FOREIGN TRADE UNIVERSITY

FACULTY OF ENGLISH FOR SPECIFIC PURPOSES

ENGLISH FOR SPECIFIC PURPOSES

INTERNATIONAL BUSINESS

PORTFOLIO

Teacher: Nguyen Thu HuongA

Name: Ly Nguyen Ngoc

Student ID: 1001011447

Class: TAN411 (1-1314).8_LT

UNIT 1: INTERNATIONAL TRADE

Vocabulary

1. K

2. H

3. L

4. D

5. G

6. A

7. F

8. B

9. E

10. M

Ex1.

1. National

2. Commodites

3. Balance of trade

4. Balance of trade

5. Barter or countertrade

6. Protectionism

7. Factors of production

8. Climate

9. Divison off labour

10. Economies of scale

11. Quotas tariffs

12. Tariffs

Ex2.

1. Barriers

2. Autarky

3. Dumping

4. Merchandise

5. Advantage

6. Norms

7. Barter

8. Debt

9. Substitute

Ex3.

1. Trade

2. Components

3. Containerships

4. Fares

Ex4.

4.1:

1. I 3. E

2. F 4.D

4.2:

1. T 4. T

2. NG 5. NG

3. F

UNIT 2: FOREIGN DIRECT INVESTMENT

Vocabulary practice

1. Foreign Portfolio Investment is the purchase of shares and longterm debt

obligations form a foreign country. Portfolio investor do not aim to take control of

a corporation. They can liquidate their investment at market value anytime

Compared with FDI

FPI FDI

Method: gain part or all of “equity”, of an foreign

company

Buying shouse debentures

Aim: Controlling or sharing control Seeking profit from investment

Liquidity: long – term commitment or can not

with draw the capital easily

Liquidate the investment any

time

Limitation of capital: limit u (higher than FDI) Limit down

2. The categories are: raw materials, markets, product efficiency …

3. Examples of investmetn incentives: cash grants, lower taxes, accelerated

depreciation … They are to attract foreign investment.

4. It is called multiple distributor, which means a sales agent who represents for more

than 1 manufacturer.

5. It is payment made by a foreign manufacturer to a company that has licensed the

manufacturer to produce its products.

6. It is a subsidiary formed by more than 1 corporation.

Discussion

1. They seek for control over production, R&D, sales, …

2. It is to locate or create markets for its present and future products

3. They are: interest rates, cash flow projection, sources of working capital …

4. The project is viable when reliable access to outside financing is available. Non-

viable project is the project where expected rate of return is likely to be lower than

from a comparable investment in the host country.

5. They are: antitrust legislation and labor laws.

6. Because they suffer from long period of unemployment.

7. It will usually engage distributors who receive a commission on products sold.

8. It is: the origianl manufacturer gives up control over the product so if licensed

product lacks quality, the exporter’s reputation suffers.

9. Joint-venture remains.

Review

1. FDI – Portfolio investment

2. Profit

3. Assets employed

4. Investment incentive – support foreign investment.

5. Distributor – engaged – commission

UNIT 3: FOREIGN EXCHANGE TRADING

Discussion

1. Gold standared – after that was replaced by Breton Wood Systems.

2. Determining the value of all currencies based on gold

3. United states

4. When central banks intenvene in the forex markets at the intervention points –

Breton Wood Agreement

5. Lowering the value of a currency interms of gold – England, France and US

6. West Germany and Holland

7. Yes but move to wider vainge within 2.25%

8. System where a country can keep its fixed – rate system but allow a widering of

the intervention points to within 2.25% of the pur value of the currencies

9. Forex market takes place between banks , customers and middlemen by a system

of telephone of telex communication

10. Acting for a client (customer) vis – a – vis the bank

11. Tourists, investors, exporters, importer, governments…

12. Spot transaciton in a transaction when currency is bought or sold today with

delivery two business days later eg: a French father transfer money to his son in

