2. Payment 大连理工大学出版社 Unit 7 世纪商务英语听说教程 3 （第四版）

3. Learning Outcomes 1.To understand the main ideas and select specific information while listening. 2.To be familiar with important points about payment terms and methods of payment. 3.To talk about payment terms and methods of payment.

4. Contents Part I Active ListeningPart II Fun BreakPart III Additional ListeningPart IV Viewing & Speaking

5. Active Listening

6. Exercise 1 Directions: Mr. Brown and Ms. Li are talking about the advantages and disadvantages of payment by L/C before reaching an agreement. Listen and tick (√) the advantages and disadvantages of payment by L/C.

7. Active Listening Exercise 1 Tapescript AdvantagesDisadvantages Payment by L/C is the safest payment term.Payment by L/C is not so safe as people think. The procedure for opening an L/C is very simple. The procedure for opening an L/C is too complicated. The exporter does not have to pay a deposit to the bank. The exporter has to pay a deposit to the bank. Opening an L/C will not tie up the exporter’s funds and increase his cost. Opening an L/C will tie up the exporter’s funds and increase his cost. Payment by L/C gives the exporter the addi- itional protection of the banker’s guarantee. Payment by L/C cannot give the exporter the additional protection of the banker’s guarantee. √ √ √ √

8. 返回 Mr. Chris Brown and Ms. Li Yan continue to negotiate the payment terms at Wanshun Trading Company Limited. (C—Mr. Chris Brown, L—Ms. Li Yan) L: Well, Mr. Brown, shall we go on with our business discussion? C: Sure, Ms. Li. Since we’ve discussed the price, quantity, packing and shipment, let’s talk about the terms of payment. L: When dealing with a new customer, we usually require 100% value, irrevocable L/C in our favor available by draft at sight. TAPESCRIPT

9. 返回 C: I see. Payment by L/C is the safest method, but it is too complicated. Could you make an exception and accept D/A or D/P? L: I’m afraid not. We insist on payment by L/C. This is our usual practice. C: To tell you frankly, when I open a letter of credit with a bank, I have to pay a deposit. That’ll tie up my funds and add to my cost. Therefore, could you bend your rules a little? L: I’m sorry that I could offer no help in this respect. You must be aware that a confirmed and irrevocable L/C gives the exporter the additional protection of the banker’s guarantee. We always require L/C for our exports.

10. TAPESCRIPT 返回 C: Okay, it seems that I have no alternative other than accept L/C payment terms. But I hope you will consider our requirement when you have known our credit after several deals. L: That will be fine. We may consider accepting payments by D/P for old customers. We appreciate your cooperation. C: I’m glad we have brought this transaction to a successful conclusion and hope this will be the beginning of other business in the future. L: I hope so too.

11. Active Listening Exercise 2 Directions: Listen to the dialogue again and decide whether the following statements are true (T) or false (F) 1. The price hasn’t been settled before their negotiation of payment. 2. When dealing with a new customer, Wanshun Trading Company may consider making an exception to D/A or D/P. 3. Chris Brown agreed that payment by L/C is too complicated, though it is the safest method. 4. The usual practice of Wanshun Trading Company is payment by D/P. 5. To pay a deposit would tie up Mr. Brown’s funds and increase his cost. F( ) F T F T

12. Active Listening Exercise 2 Directions: Listen to the dialogue again and decide whether the following statements are true (T) or false (F) 6. In order to conclude the transaction, Ms. Li Yan agreed to bend her rules. 7. In order to conclude the transaction, Mr. Brown accepted L/C payment terms. 8. Ms. Li explained carefully to Mr. Brown the difference between D/P and D/A. 9. Wanshun Trading Company may consider accepting payments by D/A for old customers. 10.Mr. Brown and Ms. Li finally brought the transaction to a successful conclusion. F( ) T F F T

13. Active Listening

14. Exercise 1 Directions: Mr. Ma and Mr. Smith are talking about payment terms before reaching an agreement. Listen to the dialogue and answer the following questions. Tapescript 1. Why does Mr. Smith think there’s no point to continue to seek confirmation by a third bank? Because he thinks that Mr. Ma knows the financial standing of his company well now. _______________________________________________________________________ 2. Why does Mr. Ma ask for payment by L/C payable at sight? Because the manufacture of the equipment involves sums of money to be advanced. _______________________________________________________________________

