English for special purposes international business

English for Special Purposes - International Business Compiled by Khang Béo TEST 1 This method of payment creates cash flow problems and increases risk for the buyer A Documentary credit B Open account C Bill for collection D Advance payment Clients look for ………… from an arbitration service A speed and cost effectiveness B reliability of the arbitrators and their decisions C confidentiality D all of the above (A, B and C) The three main business areas which have traditionally been resolved by arbitration are ………… A shipping, commodity and construction B shipping, commerce and wine C commodity, construction and share D construction, shipping and convenience The term used to describe attempts to restrict imports into the country A tax B quota C protectionism D tariff You can ………… a house and ………… a car A hire/rent B hire/hire C rent/rent or hire When the Bill of lading marked "freight collected” Who pays for the freight? A The Buyer B The Seller C The agent D It depends on the agreement The clause covers General Average A A B B C A,B,C 1 English for Special Purposes - International Business Compiled by Khang Béo A document that shows details of goods being transported; it entitles the receiver to collect the goods on arrival A An invoice B A bill of exchange C A bill of lading D A draft Transferring money from Britain to another country is called sending money ………… A overseas B over-water C over-waves 10 Earthquake, volcanic eruption and lighting are covered under the cargo clause ………… A A B B C C D A and B 11 ………… insurance originated in the fifteenth century A Boat B Sea C Navy D Marine 12 If the price is quoted EXW, who pays for the freight? A The exporter B The buyer C The forwarding agent D The advising bank 13 Between which parties is an insurance contract made? A Between the insurer and the shipping company B Between an insurance company and the shipping company C Between the insurer and the party taking out insurance cover D Between the assured party and the party taking out insurance cover 14 Transfer of risk from the seller to the buyer (Incoterm 2000): FAS A When the goods are ex-quay B When the goods are handed to the first carrier C When the goods across the ship’s rail D When the goods are on board 2 English for Special Purposes - International Business Compiled by Khang Béo 15 In joint venture, two or more companies ………… on specific projects A collaborate B compete C practice D deal 16 Open cover is not a policy: the ………… will write a policy if required A Insurer B Importer C Exporter 17 The Japanese yen is trading for less than its usual value You can talk about ………… A a small yen B a bad yen C a weak yen 18 A merger with or the acquisition of one‟s marketing outlets is known as ………… A horizontal merger B forward merger C vertical merger D backward merger 19 In the past, a lot of small banks were ………… by larger ones A bought up B eaten up C chewed up 20 If the price is quoted FOB Singapore, then the seller is not obliged to pay insurance and freight Right or wrong? A Completely right B Wrong C Partly right, as the seller is obliged to pay only the freight and insurance necessary to put the goods on board of the designated vessel by the buyer D Completely wrong, because the buyer is obliged to pay for insurance and freight on his own account if term of trade is FOB 21 Normally, Risks are transferred at the point of ………… A Delivery B Payment C Arrival 3 English for Special Purposes - International Business Compiled by Khang Béo 22 With this method of payment, banks play an active role Banks are responsible for paying for the exporter in case the importer fails to so A Documentary credit B Open account C Bill for collection D Advance payment 23 ………… is open-ended A tailor-made B floating C open cover 24 If the price is quoted CPT Vancouver, who pays for the freight? A The exporter B The forwarding agent C The buyer D The confirming bank 25 Cultural differences are one of the potential ………… of international mergers A threats B pitfalls C attraction D benefits 26 Earthquake, volcanic eruption and lighting are not covered under the cargo clause ………… A A B B C C D B and C 27 Transfer of risk from the seller to the buyer (Incoterm 2000): FOB A When the goods are At the seller’s premises B When the goods are handed to the first carrier C When the goods across the ship’s rail D When the goods are on board 28 A document used for transporting goods in containers by road, rail and ship without being open is a ………… A Bill of exchange B invoice C contract of carriage D container bill of lading 4 English for Special Purposes - International Business Compiled by Khang Béo 29 The Mexican peso is trading for