Tape 2.

Tape 1

:... So now, on the...on the subject of letters of credit, now you'd be surprised at the kind of mistakes people make when using letter of credit documentation. Er... these errors can often lead to rejection o...on the first presentation. The research department of our bank found that 25 % of the documents were rejected. Yup, and the* main reasons were things like the fact that the letter of credit had expired, or the documents were presented after the period stated by [he letter of credit or, of course, the shipment was late.

Now, if you think about it, it's quite amazing really. But I can't stress enough the need for consistency between the different documents, I mean, for instance, our bank study found out that spelling inconsistencies or mistakes are part of the problem. That is, the description or spelling of goods on invoices was different from that in the letter of credit. Or the weights were different on the export documents. And then the amounts of money value shown on the invoice and the bill of exchange differed too. Even the marks and numbers were found to be different. Then, now, another thing we found was that the amount of money mentioned c the letter of credit was smaller than the value of the order. Or the shipment was short.

Then you might even find that some documents were missing which were called for in the documentary letter of credit. And we even had cases where signatures had not be witnessed as required for certain documents presented. Or else facsimile signatures were used when they're not allowed And this is by no means the end of the list, which goes on and on - I won't bore you any more..

So, you see that many of the documents presented along with letters of credit were rejected on their first presentation) and this meant sometimes long delays in payment with all ' the complications that can involve. And I don't need to tell!! you that...

Tape 2.

B: Hello. Becker here.

S: Good morning, Mr Backer! This is Valentina Santinelli. I'm sorry to ring you like this.

B: Ah, that's all right.

S: Did you receive our January shipment?

B: Yes, we did.

S: When did it arrive?

B: Er.. it arrived on the.. 25th of January.

S: Are all the things you ordered inciuded?

B: Yes, thank you, yes.

S: Did you get the invoice as well?

B: Yes...yes.

S: And, er, have you paid the invoice for the last shipment yet?

B: I'm afraid we haven't managed...

S: Because I haven't a record of the payment and our department was just getting a bit worried about it.

B: Yes, money is very tight at the moment, you see.

S: Of course.

B: I'd like to ask for an extension of credit.

S: Ah.

B: You see, we have a considerable overdraft.

S: Mmhmm.

B: And our overheads have to be thought about.

S: I see.

B: A major problem is that our own customers are going through a difficutt period too.

S: Yes, know how that is.

B: We have a number of outstanding accounts ourselves, so we know exactty how you feet.

S: Hm, yes.

B: We're hoping that our bank will show us some generosity and allow us to overdraw our account.

S: Well, I hope so as well...

B: And, cr, what's more we have just guaranteed one of our major clients an extra two weeks' credit and...er...they've accepted our offer.

S: Really?

B: And as if that isn't enough, we have a large crisis on our hand.s with another customer who owes us a tot of money.

S: Yes, I think I know what you mean. We have a similar problem.

B: They've just gone bankrupt.

S: Oh dear.

B: Yes, so what do you suggest we do about the money we owe you?

S: Well, please try and send the cheque before the end of the month. That's one more week. Our accounts department is considering changing the conditions of payment for future orders otherwise.

B: Yes, we...we will do our best.

S: I hope we can continue to co-operate together.

B: 0h, I hope so too.

S: And we hope to keep you as a regular customer despite any troubles you may be having.

B: Thank you very much for being so understanding. Goodbye.

Tape 3

Norman: How do you do, my name is Bob Norman.I'm wish rotaflex. Can I help you in any way?

B: 0h, hi. My name's Tim Brown. How'rc you doing? Pleased to meet you.

N: I'm fine...fine thanks and how about yourself?

B: Fine, thanks, I wanted to ask you about your rotary printer you have here.

N: Ah, yes, now you mean our R75.

B: Yes, that's right the R75. Now, what I'd like to know is can it deal with high quality embossed greeting cards? That's the sort of thing we're involved with.

N: Certainly. That's no problcm at all.

B: Fine..Now...you see we're looking for replacements for our twenty-year-old machines.

N: Mm.

B: So we need the latest technology. Now, if we were interested in making'a firm order, how quickly could you deliver the machines?

N: Well, I can't give you a firm delivery date myself at this moment. But we can deliver pretty quickfy.

