buyer to enable him to obtain delivery of the goods. Passage Five

undergoes given sacrificed minimize pack suited

Experience has shown that the packing used in transportation of goods for home trade is not usually ____________ to foreign shipping. Most foreign shipping takes many weeks or months to reach its destination and frequently ____________ rough handling in loading and unloading. So the packing must be strong enough. Of course, consideration must also be ____________ to packing cost and the weather conditions through which the ship sails en route and those in the country of destination. Besides, the exporter has to ____________the shipment as lightly and compactly as possible in order to ____________ the freight charges. However, strength and appearance should not be ____________ for a saving in freight. Passage Six

under decide allowing choosing regulations avoid

In ____________ port of shipment and port of destination, several considerations must be made. First, try to make the port of shipment and port of destination clear if it is possible. Second, allow some flexibility by ____________ optional ports because sometimes when the contract is concluded, it might not be possible to ____________ precisely on the exact point where the goods should be delivered by the seller for carriage or at the final destination. Third, consider political factors. For example, when a country is ____________ an international transaction, sellers might want to ____________ going to the port of that country. Fourth, consider port ____________, facilities and charges. Passage Seven

policy lodge premiums insured calculated coverage compensation certificate

Insurance is the business for providing financial ___________ for losses that the insured against. The payments are made from the pool of insurance ___________ and returns on investment of the insurance company. Insurance premiums are the money the ___________ pay to an insurance company for taking out an insurance ___________. It is ___________ according to the value of what is insured and the scope of insurance ___________ desired. An insurance policy is the document issued by the insurer to the insured after premium is paid. It sets out the exact terms in an insurance transaction such as the insurance coverage, the insured amount, the premium rate, and the insurance duration. An insurance ___________ can be said to be a simplified form of an insurance policy. The insurance policy is the key document for the insured to ___________ a claim in the event of losses. If all the required documents are found in order and the cause of the loss an insured risk, the insurance company pays indemnity, which is expressed as the insured value. Passage Eight

problem agreement fluctuate contract rises currency

Each country has its own __________ and, since exchange rates are continuously changing, the exporter is faced with uncertainty. The danger is that the rate of exchange will change between the date of the ___________ and the date of payment. Rates of exchange can ___________ rapidly, particularly when there is no international ___________to fix the rates for a particular currency. The banks can help the exporter to overcome this___________ by providing forward exchange cover. Then it would then be the bank which suffers the loss if and when one currency falls in value, but he will make a profit if the currency ___________ in value. Passage Nine

payment bank goods collection documents distrust

Payment either by remittance or by ___________ depends on the commercial credit of the exporter and the importer. While, under L/C, it is the ___________ credit that both parties count on. This solves the possible problems arising from the ___________ between the exporter and the importer as an L/C enables the exporter to draw on a named bank when he presents the required documents. Thus, under L/C, the exporter can feel assured that so long as he has made the delivery of the ___________ and got the required ___________, he can get the payment of the goods in due

course and the importer can also feel at ease that he can get the shipping documents when he effects the ___________ of the goods. Passage Ten

agreement decision submitted arises binding arbitrate

Arbitration is a procedure whereby a dispute is ________ for a final and binding decision to a person or persons other than the courts. Arbitration may be required in certain cases by statute. However, such cases are rare, and the right to arbitrate usually ___________ from a contract clause or an arbitration ___________. The parties are obligated to arbitrate only those issues that they have agreed to________. The term “award” describes the___________ of the arbitrators. An award is ___________ on all issues submitted and may be judicially enforced. Once an issue is submitted for arbitration, questions of law are for the arbitrators. They are no longer open to judicial review. Passage Eleven

discrepancies information considered expecting interest control

Exporters ____________ to be paid under an L/C may be sadly disappointed. Although an L/C is ____________ one of the most secure means of obtaining prompt payment for sale of goods, exporters should be made to understand that they can never totally ____________ the payment process. It is difficult to obtain ____________ from banks on how often letters of credit go wrong. Since banks are selling a product, it is understandable that there is little ____________ on their part in letting the public know how often the product does not work. In practice, delayed opening of the L/C and ____________ between L/C and contract or other regulations often occur and influence the payment in international trade. Passage Twelve

