Vocabulary 1

Find Russian equivalents for the following words and expressions from the text. The number of paragraphs is given in brackets:

1. Merger, merging (Par. 4)

2. Company takeover (Par. 4)

3. Stock market (share market, securities market, equity market) (Par. 1)

4. Losses (negative profit) (Par. 1)

5. Bankruptcy, insolvency, bust, business failure (Par. 2)

6. Collapse, downfall, dive (Par. 2)

7. Redundancy (Par. 3)

8. Back office (Par. 3)

9. CEO (for corporations), GM (Par. 4)

Vocabulary 2

After you translate the words and expressions form the Vocabulary 1 task, give definitions to these words in English.

Video watching

Y ou're going to watch the video on the issue of international shipping (Ocean cargo container shipment) downloaded from Youtube sources at http://www.youtube.com/watch?v=qeZFc7b42gg .Watch the video and then answer the following questions:

1. What are the growth rates in the period from 1999 to 2004 according to the UN estimates?

2. Why is international shipping considered a truly global industry?

3. What organizations regulate the international shipping and international safety standards?

4. What do the abbreviations SOLAS and MARPOL stand for?

5. What is the level of oil spilled in 2005 in comparison to the same rates ipn the early nineties?

6. What are the main categories of the shipping vessels? What types of goods do they basically carry?

7. How many heavy trucks are modern container ships able to carry?

8. How much crude oil can the largest tanker carry?

9. What types of goods or things do ferries usually carry?

10. Why is shipping cost-effective? Do you agree that shipping is a blood vessel of the global economy?

Discussion and individual research

In pairs comment on the following questions:

• What are the most important shipping lanes or sea routes in your country?

• What type of ships are generally using these sea routes?

• What countries or states, regions do these sea routs connect?

• What types of goods do the ships on these sea routs mostly carry?

If you have not got enough information on the issue of your country's sea routs, please, conduct a survey and try to find out the necessary information (including names and figures) concerning the questions mentioned above.

Unit 8

International trade. Contract clauses - International Terms of Payment

Starting up

Y ou are going to listen to a short BBC report on the issue of healthcare reforms in the USA downloaded from the BBC site at http://www.bbc.co.uk/worldservice/learningenglish/language/wordsinthenews/2012/03/120327_witn_obama_healthcare.shtml . Before you listen, discuss the following questions in pairs:

• What aspects does the sphere of healthcare include?

• Are you satisfied with the healthcare services supplied in your native country?

• What countries are famous for excellent or vice versa poor healthcare services? What may the political, economical or social reasons for that be?

Summary

Read the summary to the BBC report taken from the BBC site and translate it using the lexical and grammatical substitutions suggested in brackets. Then listen to the report and fill in the gaps. After you check the gaps with the whole class, present the sight translation of the report.

BBC Learning English-Words in the News

US healthcare on a knife edge (lexical compensation), 27 March 2012

In the United States, a two-year battle over President Barack Obama's healthcare reforms (word order) reaches the Supreme Court this week, as the nine most senior judges in the land hear three days of argument (parts of speech) over whether or not the reforms are constitutional. This is one of the biggest cases (specification) to come before the Supreme Court in recent times. Our Washington correspondent Paul Adams reports (word order).

Barack Obama's healthcare reforms, __________almost exactly ______years ago (specification), remain one of the most _____________ aspects of his _____________. The bill was__________ in the________ of (compensation) ___________ opposition from the ______________ Party. _______ suggest that public ___________ remains ________ divided (antonyms).

A key ___________ (specification) that individual citizens should __________buy ________ insurance ___ pay a _______ - the so-called individual _________ - has already been the subject of __________ legal ________ across the country. It was almost __________ (parts of speech) that the issue would _________(parts of speech) reach the highest ________ in the land (specification).

The ______ justices who ________ ____ the Supreme Court, ____of them regarded as ____________, will spend a highly_________ three days hearing ______ arguments. They'll _______ their __________ in the summer (Active-Passive voice), just as this year's presidential ________ ___________ swings into full ______ (compensation). The ________ on the campaign of a _______ _____ such an important political_________ could be ______________ (word order).

Speaking

You are going to read a text on terms of payment commonly used in international trade. Before you read the text and perform the task discuss the following questions in pairs:

• What methods of payment used in business do you know?

• What are the advantages and disadvantages of using each of them?

• What methods of payment do you generally use (in business or in everyday life)? Which method do you usually prefer and why?

• Are there any terms of payment that are difficult/ dangerous to use in your native country and abroad? Why?