B: My firm would be interested in ten machines.

N: Yes. 0h, that's very good.

B: So I was wondering, could we get 15% discount on an order that size?

N: Well..cr...as you can see from catalogue here, we normally offer 12% on orders of that kind.

B: Yeah, yeah, I read that. But your neighbours down the hall there, they're willing to give me 15%.

N: Well, of course, we'd er...be delighted to do business with you, Mr Brown. And so, I'd like to draw your attention to the latest laser-driven technology which the R75 contains.

B: Yes, very interesting, but the discoant is important.

N: Look, if you'd like to wait just for a few minutes er...I can get through to my head office and I'll enquire about any special arrangements which we might be able to make for you.

B: No, no, please don't bother about that just now. There's not that much of a hurry. I Still have to report back to my board.

N: Oh, yes, I understand that.

B: Look here's my card. tt'n be quite enough if you just drop me a line about things like thc discount in the course of the next two weeks.

N: Yes, of course, yes er...very well, Mr Brown, I'd be only too pleased to do all that for you. It's been very pleasant talking to you.

B: Mmm. N: Oh, and here's my card as well.

Tape 5

A: As part your briefing on UK location decisions, we've asked Ceoff Peters, Chief inspector of Taxes at the inland Revenue, to give you a short overview of personal taxation as it stands at the moment. Right, I'll hand you straight over to Geoff.

B: Good afternoon, ladies and gentlemen. Unfortunately, in the UK too, there's no getting away from the man you all love to hate - the taxman. Now, I'm going " to keep p this brief and to the point; I'll leave the details to the discussion afterwards and try 'to answer any specific questions yon may have at the end. What I'd like to do essentially is to answer two questions. Firstly? how is personal taxation structured in the UK? And secondly, how is it levied??

So, if you take a look at this transparency, you'll see that, contrary to popular opinion, U K. personal taxation is both simple and relatively low. 'there are two rates: 25 per cent on taxable income up to f 23.700, and 40 per cent on income above this figure. You'll notice I say taxable income, as, like most countries, there are a series of deductions and allowances which can be taken into account before arriving at your net taxable income figure''. The major one relates to the status of the individual a single person's allowance.at present stands at f 3, 205, while a married person's allowance is currency f 5.015

At this point I should mention that the' government has recently introduced legislation which allows married couples to opt for separate taxation.

Other allowances or deductions which are common are, firstly, tax rebef on private pensions. At the moment) this is allowable up to) 17.5) per cent of total income. up to the age of.35, rising to 40) per cent above 60 years old. Also the much)) vaunted tax relief on mortgages or loans to buy a house - here there is currently 7 per cent tax relief on the interest payable to the bank or building society up to a maximum of f 30.000) capital! borrowed. 'The percentage relief obviously (depends on the interest rates that are operative at any one time.

Right, that covers the first part of my presentation, I'd now like to move on to how personal tax is levied. The Intand Revenue obliges employers to operate a PAYE (Pay As You Earn) scheme, which means the tax is deductible at source. In other words. by the employer before making out the monthly salary cheque or bank transfer to the employee. The tax is then collected direct from the employer. At the same time I should mention that the employer is obliged to) deduct Nationa) insurance from the employee's salary -- the employee's contribution being doughty 9 per cent of income, the employer's ranging from 5 to 10 per cent. These are approximate figures as it is also income related). 'This last transparency summarises the situation.

Right, ladies and gentlemen, that covers the broad picture, I'm sure you'd like to ask me for some specific details.

Tape 6

C: Manara Lombard, May I help you?

S: Yes, I have an account with you and I have just drawn a cheque to pay for a second-hand car. The engine has fanen out and I want my money back.

C: If you give me the details of the cheque, I can put a stop on it for you, sir.

S: What d'you mean?

C: It's a simple matter, sir. lf you want to stop payment, you tell us and we refuse to pay the cheque when it is presented.

S: So, how can I stop my cheque?

C: First, give me the cheque number.

S: Yes, it's zero two one, four nine eight.

C: Oh two one, four nine eight?

S: That's right.

C: And your account number?

S: Fifteen thirty two, nineteen eighty four.

C: Right, one five three two, one nine eight four. Is that right?

