TOP MANAGEMENT LANGUAGE

Prof. Dr. VIOLETA NEGREA

PART I BUSINESS COMMUNICATION

UNIT 1 COMMUNICATION in BUSINESS

Objectives:

forms of verbal and non verbal communication in business specific vocabulary adopt and perform appropriate communication attitude

Communication is important to the point that without it an organization cannot operate. Its activities require human beings to interact, react, and communicate. If you can communicate effectively in speaking and writing, you are highly evaluated. Managers and top-level executives are concerned with the need for better communication. Business executives usually rank the ability to communicate in the first place among the personal factors necessary for promotion within management, and business communication ability is considered one of the most useful. Oral communication obviously preceded written communication. The ancient Greek and Roman world depended heavily on oral communication especially in government assemblies and in the law courts. A school of teachers called sophists taught ancients to speak well, to defend one and to speak eloquently, were marks of a learned person. More formal instructors were called teachers of rhetoric and taught ideas: Socrates, Plato, Aristotle, Cicero, and Quintilian. During the Medieval and Renaissance period the oral tradition continued. But writing became more and more important as a permanent record of communication, and authors and books on written communication principles appeared. Desiderius, Erasmus, Richard Sherry, Angel Day are the forerunners of those associated with our modern principles of written communication. Some of today's principles of writing are a mixture of ancient oral and written traditions. Business communication is one offshoot from an earlier world where communicating well was a foundation of learning. Correspondence is essential in establishing and confirming conventions in business activity. Typed or produced on a word processor, it is a mirror of the writer and of the business itself. Therefore what is written and how it is written expresses as much as part of business education as accountancy and economics. On the other hand, information is power. Speed and efficiency in written business communication depend on a great extent on how the organization handles information. As an employee, manager, owner or supervisor, in a rapidly changing business environment you will need to understand to use the technology of today's information age, to create, transmit and store information.

Nowadays thousand of hours are devoted daily to interviews, conferences, memos, report, employee manuals, letters, advertising, articles, bulletins, newsletters and other messages. They require the time of executives and assistants for researching, thinking, planning, organizing, dictating, typing, editing, revising, proofreading, mailing (the written), presenting (the oral), and filing records. That is why it is to be considered the wasteful cost of unclear, incomplete, inaccurate inconsiderate and unduly long or late letters. Poor messages are more expensive because they destroy goodwill, waste time, and alienate the customers. Successful messages help to enhance efficiency, goodwill, safety, productivity, profits and public credibility. Many surveys and articles confirm that effective communication is essential for a successful career and promotion in business. Top, middle and operation managers confirm that business communication skills influence the advancement to executive positions. Like any other worthwhile activity the quality of the individual attitude and preparation affects communication. The personality, the image and culture of a company are the extension of the many personalities and traditions of its employees. Any of them, whether an executive or a new clerk, is responsible for this image, for building the goodwill. Most people can learn to communicate effectively for business and build the goodwill attitude by developing intelligent, sound judgement when choosing ideas and facts for each message. The integrity of the writer, backed up by a valid code of ethics, a reasonable facility with the English language and applied knowledge of the communication process and principles are also important for a successful and effective communication skill. Appearance conveys a non-verbal impression that influences the recipients' attitude toward the message even before they read it. As for written messages, the envelopes overall appearance size, color, weight, postage may impress the receiver as important, junk or routine mail. The letter report or title page communicates nonverbally even before its contents are read. The appearance of the messages stationery and its length, format and typing is meant to lead to a certain attitude and impression of the receiver. The enclosure quantity and attractiveness (charts, graphs, pictures) also give nonverbal impression. Whether when speaking to a person face to face, or to a group in a meeting, personal appearance conveys nonverbal stimuli that influence attitudes, even emotions, towards spoken words. Clothing, jewelry, hairstyles, cosmetics, fingernails, neatness, and stature represent parts of the appearance. They convey opinions regarding occupation, age, sex, nationality, social and economic status, job level and good or poor judgment. Aspects of surroundings that communicate include room size, location, furnishing, machines, architecture, wall decorations, floor (carpeted or bare) lighting, windows and other aspects. The body language also communicates by facial expressions, gestures postures, smell and touch. Sometimes, they are more meaningful than words. They are also important for special occasions, interviews, speeches, etc. The eyes' expression can make the receiver understand hidden emotions anger, annoyance, confusion, enthusiasm, fear, hatred, joy, love, interest, sorrow, surprise, and uncertainty. They can sometimes even