Reading 1

Work individually. Look at the table containing information in various payment terms and match the methods of payment with their specifications given below:

Time draft Unconfirmed irrevocable L/C Open account Draft Letter of credit Advanced payment Confirmed irrevocable L/C Sight draft

Method	Usual Time of Payment	Goods Available To Buyer	Risk to Seller	Risk to Buyer	Comments
1	Before shipment	After payment	None	Complete. Relies on seller to ship exactly the goods expected, as quoted and ordered	Seller's goods must be special in one way or another, or special circumstances prevail over normal trade practices (e.g., goods manufactured to buyer-only specification).
2			Commercial Invoice must match this document exactly. Dates must be carefully headed. "Stale" documents are unacceptable for collection.		The method requires total accuracy in conforming to terms, conditions, and documentation. Consult your United Shipping Associate member for determining feasibility of terms and conditions.
3	After shipment is made, documents presented to the bank.	After payment	Gives the seller a double assurance of payments. Depends on the terms of the payment method.	Assures shipment is made but relies on exporter to ship goods as described in documents. Terms may be negotiated prior to payment agreement, alleviating buyer's degree of risk.	The inclusion of a second assurance of payment (usually a U.S. Bank) prevents surprises, and adds assurance that issuing bank has been deemed acceptable by confirming bank. Adds cost and an additional requirement to seller.
4	Same as above	Same as above	Seller has single bank assurance of payment and seller remains dependent on foreign bank. Seller should contact his banker to determine whether the issuing bank has sufficient assets to cover the amount.	Same as above	Credit can be changed only by mutual agreement, as stipulated in a sales agreement. Becomes open account with buyer's bank as collection agent. Foreign bank may have problems making payment in sum or timeliness.
5	Remittance time from buyer's bank to seller's bank may still take one week to one month.		These documents, by design, should contain terms and conditions mutually agreed upon.		It may be written with virtually any term or condition agreeable to both parties. When determining draft tenor (terms and conditions), consult with your banker and freight forwarder to determine the most desirable means of doing business in a given country.
6	On presentation of draft to buyer.	After payment to buyer's bank.	If draft not honoured, goods must be returned or resold. Storage, handling, and return freight expenses may be incurred.	Assures shipment but not content, unless inspection or check-in is allowed before payment.	This can be a collection instrument used to exchange possession and title to goods for payment. Seller is essentially drawing a check against the bank account of the buyer. Buyer's bank must have pre-approval, or seek approval of the buyer prior to honouring the check. Payable upon presentation of documents.
7	On maturity of the payment document.	Before payment, after acceptance.	Relies on buyer to honour the payment document upon presentation.	Assures shipment but not content. Time of maturity allows for adjustments, if agreed to by seller.	Payable based upon the acceptance of an obligation to pay the seller at a specified time. Although it has more collection leverage than an invoice, it remains only a promissory note, with conditions.
8	As agreed, usually by invoice	Before payment	Relies completely on buyer to pay account as agreed	None	All terms of payment, including extra charges and terms should be mutually understood and agreed upon prior to this payment initiation. Companies conducting ongoing business are candidates for this particular term of payment. Seller must measure not only buyer's credit reliability but the country's as well.

Reading 2

Work in pairs. Read the following texts on peculiarities of various payment terms. After you'll have read the text, fill in the gaps with the correct letters for words and word-combinations from the box below:

a) payment	e) advising bank	i) applicant	m) banking system
b) opening bank	f) cash	j) creditworthiness	n) written consent
c) stability	g) beneficiary	k) shipper	o) issue
d) bill of lading	h) assurance	l) financial institution

Payment Terms

The most common payment terms, in order of risk, are:

Payment In Advance (least risky) Letter Of Credit Documentary Collection Against Payment

Open Account Minimum Guarantee Consignment (most risky)

Which payment terms you decide to offer to a customer depend on:

Political Climate Economic 1) _________ Legal System

Competition Customer 2)_______________ Your financial resources

Payment in advance, or 3)___________ in advance, is the best method of payment from the exporter's perspective.

1. Do not have to worry about collecting 4) ________.

2. Do not have to verify their creditworthiness.

Most overseas customers will not accept payment in advance terms, because:

1. They want to make sure they receive the goods.

2. They may consider these terms to be insulting.

3. You do not trust them.

A letter of credit is the most commonly used form of secure payment. It is a document issued by a 5) _________ at the buyer's request and instructions. It spells out the terms under which the seller will be paid. Pay the seller a certain amount when it produces documents according to the instructons. It acts as an escrow account.

A letter of credit is the preferred method of payment in trade with areas outside of Western Europe, Canada, and the United States. Because it offers independent 6) _________ to the both exporter and buyer. A letter of credit is a critical document, so it is imperative that the seller 7)__________ clear guidelines to the buyer on how to open a letter of credit.

