Speaking

XII. Reproduce the main text, using the words given in exercises I, II, III

Tip:

XIII. Work in small groups. Read the text and divide it into some meaningful parts, giving the proper title to each of them

Financing of international trade

In the nineteenth century, the rapid growth of British industry, commerce and shipping under the stimulus of the industrial revolution made Britain the market as well as the workshop of the world. It became the site for the chief world market in raw materials, freight, insurance, and precious metals. A sound commercial banking system and a flexible system of central bank control have been built up, while specialized institutions – such as discount houses, merchant banks, accepting houses, the stock exchanges, investment trusts and finance corporations have evolved to satisfy particular needs for short-term or long-term finance. The facilities provided by merchant banks and accepting houses, for example, have long been used to finance shipments of goods not only to and from Britain, but also between overseas countries themselves.

At the same time, the banks which were already engaged in financing trade naturally developed to become channels for finance for longer-term ventures. British capital invested in overseas countries has assisted their development, increased their output and exports, and provided markets for manufactured goods. A number of specialized institutions have also been established in recent years to assist the provision of financial services for overseas countries.

The foreign exchange market

The Foreign Exchange Market is subject to United Kingdom exchange control regulations governing the purchase and sale of foreign currencies in the sterling area, but these regulations have been progressively relaxed in recent years. The turnover of the market has increased materially since the introduction in December 1958 of external convertibility for the principal European currencies.

The market consists of about 130 authorized banks and nine firms of brokers, all linked together by telephone in the United Kingdom, and by telephone, telex and cable with overseas centres.

XIV. Write a summary of the text

Tip:

XV. Practice talking about the following situations

1. You requested an overdraft at your bank. Base your arguments on this fact. What was the bank's reply and the final result of this situation.

2. Your accounting department has failed in paying off the bill. Tell what it is necessary to do in order to avoid the mistrust of your suppliers.

3. Your office hasn't got the payment in due course and you ran into the problems with your bank. Talk all measures of setting the matter.

4. You are in foreign business. What are the bank's services to exporters and importers and the types of payment in foreign trade.

5. Clear up the role of the banks in home business and the types of payment in the home trade.

XVI. Work in groups of two or three, talk about banking and payment

1. Discuss with a bank clerk the conditions of getting personal loan; what is the regularity of taking up loans and what innovations may take place.

2. You are the sales manager. The accountant of your office informs you about the delay of payment by one of your customers. Discuss this problem.

3. You have got the raise of your salary an decided to open an account in the bank. Discuss with the clerk of the bank what account is better to open.

4. Discuss with your partner the matters dealing with finances (types of payment, terms of payment, the conditions of granting a delay).

5. The general manager and the department managers are discussing the widening of the bank's services in the connection with setting up its subsidiaries not only in the city but beyond its range.