朱胜毅0016056《商贸英语》.doc

201109考试批次
《商贸英语》大作业

学生姓名 朱胜毅 学习中心 淄博教育中心
学号090916237160058 考 号0016056
专 业 工商管理 年级层次 高起专

2011年 9月

试 题 卷
Answer the following questions in English.（本大题共10小题，每题10分，共100分；所有题目请用英文答题）
Mention some of the risks the exporter and the importer may face in trade.
Explain briefly the following methods of payment: cash in advance, open account, consignment transactions.
What is the unique feature of the letter of credit? How does it offer security to the buyer and the seller?
What are the main contents of a letter of credit? Mention at least 10 items.
What are the advantages and limitations of the letter of credit?
Explain the difference between revocable letter of credit and irrevocable letter of credit?
What are the major contents of the bill of lading?
Explain insurable interest briefly and give an example to illustrate it.
What are the major factors that may influence the exchange rate?
Illustrate the respective advantages and disadvantages of the flexible exchange rate system and the fixed exchange rate system. 
Answer:
1. To exporters: the main risk whether they can get full payment or not after they ship their goods overseas to the buyers. They may be affected by the fluctuating cost of raw materials for products and
To importers: They face the risk of getting no goods or goods that are not as per required quality, quantity and timely delivery time after paying the exporter's money.
2. Cash in advance: it is the big risk for the buyer to use the cash, and for the seller very little. And practical cash in advance is often used in combination with other forms of payment.
Open account: It is actually credit provided by the seller to the buyer. High risks are involved for the seller who generally does not use this form of payment unless he has adequate trust in the credit worthiness of the buyer.
Consignment transition: The exporter entrusts his goods to his agent abroad for sale. The exporter retains title to the goods with all the relevant responsibility and risks before they are sold, and the agent gets commission after the goods are sold.
3. L/C involves in a thirty party that will protect the benefit of both the export and the importer. The third party is often banks.
4. Letters of credit include the following contents:
(1) The number of the credit and the place and time of its establishment. (2) The type of the credit. (3) The contract on which it is based. (4) The major parties relevant to the credit, such as the applicant, opening bank, beneficiary, advising bank... (5) The amount or value of the credit. (6) The place and date on which the credit expires. (7) The description of the goods including name of commodity, quantity, specifications, packing, unit price, price terms, etc.. (8) Transportation clause including the port of shipment, the port of destination, the time of shipment, whether allowing partial shipments or transshipment. (9) Stipulations relating to the draft. (10) Stipulations concerning the shipping documents’ required..
5. The letter of credit has greatly facilitated and promoted international trade. It cannot provide absolutely security for the contracting parties. The seller may sustain losses because of the buyer's delay even failure in the establishment of credit. The buyer may suffer losses as a result of the documents presented by the seller which do not truly represent the goods shipped. Besides, it is more expensive to use the letter of credit than remittance or collection as the bank will charge its client for all the services it provides.
6. The credit is a revocable one if such commitments a can be altered or even canceled without consulting with the beneficiary. It is quite obvious that the exporter has little assurance to get payment, and therefore these types of credits are rarely used.
7. The major contents of the bill of lading include:
(1) the shipping company. (2) The shipper or consignor, it is normally the exporter. (3) The consignee. It is generally either the importer or made out "to order". (4) The notify party, i.e. the party to be advised after arrival of the goods at the port of destination. It is often the agent of the consignee or the consignee himself.
8. Insurance is a risk transfer mechanism, whereby the individual or the business enterprise can shift some of the uncertainty of life onto the shoulders of others. Intern for a known premium, usually a very small amount compared with the potential loss, the cost of that loss can be transferred to an insurer. Without insurance, there would be a great deal of uncertainty experienced by an individual or an enterprise ,not only as to whether a loss would occur, but also as to what size it would be if it did occur.
For example, a house owner will realize that each year several hundred houses are damaged by fire. His uncertainty is whether in the coming yarer his house will be one of those damaged, and he is also uncertain whether, given that he will be one of the unlucky ones, his loss will amount to a hundred dollars or so for the redecoration of his ditches or whether the house will be gutted and cost him thousands of dollars to repair.
9. Factors influencing the exchange rate include the following:
1. International balance of payment.
2. Inflation.
3. Interest rate.
10. The two different exchange rate systems each have its own advantages. The fixed exchange rate system reduces the riskiness of international business and is also an important measure to curb inflation. However, the system is vulnerable to disorderly changes in currency value.

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