Graph B

Graph A

Graph B

Student A: Look at the graph A. It shows US imports of goods and services from August 1996 to August 1998. Describe the information to student B using the language you have learnt. Then listen to student B’s description of US exports for the same period and complete the graph using a different colour.

Student B. Look at the graph B. It shows US exports of goods services from August 1996 to August 1998. Listen to Student’s A’s description of US Imports for the same period and complete the graph using a different colour. Then describe the information in your graph to Student A. Compare your results.

1.Did the US have a trade deficit or surplus?

2.In pairs, calculate the balance of payments for the following periods.

a) May 1997 deficit of $9 bn

b) October 1997

c) March 1998

3. a) When did the US have the lowest deficit in the period from August 1996 to August 1997?

b) When did the US import the most?

c) When did the US export the most?

Unit Two

The means of controlling foreign trade

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

foreign trade activity - зовнішньо торгівельна діяльність

e.g. The government can control foreign trade activities in different ways.

encourage v – підтримувати, заохочувати (opp. to discourage)

e.g. Who can encourage exports and control imports?

trend n – напрямок, тенденція

e.g. The general trend of the foreign trade of Ukraine is closely connected with its foreign policy.

restriction n – обмеження; to impose restrictions – накладати/вводити обмеження

e.g. The government has imposed restrictions on oil export.

quota n - квота; to establish quota – встановити квоту

e.g. A quota is a limited quantity of goods allowed to be produced, sold, etc.

tax n - податок

e.g. Taxes are paid to the government for public purposes.

licence system – ліцензійна система

e.g. The local authorities plan to introduce licence system in public transportation.

measure n – 1) міра; 2) одиниця вимірювання; 3) захід

e.g. Administrative measures affect foreign trade activities directly.

foreign exchange regulations – регулювання обміну валют

e.g. The National Bank controls foreign exchange regulations.

turnover n – обіг

e.g. Domestic trade turnover has increased in recent years.

devalue v – девальвувати

devaluation n - девальвація

e.g. To devalue means to make the value of currency less.

subsidize v – надавати субсидію;

subsidy n – субсидія

e.g. Subsidizing allows goods to be sold at a price lower than the market price.

the policy of customs duties – митна політика

e.g. The policy of customs duties is one of the most important means of controlling foreign trade activities.

II. Read and translate the text:

The Means of Controlling Foreign Trade

The government can control foreign trade activities in different ways. It can encourage exports and control imports.

The commercial policy of a country is always closely connected with its foreign policy. This is reflected not only by the general trend of the foreign trade of the respective country but also by the various restrictions, for example establishing quotas, raising taxes, and introducing licence systems to encourage imports or promote exports.

The government can control foreign trade activities directly or indirectly. Administrative measures (for example the introduction of a strict licence system) control these activities directly, foreign exchange regulations (for example the devaluation of the local currency) have an indirect effect on foreign trade turnover. The pound sterling, for instance, was devalued against the dollar in 1949 and 1967, making the dollar more expensive to purchase in the United Kingdom and the pound less expensive in the United States. So imports to Britain were discouraged and exports encouraged.

The government can also subsidize prices, which means that it allows goods to be sold at a price lower than the market price. The aim is to prevent the decline of a company or industry. For the same purpose the government can also extend credits.

One of the most important means of controlling foreign trade activities is through the policy of customs duties.

III. Answer the following questions:

1. What are the two different ways of controlling a country’s foreign trade activities?

2. How is the foreign policy reflected by its foreign trade?

3. What restrictions can be imposed on foreign trade?

4. How can the government control foreign trade activities?

5. What administrative measures can be taken to control foreign trade?

6. In what ways do foreign exchange regulations affect foreign trade?

7. What do subsidies serve for?

IV. Give Ukrainian equivalents of the following:

commercial policy; the respective country; by raising taxes; a strict licence system; local currency; to have an indirect effect on something; making the dollar more expensive to purchase; to prevent the decline of something; to extend credits.

V. Give English equivalents of the following:

торгівельна політика (2 варіанти); бути тісно пов’язаним з; різноманітні обмеження; запроваджувати системи ліцензій; заохочувати експорт; прямо або опосередковано; адміністративні заходи; дозволяти продавати товари за ціною, що нижча за ринкову ціну; з тією ж самою метою.