New York. Forwarding Transaction means buying or selling a currency in the

future with payment and delivery at that future date

Eg:

Japanese exporters on Toyota cars to the US from the SC that they will receive a

specified US dollar amount in 6 months

13. 2 days later – a sufficient time to consumate the transaction

14. Couples of month later – on the date of contract

15. Offeeting contract

16. Long – open positon is when a tracker buy currency forward without selling it

forward at the same time. Short – open position: is when a trader sell currency

forward at the same time

17. A bird is the price dealers will pay to accquire pounds (buying) while an offer is

the price they will sell the pounds for (sell price)

18. Arbitrage is the practice of tranfering funds from one currency to another to

benerfit from rate diffentials – no because

19. If Internet rates in England are 2 % higher than in the US money market and a US

investor would dowell to change USD into pounds sterling at the English interest

rate – In present of foreign exchange regulation

Review

1. Goods

2. Gold

3. Fixed

4. Floating

5. Arbitrage

UNIT 4: PAYMENT IN INTERNATIONAL TRADE

Before you read

1. They are: non-payment, late payment, late delivery, wrong documents …

2. There are 4 methods: open account, documentary credit, documentary collection

and advanced payment.

3. They can either be active or be passive.

Understanding main point

The order is: open account – bill for collection – documentary credit – advanced payment

Understanding details

1. True

2. False

3. True

4. False

5. True

6. False

7. True

8. True

9. False

10. True

Information search

1. C

2. A, D, G

3. E, F

4. B

Vocabulary tasks

1. B

2. F

3. J

4. G

5. A

6. E

7. C

8. D

9. H

10. I

Word search

1. Undertaking

2. Consignment

3. Intermediary

4. Maturity

Complete the sentences

1. Draw

2. Forwards

3. Dispatches

4. Present

5. Accepts – releases

6. Dishonours

7. Remit

Further discussion

1. They are: non-delivery, late delivery, failure to receive goods, faulty goods …

Good methods for importer is Open Account because they can pay after receive

goods in good quality and no faults.

2. This is an undertaking issued by a bank to the exporter through the exporter’s bank

to pay for the goods, provided that exporter complies fully with the conditions

established at the documentary credit.

Reading 2

Part 1: The correct order of the steps is: 4 – 1 – 3 – 2

Part 2: The correct order of the steps is: 7 – 10 – 9 – 8 – 6 – 5

UNIT 5: MARKETING

Ex1:

1. a

2. i

3. f

4. h

5. d

6. j

7. e

8. b

9. c

10. g

Ex2:

Product Optional features, after – sale service, line – filling, packaging sizes,

characteristics, quality, guarantee, style, brand name

Price Inventory, credit terms, market penetrations, going – rate, list price,

market skimming, paymend period, prestige pricing, cash discount,

production costs, quantity discounts

Promotion Advertising, commercials, franchising, public realations, free sample,

poster, publicity, sponorship, mailing, media plan, personal selling

Place Point of sales, transportation, rending machines, ware housing

distribuition channels, whole saling

Ex3:

1. f

2. h

3. a

4. c

5. e

6. g

7. d

8. b

Ex4:

i: 5 m: 8

j: 2

k:4

l:1

n: 6

o: 3

p:7

Ex5:

1. Making a loss

2. Early adopters

3. Similar offerings

4. Advertising budgets

5. Differentate products

6. Reaches saturation

7. Consumer tastes

8. Withdrawn from the market

Ex6:

1. Boston Matrix is useful for a company to analysis how succesful a range of its

products or services are by looking at the percentage of sales it has in the market

share and how fast the sales are growing

2. Star products are products that have both eargest market share and highest market

growht. Some potential products to name are Smartphones, laptops…

UNIT 6: TRANSPORTATION

Vocabulary extension

1. Ill-informed >< well-informed

2. Shallow >< deepwater

3. To lift >< to lower

4. Coastal >< inland

5. Expensive >< inexpensive

6. In the past >< nowadays

Comprehension

1. The headings are in this order: Transport – Terms of Trade – Sea Transport – Air

Transport – Road Transport – Rail Transport – Transport on special vehicles –

Transport by post – Consulting an expert.