Letters of credit became necessary when trade between countries made it impossible to simply do business by handshake. Were initially introduced by the merchant 8) __________ in Europe. Originally it was a letter addressed by the buyer's bank to the seller's bank stating they would guarantee payment the seller in case of the buyer's default.

Depending on the circumstances, various names used in a letter of credit may refer to the same party. The 9)__________ opens the letter of credit. The buyer, or customer, is the Applicant. Sometimes the Applicant is called the account party.

The Opening Bank issues the letter of credit. The Opening Bank's credit replaces the buyer's credit. The 10)________ is an agent of the Opening Bank. It verifies the authenticity of the Opening Bank.

The Confirming Bank is usually the Advising Bank, but it confirms that the credit exists. It can negotiate the documents, and can accept the letter of credit the Opening Bank will not pay. The Paying Bank is also called the drawing bank. The Paying Bank may act also the Advising Bank, or the Confirming Bank, or the Opening Bank. The11)_____________ is often the seller. It is party to whom the credit is issued.

There are several types of letters of credit. The differences are found in the wording.

Revocable versus Irrevocable: You should always insist and carefully check that a letter of credit is irrevocable. Once an irrevocable letter of credit is open it cannot be changed without the 12)______________ of all parties including the beneficiary. A revocable letter of credit can be change or withdrawn without notifying the beneficiary.

Confirmed versus Advised: Confirmed is preferred, as the Confirming Bank promises to pay. Advised does not guarantee the creditworthiness of the 13)_____________.

Straight versus Negotiation: A negotiation letter of credit can be presented to any bank. A straight letter of credit can only be paid in the country of the Paying Bank.

Sight versus Usance: At sight means the Beneficiary is paid as soon as the Paying Bank has determined that all necessary documents are in order. Usance time can be between 30 and 180 days after the 14)_________date. This is a form of delayed payment, and should be avoided.

A bill of lading (BL - sometimes referred to as BOL or B/L) is a document issued by a carrier to a 15)___________, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. A through bill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto a ship or other form of transportation.

A bill of lading can be used as a traded object. The standard short form bill of lading is evidence of the contract of carriage of goods and it serves a number of purposes:

1) It is evidence that a valid contract of carriage, or a chartering contract, exists, and it may incorporate the full terms of the contract between the consignor and the carrier by reference (i.e. the short form simply refers to the main contract as an existing document, whereas the long form of a bill of lading (connaissement intégral) issued by the carrier sets out all the terms of the contract of carriage);

2) It is a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition (a bill will be described as clean if the goods have been received on board in apparent good condition and stowed ready for transport);

3) It is also a document of transfer, being freely transferable but not a negotiable instrument in the legal sense, i.e. it governs all the legal aspects of physical carriage, and, like a cheque or other negotiable instrument, it may be endorsed affecting ownership of the goods actually being carried. This matches everyday experience in that the contract a person might make with a commercial carrier like FedEx for mostly airway parcels, is separate from any contract for the sale of the goods to be carried; however, it binds the carrier to its terms, irrespectively of who the actual holder of the B/L, and owner of the goods, may be at a specific moment.

The BL must contain the following information:

Name of the shipping company; Flag of nationality; Shipper's name; Order and notify party; Description of goods; Gross/net/tare weight; and Freight rate/measurements and weighment of goods/total freight

A commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.[1] [2] Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized System codes for those goods. A commercial invoice must also include a statement certifying that the invoice is true, and a signature. A commercial invoice is used to calculate tariffs, international commercial terms (like the Cost in a CIF) and is commonly used for customs purposes.

Translation 1

Work individually. Translate the following extracts concerning terms of payments in contracts in a written form:

1. При заключении договора и в зависимости от объемов отправлений компания СДЭК предоставляет выбор следующих условий оплаты:

Стандартные условия оплаты. Оплата услуг производится в течение 3-х банковских дней.

Понедельные условия оплаты. Оплата производится по итогам календарной недели.

Помесячные условия оплаты. Оплата производится по итогам календарного месяца.

2. Международные расчеты - регулирование платежей по денежным требованиям и обязательствам, возникающим в связи с экономическими, политическими и культурными отношениями между юридическими лицами и гражданами разных стран. Они включают, с одной стороны, условия и порядок осуществления платежей, выработанные практикой и закрепленные международными документами и обычаями, с другой - ежедневную практическую деятельность банков по их проведению.