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

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

credit, licence, measures, trade, devaluation, discourage, policy

1. To … imports the government introduced a strict … system.

2. Some … must be taken to prevent the decline of this company.

3. The … of the bank is to extend … for education.

4. … of the local currency taxes effect the total trade.

5. How does raising taxes effect the total …?

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

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

X. Translate into English:

1. Торгівельна політика країни тісно пов’язана з її зовнішньою політи­кою.

2. Щоб підтримати внутрішнього виробника уряд ввів різноманітні об­меження на імпорт.

3. Ця галузь економіки потребує субсидій.

4. Банк надає кредити і контролює їх використання.

5. Девальвація євро заохотить експорт країн ЄС.

6. Чому ви продаєте ці товари за ціною нижчою, ніж ринкова?

XI. Topics for discussion:

1) Speak about foreign trade activities in Ukraine.

2) Speak about government control of foreign trade.

3) What could be the results of the devaluation of the euro?

XII.Skills practice:

Dealing with money and payments usually involves numbers and figures. Here is some useful information.

Cardinal numbers

A comma is often written to separate the thousands in large numbers:

3, 986 – three thousand nine hundred and eighty-six

British and American English (BE, AE) differ in the pronunciation of these very large numbers:

1, 000, 000, 000 – a thousand million (BE), a billion (AE)

1, 000, 000, 000, 000 – a billion (BE), a trillion (AE)

(the European term for a thousand million is milliard, a term still uncommon)

Fractions

½ - half, one-second

¾ - three quarters, three-fourths

1⅔ - one and two-thirds

Decimal fractions

In BE and AE a point is used when writing decimals, not a comma as in Europe: – six point nine

The numbers after point are pronounced individually. 0 is pronounced “oh” after the point and “nought” before the point in BE, and “zero” or “oh” in AE

8.07 – eight point oh seven (BE), eight point zero seven (AE)

0.6 – nought point six (BE), point six (AE)

Since 24.305 – twenty-four point three oh five (BE)

twenty-four point three zero five (AE)

Measurements

62 km – sixty-two kilometres

14 ½ cm – fourteen centimetres

6 m x 9 m – six metres by nine metres

Money

Although the money signs are written in front of the numbers, we generally say them after the numbers:

$4 m – four million dollars

¥ 92 bn – ninety-two billion yen

Assignment. Here are some expressions using numbers. Decide which of the expressions below go with which figures. Which items are left over? Write out the numbers for these.

Unit Three

CUSTOMS

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

duty n – 1) податок; 2) мито; to levy/to impose a duty – накласти податок

e.g. Customs duties are payments demanded by the government on certain goods exported or imported.

custom n – 1) звичка, традиція; 2) pl. митниця; customs duty – мито; customs officer – митник

e.g. The term “customs duties” comes from the money payments customarily paid on goods leaving or entering the country.

tariff n – тариф; protective tariff – захисний тариф; revenue tariff – прибутковий тариф; compound tariff – складний тариф; double-column tariff – подвійний тариф; single-column tariff – єдиний тариф

e.g. The tariff policy of a country aims to protect its home economy.

raw materials – сировина

e.g. The imports of certain raw materials are essential for our economy.

shield v – захищати

competition n – конкуренція

competitor/rival n – конкурент

e.g. Protective tariffs shield domestic production from foreign competition.

rate n – 1) норма; 2) ставка; tariff rate – тарифна ставка; preferential rate – преференційна, пільгова ставка; 3) exchange rate – обмінний курс; 4) відношення, пропорція

e.g. When different rates are used, a double-column tariff is applied.

II. Read and translate the text:

Customs

The practice of levying duties on goods entering or leaving the country originated in the Middle Ages when the king or monarch began to charge both export and import duties on goods, taking a part of the goods as payment. Later, money payments determined usually by the amount customarily paid were also accepted. This is where the term customs comes from.

The tariff policy of a country usually protects the interests of the home economy by enabling its products to penetrate foreign markets while protecting its own markets from being flooded by foreign goods.