15. Active Listening Exercise 1 4. How does Mr. Ma respond to Mr. Smith’s request? In stead of accepting the request, he suggested an alternative of sending a technician to ensure proper operation of the machine after arrival. _______________________________________________________________________ 5. What’s their final agreement about payment? The final agreement is full payment by L/C at sight. _______________________________________________________________________ 3. Why does Mr. Smith ask that the remaining 10 percent be paid after satisfactory trial run of the machine? This is the first time Mr. Smith has ordered the furniture. And it ’ s also his customers ’ demand. _______________________________________________________________________

16. 返回 (S—Mr. Smith, M—Mr. Ma) S: Well, Mr. Ma, shall we go on to discuss the terms of payment? M: Yes, let’s. What do you say to our old terms, confirmed and irrevocable L/C? S: After our large purchase a year ago, I suppose you know our financial standing well now. There’s no point to continue to seek confirmation by a third bank and add to our cost. M: I agree to leave out the word “confirmed” in the payment clause, now that we know an enterprise of your standing will never default. S: Thank you. Let’s just cross out the word “confirmed” from the clause. TAPESCRIPT

17. 返回 TAPESCRIPT M: Another question in this connection, Mr. Smith. As the manufacture of the equipment involves sums of money to be advanced, we have to ask for payment by L/C payable at sight. S: We agree to payment by L/C payable at sight. But this is the first time we have ever ordered your furniture. The users demand that 90 percent of the credit account be paid at sight, with the remaining 10 percent to be paid after satisfactory trial run of the machine. M: I’m afraid that is not acceptable. As an alternative, what do you say to our sending a technician to ensure proper operation of the machine after arrival? S: Well, if you will send a technician to help install the machine, to ensure proper ope- ration and to offer after sales service, we agree to make full payment by L/C at sight. M: I’m glad we’ve come to full agreement again.

18. Active Listening Exercise 2 Directions: Listen to the dialogue again and fill in the blanks with the words you hear. S: Well, Mr. Ma, shall we go on to discuss the terms of payment? M: Yes, let’s. What do you say to our old terms, （ 1 ） and irrevocable L/C? S: After our large purchase a year ago, I suppose you know our （ 2 ） well now. There’s no point to continue to seek （ 3 ） by a third bank and add to our cost. M: I agree to （ 4 ） the word “confirmed” in the payment clause, now that we know an enterprise of your standing will never （ 5 ） S: Thank you. Let’s just cross out the word “confirmed” from the （ 6 ） confirmed ____________ financial standing _________________ confirmation ______________ leave out ____________ default ____________. clause ____________.

19. Active Listening Exercise 2 Directions: Listen to the dialogue again and fill in the blanks with the words you hear. M: Another question in this connection, Mr. Smith. As the manufacture of the equipment （ 7 ） sums of money to be advanced, we have to ask for payment by L/C （ 8 ） at sight. S: We agree to payment by L/C payable at sight. But this is the first time we have ever ordered your furniture. The users （ 9 ） that 90 percent of the credit account be paid at sight, with the （ 10 ） 10 percent to be paid after satisfactory （ 11 ） of the machine. demand ____________ involves ____________ payable ____________ remaining _____________ trial run _____________

20. Active Listening Exercise 2 Directions: Listen to the dialogue again and fill in the blanks with the words you hear. M: I’m afraid that is not acceptable. As an （ 12 ）, what do you say to our sending a technician to ensure proper operation of the machine after arrival? S: Well, if you will send a technician to help install the machine, to ensure proper （ 13 ） and to offer （ 14 ） service, we agree to make （ 15 ） by L/C at sight. M: I’m glad we’ve come to full agreement again. alternative ______________ operation ____________ after sales _____________ full payment _______________

21. Active Listening

22. Exercise 1 Directions: Listen to a passage about methods of payment and decide whether the following statements are true (T) or false (F). Tapescript 1. According to the passage, L/C is the most popular and the safest method. 2. Payment by check and bank draft occurs more often in big orders. 3. In an open account trade arrangement, the seller ships the goods to the buyer without guarantee of payment. 4. In a consignment trade arrangement, the seller retains title to the goods until the buyer has sold them. 5. Payment by T/T is safe, but the seller cannot receive the payment directly. F( ) F T T F

23. 返回 The process of exporting is incomplete without receipt of payment. Export income is considered earned only when payment has been received. There are different modes of payment: Letter of Credit (L/C): The most popular and a safer method is by a confirmed irrevocable letter of credit at sight. Documentary Collections: Collection is divided into Documents against Payment (D/P) and Documents against Acceptance (D/A). Check and Bank Draft: Payment by check and bank draft occur more often in a small order. Check and bank drafts are often used in open account and consignment trade arrangements. Open Account: In an open account trade arrangement, the goods are shipped to a buyer without guarantee of payment. TAPESCRIPT

