1. Read and learn the following words and word combinations. Translate the examples:

commercial terms – комерційні терміни

e.g. International commercial terms (Incoterms) are not customary in home trade.

“Incoterms” – „Міжнародні правила тлумачення комерційних термінів”

dispute n – суперечка; disputable question – спірне питання;

e.g. If the goods are lost disputes may arise between buyer and seller.

avoid v - уникати

e.g. Both parties should discuss all disputable questions to avoid mistakes.

seller’s premises – приміщення (місце розташування) продавця

e.g. If the goods are available at the seller’s premises (i.e. works or factory) the price will be lower.

quote a price – встановлювати ціну; назначати розцінки

e.g. All prices are quoted in the price-list.

destination n – місце призначення, кінцевий пункт призначення

e.g. The equipment must be delivered within 2 months destination Odessa port of Ukraine.

responsibility n – відповідальність, зобов’язання; to assume responsibility – взяти на себе відповідальність; to bear responsibility – нести відповідальність; respective responsibilities – відповідні зобов’язання, обов’язки

e.g. According to the contract the seller and the buyer carry their respective responsibilities.

in each particular case – в кожному окремому випадку

e.g. The price depends on transport and delivery terms in each particular case.

standardize v – стандартизувати, нормувати, уніфікувати; standardization – стандартизація, нормування, уніфікація

e.g. Commercial terms were standardized to avoid any disputes.

unambiguously adv– точно, чітко, однозначно (opp. ambiguously - двозначно)

e.g. If the term is unambiguously defined it cannot be interpreted in a different way.

revise v – 1) перевіряти, виправляти; 2) переглядати, змінювати;3) ревізувати

revision n – 1) перевірка; 2) виправлення, зміна; 3) ревізія

e.g. A new revision of the Incoterms was adopted in 1980.

International Chamber of Commerce – міжнародна торгівельна палата

II. Read and translate the text:

Standardization of Commercial Terms

Contracts of international sales usually include commercial terms which are not customary in home trade. This is because sending goods from one country to another can be a risky business. If the goods are lost or damaged on the way or if delivery doesn't take place for some other reason, disputes may arise between buyer and seller. To avoid such disputes, it is usual to agree in advance who bears the costs and risks of the delivery of goods and up to what point. The price of the goods will depend upon the term of agreement between buyer and seller. For example, when the buyer agrees to take delivery of the goods from the seller's premises (i.e. he bears all the costs and risks of the delivery) the seller will quote a lower price. On the other hand, if the buyer wants the seller to bear all the costs and risks of delivering the goods to their destination, the price will be higher.

In the course of the long history of international trade special commercial terms have been developed. These terms make it possible for the buyer and seller to mutually agree on the terms of the sale of the goods without having to define in detail their respective responsibilities in each particular case. These terms have also been standardized and cannot be interpreted in different ways. They unambiguously define who pays the cost (price, packing, invoicing, freight, insurance, charges for the documents) and who bears the risks and up to what point.

The best-known such terms are Incoterms. They were first formulated by the International Chamber of Commerce in 1936, in Paris, and have been revised several times since.

III. Answer the following questions:

1. What caused the necessity to formulate international commercial terms?

2. What do Incoterms define?

3. How does the price depend on delivery terms?

4. Why should the definition of the term be unambiguous?

5. How do Incoterms simplify the process of international trade?

6. When and where were the first Incoterms formulated?

7. Try to explain why it is necessary to revise Incoterms from time to time.

4. Give Ukrainian equivalents of the following:

terms that are customary in foreign trade; lost or damaged on the way; it is usual to agree in advance; up to what point; on the other hand; in the course of the long history of trade; to define unambiguously; charges for the documents.

4. Give English equivalents of the following:

терміни, що зазвичай не застосовуються у внутрішній торгівлі; ризикована справа; з будь-якої іншої причини; залежати від умов угоди; призначати ціну; взаємно погоджуватись щодо ...; найвідоміший; з того часу; рахунок-фактура; страхування.

4. Match the definition on the right with the word on the left. Translate and learn the definitions:

   dispute	to name, to mention (a price)
   destination	making something of one size, shape, quality, etc. according to fixed standards
   to quote	list of goods sold with the price(s) charged
   invoice	debate, argument
   freight	place to which a person or thing is going or is being sent
   standardization	(money charged for) the carrying of goods from place to place (usually by water)

5. Fill in the gaps with the words from the list below:

quotes, bear, responsibilities, in advance, detailed, costs and risks, avoid

1. Incoterms make it possible for the buyer and seller to … disputes arising from transaction.

2. When the buyer bears all the … of the delivery, the seller … a lower price.

3. During the talks both parties discussed their mutual ….

4. The … specification is given in the supplement.

5. Let us agree … up to what point we … the risk.

4. Match the synonyms. Use any 5 words in the sentences of your own:

   include	transportation
   dispute	cargo
   delivery	contain
   freight	definite
   particular	argument

5. Match the words with opposite meaning. Use any 5 words in the sentences of your own:

   customary	higher
   to lose	unusual
   to agree	to find
   lower	rare
   usual	to disagree

6. Translate into English:

1. Міжнародні комерційні терміни були розроблені впродовж довгої історії зовнішньої торгівлі.

2. Ціна товарів залежить від умов поставки.

3. Відверті дискусії допомагають нам уникнути непорозумінь.

4. Ця умова неоднозначна; її можна інтерпретувати по-різному.

5. Ціни були переглянуті.

6. Ми візьмемо на себе оплату документів.

4. Topics for discussion:

1. Speak about the necessity to develop Incoterms.

2. Explain how Incoterms simplify the process of international trade.

3. Speak about the essential requirements to Іncoterms.

4. Skills practice:

Assignment 1. We use fractions and percentages to express the relative values of one amount compared to another. Complete the table.

½	a half	50%
-/3	-	66%
-/4	-	25%
-/4	-	75%
-/5	-	40%
5/6	five sixths	83%
-/10	-	90%

Assignment 3. We use the following words to give approximations when we are talking about amounts: about, approximately, nearly, roughly, around.

e.g. Approximately one third of our products were created last year.

Use the information in the two pie charts to complete the extract below from an annual report. Use the appropriate fractions and modifying words where necessary.

Unit Eight