contradict verbal statements sometimes. Direct eye contact is desirable when people have a face-to-face conversation. Eyes that drop or shift away from the listener may show a shy, dishonest or an untrustworthy person. Continual gestures with arms while speaking may reveal nervousness, or they also may distract listeners attention from the spoken words. One's handshake can also show firmness or limpness, promptness attitudes. Legs position can reveal certain nonverbal attitudes for a man sitting with legs stretching on top of this office during an interview, or a standing person shifting weight from one leg to another in a rhythmic motion while humming or pacing back and forth while speaking. Confident executives may have a relaxed posture and yet stand more erect than a timid subordinate. Interested persons may lean forward toward the speaker, while those who are bored or annoyed may slump as well as yawn and repeatedly glance at their watches. Touching people in different ways and places can communicate friendship, love, approval, hatred, anger or other feelings. A kiss on a cheek, pat on the shoulder or slap on the back is prompted by various attitudes and emotions. Various odors and artificial fragrances on human beings can sometimes convey emotions and feelings better than spoken words. Different meanings can also be conveyed by the rate, pitch and volume of the voice. Speaking fast can reveal nervousness, but a soft voice soothes and calms. Even silence can determine serious hard feelings, loss of business or profits. Time is also an important conveyor of nonverbal communication. Being on time for appointments, for work every day, and for deadlines communicates favorable messages in our culture. Human sounds communicate non-verbally such as clearing the throat, sighing, laughing, etc. The ability to communicate and understand the messages is an important business skill that that is to be developed. 1.1. Electronic Technology in Business Communication Information now doubles every six years, causing managers to spend an increasing amount of time receiving, absorbing, creating and distributing information. The abundance of information is called information overload. It is forcing managers to look for ways to reduce the amount of paperwork. They realize that information is an extremely valuable resource only if received in a timely, concise and accurate manner. Thus, control becomes a key factor in the management of information. Using electronic technology is highly recommended because of the advantages it offers: - elimination of monotonous routine tasks - cost effectiveness - greater accessibility of data (information) - the accuracy and quality of output - the ability to forecast outcomes People are interested in work that is satisfying and enjoyable. Routine tasks such as formatting, editing, filing, copying, calculating and mailing mean drudgery to many people. With a word processor or a personal microcomputer most of these tasks can be handled electronically. By pressing one or more special keys, you can convert a draft into a finished text, print it immediately

at high speed or store electronic data for later use. Because of the worldwide competition, all businesses are interested in ways to help employees accomplish more output in less time. In integrated office system computers, word processors telephones, facsimile devices, scanners, printers and copiers linked together accomplish numerous tasks in a semi or fully automated fashion. In such an environment executives can feed information into the system or check the electronic mailbox for messages via a phone line or terminal, whether in or out of the office. The decreasing cost of computers and peripherals (equipment tied to the computer) will continue to make technology a cost-effective tool in the future. 1.2. A New Era of Bright Hopes and Terrible Fears When we try to comprehend something as vast, amorphous and downright scary as the Internet, it's no wonder we grope for familiar historical precedents - the railway, the interstate highway system, the telephone network. But none of those really captures the Internet's earth shaking impact on the business world. Out of this primordial technological swamp called the Internet are emerging new companies, business models, corporate structures - even new industries. It's a time of such tumult and confusion that no one can agree on what's happening now, much less on what's coming next. Unknown upstarts with head scratching labels such as vertical portals, emarkets threaten to hijack the leadership of countless industries, from plastic to financial services. Some of the most innovative corporate companies are likely to prove the commercial equivalent of mammals, which started out small and rodent like but proved swift and highly adaptable. Consider how the Net differs from microprocessors or other disruptive technologies that have gone before. It's a ready-made market place essentially $1 trillion worth of network connections, computer power, and limitless database full of information. And it is largely free to anyone with a phone line and a personal computer, wherever he may be in the world and anytime, day or night. In short, the Net offers an entry point to all comers in every market and industry. And business people know that the Net is no laughing matter. The Internet economy already amounts to $301 billion if you include on-line sales of industrial and consumer goods and services as well as the equipment and software to support e-commerce. With growth like that in just five years, the commerce on the Net will be as perilous for many businesses - and entire industries - as it is profitable for others. There's hardly an industry that isn't undergoing an upheaval in how it deals with customers and partners, organizes itself, or defines its essential purposes. All of these consequences flow from one inescapable fact: The Net puts the customer in charge as never before. Until the Net, buyers faced huge obstacles to extracting the best prices and services. Research was timeconsuming, and everyone - from producer to retailer - guarded information just like the crown jewels. Interactive TV (ITV) is the television that can offer from online shopping, e-mail personalized news and entertainment to T-banking. This is possible by combining TV with Internet. Still at its beginning in Europe, ITV is expected to become soon an everyday reality. In 1996 Television Par Satellite became the first broadcaster in the world to launch fully digital interactive services via satellite. The subscribers have access to informational and ecommerce sites offered by TPS commercial partners who have paid for the

