even though those companies had indicated in the Directory entry that they were exporters, in many cases they were not. Another 50 companies selected from Austrade's list of exporting companies were telephoned. Summary details for each of the 50 companies approached by phone are given in Appendix 1. It might be assumed that quite informative data would be gained through the personal interview either by phone or face to faze. This was not necessarily the case and there are many reasons why: The kind of questions of interest to this report are usually only accessible through a number of different company departments. For example the policy on employing people with linguistic skills is most likely to be explained effectively by the personnel department. Data about the percentage of exports to non-English speaking countries will be the province of the export department. Data on the need for LOTE by technical staff will be most likely available, if known at all, by staff in the technical department. There is then an immediate problem in accessing a company member who will have all this kind of information available, or who is able and willing to obtain it. A second problem is the sheer lack of experience in exporting that most Aimialian companies have had. For most of them it is a peripheral minority interest. Their export here that we did not seek out the successes do not loom large. We should point out of Australian Export Award Winners for information. Their successes and high degree dependence on knowledge of LOTES is already well documented, but they are not typical of companies. The 'normal' company does not have easily available data on the names companies countries to which it exports, and whether or not they speak English. Many product destinations. No company operate through agents and might not even know their interviewed was able to put any but the most approximate figure on its export percentages the company. or even the number of people employed in of the importance of A third difficulty is that in asking for a businessman's perception quantifiable or 'hard LOTES, one is attempting to measure 'soft attributes' as opposed to of the differences attributes'. Another way of looking at this distinction is in terms Part I, The Survey 1 between 'bounded' and 'unbounded' problems. The essential differences are listed below. Characteristics of Characteristics of bounded problems Unbounded problems know what would be a solution no 'solutions' priorities clear priorities called into question limited timescale longer, uncertain timescale limited applications uncertain, but greater implications; worrying limited number of people involved more people involved know what the problem is not sure what the problem is know what needs to be known don't know what needs to be known can be treated as a separate matter can't be disentangled from its context1 By their nature bounded problems are clearly focussed points of interest to management. For the company's general manager, unbounded problems, such as the language training needs of his busy exporting manager are postponable and probably insoluble. l3ecause they are often not seen as distinctive problems they are easily confused with other equally unbounded problems, for example how to get access to up to date overseas market intelligence. Part of that problem may be a language problem. This can be seen in the Price Waterhouse survey to estimate employers perceptions of the role of language as a barrier to export marketing. (Table 1). Table 12 Barriers to Entry Export Marketing Issue Percentage of Respondents Identifying as a Problem Group A 4 2 5 1 3 (N=123) (N=94) (N=36) (N=26) (N=151) Ability to access international 54 54 39 69 56 market data Ability to access personnel/ 34 41 36 32 50 consultants in Australia withappropriate marketing skills Ability to access overseas 49 54 58 65 58 representatives/have your own overseas person to market your products Ability to negotiate with 42 48 49 46 50 regulatory agencies and gain entry for your goods/ services into the overseas market 2 Part I, The Survey 10

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MFO1 /PCO6 Plus Postage. DESCRIPTORS. *Business Administration; Educational Needs; Foreign of Applied Linguistics,. Brisbane CAE. Printed in Australia by R. D. RUBLE, Commonwealth Government Prier, Canberra . representatives/have your own overseas person to market your products.
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