Gap filling Chapter 2

Question 1

In negotiating price and payment, exporters should …………… a price that relates to the complete set of contract terms.

Answer 1

QUOTE

Question 2

As items in the contract are negotiated, the exporter should assess the influence of each factor on price, and ……………. the price accordingly.

Answer 2

ADJUST

Question 3

Payment should be negotiated so that the exporter secures …………….., and correct payment.

Answer 3

PROMPT

Question 4

Payment on ……….. ……………. is often timed so that early payment secures a discount for the buyer; this benefits the exporter by improving cash flow.

Answer 4

OPEN ACCOUNT

Question 5

The exporter prefers the place of payment to be his own bank account; payment is not deemed to be made until the money is at his ……………… .

Answer 5

DISPOSAL

Question 6

Late payment causes harm to the exporter – the bank interest he must pay while waiting for his money. This interest should be ………….. to him by the buyer under the terms of the contract.

Answer 6

COMPENSATED

Question 7

Letters of credit are made safe for exporter and buyer by two principles: …………. and strict compliance.

Answer 7

AUTONOMY

Question 8

Credits are of many types. For the exporter, the most advantageous type is the irrevocable, ……………….., at sight letter of credit.

Answer 8

CONFIRMED

Question 9

………………. L/C is issued by the seller’s bank to protect the right of the buyer if the seller fails to make delivery to the buyer. (L/C dự phòng)

Answer 9

STAND-BY

Question 10

……………….. L/C has a special condition that authorizes any nominated bank to make advances to the beneficiary before presentation of the documents. (Cho phép tạm ứng mà không cần giấy tờ )

Answer 10

RED-CLAUSE

Question 11

Export credit insurance covers the risk of ………………………..

Answer 11

NON-PAYMENT

Question 12

Guarantees are designed to reduce ………… risks.

Answer 12

CONTRACTUAL

Question 13

The letter of credit is an agreement by a bank to pay money against ……………….. It is a separate agreement from the sales contract and is unconnected with it.

Answer 13

DOCUMENTS

Question 14

The letter of credit is issued by an issuing bank at the request of ………………..

Answer 14

THE BUYER

Question 15

In L/C, the bank will pay only if the shipping documents are ……………….. in line with the buyer’s instructions. be in line with: ăn khớp

Answer 15

EXACTLY

Question 16

Once the bank has indicated any discrepancy, the exporter can ask the buyer to instruct the bank to change the terms of L/C – i.e. to issue an ………………………….

Answer 16

AMENDMENT

Question 17

For the case of making advance payments, prepayment guarantee (giấy đảm bảo trả tiền cọc) by a bank to protect a buyer from …………………. by the seller.

Answer 17

NON-DELIVERY

Question 18

A payment guarantee simply commits the bank to pay if the buyer ………………… (Vi phạm hợp đồng)

Answer 18

DEFAULTS

Question 19

The performance guarantee (giấy bảo đảm thực hiện thanh toán) reduces the risk of non-performance or …………… performance by the exporter.

Answer 19

INADEQUATE

Question 20

The tender guarantee guards (=protects) the employer against the risk of a project falling behind because the tender is ………………..

Answer 20

WITHDRAWED

Question 21

For the seller, the most favourable method of payment is the …………….. for the importer, …………… is most favourable.

Answer 21

AT SIGHT CONFIRMED IRREVOCABLE L/C
EXPORT CREDIT INSURANCE

Question 22

Terms of payment are a key factor in setting ___

Answer 22

PRICE

Question 23

Delay in payment is always ___ for the seller

Answer 23

EXPENSIVE

Question 24

A …………… for ___ settlement can speed up payment

Answer 24

DISCOUNT
EARLY