Ex. 12. Translate into Russian in written form

The would be exporter is faced with a number of problems. First there is the need to find a customer for his goods. The actual operation of selling is made more difficult because of language barriers and cultural differences. There are also additional transport problems because of the greater distances involved and often unfamiliar territories. When the manufacturer turns from selling at home to selling overseas, his problems are magnified. This is particularly true in terms of finance.

The first financial problem facing the exporter is the time taken to deliver his goods. There could be a long delay while his merchandise is in transit between London and, say Karachi. He has incurred the cost of production, but when is he going to be paid? The second problem is even more serious. How sure can he be that he is going to be paid at all? And even when he receives payment his troubles may not be over. If he is paid for his goods in a currency other than sterling, he has to convert that currency into sterling, and what if the other currency has fallen in value since the contract was made? These are perennial problems for the exporter.

Fortunately for the exporters help is available from the banks. The most straightforward method of financing the operations is for the exporter to borrow the necessary funds from his bank. This way he can ship his goods abroad and draw on his bank for the funds needed to carry on production while he is awaiting the proceeds. But of course the borrowings from the bank will lower his profit margins.

COMPREHENSION

Ex. 13. Put the questions to the words in word-combinations in italics.

1. Exporting and importing of goods are the major sources of international revenue and

expenditure for most countries.

2. When exports exceed imports we say that the country has a favourable balance of payments.

3. Companies can either set up a local subsidiary or a joint venture with a local partner.

4. If there were no tariffs, customs boundaries, import and export embargoes, trade would then

flow freely throughout the world.

5. Sole agents or multi-distributors, who have a special knowledge of the market, can sell on

behalf of the company.

6. Governments can control international trade.

7. International business comprises many different types of services.

8. In the case of manufactured goods certain countries have become famous for particular

products.

Ex. 14. Match the beginnings of the sentences to their ends using the information from

The text.

1. Companies can choose from various methods 2. When imports exceed exports the balance of payments is said 3. Over a period of time the total value of exports should balance with 4. International business comprises 5. Exporting and importing of goods are the major sources of 6. International trade is 7. The Bahamas earns much more from foreign tourism 8. International organizations such as the WTO and EFTA

a. many different types of services. b. international revenue and expenditure for most countries. c. regulate tariffs and reduce trade restrictions between member countries. d. to establish their products in a foreign market. e. to be unfavourable or adverse. f. the total value of imports. g. than it earns from exporting goods.

Ex. 15. Multiple choice. Complete the following sentences using the information from the

Text.

1. Exporting and importing of goods are the major sources of__________________

a. making the population of the country better off

b. international revenue and expenditure for most countries

c. flourishing of the country

2. Greece and Norway depend heavily on revenue collected from _______________

a. livestock farming

b. mining

c. carrying foreign cargo on their ships

3. The most common measures to control international trade are ____________

a. tariffs and quotas

b. import and export embargoes

c. customs boundaries

4. Tariffs and quotas raise the price of imported goods to “protect” _______________

a. imported goods

b. exported goods

c. domestically produced goods

5. In order to start manufacturing in the export market companies can set up _____________

a. a merchandising company

b. a local subsidiary or a joint venture with a local partner

c. a multinational company

6. Primary products are ____________

a. agriculture, mining, oil extracting

b. insurance, banking, tourism

c. building and construction, aircraft making and baking

7. When imports exceed exports the balance of payments is said to be

a. unfavourable

b. favourable

c. desirable

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