privilege. Soon a new generation of satellite decoders is expected to enable viewers to switch from TV and movies to full Internet browsing via a single set-top box. Specialized companies offer interactive games plus ability to exchange e-mails while watching films. Online auction channel and full Internet access are planned for later. Some of them offer already interactive personal programming thanks to digital video recorders that customize your TV schedule by learning your viewing habits and automatically recording your favorite shows. New competitors keep entering the fray, starting to roll out interactive services which include full Internet access, video and audio on demand, enhanced sports programs and channels with content partners. To make sound decisions, relevant information must be available when needed. Information sharing is one of the most effective tools of today's information society. Large databases (stockpiles of information by subject and type) make tens of millions of pieces of information available within minutes. You can broaden or narrow your search from relevant information by specifying one or more categories of key words. To ensure accuracy of information, computers can be programmed to perform a number of important functions, relevant to business communication, such as grammar checkers, programs to generate forms, maintain calendars and produce schedules. These programs (software packages) are extremely beneficial and can be purchased rather inexpensively. The ability to take past data and chart future business operations, on the basis of trends and conditions is essential in today's ever-changing economic environment. Goals are important for success. By taking data generated in recent weeks, months and sometimes even years, managers plan budgets, produce schedules, control inventories, determine pricing and plan for the best use of their resources. With computerized operations, information that once took weeks or months to obtain can now be available in a matter of hours. 2. Oral presentation in Business There are three main approaches in preparing oral presentations: the individual making the presentation, the message transmitted and the media, i.e. the presentation aids; together, they form the PMM concept. The core of the presentation is the message, but its silent part is of great importance as well and it refers to the individual himself. Good grooming, appropriate clothing, natural mannerism, effective body language, a pleasing voice, and good eye contact with the audience and an authoritative presence are recommended. The audience according to the features that he develops and controls, such as self-confidence, personality, determination, and self-control will judge the individual delivering the presentation. The message has to take off in such a way to gain the audience's attention by introducing suspense, humor in the starting information. An unusual or shocking fact, a quotation or anything that might surprise the audience is welcome. The core message will be delivered through data, facts, information to develop a reasonable, practical and useful conclusion for the decision process in business. According to the presentation's objectives, the message will be informative (at the end it will summarize the main points), an entertaining one

(it will restate the main theme) or a persuasive one (it will suggest action in the end). The information will be logically and coherently organized and delivered clearly, establishing a good eye-contact with the audience and observe the time limit. Mind the samples of vocabulary items for the different parts of an oral presentation: 1. Signaling the start: - Ladies and Gentlemen, - Right, then, - Ok, let us speak today about - Let me begin by looking at - Id like to talk about 2. Motivate the presentation: - in a nutshell, - to put it briefly 3. Express the purpose: - My purpose today is - What I want to tell you today is - My objective/aim today is - I shall be considering today - I am going to analyze/discuss 4. Presenting sequences and lists: - Firstly/To start with - Secondly/After this, - Finally/Then, options recommendations conclusions 5. Introduce evidence: - Id like you to look at this graph - Lets have a look at - Let me show you 6. Relate to: - As you will notice - As you can see 7. Contrast circumstances: - even though... - in spite of the fact 8. Reference/evidence: - With reference to - In terms of - Regarding to - It seems that - We believe that 9. Interpret information: - The result show that - The figures indicate that - Its quite clear that - This seems to suggest/show that 10. Digression: - Let me get back to - Id like to mention in passing

