Professional Documents
Culture Documents
Bộ Đề Tacn3
Bộ Đề Tacn3
3. When central banks intervene in the foreign exchange markets at the intervention
points, this is called the system of ……fixed…..exchange rates. The opposite is called
the system of … floating….exchange rates.
4. If dealers buy currencies forward but do not sell forward simultaneously, their position
is said to be …long……
5. A ……premium……is the money the writer of an option receives from the buyer.
10. ……Arbitrage……is the practice of transferring funds from one currency to another
to benefit from rate differentials.
11. Another verb for fixing exchange rates against something else is to ....peg........them.
16. In fact we have manged floating exchange rates, because governments and
........central........banks sometimes intervene on currency markets.
UNIT 4: PAYMENT IN INTERNATIONAL TRADE
2. Clean collection: Payment by bill of exchange to which documents are not attached.
4. Bill of exchange: Signed document that orders a person or organization to pay a fixed
5. Bill of lading: Document that shows details of goods being transported; it entitles the
7. Issuing bank: Bank that issues a letter of credit (i.e. the importer’s bank).
8. Collecting bank: Bank that receives payment of bills, etc. for their customer’s account
(i.e. the exporter’s bank).
9. Confirming bank: Bank that confirms they will pay the exporter on evidence of
shipment of goods.
10. Letter of credit: Method of financing overseas trade where payment is made by a
bank in return for delivery of commercial documents, provided that the terms and
conditions of the contract are met
15. When the importer ..........accepts...........the bill of exchange, the bank will
........release............the documents of titles to the goods.
16. The exporter’s bank ......forwards..............the bill of exchange, together with the
commercial documents, to the importer’s bank.
18. The exporter must take care to ........present..........the correct documents to the bank.
UNIT 5: MARKETING
5. Market segmentation: Dividing a market into instinct group of buyers who have
different requirements or buying habit.
7. Point of sale: Places where goods are sold to the public – shops, stores, kiosks,
market,
stalls, etc.
8. Product concept: An idea for a new product, which is tested with target consumers
10. Sales representative: Someone who contacts existing and potential customers and
13. Developmental marketing involves developing a product or service for which there
is clearly a latent demand, e.g. a non-polluting and fuel-efficient car.
14. Remarketing involves revitalizing falling demand, e.g. for churches, inner city areas,
or aging film stars.
15. Synchro Marketing involves altering the time pattern of irregular demand, e.g. for
public transport between rush hours, or for ski resorts in the summer.
17. Demarketing is the attempt (by governments rather than private businesses) to
reduce overfull demand, permanently or temporarily.
18. Countermarketing is the attempt to destroy unwholesome demand for products that
are considered undesirable, e.g. cigarettes, drugs, handguns, or extremist political parties
The classic product life cycle is Introduction, Growth, Maturity and Decline. In the
Introduction stage the product is promoted to create awareness. It has low sales and
will still be making a loss. If the product has few competitors, a skimming price
strategy can be used (a high price for early adopters which is then gradually lowered).
In the Growth phase sales are rising rapidly and profits are high. However, competitors
are attracted to the market with similar offerings. The market is characterized by
alliances, joint ventures and takeovers. Advertising budgets are large and focus on
building the brand.
In the Maturity phase sales growth slows and then stabilizes. Producers attempt to
differentiate products and brands are key to this. Price wars and competition occur as
the market reaches saturation. In the Decline phase there is a downturn in the market.
The product is starting to look old-fashioned or consumer tastes have changed. There is
intense price-cutting and many products are withdrawn from the market.
UNIT 8: MULTINATIONAL CORPORATIONS
2. When incomes are rising and business is thriving, in other words, when there is an
economic booming in a country, a multinational may decide to establish a subsidiary
there. Later, however, the government of the country may only allow the company to
operate on a joint venture basis, in which case it will compel the company to reduce its
shares to a fixed percentage. It could even restrict the subsidiary by allowing only a fixed
proportion of profits to be registered / returned.
3. The OECD code gave guidelines on how multinationals should behave. None of its
provisions were legally effective and therefore some say it lacked legal teeth.