Import tariffs are therefore kept as high as possible (except for raw materials and other goods, the imports of which are essential to the economy) and exports tariffs very low, if applicable at all.

Besides import and export duties, there are transit duties. A transit duty is a tax levied on goods passing through a customs area.

Tariffs are often classified as either protective or revenue. Protective tariffs are designed to shield domestic production from foreign competition by raising the price of the imported goods. Revenue tariffs are designed to obtain revenue for the government.

If tariffs are imposed according to the weight of goods or according to their quantity (so much per ton, per item, per metre, etc.), they are called specific tariffs. If they are levied according to the estimated value of the goods, they are known as ad valorem tariffs. A combination of these two is the compound tariff.

The customs tariff of a country is either a double-column tariff or a single-column tariff. A single-column tariff is used when the rates are valid in general for all countries. When different rates are used (preferential rates for certain countries, for example), a double-column tariff is applied.

III. Answer the following questions:

1. When did the customs originate?

2. What was originally taken as payment?

3. Where does the term “customs” come from?

4. What interests does the tariff policy of a country protect?

5. In what ways are the interests of the home economy protected by the tariff policy?

6. What main types of tariffs do you know? What is the essence of each of them?

7. In what case do they apply a single-column tariff? a double column tariff?

IV. Give Ukrainian equivalents of the following:

the practice of levying duties; to charge both export and import duties; to penetrate foreign markets; to keep as high as possible; if applicable at all; to shield domestic production; so much per ton; to be valid for all countries.

V. Give English equivalents of the following:

брати частину товарів як оплату; сума, що сплачувалась традиційно; захищати власні ринки від насичення іноземними товарами; піднімати ціни на імпортовані товари; визначена вартість товарів; засто­совувати тариф.

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

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

weight, customs area, tariffs, value, quantity, foreign competition

1. … are classified as either protective or revenue.

2. Transit duty is paid on goods passing through a ….

3. To protect home economy from … import tariffs are kept very high.

4. Ad valorem tariffs are levied according to the estimated … of the goods.

5. Specific tariffs are imposed according to the … or the … of the goods.

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

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

X. Translate into English:

1. Практика збору податків на товари, що ввозились та вивозились з країни, виникла в Середні Віки.

2. Тарифна політика країни захищає інтереси її внутрішньої еконо­міки.

3. Імпортні тарифи на сировину, необхідну для економіки країни, не дуже високі.

4. Тарифи, що захищають національного виробника від зовнішньої конкуренції називаються захисними.

5. За допомогою прибуткових тарифів країна отримує прибуток для уряду.

6. Якщо тарифні ставки юридично дійсні для всіх країн, застосову­ється єдиний тариф.

XI. Topics for discussion:

1) Customs in the early days of international trade.

2) The aim of the tariff policy.

3) Kinds of tariffs and their essence.

XII. Skills practice:

Describing changes

The following verbs can be used to describe upward (↑) and downward (↓) movements in price, quantity and amount.

e.g. The population of the world is increasing.

The government has increased import taxes.

The corresponding nouns can also be used (mind the stress):

Assignment 1. Complete these sentences using a noun or verb from the boxes above. Use each word only once.

1. There are several competing companies entering the market and this has caused a 20% … in prices.

2. Last year was a good year for the company and our sales … considerably.

3. The price of coffee has …as a result of the bad weather conditions.

4. As a result of the recession, we have had to … the amount of money we spend on research and development.

5. The … in profits is the result of poor management.

6. The recent … in foreign investment has been good for the economy.

7. Economists predict that interest rates will … if consumer spending continues to slow down.

8. Because of high profits last year, the company has announced a salary … for all its employees.

Assignment 2. Complete these sentences with the correct form of the verbs raise or rise.