2. Advantages: high speed, low risk, cheaper insurance

Disadvantages: costly, limited in quantity

3. Because he has the option of handling the transport himself or instructing an agent

to arrange things on his behalf.

4. Ro-Ro ship is big vessel designed to carry bulky goods.

Ra-Ra ship is special ferry that can take railway wagon by sea for part of the

journey.

LASH is specially designed barge-carrying ship.

5. “Will be in a stronger postion” means to have more advantages.

“Will add a margin to his costs” means to add an amount of money to the total

cost to allow increase in freight or insurance.

“Suitable handling facilities” means tools and equipment for easy handling some

kinds of goods.

“The options open to them” means available options.

“A viable option” means a good and efficient option

6. Summary:

Transport plays an important role in the goods expense. Involved parties may

share the control of risk and title through different Trems of Trade such as FOB,

EXW, CIF … The most common methods of transport is by sea due to low cost

and large quantity. There are many other methods air, road, rail, post … which has

advantages and disadvantages each. Choosing what methods to use is very

important, and parties are advised to consult an expert in this field to make the

right decision.

Oral practice

1. Cranes are used for lifting up heavy objects and consignment.

2. Sealed tanks are for storing or holding liquids in bulk.

3. Crates are designed to store solid goods.

4. Holds are suitable for storing cargo shipped on board.

5. Tractors are developed for plowing fields.

6. Bags are designed for storing small cargo.

7. Containers are suited for withstanding shipment, storage, and handling.

8. Pallets are equipped to support goods in a stable fashion while being lifted by

a forklift, pallet jack, front loader, work saver or other jacking device.

9. Hooks are designed for grabbing and lifting loads by means of a device such as

a hoist or crane.

10. Refrigerated vessels are equipped to carry special goods that needs freezing.

11. Fork-lift trucks are developed for lifting and transporting materials.

12. Barges are designed for carrying cargo form internal points to big vessels in

deepwater ocean ports.

Language focus – revision

Language drill

Order of adjectives

1. 40 Japanese portable calculating machines

2. 100 round Spanish wooden salad bowls

3. A new fleet of British planes cargo

4. A group of experienced Italian engineering experts

5. 2 large eight-wheeled Swedish refrigerated trucks

Which mode of transport?

Oral activity

1. 10000T scrap metal could be transported by bulk carrier because the quantity is

large.

2. 2500 day old chicks should be transported by cargo ship.

3. 50 air-conditioning units should be delivered by plane.

4. Materials for training course might be transported by ship.

5. 1200T beef should be transferred by plane.

6. 3 diesel locomotives should be transferred by Ra-Ra ship and then by rail.

7. 2 kg platinum should be transported by plane.

Language focus

Oral activity

Compare the use of present continuous

Comprehension

1. It is Owendo

2. It linked the Atlantic port of Owendo with Franceville.

3. After August 1987.

4. 311km has been laid.

5. This is one of the very few tracks in Africa to be built to standard gauge.

6. It is near the port.

7. It represents the distance between the inside edges of the rails.

8. Local raw materials such as oil, uranium and manganese will be carried on this.

9. These are: opening up the eastern part of the country, encouraging settlements

along the route and facilitating transport.

10. It is designed to transport about 3 million tons of freight throughout the country

yearly.

Vocabulary extension

1. Track – line of rails.

2. Gauge – a distance between 2 rails.

3. Settlement – places where people live.

4. Stretch – a section.

5. Trunk line – a line for special vehicles.

6. Launched – started on a course.

7. Powerful – having authority.

8. Revenue – income.

Facts and figures

1. 13: the period that construction of Transgabonese takes place.