4. A factory whose production resources are not being fully utilized is said to be suffered
from overcapacity
Shareholder value
portfolio
synergy
8. People or companies that try to buy and sell other companies to make a profit =
Raiders
conglomerate
10. Buying a company in order to sell its most valuable assets at a profit =
Asset-stripping
Takeover bids
In a takeover bid, another person or business makes an offer to the (1)................. to buy
their shares at a fixed price. The aim is to take control of the (2)......................
If it is a welcome takeover bid, the directors of the company advise the shareholders to
accept the offer. If the shareholders accept the offer, the result is usually called a
(3).........................
If the bid is unwelcome, the directors advise the shareholders against accepting it. The
bidders may then write to the shareholders explaining the advantages of the takeover, and
perhaps improving the offer for the share. This is known as a (4).............................. bid.
In an (7)......................., the bidder offers a price for each share regardless of how many
share it can buy. In a (8)......................., the offer price depends on the bidder being able
to buy enough shares to gain a (9)....................... in the target company.
1. shareholders
2. target company
3. merger
4. hostile takeover
5. poison pill
6. white knight
7. unconditional bid
8. conditional bid
9. controlling interest
1. Everyone promises to obey the treaty-all major countries are signatories to it.
2. In the civil case, the plaintiff brought an action against the defendant for damaging
his car on purpose.
3. The price was negotiated between the buyer and the seller of the house, in a private
sale.
4. The bank agreed that the borrower should pay 12% on the loan, so the lender made a
fair profit!
5. Manufacturers sell their goods to wholesalers and in turn, retailers buy from them.
8. Some clothes companies sell their products on a franchise basis: each country has a
main franchiser, with numerous people working as franchisees.
9. A letter was sent to the manager complaining about working conditions. All the
members wrote their names. The letter read: ‘We, the undersigned, strongly protest
about conditions at work’.
10. Many projects require the cooperation of various partners. If they all agree to work
together, they become parties to the agreement.
8. Both words mean “a person who does business on behalf of another company”.
The word (5)……agent………..is used where there is a long-term relationship,
earning commission, whereas the word (6)…broker……..is more common for
individual transactions.
11. Trend toward greater interdependence among national institutions and economies:
(13)… Globalization……………..
12. Inability of a nation to produce a good more efficiently than other nations, but an
ability to produce that good more efficiently than it does any other good: (10,9)
comparative advantage
13. Financial assistance to domestic producers in the form of cash payments, low
interest loans, tax breaks, product price supports, or some other forms:
(9)………… Subsidies……………….
14. Many authors argue that the marketing concept has replaced the (7,7)…Selling
concept…………….
15. The third ‘P’ is (5)…………place……….., which concerns where the product is
available.
25. We started with a ………raid………(4), buying all the stocks available on the stock
exchange. They got us 15% of their stocks. Then we made a……Takeover
bid………….. (8,3)
31. Reduction in unit costs arising large scale production: Economies of scale
32. Total self-sufficiency and the consequent absence of foreign trade: Autarky
33. The difference between the money values of a country’s visible imports and exports:
Balance of trade
35. A document that shows details of goods being transported; it entitles the receiver to
collect the goods on arrival: Bill of lading
36. Central banks regulate the banking system; fix the minimum interest rate; issue bank
notes
38. Trade in services (banking, insurance, tourism and so on): Invisible imports and
exports.
39. An arrangement by which a customer can withdraw more from a bank account than
has been deposited in it up to an agreed limit; interest on the debt is calculated daily:
Overdraft
41. Most countries give foreign companies investment incentives to attract new
investment
42. Some companies prefer to grow organically, but it is quicker to grow by acquisitions
acquisitions
43. Operating all over the world while taking account of local cultural habits, beliefs and
preferences in each country or market means Globalization
45. In Feb 2000, Vodafone AirTouch succeed in its hostile takeover of Mannesmann
46. Television commercials, advertisements and endorsements are all means of invisible
goods
47. A product is not just an assembled set of components: it is something customers buy
to satisfy a need thay feel they have. The image and the design of the product are as
important as its specifications.
48. GATT was designed to promote free trade by reducing both tariff and nontariff
barriers to international trade
49. Open account is the least secure payment method to the exporter
50. Speculators buy or sell currencies in order to make a profit by making capital gainst
or by investing a higher interest rates
53. In the Introduction stage of product life cycle, the product is promoted to create
awareness
54. The classic product life cycle is Introduction, Growth, Maturity and Decline
56. The first step of the procedure for documentary collection, the exporter task is to ask
his bank to draw a bill of exchange on the overseas buyer.