1. The Chancellor has just… the duty on petrol.

2. The sun … in the east and sets in the west.

3. Our share price has … recently.

4. She … an important question at the meeting yesterday.

5. Bank lending rates … by 0.5% last month.

6. Could I … a question?

Assignment 3. Here are some paper headlines. Are they good news or bad? Underline verbs that indicate a movement. Is it upwards or downwards? Can you think of verbs with the opposite meaning?

e.g.to double - to halve

Which of these verbs can you make into a noun?

e.g. to weaken→ weakness

Unit Four

Foreign Exchange

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

currency n – валюта, гроші; hard currency – вільно конвертована валюта; soft currency – неконвертована валюта

e.g. Today each country has its own currency with names such as hryvnia, dollar, euro, pound, etc.

exchange n – 1) обмін; 2) іноземна валюта; 3) операції з іноземною валютою; 4) переказний вексель; 5) біржа

e.g. The term “foreign exchange” means foreign currency, short term credit instruments in foreign currencies and the system of dealing in foreign currencies.

convert v – 1)перетворювати; 2) обмінювати; 3) конвертувати; convertible currency – (вільно) конвертована валюта

e.g. Foreign exchange also means the system of converting the currency of one country into that of another.

exchange rate/rate of exchange – курс обміну валют; floating exchange rate – плаваючий курс обміну валют; fixed exchange rate – фіксований курс обміну валют

supply n – 1) постачання, поставка; 2) пропозиція

supplier n – постачальник; supply and demand - пропозиція і попит

e.g. The price of the US dollar is determined by the supply and the demand for this currency on the foreign exchange market.

fluctuate v – коливатись

fluctuation n – коливання

e.g. As demand fluctuates, the rates of exchange also fluctuate.

accumulate v – накопичувати

accumulation n – накопичення

e.g. The National Bank accumulates foreign currency in its foreign exchange reserves.

deplete v – 1) вичерпувати; 2) виснажувати (запаси, резерви)

depletion n – виснаження, вичерпання

e.g. If the demand increases, the bank depletes its foreign exchange reserves.

II. Read and translate the text:

Foreign Exchange

Centuries ago gold or silver coins were used as money. The value of each nation’s money was determined by the gold (or silver) content of each coin. Today, each country has its own currency with names such as euro, dollar, pound, hryvnia, etc. A distinction is made between domestic currency and foreign currency. A distinction can also be made between foreign currency and foreign exchange.

Foreign exchange is a broader term than foreign currency, as it also includes short term credit instruments (bills of exchange, etc.) in foreign currencies. (Foreign exchange also means the system of dealing in and converting the currency of one country into that of another).

Currencies can be (a) free or convertible (hard) currencies (b) transferable currencies, which can be transferred from one bank to a foreign bank on the basis of agreements, and (c) closed currencies (soft currencies), which can only be used by special arrangement in international payments.

The price at which one currency can be exchanged for another (i.e. the price of a currency on the foreign exchange market) is called the exchange rate or rate of exchange.

Under a floating exchange rate the rates of exchange are determined by market trading based on the supply of and demand for specific currencies. As demand fluctuates, the rates fluctuate also – rising when demand is greater than supply and declining when supply exceeds demand. Under a fixed exchange rate the government keeps the price fixed, in the short run by accumulating or depleting its foreign exchange reserves or else by borrowing abroad or introducing foreign exchange restrictions.

III. Answer the following questions:

1. How was the value of money determined in the past?

2. Which of the terms “foreign currency” or “foreign exchange” is broader and why?

3. What kinds of currency do you know?

4. What do we call “hard currency”? “transferable currency”? “soft currency”?

5. What does the rate of exchange show?

6. How is the floating rate of exchange determined?

7. Who determines the fixed exchange rate and how is this done?

IV. Give Ukrainian equivalents of the following:

a distinction is made between; a broader term; a bill of exchange; the system of dealing in foreign currencies; by special arrangement; based on the supply and demand; in the short run; to keep the price fixed.

V. Give English equivalents of the following:

вміст золота (або срібла) в монеті; короткострокові кредитні інструменти; на основі угод; валютний ринок/біржа; торги на ринку; шляхом накопичення або спустошення; вводити обмеження обміну валют; позичати закордон.

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

In what situations do you exchange currency? borrow currency? lend currency?

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

supply, demand, currency, fluctuations, exchange office, lending

1. … is usually backed by gold and silver.