11. Meet the objective: - Let me come to the point - My thesis is that - What I am getting at is that 12. Rhetorical questions: - What should we do? - Who is responsible? 13. Disagreement: - The commission has taken careful note of this matter/subject, but - We disagree - We have reservations - We are not sure about... - I see your point, but 14. Targets and Options: - Our main aim/target/options are - It is absolutely important that we/ we must 15. Reinforce conclusion: -Further more/ In addition Therefore/and so 16. Presenting figures: - Our estimates/calculations/figures indicate that 17. Argument development: - Following that - Since then, therefore - Today, however - Thus, at the moment 18. Recommendations: - We think we should do - We strongly urge that - We recommend that we - You ought to 19. The end: - Let me sum up - To summarize the main points - To come up then - Id like to conclude, ladies and gentlemen - Let me end by saying - Finally, may I say 20. Presentation Close: - Thank you for your attention. No doubt you have many questions: - I shall do my best to answer your questions if you have .. - I am sure you have many questions The last part of the oral presentation careful attention should always be given on audience opportunity to clarify certain points or to get into more details whenever necessary. The presenter should think to possible questions before the presentation takes place in a brainstorm session with his or her colleagues. Look at the following ways to address to the audience: - Will you repeat/say it again, please? - Im sorry, I didnt understand. Could you speak louder/slower? - Could you rephrase the question, please? - Are you asking if - Do you mean?

The last element of the PMM concept is represented by media. The oral presentation becomes more effective and convincing if some visual aids are used, such as overhead projectors, flip charts, slide projectors, handouts, pointers. Have a look on a possible development process of an oral presentation:
Determine the potential theme Identify the main objectives

Get core material and write the first draft

First revision

Does it meet objectives/requirement s?

Graphic process

Final draft

Rehearsal with the visual aids

2.1. About Meetings

Event

A business meeting is considered a gathering of business persons where purposive discourse occurs for exchanging information on a common topic or problem, for its better understanding or for solving a problem. Their goals are sorted out, patterns of problem-solving are resolved, personal and authority relationship are clarified. A part of the meeting is devoted usually to giving information and the other is devoted to problem solving. Informative meetings are held to disseminate information and check on the understanding of those who attend. The staff learn, ask questions, and understand. No problem is solved, no recommendations is made, but rather each person gains an improved understanding of the issue. The informative speech will be delivered by a person highly knowledgeable on the topic, followed by a discussion. A suggested-solution meeting is called for comments on the options and a potential final solution is discussed. This meeting is informative and exploratory but the final decision may be taken at a second problem-solving meeting.

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Sometimes a committee is authorized to call the group together. Then the secretary of the group is empowered to implement the board's decision, working with the chairperson to appoint the committee and set out the initial planning It involves: purpose, members, meeting date, and time, place, and announcements responsibilities. But sometimes it is as difficult to distinguish between the significance of the words Meeting, Conference, Symposium or Workshop, as to distinguish between names of Proceedings, Recors, Digest, or Tutorial. It is to understand that the term meeting is a generic name given to a number of events, including tutorial, workshop, symposium and conference. Conference covers a specialized or broad range set of topics. It can be vertical (when specialized) or horizontal when it covers diverse topics. It usually accmmodates more than 25o attendees and can take several days. It provides opportunity of presentation high quality papers appropriate to the scope of the conference. It may also include or can be held in conjunction with symposia, workshops or tutorials. Workshop is a small meeting where the attendees participate actively. Their number do not exceed 100 registrants. A workshop is usually limited to a narrow topiocal area. Workshops are frequently held in an isolated setting where meeting and lodging space is limited, allowing for maximum interaction between attendees. Workshops may include tutorials. Tutorial has the purpose to educate a relatively small group of attendees on a selected topic. The teachers/instructors provide the attendees with sets of lecture notes. The organizers of a meeting will be charged with the responsibility of developing a program of the greatest possible value to the members of the sponsoring entities. They are also responsible for implementing all phases of the program that will consist of: - Leadership in stimulating the program - Solicitation, review and selection of conference presentation/speeches - Organization of practical program that carries out the themes as appropriate - Public announcement of the meeting - Procurement of written material as required by the Meeting Proceedings (the collection of the papers presented) - Preparation of additional activities: 1. Advance Program promotional part of the meeting referring to sponsors, location, exact dates, detailed information on sessions, other meeting activities, registration forms and contacts for additional information 2. Final Program distributed at the meeting. It contains the name of the meeting, sponsors, location, exact dates and corrected details of the information on sessions and other meeting activities. 2.2. Cross Cultural Negotiations We are involved all the time in situations that need to be dealt with negotiation: at work, at home, when recreating. A conflict is one in which there are opposite interests, and both sides prefer to search for solutions,