58. If a country can produce something more cheaply than anywhere else in the world, it
has absolute advantage
59. A strategy of adapting products and their marketing strategies in each national market
that suit local preferences is multinational strategy
60. Strategy of offering the same products using the same marketing strategy in all
national markets is the global strategy
61. Countermarketing is the attempt to destroy unwholesome demand for products that
are considered undesirable
62. Points of sale are places where goods are sold to the public shops, stores, kiosks, and
markets. Stalls, etc.
63. Getting control of a company by buying over 50% of its shares: Takeover
64. When a company's top executives buy the company they work for: Management
buyout
65. Adding new and different products or services: diversifying
66. The difference between what a country pays for all it imports and receives for all its
exports: Balance of payments
67. The system in which a currency could be exchanged for a fixed amount of gold: Gold
standard
68. Some countries try to be self-sufficient in certain commodities so that they are not
dependent on imports
69. Among other things, a bill of lading contains details of the goods, their destination
and the name of ship carrying them
70. When two companies merge they usually have greater economies of scale than as
separate companies
71. Importing and exporting are the two aspects of foreign trade: A country spends
money on goods it imports and gain money through its exports
72. Adding trade in services to trade in goods gives you balance of payments
73. In the maturity phase of product life cycle, sales growth slows and then stabilizes
76. In the documentary collection if the importer dishonors the bill, the exporter may
have to find an alternative buyer or ship the goods back
79. All the money that a company will have to pay to someone else in the future,
including taxes, debts and interests mortgage payments: Liabilities (tiền nợ, khoản nợ,
tiêu sản)
80. Anythings owned by a business (cash investment, building, machines) that can be
used to produce goods or pay liabilities: Assets
81. The reduction in the value of a fixed asset during the year it is in use (charged against
profits): Depreciation (sự giảm giá)
Depreciation
82. The value of raw materials, work in progress, finished products stored ready for sale:
Inventory (kiểm kê, hàng hóa tồn kho, bản tóm tắt)
differentiation
85. A focus strategy is one in which a company emphasizes on serving the needs of a
narrowly defined market segment by being the low-cost leader, differentiating its product,
or both.
86. The best form of advertising is free word of mouth advertising, which occurs when
satisfied customers recommend products or services to their friends.
87 . Remarketing involves revitalizing falling demand, for example, for churches, for
city areas, or aging film stars.
88. Name recognition for arbitration is like Brand recognition for customer goods.
89. Manufacturers sell their goods to wholesalers and in return, retailers buy from them.
90. Advance payment is the most secured payment method for exporters.
91. Price wars and competition occur as the market reaches saturation
92. Originally, most multinational companies expanded overseas because trade barriers
such as tariffs and quotas had been set up against their goods.
94. The Bretton Woods Agreement stipulated that all members would express their
currencies in gold.
95. Prior to making a foreign direct investment, exporters can make a contract with a
distributor or with foreign manufacturer, who will be licensed to manufacture their
products. For this, the foreign manufacturer pays royalty.
97. In the Maturity phase, price wars and competition occur as the market reaches
saturation
100. Many economists encourage governments to abolish import taxes and have
completely free trade.
102. The comparative cost principle is that countries should make the things they can
produce the most cheaply.
103. Countries that export oil or manufactured goods tend to have a positive balance of
trade.
104. Autarky is the (possible) situation in which a country is completely self – sufficient
and has no foreign trade.
107. Futures are forward contracts for the purchase and sale of securities, precious
metals, etc…., at a fixed price.
108. Trade balance plus invisible transactions make up the balance of payments
109. A country with consistent deficits will see its negative balance of trade or
payments in relation to other countries.
111. In the UK the service sector employs more people than the manufacturing sector.
112. The people who work for a company are called employees..............
113 When it is approved, the merger...................of Vodafone AirTouch with
Mannesmann will be the world's largest.
115. Every company is looking for something which will give it a competitive
advantage
117. The majority of start-ups and new ventures..............fail within two years.
121. A person who does a similar job to you, but in another company is your
counterpart..............
