Analysis of visible trade last year by commodity

Analysis of visible trade last year by area

Section H. Write a memorandum

Barry Turner is General Manager at Contratex Fashions. He is discussing with Erica Khan, the Exports Manager, a trip she is making to South America. You are present at the meeting, as his Personal Assistant, together with Pamela Sharp, the Marketing Manager.

Mr Turner has asked you to let him have a short memo containing the essentials of the discussion.

BARRY:	I'm glad you're making this trip Erica. I think you've got to see for yourself what the possibilities are. I'm going to give you a fixed budget. I haven't worked it out yet, but it will be enough to help you to test out at least a couple of the most likely markets. I'll want you to give me a detailed itinerary, so I know where to contact you at any time. I think that's only common sense.
PAMELA:	You did say Erica should try and contact as many customers as possible before she goes. I've got a list of contacts – with addresses and 'phone numbers.
ERICA:	That's useful.
BARRY:	You'll have to work out some attractive packages for them.
ERICA:	I'm working on various ideas. The trouble is some of the fabrics are terribly expensive and I'm not going to be able to offer them anything cheap. I'll come back to you on that when I've had a chance to go through Pam's list.
PAMELA:	Take plenty of samples.
ERICA:	I'm going to.
BARRY:	I suggest you concentrate on the big stores in Buenos Aires and Rio. I think that's where we can do big business.
ERICA:	That's my intention. Oh by the way, you were going to put me in touch with a modelling agency out there.
BARRY:	Hasn't Pam given you the details yet?
PAMELA:	I'm still waiting to hear from Sylvia Parnell.
BARRY:	Chase her up Pam. We need the best models we can get. And don't forget to organise the ECGD cover. I'd hate to see Erica going to all this trouble for nothing.

Section I. An organisation chart*

Here is a part of the organisation chart for the Mediterranean Trading Corporation setting out the lines of communication and control.

Questions

1. If the Managing Director called a meeting of his immediate subordinates, who would you expect to attend?

2. To whom does Mr Paton report?

3. From whom would Miss Jones receive instructions?

4. Through whom should Mr Pryde approach Ms Overbury?

5. What sorts of discussions would you expect to take place between Mr Duval and Mr Croisier?

6. In what circumstances would you expect Miss Jones and Ms Duval to discuss business matters?

7. Which of the named executives would you expect to deal with a letter of complaint from a department store in Rome?

8. What duties would you expect Mr Pryde to have in this set-up?

Section J. Join the halves

On the left of the page are the first halves of sentences. On the right are the second halves of the sentences, though not in the same order. Pair the halves and then write your own list of the completed sentences.

An exporting company can arrange the dispatch of its products		to goods in transit.
Some governments require a signed and certified invoice		risk for up to 90% of any loss from insolvency of an overseas buyer.
The bill of lading is a receipt for goods shipped and is the document of title		while goods are in transit,
Under the basic ECGD* policy exporters are insured against		through the services of a freight forwarding agent.
With the growth of trade with Europe «roll-on roll-off» road transport is		bearing details as to the value and origin of the goods.
A documentary letter of credit transmitted through the bank		becoming the main method of transit for exported goods.
Until bill of exchange is paid or accepted by an overseas buyer		becomes the means by which the exporter obtains payment.
The terms of the contract should make it clear who pays the insurance		the goods cannot be released.

Section K. Vocabulary

customs	tariffs	quota	shipper	documentary
agent	subsidiary	consignment	procedures	dumping*
irrevocable	bond	accepted	licence	invisible
intermediary	surcharge	devaluation	maturity	multinationals
franc	lira	peseta	guilder	convert

Match the meanings shown below to the words in the table above.

1. A written instrument issued by a bank or insurance company guaranteeing that the exporter will comply with the terms of the contract.

2. What an exporter has to do with foreign currencies before he can pay his workers.

3. A legal permit to do something.

4. What a bill of exchange has to be before it is of value.

5. Companies operating in a number of different countries.

6. Exports which earn valuable foreign currency but are intangible.

7. Duties charged on imports.

8. The unit of currency in Spain.

9. The sort of credit which ensures that an exporter receives payment.

10. An additional tax on imports to reduce a balance of payments deficit.

11. The unit of currency in Italy.

12. The person either importing or exporting goods.

13. A downward change in the rate of exchange.

14. Someone who can help you to find markets in a foreign country.

15. The maximum amount of a commodity which can be imported during a given period.

16. The unit of currency in the Netherlands.

17. An alternative name for a middleman, broker or agent.

18. A shipment of goods.

19. An exporter might set up one of these in a foreign country.

20. The methods of conducting business. Vital to understand in exporting.

21. Cannot be revoked.

22. Either the authorities responsible for the collection of duties on imports – or peoples' habits.

23. The date when a bill of exchange becomes payable.

24. The unit of currency in France.

25. The act of selling goods at a very low price in an overseas market.

Section L. Correspondence

Riba produce a range of kitchen furniture in their factory and have recently started exporting their products to the UK. They are using the services of a number of independent agents on a regional basis. They recently exhibited at a furniture exhibition in Zurich and one of the visitors subsequently telephoned to express interest in their products. The following letters were sent in response to this call.