АвтоАвтоматизацияАрхитектураАстрономияАудитБиологияБухгалтерияВоенное делоГенетикаГеографияГеологияГосударствоДомДругоеЖурналистика и СМИИзобретательствоИностранные языкиИнформатикаИскусствоИсторияКомпьютерыКулинарияКультураЛексикологияЛитератураЛогикаМаркетингМатематикаМашиностроениеМедицинаМенеджментМеталлы и СваркаМеханикаМузыкаНаселениеОбразованиеОхрана безопасности жизниОхрана ТрудаПедагогикаПолитикаПравоПриборостроениеПрограммированиеПроизводствоПромышленностьПсихологияРадиоРегилияСвязьСоциологияСпортСтандартизацияСтроительствоТехнологииТорговляТуризмФизикаФизиологияФилософияФинансыХимияХозяйствоЦеннообразованиеЧерчениеЭкологияЭконометрикаЭкономикаЭлектроникаЮриспунденкция

Unit One Methods of Payment

Читайте также:
  1. Accounting Methods
  2. Accounting, Payment in Foreign Trade, Insurance
  3. Investigators, Detectives. Identification Methods
  4. Methods and Procedures of Lexicological Analysis
  5. Methods of analysis of the morphemic structure of the word.
  6. METHODS OF LEXICOLOGICAL RESEARCH.
  7. NEW METHODS
  8. Occupational safety standards system. Fire safety of technological processes. requirements. Methods of control
  9. X. METHODS AND PROCEDURES OF LEXICOLOGICAL ANALYSIS
  10. X. Methods and Procedures of Lexicological Analysis
  11. Методы дозиметрии ионизирующих излучений Methods for dosimetry of ionizing radiations

Active Vocabulary:

payment in advance open account Bill of Exchange

Documentary Letter of Credit

cash with order

cash on delivery

remit

integrity consignment


 

— авансовый платеж

— открытый счет

— переводной вексель,
тратта

— товарный аккредитив;
документарный аккре­
дитив

— 1) платежное поручение
2) предъявительская
тратта

— оплата наличными в
момент поставки,
наложенный платеж

— переводить, перечислять
деньги

— целостность

— 1) консигнация
2) партия груза


TEXT

Head the text carefully concentrating on its contents and terminology:

Compared to selling in the domestic market, selling abroad can create extra problems. Delivery generally lakes longer and payment for goods correspondingly can take more time. So exporters need to take extra care in ensuring that pro­spective customers are reliable payers and that payment is received as quickly as possible.

In the first and in the last analysis, payment for exports depends on the conditions outlined in the commercial con­tract with a foreign buyer. As explained previously, there arc internationally accepted terms designed to avoid confu­sion about cost and price.

The way exporters choose to be paid depends on a number of factors: the usual contract terms adopted in an overseas buyer's country, what competitors may be offering, how quickly funds are needed, the life of the product, market and exchange regulations, the availability of foreign currency to the buyers, and, of course, whether the cost of any credit can be afforded by the buyer or the exporter.

There are four basic methods of payment providing vary­ing degrees of security for the exporter:

1) payment in advance,

2) open account,

 

3) Bills of Exchange,

4) Documentary Letter of Credit.

I. Payment in advance.

Clearly the best possible method of payment for the ex­porter is payment in advance. Cash with order (CWO) avoids any risks on small orders with new buyers and may even be asked for before production begins. However, this form of payment is extremely rare in exporting since it means thai


 


152


153


an overseas buyer is extending credit to an exporter — when the opposite procedure is the normal method of trade.

Variations in this form of payment are cash on delivery (COD) where small value goods are sent by Post Office par­cel post and are released only after payment of the invoice plus COD charges.

2. Open account.

An exporter receives the greatest security of payment from cash with order or from cash on delivery. At the other ex­treme payment on open account offers the least security to an exporter. The goods and accompanying documents are sent directly to an overseas buyer who has agreed to pay within a certain period after the invoice dale — usually not more then 180 days. The buyer undertakes to remit money to the exporter by an agreed method.

The open account method of payment is increasingly popu­lar within the EEC because it is simple and straightforward. 70 per cent of UK exports are paid for under open account terms. It saves money and procedural difficulties but the risk to the exporter is obviously greater. It is only successful if an exporter trusts the business integrity and ability of an over­seas buyer, something that has probably been established through a sustained period of trading. /

A variation of open account payments the consignment account where an exporter supplies an overseas buyer in order that stocks are built in quantities sufficient to cover continual demand. The exporter retains ownership of the goods until they are sold, or for an agreed period of time, after which the buyer remits the agreed price to the exporter.

However, a large proportion of export contracts cannot be settled by payment in advance or by open account, particu­larly with sales outside the EEC. So, parallel with the devel­opment of international trade throughout the world, the trad­ing community has developed methods of payments which involve the transfer of documents for exported goods using

154


the international banking system — with the aim of speedily settling export transactions at minimum risk to exporters and to overseas buyers.

I Comprehension. Answer the followi?ig questions:

1. Why does selling abroad create extra problems as com­
pared to selling in the domestic market?

2. What helps to avoid misunderstandings in payment for
exports?

3. What factors does the choice of a method of payment de­
pend on?

4. Which method of payment provides the best/greatest se­
curity for the exporter?

5. Why is payment in advance of order not frequently used
in exporting?

6. Which method of payment offers the least security to an
exporter?

7. If the open account method offers so little security to an
exporter, why is it becoming more and more popular?

8. When does an exporter agree to deliver goods on open
account?

9. How does the consignment account operate?

10. Besides payment in advance and by open account, what
other methods of payment has the trading community
worked out?

II

Comprehension. Complete the following sentences on the
basis of the information
given in the text:
1- The method of payment you adopt for each customer de­
pends on many factors, such as.......

&• The use of Incolcrms in commercial contracts helps

•>• The choice of the method of payment is important as each
of them provides...


Active vocabulary: bill of exchange payment on presentation payment on demand bearer a bill drawn on...

I

I

1


 

4. Cash with order is highly satisfactory from the exporter's
point of-view, but the least....

5. Extending credit to an exporter by a foreign buyer is a

6. It is quite safe to send small value goods by COD post as
the goods are.....

7. If you know your foreign customer well and have no rea­
son to doubt his credibility, you may...

8. Under the open account agreement, the delivery of goods
is not.....

9. If you supply a foreign buyer with stocks of your product
for payment after he has sold them, the goods..

10. You can speedily settle export transactions at minimum
risk using.....

Ill

Test. Fil in the missing words:

The method of obtaining payment of an export order is usually a matter... negotiation... the exporter and his buyer and will in many instances be governed... the exporter's knowledge of the buyer andjlje-buyer's financial standing. In deciding the terms... payment to negotiate, the exporter may perhaps wish the degree... security he obtains, the speed... remittance and any additional costs involved.

In rare cases an exporter is able to persuade his buyer to pay 100 per cent of the... value before... take place. II is quite common, however, for the buyer to make an... pay ment of a percentage of the contract value upon... of the contract with the balance being... by one of the agreed meth­ods.

Where the exporter has complete faith in the buyer he may be willing to trade on an... account basis. This usually meansrthat the buyer receives the..., lakes... of the goods and thereafter makes... to the exporter in accordance with previously agreed....


1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 |

Поиск по сайту:



Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав. Студалл.Орг (0.009 сек.)