24. 返回 TAPESCRIPT Quite often, the buyer does not pay on the agreed time. Unless the buyer’s integrity is unquestionable, this trade arrangement is risky to the seller. Consignment: In a consignment trade arrangement, the seller ships the goods to the buyer when there is no purchase made. The buyer is obliged to pay the seller for the goods when sold. The seller retains title to the goods until the buyer has sold them. Cash In Advance (CIA): The cash in advance, which is the safest term of payment, most often is effected using the check or bank draft. In some cases, the CIA term is paid using the telegraphic transfer (T/T). Telegraphic Transfer (T/T): The telegraphic transfer — cable transfer or wire transfer — is the equivalent of a cash payment that can be credited directly to the seller’s account. It is fast and safe.

25. Active Listening Exercise 2 Directions: Listen to the passage again and match the following modes of payment with appropriate descriptions or characteristics. Answer 1. B 2. D 3. A 4. G 5. F 6. C 7. E

26. Fun Break Directions: Listen to the following business jokes twice and fill in the blanks with the words you hear. Tapescript Paying in Advance A motorist, driving by a Texas ranch, hit and killed a calf that was the road. The driver went to the of the calf and explained what had happened. He then asked what the animal was worth. “Oh, about $200 today,” said the rancher. “But in six years it would have been $900. So $900 is what I’m.” The motorist sat down and wrote out a check and handed it to the farmer. “Here,” he said, “is the for $900. It’s postdated six years from now.” worth _______ crossing ___________ owner ___________ out _______ check _________

27. Fun Break How You Made Money A young man asked an old rich man how he made his money. The old guy his worsted wool vest and said, “Well, son, it was 1932, the depth of the Great Depression. I was down to my last nickel.” “I that nickel in an apple. I spent the entire day the apple and, at the end of the day, I sold the apple for ten cents.” “The next morning, I invested those ten cents in two apples. I spent the entire day them and sold them at 5:00 pm for 20 cents. I continued this for a month, by the end of which I’d accumulated a of $1.37.” “And that’s how you built an empire?” the boy asked. “Heavens, no!” the man replied. “Then my wife’s father died and left us two million dollars.” fingered ___________ polishing ___________ invested ____________ polishing ____________ system __________ fortune __________

28. Additional Listening

29. Exercise 1 Directions: Listen to a passage about methods of payment and decide whether the following statements are true (T) or false (F). Tapescript 1. The undervalue is being practiced in certain less developed countries. 2. There is no need to undervalue the goods if the import duty is 5%. 3. If an exporter does not violate the relevant laws, the government usually will not intervene in the undervalue arrangement. 4. The undervalue arrangement depends on the exchange laws and the international laws such as copyright and patent. 5. With the growing free trade around the world, the undervalue practice is increasing. T( ) T T F F

30. 返回 A combination of letter of credit (L/C) and telegraphic transfer (T/T) is a popular means of payment in the undervalue arrangement. The undervalue is an illegal way of reducing or avoiding the import duties and taxes by under declaring the price of imported goods. It is a sneaky way of bringing the landed cost of imported goods to a competitive level. The undervalue is being practiced in certain less developed countries, usually involving items whose import duties are relatively high. There is no need to undervalue the goods if the import duty is 10% or less. Sometimes, an item having a 15% rate of duty may not need to be undervalued, too, depending on the method of import duty and sales tax calculations in the importing country. The undervalue arrangement is highly risky. TAPESCRIPT

31. 返回 TAPESCRIPT To avoid trouble the exporter should refrain from using this arrangement. Governments do not encourage exports by undervalue. If an exporter does not violate the foreign exchange control and tax laws of the exporting country and international laws such as copyright and patent, the government of the exporting country usually will not step into the exporter’s way in the undervalue arrangement. The undervalue arrangement hinges on mutual trust between exporter and importer. The importer has to be very careful because there is a danger that the exporter may run off after receiving the T/T. In the event of a sour relationship, the importer may run the risk of being blackmailed by the exporter through threat of exposing the private arrangement. With the growing free trade around the world, the undervalue practice is diminishing.