122. In a free trade area, governments can not impose a tariff on imports.
123. Many government organizations are inefficient because they are too
bureaucratic........ , with too many rules and regulations.
bureaucratic
124. Freelancers ..... are people who provide their services on an individual and
independent basis to different companies.
126. The movement of money into and out of a company is known as ..cash flow
127. Most countries give foreign companies ...........tax incentives............. to attract new
investment.
134. The long term and short term loans and borrowings at home and abroad are the
…………………….. Accounts
135. The three main business areas which have traditionally been resolved by arbitration
are construction, commodities and transportation.
136. Economies of scale are the situation of reductions in costs resulting from increased
production.
137. Billions of dollars leave the USA every year because the country has a big trade
deficit.
The ___premium_____ for this cover will be at the rate of 90p% of the declared value
of 1500GBP.
(1/1 Điểm)
2.
We would be grateful if you would quote us your rate for cover against all
__risks______ for this consignment.
(1/1 Điểm)
3.
___Indemnity_____(9) is a basic principle in insurance that the person who is insured
should be in the same financial position after a loss as s/he was before.
(1/1 Điểm)
4.
A licensing agreement is a contract between a __manufacturer_______ and a licensee
in another country.
(1/1 Điểm)
5.
Insurance arrangements are made through _brokers_______.
(1/1 Điểm)
6. A partial loss of a consignment, which may not affect other consignments on the same
carrying vessel, is a particular average
7.
Regular shippers may often take out a ______floating__ policy, which gives automatic
cover for a fixed value of shipments, depending on the previous year’s value, if the
insurance company is told when each shipment is made.
(1/1 Điểm)
8.
Ships’ cargoes are covered by ____Marine policy____ ________.
(1/1 Điểm)
9.
A loss by one shipper, but which is shared by all the shippers with cargoes on the same
carrying vessel, is the ___General average_____ ______ .
(1/1 Điểm)
10.
Natural disasters usually mean that insurance underwriters suffer heavy
______losses__.
1. Because of the ___globalization____ of business, an increasing number of mergers
are cross-border deals.
2. One aim of all companies which sell goods or services is to increase their
____market share____ _______.
3. Cultural ___differences_____ are one of the potential pitfalls of international
mergers.
4. Companies that handle all aspects of their business internally, such as the big oil
companies, are known as ___vertically_____-integrated companies.
5. In ______joint ventures__ _______, two or more companies collaborate on
specific projects.
7.The amount of cash that remains after a company has paid taxes and other cash expenses is
cash flow projection
7. Traders sometimes agree to trade currency in the future for an agreed rate. A “long position”
means that the trader will make a profit if the currency goes up.
8. A “short position” means that the trader will make a profit if the currency goes down.
9. When the government doesn’t control the exchange rate in any way, the currency is freely
______.
2. Conversional marketing finds out why people dislike the product, and redesigns it, lowers
prices, and uses more positive promotion.
7. Synchro Marketing alters the pattern of demand through flexible pricing, promotion, and
other incentives, e.g. for public transport between rush hours, of for ski resort in the summer.
11. Counter marketing is the attempt to increase prices, reduce availability, make people sacred
for products that are considered undesirable
4.The majority of products available at any particular time are in their maturity stage.
8."We have to consider which are the best media to reach our target market".
10.Our marketing slogan is that "products are bought rather than sold"
designing new products and bringing them to the market (10) innovating
buying another company's shares on the stock exchange, hoping to persuade enough other
shareholders to sell to take control of the company is known as a (4) raid
a public offer to a company's shareholders to buy their shares, at a particular price during a
particular period, so as to acquire a company is known as a (8, 3) takeover bid
to merge with or take over other firms producing the same type of goods or services (10, 11)
horizontal integration
joining with firms in other stages of the production or sale of a product (8, 11) vertical
integration
a merger with or the acquisition of one's suppliers (8, 11) backward integration
a merger with or the acquisition of one's distributors (7, 11) forward integration
11. What are the risks faced by exporters in the 4 common payment methods?
In opening an account payment method, the exporter loses all control of the
delivered goods and trusts that the payment will be made by the importer in accordance
with the original sale contract.