more than its usual value You can talk about ………… A a big peso B a good peso C a strong peso 30 She looked at the ………… to check where the goods were produced A certificate of origin B test certificate C postmark D trade mark 31 Transfer of risk from the seller to the buyer (Incoterm 2000): CFR A When the goods are At the seller’s premises B When the goods are handed to the first carrier C When the goods across the ship’s rail D When the goods are on board 32 ………… from a source country into a destination country for the purpose of exporting to a third country A Horizontal FDI B Platform FDI C Vertical FDI 33 ………… is the money paid for the right to use the property of another person A Compensation payment B Royalty payment C Property charges D Royalty fees 34 The bill of lading issued by the carrier for combined transport is called ………… A Combined bill of lading B Combined bill C Combined transportation bill of lading D Combined transport bill of lading 35 One problem in international mergers is the difference in ………… and benefits for managers with similar positions A duties B output C activity D compensation 5 English for Special Purposes - International Business Compiled by Khang Béo 36 A marine Bill of Lading becomes negotiable document and no restriction on ownership when it is ………… A to order, blank endorsed B surrendered, blank endorsement C to order, endorsed 37 The risk of rough handling is covered under the cargo clause ………… A A B B C C D A and B 38 All risks covered is under ………… clause A A B B C C 39 Joining with firms in other stages of the production or sale of a product A horizontal integration B vertical integration C backward integration D forward integration 40 International trade develops because certain countries are able to produce some goods more efficiently than other countries They exchange these goods in order to satisfied their needs and wants A Countries import the goods which they produce efficiently B Countries probably export the goods which are not efficiently produced C Countries probably exchange goods which they produce efficiently for goods which other countries produce efficiently D Efficient exchange results from international trade 41 The exporter didn‟t receive payment for his goods because the buyer ………… A defaulted B deferred C declines D denied 42 Fixed exchange rates are achieved by the intervention of the ………… A investment bank B commercial bank C central bank D merchant bank 6 English for Special Purposes - International Business Compiled by Khang Béo 43 Many countries, such as the United Kingdom and New Zealand, are ………… dependent on international trade A favorable B heavily C perfectly D grossly 44 ………… is the situation when a ship in a storm might have to jettison certain cargo to protect the ship and the remaining cargo A Average clause B Particular average C General average D Average clause general 45 Collecting, analyzing and reporting data relevant to a specific market situation (such as a proposed new product) is ………… A market analysis B market segmentation C marketing D market research 46 A monetary system whereby the value of currencies could be converted into gold at a country‟s central bank A gold system B gold standard C gold value D gold convertible 47 When the Bill of lading marked "freight prepaid” Who pays for the freight? A The Buyer B The Seller C The agent D It depends on the agreement 48 War risk is not included in ………… A A clause B B clause C A,B,C clause 49 ………… original(s) Bill of lading constitute(s) a full set A B C 7 English for Special Purposes - International Business Compiled by Khang Béo 50 A bankrupt person's ………… can be taken and used to repay his/her debts A things B items C property 8 English for Special Purposes - International Business Compiled by Khang Béo TEST Buying a company for less than the value of its assets, the selling these assets to make a profit is called ………… A asset stripping B An acquisition C A takeover bid D A raid All mergers aim to create ………… for the two companies‟ shareholders A added value B lower costs C economies of scale D tax benefits Many countries, such as the United Kingdom and New Zealand, are ………… dependent on international trade A favorable B heavily C perfectly D grossly In Britain, it's not usual to discuss your personal ………… A money B finances C money arrangements Why sellers or buyers insure their cargoes? A To protect themselves from loss or damage to their goods B To protect themselves from loss only C To protect themselves from damage only D To protect the third party from loss or damage to their goods Anything that acts as a security or guarantee for a loan A Collateral B Mortgage C Warranty D Guarantee ………… original(s) Bill of lading