Sample of Letter of Complain

Men’s Clothes Dealers Ltd. 142 South Road Sheffield S20 4Hl England     18^th April, 2008     Ref: Our order No. 142 of 21st March, 2008   Dear Sirs, Thank you for your delivery of men’s silk shirts, which we ordered on the 21^st March, 2008. At the same time we would like to draw your attention to the following. After examination of the shirts we discovered some manufacturing defects: - there are oil stains in 12 shirts; - the colour of buttons on 5 of the shirts not match the colour of these shirts; - one shirt is in a different style.   We are returning the defective shirts by separate mail, carriage forward, and would ask you replace them with shirts in the colours and sizes specified below:     Size Colour Quantity 15 white 9 17 white 1 14 blue 6 16blue 2   We would appreciate a prompt replay.     With best regards S. Kravchenko Export-Import Manager

Unit 27. Contract

Active Vocabulary

transaction to draw up the Contract syn: to make the Contract intentions obligations according to the licenses patents technology know-how herein after referred to as Seller Buyer hereby agreed as follows manganese CIF terms FOB terms the quantity is understood packing included receipt	угода готувати контракт наміри обов’язки згідно чогось ліцензія патент технологія ноу-хау, технологія виробництва далі іменується як Продавець Покупець домовились про наступне марганець поставка на умовах CIF кількість визначається включаючи упаковку квитанція, рахунок
syn: invoice notification by cable the Buyer is to open by cable	повідомлення телеграмою Покупець повинен відкрити
confirmed	підтверджений
Visible Letter of Credit with the purpose…	існуючий акредитив з метою
is to be valid for 90 days with the right of extension the payment of the goods is to made	дійсний 90 днів з правом продовження оплата товарів відбувається
Certificate of Weight Set of Bills of Lading in the event of devaluation	Свідотство ваги комплект коносамента (транспортна накладна) у випадку знецінення

A Contract forms the basis of a transaction between the Buyer and the Sellers. A Contract is an a agreement made by two or more persons that is enforceable by law. As a rule, the Contract consists of the main elements such as the subject of the Contact, the terms of payment, the terms of the delivery, guarantees, packing and marking, arbitration, Insurance, and other conditions. In foreign trade transaction a contract is drawn up to give legal expression to the intentions of the partners and to guarantee that the obligations contained in the contract will be fulfilled. According to the purpose and contents, contracts can cover: goods, services, licenses, patents technology and know-how. Here is an example:

 

Contract № 5/1

 

London 14^th January, 2008

 

Ukrexport, Kyiv, herein after referred to as the Seller and British Manganese Ltd, London, herein after referred to as the Buyer, hereby agreed as follows:

The Seller has sold and the Buyer has bought manganese of Ukraine origin on CIF terms from one of the Black Sea ports at the Seller’s option. The price for the goods is understood to be per metric ton, packing included. The quantity is understood to at the Seller’s option.

 

Within five days after the receipt of the Seller’s notification by cable that the goods are ready for shipment, the Buyer is to open by cable with the Ukrainian Bank for Foreign Trade, Kyiv, an irrevocable, confirmed and visible Letter of Credit in favour of the Seller for the full value of the goods plus 5% to cover the option. The letter of credit is to be valid for 90 days, with the right of extension, if required, by the Seller. The payment of the goods is to made in US dollars for 100% (hundred per cent) of the invoice value of management on presentation to the Ukrainian Bank for Foreign Trade, Kyiv, of the following documents:

o Invoice in 3 copies;

o Seller’s Certificate of Weight;

o Set of Bills of Lading;

o In the event of devaluation of the US dollar under the present Contract both parties have the right to renegotiate the price of the goods.

 

Subject of the Contract предмет контракту

An integral part of the Contract невід’ємна частина

Total value of the contract загальна сума контракту

Spare and wear parts запасні та зношувані деталі

Freight фрахт

Specification специфікація, технічні

Умови

To be valid бути дійсним

Destination місце призначення

Shipping documents відвантажувальна

Інформація

Waybill транспортна накладна

Consignor, shipper вантажовідправник

Consignee вантажоодержувач

Shipping specification відвантажувальна

Специфікація

Shipment, consignment вантаж, партія товару

Shipment відвантаження, перевезення,

Packing пакування

Marking маркування

To consider null and void вважати таким, що не має

Сили

Exercise 1. Give the English:

угода, виконувати обов’язки, згідно чогось, далі іменується, Продавець та Покупець, домовились про наступне, включаючи упаковку, квитанція, підтверджений, дійсний, оплата відбувається, у випадку знецінення, загальна суму контракту, предмет контракту, невід’ємна частина контракту, місце призначення, фрахт, запасні та зношувальні деталі.