In the LC payment method, very few risks arise for the exporter because the
potential areas of the buyer risk and the government risk are eliminated. However, the
exporter has to present the documents in compliance with terms and conditions of the
credit. If the exporter fails to do this, the exporter will lose the protection of the credit.
In bills of collection payment method, the risk the exporter faces is that the
importer fails to accept the bill of exchange or refuse part of the accepted bill when
it is due. In this case, the exporter has to consider shipping the goods back to their home
country, finding other buyers or even abandoning their consignment, all of which are so
expensive for the exporter.
In advance payment method, the exporter does not have any risk relating to
non-payment
12. Name five activities that any State Bank or Central Bank of any country in the
world always does.
- The government’s bank and banks’ bank (lender of last resort)
- Managing the gold and foreign exchange reserves and the government’s stock
register
- Controlling the nation’s retire money supply
- Regulating and supervising bank industry
- Implementing the monetary policy
- Setting the interest rate - used to manage both inflation and exchange rate and
ensuring it work
13. Briefly describe spot and forward transactions. Give an example of each.
Spot transaction is a transaction in which currencies are sold and bought today
with delivery 2 business days.
Forward transaction is a transaction in which currencies are traded in the future
with payment and delivery at the future date.
14. What are the key reasons for the failure of M&A?
- Differences in culture: cultural barriers, clash of cultures.
- Over-optimism: managers are just too optimistic about prospects for the enlarged
group; they have unrealistic expectations about the future success of the new
company.
- The way the two companies are combined.
15. At which stage in the product life cycle would manufacturers differentiate their
products? Why?
In maturity stage manufacturers differentiate their products by attractive packaging,
incentive offers, competitive prices, creative advertising.
Sales growth slows and then stabilizes.
Price war and competition occur as the market reaches saturation.
16. What is the best way of advertising? Why?
The best form of advertising has always been word- of- mouth advertising: people telling
their friends about good products and services. It is cheap, effective and trust-worthy.
17. What are three main business areas which have traditionally been resolved by
arbitration?
Construction, commodities, transportation.
19. What is the difference between documents against payment and documents
against acceptance?
DA: the documents against acceptance: In this case, the documents are released to the
importer only when the payment is done.
DP: the documents against payment: In this case, the documents are released to the
importer only against the acceptance to payment.
21. Why would the government impede free trade?
- Political motives:
- The gain influence
- To preserve national security
- To protect jobs
- To respond to “unfair” trade
- Cultural motives
- Cultures of countries are replaced by others
- The influence of culture of the United State
- Economic motives:
- To pursue strategic policies
- To protect infant industries
22. How does a documentary collection differ from a letter of credit as a means of
financing international trade?
In the documentary collection payment method, the bank only plays as an agent. The
bank does not provide financing or substitute its credit for that of the buyer as in the LC
payment method. It only does as the instructions of the importer and the exporter to
receive returns as fee. It is not responsible for the payment to the exporter if the importer
fails to pay.
23. What are some financial considerations in making a foreign direct investment?
Return on the investment, cash flow project, the sources of working capital, interest rate
24.What are the objectives of FDI?
- Resource seeking FDI: seek and secure natural resources (raw materials, minerals,
lower labor costs) for the investing company
- Market seeking FDI: identify and exploit new markets for the firms’ finished products
- Efficiency seeking (global sourcing FDI): restructure its existing investments to
achieve an efficient allocation of international economic activity of the firms
- Strategic asset/capabilities seeking FDI: pursue strategic operations through the
purchase of existing firms and/or assets to protect O specific advantages to sustain or
advance its global competitive position.
25. Why is letter of credit the popular method of payment in international trade?
Because it is more secure. The bank must pay even if the importer defaults on payment.
- L/C because it protects both sides:
+ Safer for the exporter as it makes sure he will get his money for the goods sold
provided that he presents the correct documents
+ Ensure the importer that he will get the goods bought as long as he pays for them or
agrees to pay on a fixed date in the future.
26. What are the advantages of arbitration over litigation?
- Arbitration is much less formal than litigation and requires much less time and money.
+ Speed: quick, take less time
+ Cost effectiveness: cheap
- Reliability of the arbitrators: The arbitrators are usually more sophisticated and
knowledgeable than juries. They are more justice because arbitrators are chosen by both
parties.
