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International Trade
Quiz Two:
Business English: Imports and Exports

Two Part Quiz

PART ONE:
Complete these eight sentences describing international trade payment methods.  Match the beginning of the sentence on the left with its ending on the right. Choose the correct response from the drop-down list.

1.

A commercial bill or a bill of exchange is a written order instructing someone

a. containing estimated prices, according to which the importer will decide whether to buy or not.
2.

A pro-forma invoice is the first draft of an exporter's bill to an importer

b. (usually an importer) to pay someone else (usually an exporter) a certain sum on a given date.
3. The opposite is a letter of credit - a paper issued by a buyer's bank as proof that the seller will be paid; c. giving loans to developing countries so that they can (eventually) buy they exports.
4.

Exporters can also sell their bills of exchange, at a discount,

d. shippers can use them as security when discounting bills of exchange.
5.

A bill of lading is a document giving title to goods that acts as a receipt and a contract to ship them; 

e. that either give loans to exporters awaiting payment or guarantee exporters against bad debts.
6. Most industrialized countries, eager to increase their exports, have government agencies f. the seller can then sell the letter (at a discount) on the commercial paper market.
7.

Some countries go even further,

g. to someone who will try to collect the debt (at full value); this is known as factoring.
8.

A company short of liquidity and with a lot of "receivables" can sell them at a discount

  

h. to accepting houses or other merchant banks (if the bank believes that the debtor will pay up).


PART TWO:
To which sentences do these words refer? Enter the correct answer.

merchant lading discount traded debts

1. Selling a bill or a financial instrument at a means selling it at a less than 100%.
2. Letters of credit can be like other financial assets.
3. An accepting house is a specialized bank.
4. A bill of proves the ownership of goods.
5. Factoring is a way of trading .