 

Exercise 2. Match words from the list A with words from the list B that have a similar meaning:

A B

contract under smth

To fulfill the obligations invoice

the payment is understood agreement

shipment to carry out

to consider null and void the payment is made

according to be over

receipt delivery

 

Exercise 3 Answer the following questions:

1. What are the main elements of the contract?

2. What does involve the Subject of the contract in the Agreement?

3. What does involve the Terms of the Payment of the Contract in the Agreement?

4. What does involve the Time of Delivery in the Agreement?

5. What are another parts of the Contract?

6. What are the main points the representatives of the both parties are always

discussed?

7. What can influence on the price?

8. Has any influences on the Contract some economic environment and what way?

9. What reason can reduce the price?

Unit 28. Types of Banks

Active Vocabulary

banking be engaged in Central bank	банківська справа займатися Центральний банк
the Federal Reserve System (the FED)	Федеральна резервна система
commercial bank accept deposits make a loan manage customer’s accounts	комерційний банк приймати депозити (вклади) одержати позику, надавати позику вести рахунки клієнтів (у банку)
merchant bank investment bank saving bank saving account	торговельний банк інвестиційний банк ощадний банк ощадний рахунок

A bank is an institution that deals in money and provides other financial services. Banks are the heart of any financial system.

Banking is the business a bank is engaged in.

There exist different types of banks but their names may vary from one country to another.

Central banks such as the National Bank (Ukraine), the Bank of England (UK) or the Federal Reserve System (US) look after the government’s finance and monetary policy, act as bankers for the state and for commercial banks, and are responsible for issuing banknotes.

Commercial banks deal directly with the public. They offer a wide range of services such as accepting deposits, making loans and managing customer’s accounts. The aim of commercial banks is to earn profit.

Merchant banks don’t deal with the public. The provide services for companies. They specialize in raising capital for industry, arranging flotations, takeovers and mergers, and investment portfolios.

Investment banks are firms thatcontrol the issue of new securities (shares and bonds).

Saving banks are financial institutions that specialize in providing services such as savings accounts as opposed to general banking services.

 

Exercise 1. Give the English for:

установа, яка має справу з грошима; надавати фінансові послуги; банківська справа; Національний банк України; піклуватися про монетарну політику; відповідати за емісію грошей; комерційний банк; приймати депозити; надавати позику; заробляти прибуток; торговельний банк; придбання контрольного пакета акцій; злиття (підприємств); інвестиційний банк; ощадний банк; ощадний рахунок.

Exercise 2. Answer the following questions:

1. What is the bank?

2. What is the banking?

3. What types of banks exist in most countries?

4. What functions do central banks perform?

5. What kind of institutions is a commercial bank?

6. What is the difference between a national bank and a commercial bank?

7. Who are the clients of a merchant bank?

8. What do merchant banks specialize in?

9. What are the investment banks?

10. What is the Federal Reserve System?

 

Exercise 3. Translate into English:

1. Банк – це установа, яка має справу з грошима та надає різні фінансові послуги.

2. Банківська справа – це бізнес, яким займається банк.

3. Нацбанк України піклується про державні фінанси та монетарну політику.

4. Центральні банки відповідають за емісію грошей.

5. Головна мета комерційного банку – одержання прибутку.

6. Торговельний банк надає послуги компаніям. Він не працює з населення.

7. Інвестиційний банк – це фірма, яка контролює випуск нових цінних паперів.

8. Ощадний банк спеціалізується в наданні таких послуг, як ощадні рахунки.

9. Комерційні банки – це головна ланка в кредитній системі держави.

10. Федеральна резервна система, яка включає 12 федеральних банків та їх філії, контролює американську державну банківську систему.

Unit 29. Banking Services

Active Vocabulary

provision transmission service credit card repay a loan fixed rate interest a mortgage an overdraft a foreign exchange provide a wide range authorized hard currency entitle maintain settlement account/bills current account loan account deposit account budget account holder’s charter

постачання послуга переводу (коштів) кредитна карточка виплачувати, віддавати позика, кредит фіксована процентна ставка іпотека перевищення кредита іноземна валюта забезпечити широкий спектр послуг уповноваженний тверда валюта надає право зберігати оплата рахунку/векселів валютний рахунок кредитний рахунок депозитний рахунок бюджетний рахунок право власника

It is an open secret that banks are the most important link in the world of money. This is because, first of all, banks nowadays perform the main part of the work of transferring money from a customer to a seller, by operating the system of payments in the economy. Almost everyone in the world uses or has used banking services. Families keep their savings there, and banks pay them interest rates on their deposits and give them loans to buy expensive goods. Companies conduct payments through them. Commercial organizations, which work at the market and in production, take loans for their needs and conduct all payments with buyers and sellers through them. Landowners and owners of real estate take loans from the banks to buy an estate or to make use of it and pay back loaned money.