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rather than giving in or breaking-off contact. Few of us enjoy dealing with conflicts - with either bosses, peers, subordinates, friends, or strangers. This is particularly when the conflict becomes hostile and when strong feelings become involved. Resolving conflict can be mentally exhausting and emotionally draining. It is important to understand that a conflict that requires solutions has its positive and negative outcomes. It is not always destructive, but can play a productive role not only for one party but also for the relationship itself. Important is to know how to manage a conflict not to escalate it out of control. Conflicts should be used as a critical aspect of creativity and motivation. Studies have shown that negotiation skills are significant determinants of a career success. While negotiation is an art form to some extent, anyone can learn some specific techniques. Learning these techniques and developing skills will be a critical component of a successful career. Before the event, it is helpful to plan your negotiation. State whether you are in a win-win position or win-lose one. Make sure of your goals, positions, and interests. Figure out the best resolution you can expect, what is a fair and reasonable deal, and what is a minimally acceptable deal. What information do you have and what more do you need. What are your competitive advantages and disadvantages? What are the other's advantages and disadvantages? Give some thought to your strategy. Be clear about your real goals and real issues and try to figure out the other person's real goals and issues. Negotiations fail because people are so worried about being taken advantage of that they forget their needs. People who lose track of their goals will break off negotiations even if they have achieved their needs because they become more concerned with whether the other side "won". Equally important is to be clear and communicate why your goals, issues, and objectives are important to you. The other side needs to know why issues are important to you, not just that they are important. It is important to be clear about your walkway (also called reservation position), and your competitive advantage - your strongest points. You need to know the advantages to the argument. Similarly, know your weakness and the other's weaknesses. In most conflicts resolution or negotiation situations you will have a continuing relationship with the other person so it is important to leave the situation with both sides feeling they have "won". It is very important that the other person does not feel that he or she "lost". When the other person loses, the results are often lack of commitment to the agreement or even worse, retaliation. The most common failure is the failure of negotiation parties to recognize the integrative potential in a negotiating problem; beneath hardened positions are often common or shared interests. 2.3. Verbal and non-verbal communication Each country has a culture that results in a generally recognizable behavior. As part of that culture, we are comfortable, but often are unable to explain why we act or communicate as we do. Some of our actions are based on traditions, emotions or simply acceptance that., others are based on what we are taught. Consequently, it takes time to adapt ourselves to another culture, a person going to certain stages such as anticipation, disillusionment, adaptation and final acceptance. Each country has variables on a national level. We learn something about a country's culture through knowing the educational levels of the population, the legal and the regulatory restraints affecting business, the

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economic philosophies or national and foreign trade practices, the political attitudes, religion, as practiced by the state or the individuals, the social norms of the state, and the language, as it affects international communication. Additionally, each person within a country has a behavior that is more personal. How they handle time, what a comfortable distance for interpersonal communication is, what foods are wholly acceptable, what is considered appropriate clothing, what the unwritten personal manners within a home or office are, what procedures and speed are followed in arriving at personal and business decisions. Finally, cultures have both verbal and non verbal communication characteristics; what is acceptable in one culture may be entirely unacceptable in another. Your effectiveness in communicating in succeeding overseas requires adapting to many factors. Do some research into various organizations and journals interested in international business areas. Then you are on the way to successful intercultural communication.