- Keep the disputes away from the public eye, because arbitration takes place in
private, unlike litigation in the court → Confidentiality → protect the reputation
27. What are the reasons for companies to look for foreign markets? / Why do the
companies go internationally?
30. Which market is bigger, the producer market or consumer market? Why?
The producer market is actually larger than the consumer market, since it contains:
all the raw materials, manufactured parts and components that go into consumer goods,
Bills for collection: Passive role of the bank, the bank only do what is required and
receive collection fee
1. What happened to the world foreign exchange market in the early 1970s? Why?
Gold convertibility ended because the Federal Reserve no longer had enough gold to
bank to dollar, due to inflation. Because Bretton Woods System influence heavily on the
stability of dollar
2. What are the roles of advertising in the 4 stages in the product life cycle?
1- why is there a high percentage of failure of M&A
2- why companies merge
Part 3:
ESSAY WRITING – TACN3
UNIT 1: INTERNATIONAL TRADE
1. What are the advantages and disadvantages of free trade?
With the rapid globalization of world economies, free trade has become an
essential part of international trade. It can not be denied that free trade brings a lot of
outstanding benefits for both parties but there will also be some drawbacks. This essay is
going to discuss both sides of free trade.
There is no doubt that free trade agreements are superb for the parties. First, it is
clear that it is an ideal opportunity to increase the GDP of a nation. By promoting trade
between the two countries, the amount of goods produced grows rapidly to meet the
demand of the whole foreign country instead of just domestically as before. Second,
trading freely creates a more competitive business environment which promotes domestic
companies to develop day by day by innovative production methods, the use of new
technology, marketing and distribution methods. As a result, domestic consumers have
more choices of lower-priced and higher-qualified products. Thirt, by using the
advantages of each other, the parties can reach higher benefits. EVFTA, for instance, has
increased more export items from EU to Vietnam such as electronic components,
machines,... which are EU strengths and important inputs of Vietnam.
On the other hand, free trade might be unfair with countries where local
producers, suppliers and employees are so sensitive. Although according to economic
theory, more competitive environments encourage enterprises to develop, in fact, in
developing economies, big multinationals can use their economies of scale to push local
firms out of business.
In conclusion, free trade brings both positive and negative impacts depending on
the ability of each country at the time. To maximize benefits from trade liberalization
agreements, both governments and businesses need to change and develop in accordance
with the new era.
UNIT 5: MARKETING
1. Do you think that offering low prices is always good? Why?
Product pricing is an important element of a marketing strategy. Having the low
price can be advantageous to the marketing effort, but the strategy also has several
disadvantages. This essay is going to write about the negative impacts of offering low
prices.
To begin with, the low price strategy may work in the short term, but in the long
term, it is ineffective. If a seller gives a large number of discounts on their products every
day, consumers tend to value the good at the reduced price and no longer feel delighted
when they buy a bargain. For example, if a clothing store always reduces the price of
shirts from 100,000 VND to 50,000 VND, the consumer will think its real value is only
50,000 VND and the price strategy is invalidated.
In some categories and some locations, the pricing strategy is not only ineffective,
but also has drawbacks. First, in some high-end industries, a cheap product will not
satisfy the demand of customers. For example, at a luxury car showroom, customers
choose an expensive car to show their class instead of a cheap car which can be
affordable by most people. Second, low prices affect how the customers think about the
products. In some developed countries such as Japan and the United States, with a high
standard of living, low-priced products are not great choices, because in the customers’
point of view low prices are a sign of a low-quality product while local consumers often
focus on quality rather than price.
To sum up, customers often believe that they get what they pay for so the products
should be determined by their price equal to its value. Low prices can apply to promote
sales in the short term but can not be used as a strategy in the long run.
5. Why do most governments impose tariffs and quotas? (đề mới vào năm ngoái)
With the rapid globalization of world economies, trading between different
countries over the world has been increasing significantly. However, the main factors
whose aim is to reduce this uptrend are tariffs and quotas still used widely. This essay is
going to explain why most governments impose tariffs and quotas.
To sum up, although a large number of economic specialist encourage trading
freely, most governments still impose tariffs and quotas as measures to
6. Why do people say that without foreign exchange trading, international trade itself
could not exist?