Forms and methods of international trade

1. International trade is performed in several forms. The most important form is direct commercial import-export operations with deliveries paid in hard currency. Still, 25-30% of international trade accounts for barter and countertrade, with deliveries paid by goods. Such payment is usually initiated by the importer which does not have hard currency to pay for the goods.

Barter is a trade in which merchandise is exchanged directly for other goods without the use of money. It is a characteristic of quite primitive economies.

2. Countertrade transactions are more complex and difficult to arrange. They began in the 1950s and are mainly carried out with developing countries and in Eastern Europe. Their currencies are not freely convertible and they do not possess enough hard currency to make the essential purchases necessary for economic development. The transaction may include the exchange of some currency as well as goods. For example, the contract may stipulate that the seller be paid in hard currency provided that the seller agrees to find markets for specified products (often cash crops) from the buyer's country.

3. Usually only large corporations can set up such deals but they are one way of doing business with countries that have high foreign trade deficits, a large debt problem and small reserves of foreign currencies.

4. Another form of countertrade is the buyback arrangement. One party supplies the technology or equipment that allows the other to produce goods. The sale of these goods provides the money to repay the supplier.

Goods can be sold to a foreign consumer as a result of direct transactions with the exporter and through middle-men that are dealers, distributors, commissioners, consignors, agents. A great part of sales of mass raw materials and products is done at international commodity exchanges.

2. Ответьте письменно на вопросы после текста.

1) What is the most important form of international trade?

2) Where are the countertrade transactions carried out?

3) What may the transaction include?

Какие предложения являются верными ?

1) International trade is performed in several forms.

2) Countertrade transactions are easy to arrange.

3) Another form of countertrade is the buyback arrangement.

4) Goods can be sold to a local consumer.

Дополните предложения .

1) The most important form of international trade is direct commercial import-export __________.

2) Barter is a trade in which __________ is exchanged directly for other goods without the use of money.

3) Countertrade ___________ began in the 1950s and are mainly carried out with developing countries and in Eastern Europe.

4) Goods can be sold to a foreign consumer as a result of direct transactions with the ___________.

5. Переведите следующие словосочетания на английский язык:

международная торговля, оплачивать товары, твердая валюта, иностранный потребитель, сырье.

Вариант 3

Прочтите и устно переведите на русский язык с 1-го по 4 абзацы. Перепишите и письменно переведите 1 и 2 абзацы .

Contracts

1. The Contract is a business agreement between two parties which buy or sell goods or services. Contracts are concluded either between companies in one country or internationally, that is between companies from different countries.

The Contract has the following clauses or articles:

- Naming (definition) of the parties and their legal addresses.

- The subject of the Contract that is what goods or services will be bought or sold and the volume of delivery.

- Prices and the total value (amount) of the Contract including terms of delivery.

2. The price stated in the Contract may be firm, fixed or sliding. Firm prices can not be changed in the course of the Contract performance. Fixed price is the price in the market on the day of delivery or for a given period. Sliding prices can be for machinery and equipment which require a long period of delivery.

- Time (dates of delivery) is shown in the Contract too.

- Terms of delivery. The most usual terms of delivery are FOB, CIF, C & F.

- The Contract also specifies packing, marking and terms of payment.

3. Payment in foreign trade may be made in cash and on credit. The most widely used method is payment by letter of credit (L/C). The following types of L/C are usually used: irrevocable, confirmed, and revolving. An irrevocable L/C can not be modified or cancelled without the consent of the party in whose favour it has been opened. A confirmed L/C is an irrevocable L/C, payment under which is guaranteed by a first class bank. A revolving L/C is one under which its value is constantly made up to a given limit after payment for each shipment.

4. The Contract also includes terms of insurance (if any) and a force majeure clause. It usually includes natural disasters such as an earthquake, flood, fire, etc. which the parties can't control. It is also specified in the Contract in what ways disputes are solved. All the clauses of the Contract have numbers, and in the negotiations or correspondence one can refer to the specific clause or sub-clause.

The international Contract is usually written in two languages, one copy for each party.

2. Ответьте письменно на вопросы после текста.

1) What is the contract?

2) How may the payment be made in foreign trade?

3) What terms does the contract include?