2. Exchange rate … are a problem both for buyers and sellers.

3. Yesterday the … of the US dollar was greater than the … so its exchange rate against the hryvnia slightly declined.

4. You can convert your money into the currency you need at the ….

5. There is always some risk in … money.

VIII. Look at the exchange rates and convert the following sums according to the model:

As the exchange rate of the US dollar against the pound sterling is 0.70 we get 70 pounds for 100 US dollars.

1000 yen into Swiss francs; 200 pounds into euros; 500 euros into yen; 100 Swedish kronen into pounds sterling; 50 Canadian dollars into US dollars. (All data given as of March, 2002)

Write down your sentences.

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

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

XI. Translate into English:

1. Ми можемо обміняти внутрішню валюту на іноземну в обмінних пунктах

2. Банки мають справу з операціями в іноземній валюті.

3. Неконвертовані валюти можуть використовуватись лише за окре­мими узгодженнями в міжнародних платежах.

4. Коливання курсу обміну валют впливають на економіку країни.

5. Коли попит на окрему валюту перевищує пропозицію, її курс зрос­тає.

6. Існує декілька способів, якими уряд може підтримувати ціну ва­люти фіксованою.

XII. Topics for discussion:

1) Explain the difference between the terms “domestic currency”, “foreign currency”, “foreign exchange”.

2) Speak about the kinds of currency and their distinction.

3) Speak about exchange rate, its determination and types.

XIII. Skills practice:

Assignment. Look at the fluctuations of the currencies above.

1. Between 1973 and 1980 how big/small was the drop/rise in the exchange rate of the Yen and the pound sterling?

2. And between 1981 and 1984?

3. When was the greatest drop of the £? Of the ¥?

4. How much has your currency fluctuated against the US $ in the past year/6 months?

5. Draw the graph of UAH fluctuations in the past 3 years and explain it.

Unit Five

Payments agreements

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

agreement n – 1) домовленість; 2) угода; payments agreement – платіжна угода; to conclude an agreement – укласти угоду; to sign an agreement – підписати угоду

e.g. Payments agreements usually supplement trade agreements.

settle v – 1) вирішувати; 2) домовлятися, погоджуватись; 3) розраховува­тись, платити; 4) владнати, урегулювати

settlement n – врегулювання

obligation n – 1) обов’язок; 2) зобов’язання, борг; 3) боргове зо­бов’язання

e.g. Payments agreements settle the mutual obligations of the parties.

clearing n – 1) кліринг, безготівкові розрахунки; 2) розрахунки по біржовим угодам; clearing agreement – клірингова угода; clearing account – кліринговий рахунок, розрахунковий рахунок (по клірингу); clearing bank – кліринговий банк (bank of issue – банк-емітент); clearing rate of exchange – розрахунковий курс обміну валют

e.g. Clearing agreement is the most usual type of payments agreement.

in advance – заздалегідь

e.g. The official exchange rate is usually fixed in advance.

validity n – законність, юридична сила, дієвість; validity of an agreement – строк дії угоди

valid adj – законний; той, що має юридичну силу

e.g. Clearing rate of exchange remains unchanged during the entire period of the validity of the payments agreement.

expire v – завершуватись, закінчуватись, витікати (про строк, час);

expiry n – завершення, витікання (строку); expiry date – кінцева дата

expiration n – завершення, витікання; expiration of the validity – закінчення строку дії

balance – 1) баланс, сальдо, залишок; 2) рівновага; to state a balance – підводити баланс; to settle a balance – оплачувати залишок по рахунку

e.g. The balance of this account must be stated and settled.

debt n – борг

debtor n – боржник

e.g. The debtor country agreed to settle the balance in gold.

delivery n – постачання

deliver v – постачати (товари), поставляти (товари)

e.g. All goods were delivered in time.

II. Read and translate the text:

Payments Agreements

Payments agreements are concluded between two or more countries (bilateral and multilateral payments agreements) to settle their mutual obligations arising from the exchange of goods, from services mutually rendered and from financial payments, such as wages, salaries, fees, royalties, copyright fees, etc. Payments agreements usually supplement trade agreements.

The most usual type of payments agreements is the clearing - agreement. A clearing-agreement usually contains the following items: the clearing rate of exchange, clearing-accounts, the settlement of the balance on the clearing-account, and some other clauses.