3. Подавляющий объем расчетов осуществляется безналичным путем посредством записей на счетах банков. При этом ведущую роль в международных расчетах играют крупнейшие банки. Степень их влияния зависит от масштабов внешнеэкономических связей страны базирования, применения ее национальной валюты, специализации, финансового положения, деловой репутации, сети банков-корреспондентов.

4. Условия платежа. Под данными условиями понимается – как, когда, в какой валюте, в какой форме и каким образом будут происходить расчеты между продавцом и покупателем. Валюта платежа определяет денежную единицу, в которой будут производиться расчеты. Наиболее распространенный способ – валюта платежа совпадает с валютой цены. То есть если цена обозначена в долларах, то и платежи производятся так же. Сроки платежей устанавливаются по договоренности сторон и зависят в первую очередь от формы расчетов за товар. Способ платежа определяет, в какой момент производится оплата товара по отношению к его поставке.

5. Платежи за товары по настоящему Контракту будут осуществляться с безотзывного подтвержденного переводного документарного аккредитива, открытого до отгрузки во Внешэкономбанке РФ (Москва), в пользу Продавца. Аккредитив должен быть открыт не позднее чем за 10 дней до предполагаемой даты отгрузки товара, сообщенной Продавцом. Платежи будут осуществляться против следующих документов, которые будут представлены в банк в течение трех недель с даты открытия аккредитива:

- подписанные счета в четырех экземплярах на каждую отгруженную партию;

- полный комплект чистого бортового коносамента, выписанного на имя грузополучателя/покупателя, с указанием, что товар отгружен и фрахт оплачен;

- оригинал сертификата о происхождении (форма А);

- упаковочный лист в трех экземплярах;

- сертификат качества изготовителя в трех экземплярах;

- оригинал страхового полиса, датированного не позднее даты коносамента;

- оригинал сертификата об инспекции, выданный ________.

Все отгрузочные документы, включая счета, должны быть выписаны на каждый контейнер.

6. Платеж за поставленный товар производится в долларах США по официальному курсу Госбанка РФ на день платежа по инкассо _____ дней с даты счета плюс ____ % годовых против предоставления Продавцом Внешторгбанку (Москва) отгрузочных документов. Отгрузочные документы выдаются Покупателю банком ________ (Женева) против акцепта тратт.

На товар, поставляемый в _______ по спецификациям 1-3, Покупатель предоставляет ____% гарантию от всей стоимости товара, подлежащего к поставке, а на товар, поставляемый в по спецификации 4, - ____% гарантию от всей стоимости товара, подлежащего к поставке. Гарантия предоставляется в виде овала банком _______ (являющегося банком-корреспондентом Внешторгбанка) тратт, выписанных на Покупателя или фирму ______, принадлежащую Покупателю. На остальную сумму контракта, не обеспеченную гарантией, Покупатель предоставляет Продавцу фирменные чеки.

Translation 2

Translate the following sentences from Russian into English applying the substitutions suggested in brackets.

1. Подведены предварительные итоги выборов в Верховный совет республики (Topic-Comment).

2. Согласно опросам (Gr. - Internal sentence fragmentation), наибольшие шансы на победу (Gr. Parts of speech) среди оставшихся 16 кандидатов имеет профессор Архангельского государственного технического университета Алексей Баринов( Gr-Topic-Comment+Word order).

3. К слову сказать, не только пенсионеры недовольны отменой социальных льгот. В некоторых регионах (Word order) потеряли право бесплатного проезда (Gr -Parts of speech) в городском транспорте студенты (Topic-Comment) (Gr – Sentence unification). Повсеместно лишились(Gr categories) этой льготы (и не только этой) сотрудники милиции (Word order).

4. В 1994 году эта беда (Omission) заботила (Gr – Parts of speech) 6%, а теперь лишь 2% респондентов.

5. Недавно закончилось (Logical development) международное тестирование по литературе подростков 15-ти лет, в котором приняли участие 250 тысяч человек из 41 страны (Gr – Topic - comment+External sentence fragmentation).

6. При этом в 90-е годы в мире появились новые подходы к обучению иностранцев (Gr- nominalisation of adverbial modifier of time).

7. Специалисты Роспотребнадзора провели (Parts of speech) всероссийскую проверку школ и выяснили (Logical development), что в 2004—2005 учебном году с грубыми нарушениями работает 221 российская школа (Topic-comment).

8. В Краснодаре сотрудники городского полка ДПС задержали карманника, который орудовал (Specification) в троллейбусах краевого центра (Word order).

9. Важным аспектом нового закона является борьба с так называемой «зонтичной» рекламой, в результате использования которой популярная марка водки (Topic-comment+Parts of speech), например, рекламируется под видом питьевой воды (External sentence fragmentation).