Advice Instructions packages sailing informing loaded

Before shipment, the buyer generally send his shipping requirements to the seller, ___________the seller in writing of the packing and marks, mode of transportation, etc., known as the Shipping ___________. On the other hand, the seller (or the exporter) usually sends a notice to the buyer immediately after the goods are ___________on board the ship, advising him of the shipment, especially under FOB or CFR terms. Such a notice, known as the Shipping ___________, may include the following: Contract and/or L/C No., name of the commodity, number of ___________, total quantity shipped, name of vessel and its ___________ date and sometimes even the total value of the goods. Passage Thirteen

turn determined meet calculate left investments

Insurers may refuse to underwrite a certain risk either because they cannot ___________ the likelihood of its happening, or because they lack the financial strength to cope with it. That financial strength is ____________ by the size of their capital and surplus----what is ____________ once an insurer’s liabilities have been deducted from its assets which include premiums and income from ___________. Most regulators require insurance companies to___________ minimum solvency standards for this capital and surplus. Insurers may also ____________ down risks because they cannot buy reinsurance---insurance for insurers. Passage Fourteen

Customs authorities work closely with the central bank to ____________ that goods are only imported or exported in accordance with current regulations. They have to ____________ duty, where applicable, on a weight or quantity basis or ad valorem; and they must ____________ that the goods are being sold at the current market rate ruling in the country of origin to prevent dumping and the illegal transfer of funds outside the country.

Customs ____________ are required for both imports and exports. Some commodities may be actually shipped before an entry is ____________; in this case the shipping note sent to the wharf-masters will be ____________“Pre-entry not required”. Passage Fifteen

terms languages according presented differ conformity

It is not a simple job to make all documents errorless because the requirements ___________ from country to country, for example, types of documents needed, forms of documents, contents of documents, ___________ used in the documents, etc. To ensure timely payment, exporters should check all the documents carefully before these documents are ___________. In general, it is important to maintain ___________ between all the documents relating to the same transaction. For example, the description of goods, the value of the goods, and other ___________ in different documents should be the same. If documentary credits are used, then all the documents must be made out ___________ to the L/C terms. More details should be given when documents are discussed individually. Passage Sixteen

beneficial maintained settled litigation arise alternative

In international trade, when disputes ____________ between the exporter and the importer, it can be ____________ through friendly consultation, mediation, arbitration or litigation. Friendly negotiation or mediation is the best method of all and____________ to both parties. If the disputes are settled by this way, friendly business relationship is to be ________ between exporters and importers. If the disputes cannot be settled through amicable negotiation or mediation, arbitration will be the next best____________, as ___________ is usually costly and time-consuming.

VI. Translate the following English sentences into Chinese.

1. International trade is the exchange of goods and services between countries. It is also known as world trade, foreign trade or overseas trade.

2. Trade may occur because of economies of scale, that is, the cost advantages of large-scale production.

3. Visible trade refers to exports and imports of goods, while invisible trade refers to an exchange of services or assets between countries.

4. If a country’s exports exceed its imports, it has a trade surplus and the trade balance is said to be positive. If imports exceed exports, the country has a trade deficit and its trade balance is said to be negative.

5. A tariff is a tax levied on a commodity when it crosses the boundary of a customs area which usually coincides with the area of a country.

6. A quota limits the imports or exports of a commodity during a given period of time.

7. Under the trade form of agent, the principal sets the retail price, retains title and controls the goods, and the profits and risks of losses remain with the principal unless the agent is a del credere one.

8. Unlike agents, distributors buy from the principals on their own account and take title to them and resell them to their customers in their area.

