Lesson 2
Exporting
Part 1 – General notions and business terms.
Read the following text. Translate and learn by heart the words and expressions given in italics.
Exporting
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 crates contain.
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 costs.
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 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 doesn’t pay. It is a kind of insurance cover for the bank and the export company. Another form of government assistance or incentives is tax relief or tax advantages. Every company must pay a proportion of its earnings to the government in the form of taxes. Tax relief means that exporters pay less taxes on money earned abroad.
2. Answer the following questions using the vocabulary of the text.
- Why, do you think, packaging, transportation, insurance and payment are referred to as problems?
- Can one ship goods by an airline? By rail? Or can we only ship goods by sea?
- What does the expression “to be covered by the insurance” mean?
- Why do companies take out insurance?
- What extra costs normal for exporting are mentioned in the text?
- How do governments encourage export trade?
- There are different taxes that companies have to pay: Tax on Profit, VAT, Income Tax. Which one of these three taxes is also paid by ordinary people as physical persons?
3. Put down three sentences in Russian based on the vocabulary of the text into the left-hand column of the following table:
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4. Translation practice
Below you can see an advertisement of SeaRates. com
The text advertises special online programs that help selling and purchasing managers track the freight or cargo in transit.
TASK: Translate the text. What buseness-to-business (B2B) services does the company offer? How useful is it for a sales manager of an exporting company?
You can also have a look at their site. It is real and very interesting.
The beginning of the article is given in Russian. It contains essential information.
Трэкинг контейнеров
We are pleased to offer you innovative Tracking System, which consists of 2 services: Container Tracking and Logistic Route Planner!
Система "Контейнер Трекинг" позволяет Вам определить текущую позицию контейнера прямо на карте Google, а также получить информацию о портах перегрузки и транзитном времени. Чтобы получить информацию о местонахождении контейнера введите его номер и судоходную линию. Текущее положение контейнера будет изображено на карте.
Container tracking system is not just convenience to statisfy curiosity but also the hidden weapon in the battle for clients. When visiting the website with container tracking the client gets the chance to complete the request and establish new business ties.
Distances and Time on your website
Whether you need "port-to-port" or "door-to-door" transit time and distances, just choose any place of loading and discharging of the shipment. In several seconds you will get the duration of transit time, including inland transportation of cargo to the port of loading. Data on the transit time of shipping lines is calculated in a combined way, based on the statistical data obtained from "container tracking" service. All the data will be informatively represented on Google Map. Furthermore, you also get a layout of the estimated time costs in accordance with basic terms of delivery (Incoterms).