Assignments

I. Answer the questions.

1. What is one of great strengths of the letter of credit?

2. What modifications of the basic sight letter of credit can you name?

3. What does the red clause letter of credit derive its name from?

4. Who may a letter of credit be utilized by?

5. When is the revolving letter of credit used?

6. Why is the back-to-back letter of credit considered to be more complex?

7. What is the specifics of the standby letter of credit?

II. Translate the following sentences into Ukrainian. Put questions to any two of them.

1. The basic sight letter of credit can be modified in a number of ways to fit the needs of the customer.

2. With a deferred letter of credit, the documents are forwarded to the importer’s bank, while a sight draft is presented at a later date. This gives the importer the opportunity to clear the goods prior to paying for them.

3. The back-to-back letter of credit is actually two letters of credit that are identical, except for the amounts: the first letter of credit is usually opened in favour of an agent, who then obtains a second letter of credit from his bank by depositing the first letter of credit.

4. Because of the many recent abuses in the handling of standby letters of credit, United State banks are now required to include the totals of standby letters of credit with other forms of customer debt in determining the bank’s legal lending limit to the customer.

5. If the foreign bank should go out of business, the confirming bank is still obligated to honor the drafts.

III. Translate the following sentences into English.

1. Акредитив може бути відзивним чи безвідзивним, але останній використовується частіше.

2. Акредитив з червоною умовою отримав свою назву від давнього звичая писати цю особливу умову червоними чорнилами, щоб зробити її більш помітною.

3. Револьверний акредитив використовується тоді, коли протягом встановленого часового періоду виконується ряд ідентичних поставок.

4. Іноземний банк зазвичай відсилає свої акредитиви через банк США і просить останнього гарантувати чи підтвердити їх, оскільки багато іноземних банків не дуже відомі у світі.

5. Відтоді як акредитив підтверджено, всі ризики банку, який видав цей акредитив, несе банк, який надає підтвердження.

IV. Name the following definitions.

1. The letter of credit, which may be amended or cancelled at any moment without prior notice to the beneficiary.

2. The letter of credit, which can neither be amended nor cancelled without agreement of all parties.

3. With this type of letter of credit, the documents are forwarded to the importer’s bank, while a sight draft is presented at a later date.

4. Letter of credit addressed to the beneficiary

V. Define the following types of letters of credit:

- red clause letter of credit,

- revolving letter of credit,

- back-to-back letter of credit,

- circular letter of credit,

- standby letter of credit,

- advised letter of credit,

- confirmed letter of credit.

VI. Make and fill in the table listing types and main features of letters of credit mentioned in the text.

VII. Find in the text and translate all sentences with Infinitives; define functions of the Infinitives (a subject, attribute, object, adverbial modifier, part of a predicate).

VIII. Make sentences with the Complex Subject / Complex Object basing on the text.

IX. Sum up what the text says about different types of letters of credit.

MODULE 2

FUNDAMENTALS OF MANAGEMENT

2.1. FUNDAMENTALS OF PERSONNEL

MANAGEMENT