S: Yes, that's it.C: And who was the cheque made out to? S: The payee was John Gardener.

C: That's GARDENED?

S: Yes.

C: And what was the amount of the cheque, sir?

S: It was four hundred Barakoma dinars

. C: Four hundred. Thank you. I also need to know the date of the cheque.

S: It was 18th June.

C: Fine, you leave it to us, sir. We will put a stop on the payment.

S: Thank you. Goodbye.

Tape 7

Marketing banking services

A: It seems to me we need a different marketing strategy here from what we do in the UK. There, a large proportion of the pubhe are already users of banking services and we put all our efforts into trying to win customers away from other banks....

N: Yes, like the first Direct advertisement - Their sales literature is very clever but it just reminded me of all the things my bank does anyway.

L: hm. I wish I couid say the same for my bank!

A: Well, why don't you switch to First Direct, then?

L: Yes I have often thought of doing that. But who want to know al... their overdraft at 3 o'clock in the morning', Really, though, I think the reason why people do not change banks is inertia rather than because another bank is better than the one they are using already.

L: So our first priority is to make it easy for people to open a bank account with us.

A: Once they've done that, they're yours for life! N: Sounds easy, doesn't it! But you've got to get them,.,.,. But seriously, I think what we've got to look at, is the money people have floating around im their pockets, and are not putting to good use.

L: You're quite right there. People in Barakonia don't use the bank very much I'id you read that article in the Zamina Times about banking here? The write claimed there are over 2 million in cash under people's bed's, in Barakonia alone!

N: What a waste! Just think what people could be earning, in interest with that $2 million.

L: Not to mention what we could be earning with it i) we had it to lend out.

A: Exactly So our shategy will consist of an advertising campaign driving, home all the advantage of using, our bank - big, interest earning deposit accounts - cheque books -financial expertese investment advice and so on.

N: As long as we accept that that's only halt the stralegy. The other halt will be ained at business. And that in turn should be divided into financial and non-financial services...

L: Such as your business advisory service, trade inhumahon, business introductory services, the bank computer bor.am, leasing, factoring, trade finance, venture capital...

LiSTENING COMPREHENSION

1. Payment by documentary letter of credit.-2 min. (Atex. Unit 7, p.) 06)

- Why were 25% of the documents rejected?

- In what way were the documents often inconsistent with one another?

- Are facsimile signatures allowed on the documentary letter of credit?

- What other problems do bankers encounter in using letter of credit documentation? What are the consequences of these mistakes?

2. Reminding a buyer of an unpaid invoice. - 2min.40 sec. (Alex. Unit7, p.! 07-! 08)

- Does the credit controller have any sympathy with the customer?

- What are the reasons and excuses that the customer gives for the late payment?

- What does the conversation result in? Is there any chance of a change in conditions of payment?

3. A conversation recorded at a trade exhibition. - 2 min. 10 sec. (Alex. 4.), p.60)

- What is Mr. Brown interested in and what does he want to replace?

- What is the delivery date?

- What did you come to know about the terms of payment?

- In what way do the arrangements suggested by Norman fer r Mr. Brown compete with those of other participants?

4. Company organisation. - 2 min. 30 sec. (A)ex. 5.3, p.76)

- What did you come to know about Biopants International?

- What is the organisational structure of Biopants International!?

- What is the Finance Director responsible for?

- Is there anything mentioned about the board of directors of the company?

5. Briefing on persona! taxation. (Finance., Unit 6. part 2, p. i 37)

- How are the two parts of Geoff's presentation structured?

- What does Geoff suggest the majority think of British tax?

- What new legislation has recently been introduced?

- What do you think the government uses national! insurance contributions for?

6. A 'phone conversation between Mr.Symonds and his bank. (Bank. trans. Un.), p.70)

- What is the purpose of Mr. Symonds' telephone call to Manara Lombard bank?

- How can the customer stop his cheque?

- What are the details about the cheque in question?

7. Marketing banking services. (Bank. trans. Unit! 9, p. 77)

- What is the main aim of a marketing strategy for personal banking in the UK??

- Why do people not do anything about finding better banks?

- What do you think might be the first priority of a marketing.strategy in Barakonia?