Language work. Exercise 1.Make a proper selection

Exercise 1. Make a proper selection.

1. irrevocable letter of credit     2. revocable letter of credit     3. confirmed letter of credit     4. bill of exchange     5. sight draft   6. time draft   7. open account   8. consignment sales   9. countertrade

a) document signed by the person authorizing it, which tells another to pay money unconditionally to a named person on a certain date (usually used in payments in foreign currency); b) trade which does not involve payment of money, but rather barter deals, etc; c) letter from a bank authorizing payment of a certain sum to a person or company which may be changed; d) letter from a bank authorizing payment of a certain sum to a person or company which cannot be cancelled or changed, except if agreed between the two parties involved; e) goods sold by someone on your behalf for a commission; f) bill of exchange which is payable at a specific time after acceptance; g) a letter which has an added guarantee from the exporter’s bank if the importer’s bank defaults, the exporter’s bank must pay; h) unsecured credit or amount owed with no security; i) bill of exchange which is payable at sight.

Exercise 2. Choose the correct word in each of the following:

1. The book which contains a list of all company sales arranged by date is known as the ___

a) sales account

b) sales card

c) sales invoice

d) sales day book

2. A ___ is not recorded in double entry.

a) cash discount

b) refund

c) trade discount

d) cash sale

3. Faulty goods which are sent back to the supplier by the customer are known as ___.

a) returns

b) provisions

c) recovers

d) discounts

4. A ___ system should make sure that debtors do not owe too much money.

a) quality control

b) credit control

c) credit note

d) credit transfer

5. A company sells goods on credit, but if customers never pay for these goods the money owing is known as __.

a) bad debts

b) debits

c) bad payment

d) bankrupts

6. The estimated expense of not being paid by debtors is known as a/an ___.

a) allowance

b) devaluation

c) proviso

d) provision

7. If you calculate different percentage for debts which have been owing for different lengths of time, you can prepare a/an ___ schedule of debtors.

a) progressive

b) ageing

c) reducing

d) increasing

8. In many countries a tax is added to the price of goods and services, but some goods may be ___ and no tax is due.

a) exempt

b) exceptional

c) excused

d) uncovered

9. At the end od an accounting period, details of tax collected and tax paid are given to the authorities on an official form called a ___.

a) statement

b) declaration

c) return

d) confirmation

Exercise 3. This exercise concerns methods of payment used in international trade. Match the first half of the sentence on the left with the second half on the right.

1. A pro-forma invoice is the first draft of an exporter’s bill to an importer   2. A commercial bill or a bill of exchange is a written order instructing someone. 3. The opposite is a letter of credit a paper issued by a buyer’s bank as proof that the seller will be paid 4. Exporters can also sell their bills of exchange, at a discount 5. A bill of lading is a document giving title to goods that acts as a receipt and a contract to ship them 6. Most industrialized countries, eager to increase their exports, have government agencies 7. Some countries go even further     8. A company short of liquidity and with a lot of “receivables” can sell them at a discount

a) (usually an importer) to pay someone else (usually an exporter) a certain sum on a given date. b) containing estimated prices, according to which the importer will decide whether to buy or not. c) giving loans to developing countries so that they can (eventually) buy their exports. d) shippers can use them as security when discounting bills of exchange. e) that either give loans to exporters awaiting payment or guarantee exporters against bad debts. f) the seller can then sell the letter (at a discount) on the commercial paper market. g) to accepting houses or other merchant banks (if the bank believes that the debtor will pay up). h) to someone who will try to collect the debt (at full value); this is known as factoring.

Exercise 4. One way of financing international trade is by a letter of credit. Another possibility is to pay by a bill of exchange, as in the following example of the export of a shipment of goods from Britain to Argentina. What is the correct order of the following paragraph?

a) Meanwhile, the British manufacturer can sell the bill of exchange (at a discount) to an accepting house in London, so that it does not have to wait for payment.

b) On receiving an order from Argentina, a British manufacturer produces the goods. After arranging insurance, the manufacturer will send the goods to the port, with an invoice and a bill of lading, to be loaded onto a ship. When the goods have been shipped on board, the ship’s master signs and returns the bill of lading to the producer.

c) On the agreed date, the importer honours the bill of exchange.

d) The exporter will draw up a bill of exchange requiring the buyer to pay a certain sum of money on an egreed date, and present the bill to a London correspondent bank of the buyer’s bank.

e) The London bank accepts a bill of exchange for the same amount. It will then send the bill of lading and the bill of exchange to Argentina.

f) When the documents arrive in Argentina, they will be given to the importing company when it eccepts the original bill of exchange.

g) When the ship reaches its destination, the importer presents the documents to the master of the ship, and collects the goods. If the goods do not arrive, the buyer will have to make an insurance claim.

Exercise 5. Match the words in the box with their definitions

customs agent irrevocable intermediary tariffs

subsidiary bond convert surcharge quota

consignment accepted devaluation shipper procedures

licence maturity documentary invisible multinationals

1. A written instrument issued by a bank or insurance company guaranteeing that the exporter will comply with the terms of the contract.

2. What an exporter has to do with foreign currencies before he can pay his workers.

3. A legal permit to do something.

4. What a bill of exchange has to be before it is of value.

5. Companies operating in a number of different countries.

6. Exports which earn valuable foreign currency but are intangible.

7. Duties charged on imports.

8. The sort of credit which ensures that an exporter receives payment.

9. An additional tax on imports to reduce a balance of payment deficit.

10. The person either importing or exporting goods.

11. A downward change in the rate of exchange.

12. Someone who can help to find markets in a foreign country.

13. The maximum amount of a commodity which can be imported during a given period.

14. An alternative name for a middleman, broker or agent.

15. A shipment of goods.

16. An exporter might set up one of these in a foreign country.

17. The methods of conducting business, vital to understand in exporting.

18. Cannot be removed.

19. Either the authorities responsible for the collection of duties on imports’ or people’s habits.

20. The date when a bill of exchange becomes payable.

Exercise 6. Translate the sentences.

1. Держави ведуть торгівлю з тих самих причин, що й приватні особи та фірми. 2. Держави отримують зиск від торгівлі тому, що вона дає їм можливість обмінювати надлишок товару, який вони виробляють, на товар, у якому вони мають потребу. 3. Природні багатства, транспортні засоби, трудові ресурси дали поштовх розвиткові окремих видів промисловості 4. Різниця в кліматичних умовах, природних багатствах, трудових ресурсах зробила можливою спеціалізацію з виробництва окремих видів товарів. 5. Незважаючи на значні переваги торгівлі, більшість країн запроваджує обмеження на торгівл. 6. Упродовж історії свого існування США розглядали фіскальні тарифи як головне джерело надходжень. 7. Для того, щоб захистити вітчизняну промисловість від іноземної конкуренції, існують тарифи, мета якиї – зробити зарубіжний товар дорожчим за такий самий товар, виготовлений у країні. 8. Квоти знижують рівень конкуренції, з якою може зіькнутися вітчизняна промисловість, обмежуючи кількість імпортованого товару.