Auctions

Auctions are a form of trade, a mechanism to match a buyer and seller for any item of value. An auction is an event in which goods or property are sold to the highest bidder. It is a market in which buyers enter competitive bids and sellers enter competitive offers at the same time. By being open to the public, an auction ensures a wide range of bids, and sometimes items at auction can fetch surprisingly high prices.

Auctions can be classified based on the type of participants as consumer to consumer, business to consumer, government to business, and so on. There are a number of types of auctions performed around the world. Different auction formats exist, varying according to how prices are quoted and bids tendered. The most commonly known of these is the English Auction, which is commonly used for artworks and wine. In a basic an item is introduced to the crowd and members of the public bid on it, slowly raising the price until everyone bows out, leaving a winner of the auction who pays the price he or she bid.

The auction is managed by an auctioneer, someone who keeps an eye on the bidding and determines the ultimate winner. In some cases, the seller may set a minimum bid, ensuring that the item will not sell below a certain price. Famous auction houses like Sotheby's specialize in this type of auction.

The internet age has transformed auction into a truly open process in which thousands of goods (from books to ships) and services (from air travel to legal advice) may be offered for bidding by anyone from anywhere and at any time on websites. Internet auctions are an important aspect of electronic commerce.

Task 8. Read the statements and decide whether they arc true (t) or false (f).

1. An exhibition, as of farm products or manufactured goods that is usually accompanied by various competitions and entertainments, is called a fair.

2. There are no varieties of events at a fair.

3. Brokers / intermediaries should prepare and utilize written agreements with their customer.

4. Intermediaries - brokers do not get any fees from the contracts concluded.

5. The mission of commodities exchanges is to provide a suitable place where members trade commodities (futures) or options on futures.

6. An auction is an event in which goods or property are sold to the lowest bidder.

7. Auctions are used to sell many things in addition to antiques and art.

8. Auctions have become one of the most visited web pages on the Internet.

Task 9. Give the Ukrainian equivalents for the following word combinations. Use them in the sentences of your own.

retail trade to trade goods mutual interest wholesale trade to make a profit to raise the price purchase and sale to assume the risks to conclude contracts electronic commerce to guarantee the price to conduct transactions to receive commissions merchants and customers under the terms and conditions to ensure a wide range of bids to sell a future contract on smth. futures contracts on commodities to present manufacturers’ products to use commodities for consumption

Task 10. Read the sentences and choose the best option: a, b, c or d. Translate the sentences into Ukrainian.

1. Trade is for satisfaction of human wants.

cu unnecessary b. dispensable c. essential d. unimportant

2. Trade is conducted not only for the sake of earning ; it also

provides service to the consumers.

a. salary b. profit c. treasure d. jewellery

3. trade refers to buying and selling between two or more

countries.

a. home b. foreign c. on-line d. country

4. . has taken birth with the beginning of human life and shall

continue as long as human life exists on the earth.

a. sale b. trade c. purchase d. selling

5. Trade enhances the standard of living of .

a. agents b. creditors c. consumers d. brokers

5. Thus we can say that trade is a very important social .

1. activity b. event c. operation (L measure

5. The_ is a link between manufacturer and retailer.

1. wholesaler b. broker c. trader d. retailer

5. Wholesaler act as an between producers and retailers.

1. intermediary b. buyer c. purchaser d. seller

5. The is the last link in the chain of distribution.

1. consumer b. wholesaler c. retailer d. sale agent

5. Sometimes a shopping street has a partial or full roof to protect ____ from precipitation.

1. tourists b. guests c. customers d. businessmen

Task 11. Match the following words and word combinations from Column A with their definitions in Column B.