constitute(s) a full set A B C 9 English for Special Purposes - International Business Compiled by Khang Béo Earthquake, volcanic eruption and lighting are not covered under the cargo clause ………… A A B B C C D B and C A force majeure is an ………… event such as strike, riot or natural disaster which prevents a contract from being ………… A unforeseen / fulfilled B unseen / fulfilled C unforeseen / filled 10 The term used to describe attempts to restrict imports into the country: A tax B quota C protectionism D tariff 11 The exporter‟s bank then ………… the documents to the importer‟s bank A signs B forwards C remits D defers 12 With the open account method of payment, payment is made A before the goods are shipped B when there is no contract involved C after the goods have arrived D when the exporter doesn’t trust the buyer 13 Undertaking to indemnify means ………… A Disagree to pay compensation for loss or damage B Agree to pay compensation for loss or damage C Agree to pay for loss or damage without compensation D Agree to pay compensation for the broker 14 Buying another company‟s shares on the stock exchange, hoping to persuade enough other shareholders to sell to take control of the company A A merger B An acquisition C An integration D A raid  10  English for Special Purposes - International Business Compiled by Khang Béo TEST 29 With this method of payment, banks play an active role Banks are responsible for paying for the exporter in case the importer fails to so A Documentary credit B Open account C Bill for collection D Advance payment A bank that issues a letter of credit (i.e the importer‟s bank) A Collecting bank B Issuing bank C Confirming bank D Advising bank A public offer to buy a company‟s shareholders to buy their shares, at a particular price during a particular period, so as to acquire a company A A merger B An acquisition C A takeover bid D A raid ………… is an approach to business that emphasizes persuading customers to buy products that you already have, rather than producing new ones that customers may want A Marketing concept B Product concept C Promotion concept D Selling concept The exporter didn‟t receive payment for his goods because the buyer ………… A defaulted B deferred C declines D denied The bank notifying the exporter that the letter of credit has been opened is called ………… A The issuing bank B The advising bank C The confirming bank D The opening bank  217  English for Special Purposes - International Business Compiled by Khang Béo Transfer of risk from the seller to the buyer (Incoterm 2000): FOB A When the goods are At the seller’s premises B When the goods are handed to the first carrier C When the goods across the ship’s rail D When the goods are on board What agreement is usually made in an insurance contract? A An agreement to make payment in the event of loss or damage B An agreement to make decisions in the event of loss or damage C An agreement to make contribution in the event of loss or damage D An agreement to pay compensation in the event of loss or damage A contract requiring an exporter in Mozambique to deliver the contract goods in Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania A FAS Beira B CIF Beira C FOB Dar es Salaam 10 When the government doesn't control the exchange rate in any way, the currency is ………… A freely convertible B totally convertible C absolutely convertible 11 If alternative means of transport or partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words ………… between the names of transport documents A and B or C and/or D Either B or C 12 The Mexican peso is trading for more than its usual value You can talk about ………… A a big peso B a good peso C a strong peso 13 Factors considered when choosing the modes of transportation are ………… A freight, size and premium B time, length and weight C nature of the goods, size and rates D nature of the goods, time and freight rates  218  English for Special Purposes - International Business Compiled by Khang Béo 14 Banks and insurance companies are types of ………… A financial institution B finance company C financier 15 A country can accrue wealth if it exports more than it imports A This country has a balance of trade deficit B Demand for this country’s currency will fall C This country receives money from countries which import its products D All of these above 16 A company giving insurance cover is known as the ………… A insurer B insured C insurance 17 Clients look for ………… from an arbitration service A speed and cost effectiveness B reliability of the arbitrators and their decisions C confidentiality D all of the above (A, B and C) 18 The risk of rough handling is covered under the cargo clause ………… A A B B C C D A and B 19 Multinational companies