Terms of payment

Payment in foreign trade may be made in cash and on credit . There are different methods of cash payment:

1. By cheque (but it is not practicable as a cheque is payable in the country of origin and its use is time-wasting to say the least. That’s why cheques are mostly used for payment in home trade.)

2. By telegraphic or telex transfers or post (mail) remittance which is made from the Buyers ‘ bank account to the Sellers ‘ in accordance with the Buyers' letter of instruction. Actually this method of cash payment may sometimes take several months, which is naturally very disadvantageous to the Sellers. The transfer is carried out at current rates of exchange.

3. By letter of credit (or just by credit) - L/C - (In our commercial practice the following types of letters ,of credit are usually used: irrevocable, confirmed and revolving. An irrevocable L/C is one which can neither be modified nor cancelled without the consent of the party in whose favour it has been opened. A confirmed L/C is an irrevocable L/C, payment under which is guaranteed by a first class bank in case the opener of the L/C (i.e. the Buyers) or the bank effecting payment defaults, or is unable to make payment . A revolving L/C is one under which its value is constantly made up to a given limit after payment for each shipment, which saves the charges on multiple letters of credit)

The Letter of Credit is the most frequently used method of cash payment because it is advantageous and secure both to the Exporter and to the Importer though it is more expensive than payment by transfer. It overcomes the gap between delivery and payment and gives protection to the Sellers by making the money available for them on the fulfillment of the transaction and to the Buyer because they know that payment will only be made against shipping documents giving them the title for the goods. This method of payment is often used in dealings with developing countries .

Завдання 2. Поставте десять запитань до тексту.

Завдання 3. Перекладіть речення

1. У великому бізнесі завдання, пов’язані з організацією та управлінням, виконується багатьма найманими менеджерами. (Related- повязаний)

2. Великий і малий бізнес для досягнення своєї мети організовують свою роботу по-різному.

3. Акціонерне товариство та одноосібне підприємство – це різні види бізнесових організацій.( Join-stock companу - акціонерне товариство)

4.. Через різні економічні проблеми українська економіка не може задовольнити всі бажання споживачів.

5. Як менеджер, він буде виконувати завдання, пов’язані з організацією та управлінням виробництвом.

Завдання 4. Поставте дієслова у дужках у правильну часову форму.

16. How you (feel) when they told you about moving offices?

17. I (not finish) the report yesterday

18. In the 1960s the company (begin) activities in the area of civil construction

19. I asked about my package in reception, but they said that it (arrive) tomorrow

20. Last year I (go) to a sales conference in Berne.

Завдання 5. У пропусках напишіть відповідне слово чи вислів.

2. A good … depends on the ability of the partners to work well together.

3. We reached an … and signed it yesterday.

4. The oil … controls the prices of crude oil.

5. How do you calculate the rate of … for taxes?

6. … … was a step toward the European Union.

7. The tourist office sent us a guide who .... our travel through Japan

8. The labour union … a wage increase.

9. I applied at the bank for a mortgage … at 7 percent interest.

10. Most trade agreements today are …

11. … … , officially called the International Bank for Reconstruction and Development , is owned by approximately 130 countries.

12. The IMF … projects in less developed nations.

13. Most associations are… … associations which have no import duties among member nations.

( the Word Bank, multilateral, loan, negotiated, facilitated, depreciation, cartel, agreement, partnership, finances, free trade, the Common Market.)

Завдання 6. Завдання в Інтернет-Кафе.

ВАРІАНТ 15

Завдання 1. Прочитайте та перекладіть письмово текст.