The clearing rate of exchange is the rate which is applied for the conversion of the currency of one country into the currency of the other country. The official rate is usually fixed in advance and remains unchanged during the entire period of the validity of the payments agreement.

All payments between importers of one country and exporters of the other country are settled on the clearing accounts thatare opened with the so-called clearing banks (usually banks of issue) in the countries concerned.

When the validity of the payments agreement has expired, the balance on the clearing accounts is stated and the debtor country settles it in one of the following ways: (a) it transfers the balance to the clearing account of a new payments agreement, if such has been concluded: (b) it undertakes to settle the balance by deliveries of goods within a given time after the expiration of the validity of the payments agreement; (e) it agrees to settle the balance in free foreign exchange; (d) it agrees to settle it in gold.

III. Answer the following questions:

1. With what aim are payments agreements concluded?

2. How do we call payments agreements concluded between two or more parties?

3. What do payments agreements supplement?

4. What are the items of a clearing agreement?

5. How is the official clearing rate of exchange fixed?

6. How long does the official clearing rate of exchange remain unchanged?

7. Where are the clearing accounts opened and with what purpose?

8. What are the possible ways to settle the balance on the clearing account?

IV. Give Ukrainian equivalents of the following:

mutual obligations; obligations arising from the exchange of goods; copyright fees; some other clauses (of the agreement); in advance; the entire period; bank of issue; the countries concerned; the validity of the agreement has expired; within a given time; the debtor country.

V. Give English equivalents of the following:

двосторонні та багатосторонні платіжні угоди; взаємно надані послуги; доповнювати; врегулювання балансу; курс обміну залишається незмінним; строк дії угоди; відкрити рахунок в банку; взяти на себе зобов’язання; розраховуватись вільноконвертованою валютою/золотом

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

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

balance; clearing account; debt; validity; to settle; obligations

1. At yesterday’s meeting they settled all their mutual ….

2. What way did you choose … the balance?

3. We have already opened a … with this bank.

4. They undertook to pay the … within a month.

5. The … of this agreement has already expired, so we have to state ….

VIII. Learn the following expressions. Make up 5 sentences with any of them:

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

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

XI. Translate into English:

1. Після багатьох суперечок сторони досягли взаємної угоди щодо по­ставки товарів.

2. Коли закінчується строк дії угоди?

3. Якщо ви порушуватимете угоду, ми її розірвемо.

4. Коли книгу перекладуть автору буде сплачений авторський гонорар.

5. Залишок по рахунку буде сплачений поставкою товарів в наступ­ному місяці.

6. Сторони домовилися не змінювати обмінний курс до кінця дії платі­жної угоди.

XII. Topics for discussion:

1) Speak about payments agreements and their essence.

2) Speak about the clauses of clearing agreements.

3) Clearing account and the ways to settle it.

XIII. Skills practice:

Nouns of movements can be classified with an adjective or adverb to describe a change more precisely. Complete the table:

Assignment 1. Label the graph using these descriptions: 1) a dramatic increase; 2) a steady rise; 3) a peak; 4) a trough; 5) a sharp drop; 6) a slight decline.

S ALES (1000 units)

Assignments 2. Describe the graph, using the model.

There was a steady rise in sales in January, February and the first half of March, then they fell to 1, 000 units in mid April.

Unit Six

The Contract of sale

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

a legally binding agreement – юридично зобов’язуюча угода

e.g. A contract is a legally binding agreement between two or more parties.

abstain from v - відмовлятися (від...)

complain v – скаржитись

complaint n – скарга; reasonable complaint – справедлива скарга; well-grounded complaint – обґрунтована скарга

e.g. As the goods were damaged they had all reasons to complain.

orally adv – усно (opp. in writing – письмово)

e.g. Usually contracts are first made orally and only then confirmed in writing.

once adv – як тільки

e.g. Once you have signed the contract you cannot change it.

sales contract (contract of sale) – комерційний контракт

e.g. A sales contract must be written clearly and precisely.

