Ex.1. Insert the necessary prepositions.

1. This factory is working __ full capacity as it is heavy__ orders.

2. Our Production Manager has been working flat __ for two weeks now.

3. You can pay for the samples now or settle __ later.

4. It’s better to check __ our customer as it is going to be our first transaction with him.

5. I’m glad I’m not __ his shoes!

6. The General Director has a visit to the assembly shop lined __.

 

Ex.2.Paraphrase the following sentences using your active vocabulary.

1. I’m not going to argue with you over the price.

2. We are working as hard as we can.

3. I’d like to repeat the main points.

4. They have given me the permission to do it.

5. You have to be sure we are an honest and reliable company.

6. I’d do the same if I were in your position.

7. We have discussed all the aspects of the deal.

8. I haven’t got any meetings planned for tomorrow.

9. We are going to transfer money from our bank to yours.

10. This order is definite.

Ex.3.Translate the following sentences into English.

1. Наш завод работает ниже своих возможностей, а мы хотим, чтобы он работал на полную мощность.

2. Прежде чем мы заключим сделку, я хочу обсудить ее с коммерческим директором.

3. Как Вы собираетесь расплачиваться с нами?

4. Так как это оптовый заказ, мы можем пойти на уступки.

5. Мы могли бы предложить Вам 2% скидку с прейскурантной цены.

6. Предоставьте нам рекомендацию из банка и информацию о состоянии дел Вашей фирмы. Тогда мы будем уверены, что Вы платежеспособны.

7. Безотзывный аккредитив – один из самых распространенных методов оплаты в международной торговле.

8. Им придется работать изо всех сил, чтобы выполнить этот заказ.

9. У Вас есть какие-нибудь планы на сегодняшний вечер?

10. Если мы хорошо знаем покупателя и доверяем ему, мы можем предложить ему условия открытого счета.

 

Ex.4. Read the following statements. Say whether they are true, if not correct them.

1. Air freight is much cheaper than shipping by sea.

2. A new customer can get a special concession for a trial order.

3. If factories get some big orders they work below capacity.

4. FOB prices include freight and insurance.

5. A bulk order is a substantial one.

6. If the company needs the goods urgently it should order them for immediate delivery.

7. Irrevocable Letter of Credit is the most acceptable method of payment with regular customers.

8. If you want to know more about an organization you should be provided with some references.

9. Open account terms can be offered to a new customer.

 

Read and translate the following text:

Bruce Stevens of Harbour Imports Pty, Melbourne, Australia, wanted to pay Peter Weaver of Clothco Ltd, Manchester, UK, for some cloth. Bruce wrote to his bank on a special form and asked them to open an irrevocable documentary credit. A Letter of Credit from Bruce's bank guarantees payment in Britain at a later date. If it is irrevocable, it cannot be cancelled. Neither Bruce nor his bank can change their minds and refuse to pay. Peter's bank knows Bruce's bank very well and they know they will receive the money, so they confirmed the Letter of Credit. This means that they guaranteed to pay the money so Peter was sure he would be paid. However a Letter of Credit is not negotiable so Peter had to wait until the Letter of Credit was paid before he received his money.

 

Answer the questions:

1. Who applies for a L/C, the importer or the exporter?

2. Who issues a L/C?

3. If a L/C is not irrevocable, who might not pay?

4. If a L/C is not confirmed, who might not pay?

5. Can you discount a L/C?

 

 

ROLE PLAYS

1.Your partner is going to sell his company's product abroad, but he doesn’t know much about the terms of delivery and methods of payment used in foreign trade. Give him the information he needs and help him to choose the most suitable ones.

2. Textafabrik and the large textile group, represented by Mr. Johnston have been trading successfully for some time. Now they negotiate possible changes in the terms of delivery and methods of payment.

 

Problem-solving

A supplier based in a foreign country offers you goods with a well-known and prestigious logo on them at a surprisingly low price. At that price you suspect that they must be copies but they would certainly deceive the customer. Would you buy them and market them? Is there anything else you would do?

 

 

Answer the questions on the topic:

1. What questions are usually discussed before clinching a deal?

2. What quotation terms do you know? Characterise each of them and explain their pluses and minuses.

3. What methods of payment do you know? Speak about each one.

4. What method is used when:

- you don't know the customer well and the order is rather substantial?

- you don't know the client well but the order is rather urgent and not very large?

- you have been trading for a long time?

5. Which is the quickest/slowest/most reliable/least reliable method?

6. What is the difference between L/C and IL/C?

7. Why is it necessary to know a lot about a potential customer?

 

Unit 4

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