EXPORTING

Date: 2015-10-07; view: 528.

Read and translate the text

II. READING PRACTICE

When a company exports goods abroad there are many problems it must consider, e.g. packaging, transportation, insurance and payment. First the goods must be packed carefully in containers to protect them from damage. The containers (or crates) must be labeled clearly to show where they are going. The label may also show what the crate contains.

Goods can be transported by sea or by air, by a shipping company or by an airline. If the goods are shipped, then transportation must be arranged from the factory to the docks (or quay). This can either be by road in trucks (or lorries) or by rail. The shipment must be insured (covered) against loss or damage in transit (while it is being transported). Sometimes the exporter takes out insurance and sometimes the importer insures the shipment depending on the terms of their agreement. If the goods are damaged in transit the company is covered by the insurance.

Obviously someone has to pay for all these things. While goods are in transit they are called freight (or cargo), so the company pays freight rates (or shipping costs) to the shipping company, or if the goods are being transported by air, to the airline. The cargo is loaded at the docks or at the airport, and for this the company pays handling charges. Also the company must pay packaging charges.

Exporting brings foreign currency into the country, so governments encourage export trade by giving assistance and incentives to exporters. Often companies borrow money (finance) from banks to finance exporting.

This money is called export credit. A government department called the E.C.G.D. (Export Credit Guarantee Department) gives a guarantee to the bank. This guarantee means the government carries the loss if the foreign buyer does not pay. It is a kind of insurance cover for the bank and the exporting company. Another form of government assistance or incentive is tax relief or tax advantages. Every company must pay a proportion of its earnings to the government in the form of tax. Tax relief means that exporters pay less tax on money earned abroad.

2.2. Answer the questions to the text “Exporting”.

1. What problems must a country exporting goods abroad consider?

2. Why should the goods be packed in containers?

3. Why must the containers be labeled?

4. What is the other word for “container”?

5. How can goods be transported?

6. Why must the shipment be insured?

7. Which side (the exporter or the importer) usually takes out insurance?

8. How are goods in transit called?

9. Where is the cargo loaded?

10. Why do governments encourage export?

11. In which way do governments encourage export trade?

12. Where can companies borrow money to finance exporting?

13. How do they call this money?

14. What are the forms of government assistance given to encourage export?

15. What does “tax relief” mean?

2.3. Translate the following minding the use of prepositions.

goods must be packed in containers; to protect from damage; to transport bysea (air); to insure against loss; damage of the goods in transit; to take out insurance; to depend on the terms of the agreement; to be covered by the insurance; to pay for losses; to pay freight rates to the company; to be loaded at the docks; to bring foreign currency into the country; to encourage trade by giving incentives; to borrow money from banks; to give a guarantee to the bank; proportion of the earning in the form oftax; to pay tax onmoney earned abroad.