term n – 1) період, строк; 2) термін; 3) pl. умови; business terms – комерційна термінологія; contract terms – умови контракту; delivery terms – умови поставки; terms of payment – умови оплати; long- (short-) term period – довго- (коротко-) строковий період

e.g. Eventually both parties agreed on the terms of payment.

sample n – зразок

fair average quality (f.a.q.) – справедлива середня якість

good ordinary brand (g.o.b.) – звичайний комерційний сорт

e.g. All required samples should be of f.a.q. or g.o.b.

bear in mind – пам’ятати; (syn. to remember); to bear the risks and costs – нести відповідальність за ризики і витрати

e.g. You must bear in mind that there is a difference between the metric ton, the long ton, and the short ton.

measure v –вимірювати

measure n – міра; liquid measures – міри рідини; dry measures – міри сипучих тіл

measurement n – вимірювання

e .g. Some British liquid and dry measures such as gallon, quart, pint, and ounce are different from American ones.

II. Read and translate the text:

The Contract of Sale

A contract – in the most general sense of the word – is a legally binding agreement between two or more persons to do (or abstain from doing) something in return for something else. Generally, there are no formalities, and a contract may be written or oral. For example, if you call a taxi by phone you expect it to arrive on time, and if it doesn't you havereason to complain. At the Stock Exchange contracts involving large sums of money are made orally, and only later confirmed in writing.

The contract must be of such a kind that both parties should reasonably suppose that the agreement is legally binding. Thus, acceptance of an invitation to a dinner is an agreement but not a contract.

In most cases, however, writing is necessary to make a contract, as once it is made in writing neither party can change it or interpret it in different ways. In foreign trade, agreements made by telephone should be confirmed either by telex or by letter (telefax).

A sales contract must be written clearly and precisely. It must state who buys what (quantity and quality of the goods), from whom, for how much (price) and under what conditions (payment, delivery, special terms, etc.).

A sales contract usually contains the following points:

(1) The description of the goods. With certain types of goods (machinery, instruments, etc.) detailed specification is necessary, sometimes even blueprints and technical documentation. In some cases (chemicals, cosmetics, etc.) samples may be required. It is also usual to stipulate that the goods should be of fair average quality (f.a.q.) or good ordinary brand (G.O.B.).

(2) The quantity of the goods. Certain goods are sold by piece, pair, dozen or score. Other goods are sold by weight. If the weight is given in tons, you must bear in mind that there is a difference between the metric ton (1, 000 kilos), the long ton (1, 016 kilos) used in Britain and the short ton (907 kilos) used in the U.S.A. Liquids are sometimes measured in gallons (in Britain 4.54, in America 3.78 litres).

(3) Price and payment. The contract must state in what currency payment should be made and on what conditions.

(4) Delivery terms, which define who bears the risks and costs of the delivery.

(5)The delivery date (i.e. when the goods must be dispatched).

(6) The packing of the goods.

III. Answer the following questions:

1. What do we call a contract?

2. What is the difference between a contract and an agreement in the most general sense of these words?

3. Why writing is necessary to make a contract?

4. What are the essential items of a contract?

5. What is meant by the description of the goods?

6. How is the quality of the goods stipulated?

7. In what quantities can goods be sold?

8. What do the delivery terms define?

9. What is meant by the delivery date?

IV. Give Ukrainian equivalents of the following:

in return for; to arrive on time; acceptance of an invitation; thus; however; neither party; clearly and precisely; under what conditions; there is the difference between; who bears the risks and costs of the delivery; either … or; the contract must state.

V. Give English equivalents of the following:

в найбільш загальному значенні слова; мати причину скаржитись; обидві сторони; обґрунтовано (логічно) очікувати; як тільки контракт викладено в письмовій формі; по-різному; креслення; кальки; обумовити; продавати поштучно; попарно; десятками; в кількості по двадцять штук; за вагою.

VI. Read, translate and learn the names of some contracts. Explain their meaning: e.g. bilateral contract is a contract between two parties.

bilateral/multilateral contract; executed contract; fixed term contract; futures contract; hire-purchase contract; illegal contract; oral/parol contract; turnkey contract; valid contract

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

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

language, in writing, to complain, detailed specification, delivery

1. The guarantee period is 12 months from the date of….

2. This oral contract must be confirmed ….

3. The Buyers require a … for these instruments.

4. If the goods are damaged during transportation you have all reasons ….

5. The … of the contract must be clear and precise.

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

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

XI. Translate into English:

1. Контракт – це юридично зобов’язуюча угода між двома або більше сторонами.

