BUSINESS
...s relations campaigns called? They are called public relations consultants? 10.) Is it expensive to engage the services of these specialists? It could be. 11.) Why do countries hold trade fairs? Becauce in the planned economies, trade fairs are a way of meeting and getting to know the state buying organizations. 12.) What opportunities do exporters have at trade fairs? Trade fairs give exporters a chance to see other products which are in a competition whit theirs. UNIT EIGHT: TERMS OF DELIVERY 1.) Why are the terms of delivery so important? Because they may make all the difference between profit and loss. 2.) What are the buyer and seller binding themselves to by the terms of delivery? They are binding themselves to: -which costs are paid by the buyer, which by the seller, -which documents the exporter will obtain and at whose expence, -when the title to the goods-and the responsibility for them-passes from the seller to the buyer, -when and where the goods are delivered. 3.) Why were misunderstandings frequent with terms of delivery? Because the terms could be interpreted in different ways. 4.) The terms of delivery were standardized in 1953. Why was this? They were standardized in order to clear up the confusion that existed in international trade. 5.) What do Incoterms indicate? These incoterms indicate the division of costs and administrative responsability between the exporter and his customer. 6.) Why is it still necessary to be careful when using Incoterms? It is still necessery to be careful because these terms are still sometimes interpreted differently in different countries. 7.) What do the following initials stand for? -CIF-FAS- FOR? CIF (cost,insurance,freight)This is basically the same as C&F, but the exporter additionally takes responsibility for marine insurance. The exporter bears all risks until the goods pass over the ship's rail at the port of distination. FAS (Free alongside ship) The exporter is responible for ensuring that the packing is adequate for the ocean voyage. He is also responsible for getting the goods to the docks, normally to a particular wharf or wharehouse. Delivery takes place at the side of the ship. FOR (free on rail) The price quoted includes delivery by the exporter to a railway station. Ressponsibility for the goods passes to the customer once the goods are in the custody of the railway authority. The exporter is responsible for appropriate basic packing. 8.) Goods shipped CIF involve the exporter in three contracts. What are they? -cost of transpotation (cost), -responsibility for marine insuranse (insurance) -The exporter bears all the risks until the goods pass over the ship's rail.(freight) UNIT NINE:TRANSPORT (PART ONE) 1.) Which modes of transport are mentioned in the first paragraph? There are mentioned next modes of transport: by road,rail,sae or by air.(shipped by surface or by air). 2.) Which is the cheapest mode of transport for large quantities? Ocean freight. 3.) What is the difference between large and small exporters when we are talking about shipping? Small exporters can't handle all the shipping and dispatch of their goods overseas themselves like large exporters can. 4.) What are freight forwarders? Freight forwardes are shipping and forwarding agents. 5.) Which services performed by forwarding agents are mentioned in the text? Their services are:booking space, arranging documentations,and, in many cases, collecting the goods from the factory and transporting them to the docks, airport, railway station or road collection point. 6.) What depends to some extent on the type of shipping used? The freight rates. 7.) Name the four basic types of shipping services? -conference line vessels,non-conference vessels,tramp ships, charter ships. 8.) Why are conference line vessels most commmonly used type of shipping? Because they make regular journeys and offer special discounts to exporters who use them regulary. UNIT NINE:TRANSPORT (PART TWO) 1. What is air freight most practical for? Air fraid is most practical for goods which have a high unit value. But the most practical thing about it is the speed of delivery. 2. Why is the speed of delivery so important? For many items, such as fresh flowers and fruits, it is very important that they come in time to the consumer. The speed of delivery can be also very important to small exporters who want to get their payment faster. 3. What perishable products need air freight? There are a lot of perishable product that before that kind of transport couldn't be transported so easily. I would include here every kind of food, vegetables, fruits and other perishable products. 4. What do cost savings result from? Cost savings that can be achived by air freight are: - storage costs (the exporter may have to maintain a smaller inventory of finished goods) - greater security in transit (this results lower insurance costs) - lower insurance costs - less jostling in transit (that means that there is no need for special packing. This can also save you money, because the total weight is lower, and the customs duties are therefor smaller) 5. How can sea freight be used for some highly perishable products? ??? 6. Why is the risk of pilfereage smaller? Because there is almost no way that the cargo could be stolen from the plain during the flight and the airports are also very secure. 7. Are procedures for air freight as complicated as for ocean freight? No, they are not. 8. Which principles must be considered when making transportation decisions? - It is essential to consider the value of time and other factors, not just the simple cost of conveyance. - Separate decisions must be made for each consignment. No general rules are possible. UNIT ELEVEN: PACKING 1. Which factors determine the kind of packing for a particular product in transit? Here are some of the factors that infuence the mode of packing: - the characteristics of the product itself - the mode of transport - the climatic conditions during the different stages of the journey - govermental or other regulation 2. Name six functions of packing. - It must provide a casing strong enought to stand transportation hazards (rough handling, crushing, corrosion, etc.) - It must be as light as posible to keep the costs low. ?? 3. What should the exporter consider when deciding on the type of packing? The exporter should consider the type of damage which is likely to occur in transit. 4. At what stages might the goods be damaged in transit? The goods may be dameged in many stages of the jurney: - when being loaded at the exporter's factory - when being handled between modes of transportation - when being transpoted - when being unloaded at the port of destination - when unloaded by the customer on his premises. 5. What is subject to detailed international agreements? The packing of many commodities, such as coffe bags, tea cases and cotton bales, is subject to detailed international agreements. 6. What does the mark of origin indicate? The mark of origin indicates the country of origin of the particular goods. 7. What must the mark of origin be? The mark of origin must be: - legible - indelible - easily seen 8. Which products require special labelling? Special rules apply to the labelling of certain products, including: - prepared foodstuffs - beverages - pharmaceuticals - toilet preparations 9. What information should be included on the label? The information on the label may include: - name and adress of manufacturer - weight and volume of contents - ingridients - other relevant details 10. What should shipping marks make clear? What information may they often include? Shipping marks should be clearly stamped on each case. The marks are often destinctive shape with the customer' in...