usually have ………… in different countries A daughter companies B subsidiaries C factories D colleagues 20 Three firms have ………… for the contract A tendered B offered C given prices 21 If the price is quoted FOB Singapore, who pays for the insurance and freight? A The exporter B The buyer C The forwarding agent D The confirming bank  219  English for Special Purposes - International Business Compiled by Khang Béo 22 A life insurance policy pays out ………… your death or after a set period, whichever is first A in case of B if C in the event of 23 A marine Bill of Lading becomes negotiable document and no restriction on ownership when it is ………… A to order, blank endorsed B surrendered, blank endorsement C to order, endorsed 24 My endowment policy will ………… when I‟m sixty-five A ripen B mature C flourish D break 25 A contract requiring the exporter to send the contract goods by road from Kenya to Zambia with freight paid by the exporter A CFR Lusaka B CPT Lusaka C CFR Nairobi 26 With this method of payment, banks play a passive role All banks have to is to follow the instructions of the buyer and the seller and get a collection fees in return A Documentary credit B Open account C Bill for collection D Advance payment 27 Because of the recession, several ships have been laid ………… A off B out C down D up 28 Unlike quotas, tariffs produce ………… for the government A profit B surplus C revenue D earnings  220  English for Special Purposes - International Business Compiled by Khang Béo 29 Changes in the values of currencies are called ………… A currency fluctuations B currency alterations C currency changes 30 What is the best kind of advertising? A TV advertising B Word of mouth C Printing advertising D Radio advertising 31 The agreed amount of money to give insurance cover is ………… A Premium B life insurance C marine insurance D compensation 32 Is there any requirement that the air waybill shows the date of the flight? A No, there isn’t B Yes, there is C Never is there such a requirement D No, it is an incorrect requirement because a correctly completed waybill cannot show this information 33 Transfer of risk from the seller to the buyer (Incoterm 2000): FCA A When the goods are At the seller’s premises B When the goods are handed to the first carrier C When the goods across the ship’s rail D When the goods are on board 34 Trying to insure against unfavorable price movements by way of futures contract A speculating B arbitrating C hedging D trading 35 When a company‟s top executives buy the company they work for is known as ………… A a raid B a takeover bid C a merger D an acquisition  221  English for Special Purposes - International Business Compiled by Khang Béo 36 Marketing is an important consideration for A the consumer B the distributer C all aspects of production D the salesman 37 Factors that can give a country an absolute or comparative advantage in goods and services over other countries are ………… A factors of production, most importantly raw materials, but also labor pool B climate, economies of scale C natural resources and location D All of these above 38 A company which makes a profit can be described as profitable or ………… A profit-getting B profit-making C profit-having 39 Loose, unpackaged cargo is called ………… A Goods B commodity C bulk D items 40 ………… are cash grants, lower taxes, accelerated depreciation, training allowance, research subsidies and interest rebates on loans A Investment incentives B Labour incentives C Bonus D Returns on investment 41 The bill of lading issued by the carrier for air transport is called ………… A Air waybill B Air bill of lading C Airway bill of lading D Airway bill 42 The cost of borrowing money, usually expressed as a percentage of the amount borrowed A Interest rate B A collateral C mortgage D Inflation rate  222  English for Special Purposes - International Business Compiled by Khang Béo 43 Sometimes a controlling interest in a company is bought by its managers This called a management ………… A buy-out B buy-up C buy-in 44 Make sure all this equipment is insured ………… accidental damage A over B against C with D from 45 The bill of lading issued by the carrier for combined transport is called ………… A Combined bill of lading B Combined bill C Combined transportation bill of lading D Combined transport bill of lading 46 By issuing a letter of credit, the bank made ………… to pay the exporter for the goods, provided that the correct documentation was presented A a willingness B a readiness C a debit advice D an undertaking 47 If the price is quoted CIP Marseille, who pays for the insurance and freight? A The buyer B The exporter C The issuing bank D The forwarding agent 48 Undertaking to indemnify means ………… A Disagree to pay compensation