Assignments

I. Answer the questions.

1. What is the most widely used instrument of international banking?

2. When does an international trading transaction begin?

3. What does the letter of credit specify?

4. What does the amount of the letter of credit depend on?

5. What do “The Hague Rules” deal with?

6. What evidence does the letter of credit usually require?

7. What is the principal of maritime law?

II. Translate the following sentences into Ukrainian. Put questions to any two of them.

1. The letter of credit has had a long and successful history as a means of facilitating international trade, particularly during times of economic and political uncertainty.

2. The letter of credit protects the buyer, for he knows that he will not be called upon for payment by his bank until the evidence shows that the shipment has actually been effected.

3. The seller then assembles the goods, prepares the documents to be submitted, and makes the shipment.

4. A typical letter of credit may call for the following documents: an invoice, a bill of lading, marine insurance, a packing list, a weight list, an inspection certificate, and a certificate of origin (a consular statement of the country of origin).

5. Banks deal only in documents and have no legal obligation to inspect the actual merchandise.

III. Translate the following sentences into English.

1. Акредитив – це найпоширеніший інструмент міжнародної банківської справи.

2. Якщо ціни котуються ФОБ, покупець повинен оплатити лише витрати (фрахтові та страхові), необхідні для завантаження товарів на борт судна; фрахт та страховка відтоді мають сплачуватися покупцем.

3. Якщо ціни котуються СІФ, покупець повинен передплатити фрахтові та страхові витрати до порту доставки.

4. Вантажна накладна на перевезення морським шляхом часто вважається найважливішим документом, який вимагається за акредитивом.

5. Якщо покупець з’ясовує, що товар неправильно маркований або упаковка є порожньою, він повинен висувати позов продавцю, а не банку.

IV. Name the following definitions.

1. The bank instrument that assures the person selling merchandise of payment if he makes the agreed-upon shipment.

2. If the price is quoted to be this, then the seller is obliged to pay only the charges (freight and insurance) necessary to put the goods on board the vessel; freight and insurance from then on are to be paid by the buyer.

3. If the price is quoted to be this, then the seller must prepay the freight and insurance costs to the delivery port.

V. Find in the text and translate all sentences with Infinitives; define functions of the Infinitives (a subject, attribute, object, adverbial modifier, part of a predicate).

VI. Make sentences with the Complex Subject / Complex Object basing on the text.

VII. Sum up what the text says about the letter of credit.

Text 7 Warm-up

1. Translate the following word combinations: letter of credit, underlying contract, specified time, to draw funds, partial shipments, to comply with regulations, foreign subsidiary, parent company, to go out of business, to fit the needs of the customer, at the buyer’s request.