2. 648km: the length of the trunk line.

3. 311km: the last part of the trunk line that will be opened to revenue traffic.

4. 24bn Ffr: the total cost of the project.

5. 1435mm: the width between 2 inside edges of the rail.

6. 3000000T: freight that will be handled each year on the new line.

Language focus

1. The economy of Gabon will go up because the new line allows more transport thus

increasing revenue quickly.

2. The speed of inland transport will be improved considerably as the rail enables

standard transport and encourages more train voyages.

3. The road transport business will be more convenient and profitable since the goods

could travel more quickly and easily.

4. The eastern part of Gabon will be granted access to close relationship with the

capital thanks to the new railway.

5. The extended track will encourage more people to settle down and live in Gabon.

6. Standard line makes it easier for raw material to be transported.

7. More businesses will be engaged thanks to the new railway as it allows regular

transport trips.

8. The packaging of goods has no change.

9. Transshipping goods at Booue will be better because the new line saves labour and

makes it easier to proceed.

Report

UNIT 7: MARINE INSURANCE ON GOODS

NO EXERCISES

UNIT 8: MULTINATIONALS

Comprehension

1. The fact is: their turnover is huge, being greater in some cases than the national

income of countries such as Switzerland or the Netherlands.

2. Those benefits are: providing capital for economic growht; sharing the

technologies with local business; increasing worker’s productivity; solving

umemployment.

3. They accused multinationals of using money from local banks and investors

without returning capital back to the country.

4. Multinationals bring new technologies that reduce labour need, such as cranes,

bulldozers in building industry and tractors in agriculture. Therefore, many

workers are unemployed again.

5. A hoe is used for digging soil.

An ox-plough is used for digging and mixing soil.

A tractor is used for digging soil even more quickly and efficiently than hoe and

plough.

A crane is used for lifting heavy objects.

A bulldozer is used for straightening roads.

Complete the passage

1. Set up

2. Incentives

3. Employ

4. Prosperity

5. Attitude

6. Dominate

7. Bring out

8. Investors

9. Equity

10. Train

11. Levels

Find appropriate words to fill the blank

1. Subsidiaries

2. Agents

3. Tariffs

4. Quotas

5. Economic

6. Boost

7. Joint

8. Venture

9. Share

10. Registered

11. Guides

12. Legally

13. Effective

14. L.khf

Complete the sentences

1. Enterprising

2. Differentiate

3. Basically

4. Tense

5. Threat

6. Richness

7. Marketable

8. Worrying

9. Indecisive

10. Remotely

11. Intrusive

12. Involvement

13. Strategic

Before you read

1. There should be cars to suit the tastes of different markets, as it would be easier to

process marketing and sales to particular customers.

2. I think strong central control of international operations is better for an

international company, because it needs a uniform way of working and processing

all over the world to ensure profit and efficiency.

Understanding the main points

1. Applying the statement

a. Honda

b. Ford

c. Honda

d. Honda

e. Ford

f. Honda

g. Honda

h. Ford

i. Honda

2. To exploit the perceived strengths of other rivals.

3. Ford became more centralized, replacing old functional departments with new

multi-disciplinary product teams. Honda became more decentralized, having the

“glocalization” strategy – a global strategy with local management.

How the text is organized

a. Paragraph 8

b. Paragraph 3

c. Paragraph 5

d. Paragraph 10

e. Paragraph 7

f. Paragraph 2

g. Paragraph 4

h. Paragraph 1

i. Paragraph 6

j. Paragraph 9

Synonyms

1. Parent.

2. Designing, engineering and building cars.

3. Vehicles.

Word search

1. Scale.

2. Production unit.

3. Individual.

4. Requirements.

5. Chairman.

6. Comprise.

7. Self-sufficient.

8. Output.

Complete the sentences

1. Comprises.

2. Individuals.

3. Chairman.

4. Output.

5. Requirements.

6. Scale.

7. Production units.

Expressing degrees of meaning

1. Sharply.

2. A large degree.

3. Rapidly.

4. Firmly.

5. Simultaneously.

6. Increasingly.

7. Such a high proportion.

UNIT 9: MERGER AND ACQUISITION

Before you read

1. Merger is the combining of 2 or more companies, generally by offering the

stockholders of one company securities in the acquiring company in exchange for

the surrender of their stocks.