Banking services

The various services provided by banks are summarized bellow.

- The provision of safe deposit facilities for money and valuables.

- The lending of money: this is the most profitable activity of the banks and the one which provides most of their income.

- The provision of efficient money transmission services (e.g. cheques, credit cards).

- A credit card enables the holder to buy goods and repay the credit card issuer at a later date.

- A loan is an amount money borrowed from the bank which must be repaid at a fixed rate of interest.

- A mortgage is a loan to buy property

- An overdraft is a loan made by a bank to a customer with a purpose taking out more money than is actually in a bank account.

- A foreign exchange service is the facility to change money from one currency to another.

In addition to these basic functions, modern banks provide a wide range

of other financial services.

Opening a bank account

Nearly 100 Ukrainian Banks are authorized to deal in foreign currency.

The process for opening a bank account in Ukraine is regulated by the May 1996 National Bank of Ukraine's (NBU) instruction «On the Procedure of Opening Accounts in the National or Foreign Currency of Ukraine.» Holders of hard currency accounts must also have another account denominated in hryvnia, the Ukrainian currency.

Types of Accounts

Several types of bank accounts are authorized under the NBU instruction. There are several accounts categories for individuals and commercial entities and one for those that are not fully resident in Ukraine. Resident entities are entitled to maintain «settlement,» «current,» «loan,» «deposit,» and «budget» accounts. The settlement account is used to make payments that are allowed in the account holder's charter. It can also be used to transfer funds to and from foreign entities. Companies usually open at least two settlement accounts, one in a hard currency, and another in domestic currency. Current accounts are essentially the same as settlement accounts but are intended for use by non-commercial entities. Loan accounts are for administering borrowed or loaned funds. The deposit account is used as a savings account. The budget account is for receiving funds from Ukrainian government authorities.

Opening an account is relatively inexpensive, the cost depending on the bank and the type of account. Hard currency accounts can cost up to $150. Fees for opening hryvnia accounts are lower.

 

Exercise 1. Give the English for:

постачання, позика, іпотека, перевищення кредиту, іноземна валюта, фіксована процентна ставка, забезпечити широкий спектр послуг, тверда валюта, кредитний рахунок, зберігати, оплата рахунків, право власника, зберігати, надає право, уповноважений.

Exercise 2. Answer the following questions:

1. What function do the banks perform nowadays?

2. List banking services which you know.

3. What is the loan and what way it is performed?

4. What is the mortgage and what way it is performed?

5. What is an overdraft?

6. What wide range of financial services do you know?

7. By what legislation is the process for opening a bank account regulated?

8. How does it cost to open banking account?

9. What account is most convenient for you?

10. What do you think how many banks are there in Kiev?

 

Unit 30. Investment

Active Vocabulary

capital goods portfolio Unit Trust (BrE) Mutual Fund (AmE) fixed rate of interest derivate/derivate instrument futures options swaps

засоби виробництва, товари виробничого призначення портфель цінних паперів пайовий фонд/траст взаємний фонд фіксована процентна ставка похідний інструмент ф’ючерс опціон, угода з премією своп, обмін активами чи зобов’язання

 

When we speak about investments we mean the purchase by a business of a new capital or of capital goods such as new machinery. In the most general sense, the objective of investing is to earn money with money. When investor holds the collection of financial securities we say that he holders portfolio.

Unit Trust (BrE) or Mutual Fund (AmE) is a company that spreads its investor’s capital over a variety of securities. Investment in a unit trust/ mutual fund reduces the risk for small investor.

Apart from stocks and shares there are many types of investment opportunities available. When a company or government wishes to rise finance it can be issued bonds. There are securities offered at a fixed rate of interest.

Derivates or derivate instruments are financial products such as futures, options, and swaps. Futures are contracts that give the right to buy and sell currencies and commodities at an greeted time in the future at a price agreed at the time of the deal.

Options are contracts enabling the holder to buy a security at a fixed price for a limited period. Swaps allow the exchange of one asset for anther to suit both parties.

 

Exercise 1. Give for the English:

купівля товарів виробничого призначення, заробляти гроші, мета інвестування, взаємний фонд, зменшувати ризик, інвестор, залучати фінанси, випускати облігації, пропонувати цінні папери за фіксованою процентною ставкою, влаштовувати обидві сторони.