32. Additional Listening Directions: Listen to a paragraph taken from the passage three times and write down the missing words or sentences. A (1) of letter of credit (L/C) and telegraphic transfer (T/T) is a popular means of payment in the (2) arrangement. The undervalue is an illegal way of (3) or avoiding the import duties and (4) by under declaring the price of imported goods. It is a (5) way of bringing the landed cost of imported goods to a (6) level. The undervalue is being (7) in certain less developed countries, usually involving items whose import (8) are relatively high. (9) Sometimes, an item having a 15% rate of duty may not need to be undervalued, too, (10) taxes ________ reducing __________ undervalue ___________ practiced __________ combination ____________ Exercise 2 sneaky __________ competitive _____________ duties ________ There is no need to undervalue the goods if the import duty is 10% or less. ______________________________________________________________ depending on the method of import duty and sales tax calculations in the importing country. ____________ ____________________________________________________________________

33. Viewing & Speaking Useful Expressions for Terms of Payment  Shall we have a talk about terms of payment today?  What is the mode of payment you wish to employ?  When dealing with a new customer, we usually require 100% value, irrevocable L/C in our favor available by draft at sight.  We insist on payment by L/C. This is our usual practice.  What do you say to our old terms, confirmed and irrevocable L/C?  This is the normal terms of payment in international business.  I agree to leave out the word “confirmed” in the payment clause.

34. Viewing & Speaking Useful Expressions for Terms of Payment  We can’t accept any other terms of payment.  I’m glad we’ve come to full agreement again.  I feel it very difficult to accept your terms of payment.  Is the credit at sight or after sight?  After our large purchase a year ago, I suppose you know our financial standing well now.  The users demand that 90 percent of the credit account be paid at sight, with the remaining 10 percent to be paid after satisfactory trial run of the machine.

35. Viewing & Speaking Useful Expressions for Terms of Payment  Could you make us an exception, say, to accept D/P / to allow us a discount / to give us a commission?  Let’s meet each other half way.  If you can’t be more flexible, we won’t accept your terms of payment.  We’ll open the credit one month before shipment.

36. Viewing & Speaking

37. Directions: Watch the video and answer the following questions. Videoscript 1. When did Mr. Fish and Ms. Liu meet? In the afternoon. _______________________________________________________________________ 2. What is the mode of payment that Ms. Liu usually accepts? Confirmed, irrevocable L/C. _______________________________________________________________________ 3. What’s Mr. Fish’s idea about payment by L/C? He thinks that L/C is complicated and costs a lot. What ’ s more, he will pay a large sum of deposit because the total amount of the deal is big. _______________________________________________________________________

38. Viewing & Speaking 4. What is the normal term of payment in Ms. Liu company? In the afternoon. _______________________________________________________________________ 5. Did Ms.Liu agree to Mr. Fish’s suggestion that 50% of the payment is by L/C and the balance by D/P? Why? Yes. Because they have long standing friendship and Mr. Fish has made some effort in pushing the sales. _______________________________________________________________________ 6. What does Ms.Liu mean by saying that this should not be taken as precedent? Mr. Li agreed to Mr. Fish ’ s suggestion only for this deal. This kind of payment should not be regarded as an example or rule for what comes later. _______________________________________________________________________

39. 返回 (F—Mr. Fish,L—Ms. Liu) L: Good afternoon, Mr. Fish. Have a seat, please. F: Thank you, Ms. Liu. Nice to meet you again. Now, let’s continue our business talk cession. L: OK. What do you want to know then? F: I want to know what is the mode of payment you usually accept by your company? L: Confirmed, irrevocable L/C, the normal payment terms in international trade. F: We’re old friends, could you accept D/P or D/A as a special treatment? You must know that payment by L/C is complicated and costs us a lot. What’s more, we shall pay a large sum of deposit because the total amount of this deal is big. TAPESCRIPT

40. 返回 TAPESCRIPT L: Payment by L/C is the rule of our company, though we believe that a world-famous company of your standing will not default. F: Then, let’s meet each other half way. What do you say to 50% by L/C and the balance by D/P? L: Well, in view of our long standing friendship and the effort you’ve made in pushing the sales, we agree to your suggestion, but this should not be taken as precedent. F: Thank you for your close cooperation.

41. Viewing & Speaking Directions: Watch the video again and get familiar with the characters in the dialogue. Then role play the characters in pairs. Some hints:  continue our business discussion  the mode of payment  accept  confirmed, irrevocable L/C  the normal payment terms  a special treatment  complicated  a large sum of deposit  default  meet each other half way  push the sales  take as precedent

42. Viewing & Speaking Directions: ABC Corporation intends to import some toys from Xing Wang Trading Company. The importer suggests payment by D/P because the order is small and the profits are little. But the exporter insists on L/C, because it is the first order from the ABC Corporation and he needs the protection from the bank. Make a dialogue in pairs, using the hints given below. Some hints:  make an exception  the normal terms of payment  insist on  pay a deposit  tie up the funds  add to the cost  bend rules  meet each other half way  banker’s guarantee  financial standing

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