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Today a modern businessman must be very educated in all spheres of market trade. So the knowledge of the main methods of payment under the different contracts becomes very necessary.
There are a lot of methods and manners of payment in private and international trade. They are classified by the numerous features and signs, for example:
l) cash payment; cashless payment
2) full payment; separate payment (payment by installments)
3) advance payment; payment after executing a transaction
4) payment by credit; immediate payment for the full value of the contract.
The main methods of payment are: cash payment and payment on a credit basis. Cash payment is divided into several methods:
1) by cheque:
as a cheque is payable in the country of origin it is not very often practiced in international business. That's why cheques are usually used for payment in home trade.
2) by telegraphic or telex transfers or post (mail),
3) by a Letter of Credit (or just: by credit),
4) by payment for collection.
Ознакомьтесь с содержанием текста и выполните задание к нему.
1. К какому пункту раздела «методы оплаты» относится абзац «payment by cheque»?
2. Why are cheques usually used for payment in home trade?
3. К какому пункту раздела относится этот микротекст?
Payment in advance: the Importer credits the Exporter, for a example, the Contract may stipulate a 10 or 15% advance payment, which is advantageous to the Sellers. This method is used when the Buyers are unknown to the Sellers.
4. When is this method used?
Terms of delivery
There are various terms of delivery. Most frequently used terms of delivery in international trade are CIF (cost, insurance, freight) and FOB (free on board). A CIF price includes apart from the value of the goods the sums paid for insurance and freight (and all other transportation expenses up to the place of destination). An FOB price only includes the value of the goods, transportation and other expenses until the goods are on board the vessel. On FOB and CIF terms the Sellers bear the risk of accidental loss of or damage to the goods until the goods pass the ship's rail.
Ознакомьтесь с содержанием текста и выполните задание к нему.
1. Переведите текст, приведенный выше.
2. Расшифруйте аббревиатуры, объясните, что они обозначают.
3. What does a CIF price include?
4. What does a FOB price include?