for loss or damage B Agree to pay compensation for loss or damage C Agree to pay for loss or damage without compensation D Agree to pay compensation for the broker 49 The Incoterm ………… contains 13 terms A 1990 B 2000 C 2010 D 1990 and 2000  223  English for Special Purposes - International Business Compiled by Khang Béo 50 A takeover of a foreign company is known as a ………… deal A cross-boundary B cross-border C cross-state  224  English for Special Purposes - International Business Compiled by Khang Béo TEST 30 A company which makes a loss can be described as ………… A loss-getting B loss-making C loss-having If the price is quoted FAS Osaka, who pays for the freight? A The shipper B The exporter C The forwarding agent D The buyer Among a number of international bodies offer arbitration services, the ………… in Paris is the most prestigious A UCP B ADR C ICC D FAO Two forms of protectionism are ………… A quotas and tariffs B surplus and deficit C duties and taxes D barriers and non-barriers Undertaking to indemnify means ………… A Disagree to pay compensation for loss or damage B Agree to pay compensation for loss or damage C Agree to pay for loss or damage without compensation D Agree to pay compensation for the broker A bank that issues a letter of credit (i.e the importer‟s bank) A Collecting bank B Issuing bank C Confirming bank D Advising bank Transfer of risk from the seller to the buyer (Incoterm 2000): EXW A When the goods are At the seller’s premises B When the goods are handed to the first carrier C When the goods across the ship’s rail D When the goods are on board  225  English for Special Purposes - International Business Compiled by Khang Béo Bill of Lading is the most important document because it is a ………… A document of title B document of negotiation C document of freight A merger with or the acquisition of one‟s marketing outlets A horizontal integration B vertical integration C backward integration D forward integration 10 Transfer of risk from the seller to the buyer (Incoterm 2000): DES A When the goods are ex-ship B When the goods are handed to the first carrier C When the goods across the ship’s rail D When the goods are on board 11 You‟re allowed 30 days‟ ………… for the payment of the renewal premium A grace B favour C way D permission 12 Another term for "main business" is ………… business A central B first C core 13 A merger with or the acquisition of one‟s suppliers A horizontal integration B vertical integration C backward integration D forward integration 14 If the price is quoted CPT Vancouver, who pays for the freight? A The exporter B The forwarding agent C The buyer D The confirming bank 15 In Japan, the US dollar is ………… A foreign money B strange money C a foreign currency  226  English for Special Purposes - International Business Compiled by Khang Béo 16 A basis for mutually beneficial trade is the fact that one country has a comparative advantage A Both the importing country and the exporting country benefit from trade B One’s country comparative advantage can benefit another country C The comparative advantage of one country can result in trade between countries D All of these above 17 The movement of money into and out of a company is known as ………… A annual turnover B profit margin C cash flow D bank charges 18 The process of making and defending a claim in court is ………… A arbitration B litigation C prevention D protection 19 With the open account method of payment, payment is made A before the goods are shipped B when there is no contract involved C after the goods have arrived D when the exporter doesn’t trust the buyer 20 What agreement is usually made in an insurance contract? A An agreement to make payment in the event of loss or damage B An agreement to make decisions in the event of loss or damage C An agreement to make contribution in the event of loss or damage D An agreement to pay compensation in the event of loss or damage 21 A monetary system whereby the value of currencies could be converted into gold at a country‟s central bank A gold system B gold standard C gold value D gold convertible 22 Cultural differences are one of the potential ………… of international mergers A threats B pitfalls C attraction D benefits  227  English for Special Purposes - International Business Compiled by Khang Béo 23 If the buyer comes from a country which has a poor reputation for enforcing awards, the best method of payment under the contract is a/ an ………… A Revolving L/C B At sight, confirmed L/C C Deferred, irrevocable L/C D Transferrable L/C 24 Prices go up every year This is because of ………… A inflation B expansion C evolution 25 What we call the difference between all the money paid out and received by a country? A the balance of