2. Takeover, or acquisition, is a corporate action where the acquiring company makes

a bid for the acquiree.

3. Companies merge because they want to expand the market, diversify the product

range and customer while remaining at low risk level by not completely owning

another company.

4. Companies buy other companies because they have strong business already and

want to expand and take complete control of a new market.

Understanding main points

1. D

2. E

3. B

4. A

5. C

Understanding details

1. Diversify

2. Stock

3. Benefits from economies of scale

4. Fee

5. Customer

6. Optimum

7. Synergy

8. Raider

9. Conglomerate

10. Asset-stripping

Exercise 1

a. 17% are successful

b. It reduces the share’s price enormously

c. Over-optimism and management egos are the 2 main reasons

d. John Kelly believes that mergers fail because of the way 2 companies are

combined.

John Thorp believes that mergers fail because of cultural differences.

James Montier believes that nergers fail due to unrealistic expectation about the

future success of the new company.

e. John Kelly believes that companies merge essentially from fear of competition.

John Thorp believes that companies merge essentially to ensure their survival in a

global marketplace.

f. Because so many evidene has shown the failure of mergers yet lots of money is

still spent on it.

g. The merger was to survive and sell more products.

h. The clash led to misunderstanding among leaders and many have quit because

confident financial targets were not met.

i. ???

j. Because it merge with businesses that can produce ongoing cost efficiencies

instead of one-off savings.

Exercise 2

1. Eg: marriage, altar, doom, nuptial

2. Combined collocations: cost-efficiency; share price; job cuts; stock market;

investment strategy; financial target; share options; takeover bid.

UNIT 10: ARBITRATION

Before you read

1. I have never been in dispute with another people over an agreement or contract.

2. I can call for a board of arbitrators to settle it.

Understanding main points

1. Because I fear that they will have home-team advantages or local bias.

2. They are: construction, shipping and commodities.

3. 3 arbitrators will be selected to form a neutral forum, with one chosen by each

party and the third chosen either by the parties or the appointed arbitrators.

4. Arbitration takes place privately, while litigation publicly.

5. Stockholm, Longdon, Singapore, …

6. Stockholm.

7. ???

8. They look for speed, cost effectiveness, confidentiality and reliability.

9. Accountants and engineers.

10. No.

Understanding details

1. F

2. T

3. T

4. T

5. T

6. T

7. T

8. F

Exercise 1

1. D

2. H

3. C

4. F

5. A

6. K

7. I

8. B

9. G

10. J

11. L

12. E

Exercise 2

1. Resolve.

2. Arbitrator.

3. Arbitration.

4. Delaying tactics.

5. Arbitrate.

6. Dispute.

7. Settle.

8. Disagree.

9. Resolution.

10. Agree.

Exercise 3

1. Signatories.

2. Plaintiff – defendant.

3. Buyer – seller.

4. Borrower – lender.

5. Wholesaler – retailer.

6. Lawyer – client.

7. Licensee – licensor.

8. Franchiser – franchisee.

9. Undersigned.

10. Parties to the agreement.

Exercise 4

The company has obligation to fulfill the order as the price quoted on the website,

mistaken or not, had been the price at that time. However, it can have a private agreement

with the customer to negotiate the price again. If the company refuses to sell, customers

can take it to the court of litigation or board of arbitration.

Exercise 5

1. Adjudication.

2. Arbitration.

3. Dispute.

4. Hearing.

5. Needs.

6. Arbitrator – expert.

7. Expensive.

8. Duration.