9. Countertrade is an umbrella term that includes all forms of the exchange of goods for goods. 10. In this way, the two countries can exchange their products without using their limited reserve of foreign exchanges.

11. Offset is a practice in which the seller has to undertake some sort of activity favorable to the importer in addition to the supply of the capital goods.

12. The goods exported on the consignment remain the title to the exporter. The exporter is not paid until the goods are sold in the overseas market.

13. Trade terms, also called price terms or delivery terms, are an important part of a unit price in international trade, standing for specific responsibilities and obligations of both the buyer and the seller.

14. It is a set of uniform rules or the interpretation of international commercial terms defining the costs, risks, and obligations of buyers and sellers in international trade.

15. FOB means that the seller delivers when the goods pass the ship’s rail nominated by the buyer at the named port of shipment.

16. Hence, the “C”-terms are different from all other terms because they contain two “key” points, one indicating the point to which the seller is bound to arrange and bear the costs of carriage and another one for the allocation of risk.

17. Therefore, the “D”-terms mean arrival contracts, while the “F” and “C”-terms mean shipment contracts and the “E”-terms mean departure contracts.

18. For example, it is appropriate to select CIF if the term of payment agreed by the parties is documentary L/C but not appropriate to select DES.

19. In order to make sure of this, he may first provide a sample produced according to the buyer’s original sample and send it to the buyer for confirmation. This sample is a counter sample.

20. FAQ means a quantity of a product that is offered not on a particular quality specification but on the basis that is equal to the average quality of the current group or recent shipment.

21. Tolerance means the permissible range within which the quality supplied by the seller may be either superior or inferior to the quality stipulated in the contract.

22. It is sometimes difficult to ship the exact quantity of the commodity, then a “more or less clause”, also called “plus or minus clause”, may be used to allow some tolerance in the quantity.

23. Generally speaking, unless there is a stipulation that the quantity of the goods must not be exceeded or reduced, a tolerance of 5% more or 5% less will be permissible.

24. Packing should be designed according to the need of the cargo. Bulk cargoes require little packing. General merchandises require adequate packing of various types.

25. The container transport offers a door to door service under FCL/FCL, door to cfs (container freight station) service under FCL/LCL(less than Container Load), cfs to cfs service under LCL/LCL, and cfs to door service under LCL/FCL.

26. This means the carriage of cargos by at least two modes of transport on the basis of a multimodal transport contract and only one multimodal transport operator (MTO) is responsible for taking the cargo from the consignor and delivering them to the consignee.

27. Under a FOB, CFR or CIF contract, port of shipment is usually proposed by the exporter and is stipulated in the contract when confirmed by the importer.

28. “Partial shipment” is also called shipment on installments. It means that the goods under one contract are shipped in different terms or by different lots.

29. The losses can fall into total loss and partial loss. Total loss of goods can further be divided into actual total loss and constructive total loss. Partial loss can be either general average or particular average.

30. General average is in use when both the ship and the goods on board are endangered and the captain, for the safety of the ship and the goods on board, intentionally and reasonably does some sacrifices or makes some expenses. Particular average means a partial loss suffered by part of the cargos.

31. It should be noted that “All Risks” does not, as its name suggests, really cover all risks.

32. No additional risk can be purchased to insure goods independently. Additional risks include general additional risks and special additional risks.

33. An open policy covers these shipments, as soon as they are made, under the previous arrangement between the insured and the insurer.

34. A unit price consists of four parts, which are currency unit, unit price figure, measuring unit and price terms.

35. Total amount, as its name suggests, is the sum of the money for one business transaction. It equals to the unit price multiplied by the quantity of the goods.

36. Money of account is the currency used for price calculation. Money of payment is the currency for settlement.

37. An exchange proviso clause may be stipulated in the contract to reduce the foreign exchange risks.

38. Commission may be indicated in price clause which is called plain commission. It is often