Unit 29 Account and foreign payments Money is usual topic when you talk with suppliers or costumers.

If you are employ in the accounts department in firm, you will fill invoices for costumers,send reminders to costumers if they forget to pay on time. You will do credit assessment wich means that you will decide wich costumers can have credit. If you work in international trade you will know the different types of payment. In large and middle-sized firms we paid-out money to suppliers who delivered the goods and we received money from costumers for that delivery. The most important activities are paying suppliers and controling credit od costumers. We must send proforma-invoice before delivery if we have bussiness with customer for the first time and if we known the customer we can send it after delivery. Methods of Payment in Foreign Trade are: 1. CWO means that we must pay cash with order. This method is unusual in case where you extend credit to customer or when you run a risk that the good won't be send away on time. This method is used when you pay by Eurocheque or by credit card. CWO contracts includes provision in case od partial advanse payment in the form od deposits(between 10 and 20 per cent of contract price). Or they include progressive payment at various stage of production(especially for capital goods). U Unit 27 Orders Order is answer to seller's offer. Order can be on the buyer's own initiative where he is prepared to buy goods at stated prices and terms. First order is the order between two firms. Repeat order is order for goods from the same firm. Trial order begin with a small quantity and later buyer will order larger quantity if he is satisfied with goods. Stated order is arrangement with supplier where he delivers goods in stated quantities at certain interval like buyer wants. Verbal or telegraphic order is acompanied by written confirmation and we have order in printed form wich is numbered and we send them with a short note. Every order should be complete or deliver will be late. Order should contains: the name of item the number of item the quantity desired description of item(size,weight,color) price of unit total price delivery terms method of payments method of shipment When we place the order,we must write the follow-up letter. Buyer has right to knows where goods will be delivered,maybe he want to change his order,instructions or other... We use follow-up letter when the supplier lates with delivery because od unpredicted occasions. In that case,buyer can revoke his order as soon as posible. The supplier will accept that that if it does not cause him any loss.

Unit 26 Offers When seller submit an offer,he declares price and terms for certain goods wich he want to sell. Quatation is price at wich seller offers the goods and includes price in offer too. Quatation is usually made like proforma-invoice. A tender is public offer for the goods or the performanse of work like response an invitation to tender. Verbal offers should be confirmed by letter, offers on printed forms can be mailed without covering letter. Solicited offers are offers wich are answer to enquery. Unsolicited or volontary offers serves to revive old costumers,to inform them about new conditions. Unsolicited offers wich are send to chosen costumers serves to create a new business. When offer is firm,seller undertakes to supply certain goods with stated price and terms for reasonable time. If buyer don't answer to offer in stated time,seller can revoke an offer. But if buyer send his acceptance,seller can revoke his offer only if buyer agree. Complete offer should contains: nature and quality of the goods quantity prices and discounts delivery period terms of delivery terms of payment In some cases,with offer we should send printed material,samples and patterns of products or follow-up letter. UNIT 23 Banking sistems Every contry has its own banking sistem. Each nation has to develop a wide network od banks. That network includes commercial banks and lot of important institutions. Every contry creates own structure of banks,but bankers do their job at the same way the world over. They have same habits and same attitudes to the costumers. Financial systems conatain the central bank wich is the most important bank,commercial banks and other financial institutions known as financial intermediares. They are financial intermediares because they mediate between people who save,lend or invest money in some projects and people who need money for spending,particulary on capital goods. Commercial banks are financial intermediares because they borrow from people who aren't spending their current receipts and lend to other people who haven't money because they spent more than they earned. Unit 24 Taxation Goverements mainly taxation to pay their expenditures. Tax formula includes opinion that the rich have bether posibility to pay dollar for taxes than the poor people. Progressive tax is tax wich takes larger percentage of income from people with higher income than from people with lower income. Regressive tax take smaller percentage of income from group with higer income than from group with lower income. Proportional

tax take same percentage of income from all people. Indirect taxes are levied directly on goods and services and indirectly on people. For example:sales taxes,tariff duties on import,turnover taxes and value added tax(wich tax only the costs added at each stage of production). Direct taxes are levied directly on people(income,inheritance,real property,poll taxes). In some cases we can't make a diference between categories of taxes. Usually direct and progressive taxes goes together and indirect and regressive taxes too. The most regressive indirect tax relates to sales and custom taxes wich are source of national revenue of contries. This tax is used for many foods and fuels but it's very regressive. The value-added tax (VAT) collects in every stage of production: at the miller's flour stage production, at the baker's dought stage... It taxes every net sales transaction made. We have federal taxes,tax on municipal level of goverement where is the most important property tax,tax on provinces or republics level where is used sales tax. Each individual has to make entire payment for taxes and that is usually topic in heated debates. Unit 25 Historically, the most importanr trading limit was tariff. A tariffs are defined a taxes or duties,which are payable on goods crossing the national border. There are import and export tariffs, import shall be subject to the import commodity and export for export commodity. Developing countries use export tariffs to raise revenues, while industrialized countries use income tax to raise revenues. Allows countries use tariffs to protect some industry. Tariffs can be ad valorem, specific or compound. A compound tariff is a combination of an ad valorem and a specific tariff. GATT was founded after World War II and its role was to oversee international trade. Maximum tariff per product to which it had bound itself was called its tariff binding and applied with regard to all other GATT members. It enables significant reduction of tariffs and extensive coverage of the GATT system.Eventually introduced the concept of economic integration that the nation sought to reduce trade barriers. The most famous example of free movement of labor and capital is a European Economic Community. European Union combines the monetary and fiscal policies of states that are members.