trade B the balance of payments C deficit D surplus 26 Joining with firms in other stages of the production or sale of a product is known as ………… A horizontal merger B diversification C vertical merger D backward merger 27 A contract requiring an exporter in Mozambique to deliver the contract goods in Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania A FAS Beira B CIF Beira C FOB Dar es Salaam 28 An insolvent company often goes into liquidation A private individual who cannot pay his/her debts may be declared ………… by a court A bankrupt B indebted C penniless 29 If the price is quoted CFR Hai Phong, who pays for the freight? A The buyer B The exporter C The carrier D The forwarding agent  228  English for Special Purposes - International Business Compiled by Khang Béo 30 Many contracts contain a force majeure ………… to cover this situation A sentence B phrase C clause 31 The clause covers General Average A A B B C A, B, C 32 Factors considered when choosing the modes of transportation are ………… A freight, size and premium B time, length and weight C nature of the goods, size and rates D nature of the goods, time and freight rates 33 Natural disasters usually mean that insurance underwriters suffer ………… A heavy losses B high expenses C big debts 34 The situation in which a country has no foreign trade A Surplus B deficit C autarky D deficits 35 Insurance companies can be considered as professional ………… Takers A life B risk C chance D misfortune 36 The risk of rough handling is not covered under the cargo clause ………… A A B B C C D C and B 37 In drafting an arbitration clause, the following questions must be resolved: A How many arbitrators sit in the court? B What is the language of the court? C Where is the place of the court? D All of the above  229  English for Special Purposes - International Business Compiled by Khang Béo 38 The bill of lading issued by the carrier for combined transport is called ………… A Combined bill of lading B Combined bill C Combined transportation bill of lading D Combined transport bill of lading 39 The person who goes between the person who wants the insurance and the person who underwrites it is ………… A a shipper B a client C a broker D an insurer 40 Companies that handle all aspects of their business internally, such as the big oil companies, are known as ………… companies A multinational B venture capital C conglomerate D vertically-integrated 41 This method of payment creates cash flow problems and increases risk for the buyer A Documentary credit B Open account C Bill for collection D Advance payment 42 If the price is quoted CIF San Francisco, who pays for the insurance and freight? A The exporter B The buyer C The forwarding agent D The confirming bank 43 If alternative means of transport or partial shipments are allowed perhaps by different modes of transport, the letter of credit should have the words ………… between the names of transport documents A and B or C and/or D Either B or C  230  English for Special Purposes - International Business Compiled by Khang Béo 44 Is there any requirement that the air waybill shows the date of the flight? A No, there isn’t B Yes, there is C Never is there such a requirement D No, it is an incorrect requirement because a correctly completed waybill cannot show this information 45 Currency bought or sold today with delivery two business days later A Spot transaction B Forward transaction C business transaction D Futures transaction 46 Reduction in costs resulting from increased production is ………… A diversifying B merging C specialization D economies of scale 47 The term used to describe attempts to restrict imports into the country: A tax B quota C protectionism D tariff 48 Steve works for BurgerPlanet He only earns about £6 ………… A for an hour B an hour C the hour 49 A country with very low taxes is known as a ………… A tax heaven B tax haven C tax paradise 50 The three main business areas which have traditionally been resolved by arbitration: ………… A shipping, insurance and commodities B shipping, commodities and construction C shipping, commodities and raw materials D construction, commodities and goods  231  ... respect C indemnify D engage  21  English for Special Purposes - International Business Compiled by Khang Béo 43 Another term for "main business" is ………… business A central B first C core 44... English for Special Purposes - International Business Compiled by Khang Béo 35 Currency bought or sold today with delivery two business days later A Spot transaction B Forward transaction C business. .. 7 English for Special Purposes - International Business Compiled by Khang Béo 50 A bankrupt person''s ………… can be taken and used to repay his/her debts A things B items C property 8 English for