2. Якість товарів обумовлюється в специфікації.

3. Контракт визначає, в якій валюті проводиться оплата.

4. Продавцю слід пам’ятати, що товари повинні бути звичайного коме­рційного сорту.

5. Умови поставки визначають, хто несе ризики і вартість доставки.

6. В Британії та США існує розбіжність між мірами рідини.

XII. Topics for discussion:

1) Speak about the general features of the contract.

2) Speak about the essential points of the contract.

XIII. Skills practice:

Assignment 1. Which parts of the following graph would you talk about using each of these expressions?

· to fluctuate; · to level off; · to remain stable; · to reach a peak; · to stand at · to drop sharply · to rise steadily

Assignment 2. Join expressions to make sentences about the graph:

Unit Seven

Standardization of Commercial Terms

I. 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.

IV. 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.

V. 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.

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

VII. 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.

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

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

X. 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.

XI. 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.

XII. Skills practice:

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

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

Incoterms

(International Commercial Terms)

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

mode of transport – вид транспорту, засіб транспортування

multimodal transport – різні засоби транспортування, що використовуються для поставки товарів/вантажів „від дверей до дверей”

ship n – корабель, судно; ship’s rail – поручень, релінг корабля

ship v – перевозити, відправляти, відвантажувати по воді; (АЕперевозити вантаж будь-яким видом транспорту)

shipping n – 1) відвантаження, відправка; 2) завантаження; 3) пере­возка, транспортування; syn. freight – фрахт, перевозка

shipment – 1) вантаж; syn. cargo, freight; 2) партія (відправленого товару); syn. consignment; 3) завантаження, відвантаження, відправка товарів; syn. shipping, dispatch; tran(s)shipment – перевалка, перевантаження з одного транспортного засобу на інший;

e.g. Multimodal transport is wide-spread in modern shipping. Tran(s)shipment is not allowed.

terminal – 1) термінал, кінцева станція, кінцевий пункт призначення; syn. destination, the point of destination; 2) аеропорт призначення; 3) порт призначення, причал; 4) вантажні склади, що мають сортувальне об­ладнання

e.g. At the sea port terminal goods are put into containers or on pallets.

disposal n – 1) реалізація, передача; disposal of goods – реалізація товарів; 2) право розпоряджатись (чимось); to be at somebody’s disposal – бути в чиємусь розпорядженні; to place something at somebody’s disposal – надавати щось у чиєсь розпорядження

e.g. The goods were placed at the buyer’s disposal on board a ship.

charter n – 1) чартер; 2) прокат, здавання напрокат; freight charter – вантажний чартер

charter v – 1) здавати напрокат; 2) надавати у користування по замовленню; фрахтувати судно по чартеру

e.g. The buyer must charter a ship and inform the seller about this.

certificate of origin – сертифікат походження

insurance n – страхування; ~ against loss or damage – страхування від втрати або пошкодження; insurance policy – страховий поліс

consular invoice – консульська фактура

e.g. Certificate of origin, insurance policy, and consular invoice are the necessary documents needed for the exportation of the goods.

charge n – 1) ціна, оплата; 2) податок, збір, нараховування; 3) pl. – витрати; carriage/carrying charges – транспортні витрати

charge v – 1) призначати ціну, оплату; 2) стягувати (оплату)

e.g. The buyer bears the cost of all the charges for the exportation documents.

carry v - перевозити, переносити, транспортувати; ~ by sea – морем; ~ by air - літаком; ~ by rail - залізницею; ~ by road – по шосе, автотранспортом

carrier n – перевізник, транспортувальник

carriage n – 1) перевезення, транспортування, доставка; 2) вартість перевезення або доставки; syn. carrying

e .g. Carriage to the named port of destination was paid by the seller.

custody n – 1) опіка; 2) зберігання; to place somethi