 

Exercise 2. Match words from list A with words from list B that have similar meaning:

A B

objective obtainable

mutual fund possibility

reduce shareholder

deal target

buy purchase

investor decrease

opportunity transaction

Exercise 3. Put the necessary word in the sentences:

bond, investors, investment (2), derivates, futures, deal, unit trust, portfolio (2), shares, mutual funds.

1. … are easier to manage because a group of people do the trading for you and

your money is spread among a variety of different investments.

2. In an attempt to raise finance, the company issued … to public investors,

3. You should diversify your investment … because you have all your money іn

one stock.

4. Investing in a … reduces risk for small investors.

5. The … fell through, no agreement was reached.

6. Our … ranges from shares in food companies to share in the fashion world.

7. A … contract is an order that you place in advance to buy or sell an asset or

commodity.

8. More exotic financial products include … such as: options, futures and

swaps.

9. These oil shares were a good ….

10. People who own stocks and bonds are referred to as ….

11. A treasury … may be sold to any individual or corporation.

12. Government bonds are considered to be safe ….

Exercise 4. Answer the following questions:

1. What do we mean by «investment»?

2. What is the objective of investment?

3. What is the portfolio?

4. What are derivates?

5. What right do future contracts give investors?

6. What kind of contract enables the holder to buy a security at a fixed price for a limited period?

7. What do swaps allow?

 

Unit 31. Raising finance

Active vocabulary

raise finance run costs financial reserves extra capital expand premises working capital preserve cash flow time-leg retained profit borrowing grant loan tax distribute lender leasing hire purchase debt factoring share issue share flotation syn: share offering

діставити фінанси, залучати фінанси керувати, управляти витратами фінансові резерви додатковий капітал збільшувати приміщення; будинок з прилеглими будівлями і ділянкою оборотний капітал, оборотні фонди зберігати, підтримувати потік готівки відставання в часі, спізнення нерозділений прибуток позика (коштів); кредит дотація, субсидія, грошова допомога позика податок розподіляти, роздавати кредитор, позикодавець лізинг, довгострокова оренда купівля у розстрочку борговий факторинг розміщення, випуск нових цінних паперів на вільний ринок

All firms need capital to apply it in business. As well money for running costs such as wages, material and rent, they need to have financial reserves. Extra capital may be needed to expand by buying new premises or developing new products. Firms may also need working capital to preserve cash flow through the business, for instance if there is time-lag between producing goods and services and getting paid for them.

There are four main ways of obtaining capital:

§ retained profit;

§ borrowings;

§ share issues;

§ governments grants and loans.

Retained profit is the amount of profit after tax that directors of a business decide not to distribute to their shareholders, but to keep within the business.

Borrowing moneyusually accounts for 20-30 per cent of firm’s capital. There are several types of lenders to business: commercial banks, leasing, hire purchase, debt factoring, Stock Exchange.

When companies raise finance by selling shares for the first time they make share issues, share flotation or share offerings.

They government has a variety of schemes which give grants or cheap loans to the firms for certain purposes.

Exercise 1. Give the English for:

залучати фінанси, управляти витратами, мати фінансові резерви, додатковий капітал, купувати нові приміщення, потік готівки, виробництво товарів та послуг, здобувати капітал, нерозподілений прибуток, позика коштів, випуск акцій, держані субсидії, податок, акціонери, кредитор, фондова біржа.

Exercise 2. Match words from the list A with words from the list B that have a similar meaning:

A B

share flotation stockholder

creditor instalment plant

hire purchase lender

shareholder share offering

profit purchase

obtain earnings

preserve enlarge

buy keep

expand get

Exercise 3. Match the words and phrases with the correct definitions from the list below:

premises, grant, share flotation, retained profit, working capital, lender, reserve, hire purchase, loan, borrowings, cash flow, reserve finance;

1. money as a resource for business and other activities;

2. the capital from a business that is set aside from profit or from shares sold at higher that their original price;

3. the amount of money moving into and out of a business at a particular point in time;

4. part of the annual profit that is not paid out to shareholders as dividend, but reinvested in the company;

5. receiving money from a person, a bank, or other financial organization and agreeing to pay it back later, usually with interest;

6. money that has been borrowed and has to be paid back;

7. a person or an organization that lends money and charges interest on the repayments;

8. a way of buying goods where the buyer takes the goods and pays for them in regular instalments over a fixed period of time;

9. offering company shares for sale to the public or a stock exchange for the first time;

10. the amount of short-term capital that a business has available to meet the day-to-day cash requirements of its operations;

11. money given for a specific purpose;

12. buildings and the land they occupy.

Exercise 4. Fill the necessary prepositions into the sentences and translate them:

Retained Profit