EXERCISES I. Match the following terms with their definitions about the new technology in business: 1) computer conferencing; 2) desktop publishing; 3) facsimile; 4) communication satellites; 5) CD-ROM; 6) electronic meeting; 7) electronic messaging; 8) access to on-line data bases; 9) audio conferencing 10) electronic mail. a) Makes possible the extension of basic communication and broadcasting services throughout a country or region, including the most remote islands and villages. They can be used to provide basic telephony as well as radio and television networks with multiple sound tracks for local languages, where appropriate. b) A means of communication via computers as an immediate exchange of information. Messages can be sent from one computer to another through a host computer equipped with communications and message-processing software including so-called mailboxes for subscribers. These services are cheaper than voice communications and overcome the differences in tie zone that hinder real-time communications. c) Interaction of many users through a central host computer. Each member can share ideas with others and respond to their comments. Participants may log on at their convenience, thus avoiding the need to accommodate different schedules at time zones. d) Microcomputers are now enhanced with graphic capabilities to produce newsletters and other printed material without typesetting. e) Facsimile transmission and electronic mail may be particularly viable alternatives to sending hard copies of correspondence and documents through the mail in areas where service is often slow and unreliable. The technologies can also be used to link staff in the field with one another and with headquarters.

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f) Managers, development experts and project staff may now stay in touch electronically rather than through face-to-face meeting. It allows group members to interact at their convenience by reading and contributing g) A technology with widespread development applications that enables any type of hard copy, including print, graphics and handwritten messages to be transmitted over a telephone line. It can also be transmitted from a personal computer. h) A thin route service by which several sites can be linked together through a bridge at as watching point or through a common frequency assigned on a satellite audio channel. Used for holding meetings, tutor students in rural areas or train staff in the field. i) Information in the form of databases, full texts of journals, video images, and other graphics stored on a compact disk and retrieved with a relatively inexpensive reader attached to a microcomputer. It has a vast storage potential, low cost, durability and ease of use. j) Users of a computer terminal and modem can dial into a database and search for information using key words or phrases. Relevant information is then displayed as a citation, abstract or sometimes a complete text of documents. Users can then select the relevant information and download it into their own computer or print it out. II. Re-arrange the following characteristics under the separate titles: A. Oral communication B. Written communication

1. Short sentences; 2. Possibility of review; 3. Immediate feedback; 4. More detailed, technical information; 5. More conversational sentences; 6. Focus on interpersonal relations; 7. Possibility of detailed documentation; 8. Less colloquial quality; 9. Less spontaneity; 10. Highly contextual nature; 11. More slang and contractions; 12. More involved sentence structure 13. Less detailed technical information; 14. More personal pronouns; 15. Possibility of review; 16. Useful for permanent record; 17. Prompter action; 18. Greater linguistic emphasis; 19. Later action; 20. Delayed action; 21. Focus on content; 22. More imperative, interrogative, exclamatory sentences; 23. Useful for permanent record III. Give examples of non-verbal communications that can contradict spoken words. IV. Look at the following images. Make a written description of each item and of the way they work.

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V. Make sure of the correct meaning and place of the missing words: a) slide projector; b) handouts; c) clear-sheets; d) mike; e) rear; f) projector lens. 1. The image can be sharpen by the cleaning of the _________. 2. The presenter needs _________ as write-on overlays and pens. 3. When needed to use a _________ it is advisable to practice using the machine before the oral presentation. 4. The _________ must be easily accessible to be handed out with minimum disruption. 5. When speaking for 50-100 people or more, the speaker needs a hand-held ________ with extension lead or one to be hooked on the presenter's jacket or tie to keep his hands free. 6. If possible to control over seating in the presentation room, it is advisable that the exit and the entrance be at the _________ of the room. VI. How to develop and improve your presentation skills? Read the following statements and circle the number that best describes you. Staying aware of those steps, they will help delivering a more relaxed, confident and convincing presentation. 1. I analyze my audience and try to find the most suitable ways 1 2 3 to draw its attention to my solutions. 2. I identify some basic objectives before preparing an oral 1 2 3 presentation. 3. I write first some ideas and then build my presentation around 1 2 3 them. 4. I draw an introduction providing the background for the 1 2 3 conclusion which will make reference back to the introduction, supported by logical arguments and visual aids. 5. I prepare "key-word" notes providing only recall cues to be 1 2 3 used as little as possible, without having to memorize or read to my audience from a manuscript. 6. I prepare visual aids easy to handle, easy to understand, to 1 2 3 enhance not to detract the audience. 7. I am enthusiastic and confident about my ideas presented. 1 2 3 8. I run mentally through my presentation to review each idea in 1 2 3 sequence before the event. 9. I prepare answers to "would-be questions" from the audience. 1 2 3 10. I arrange sittings, notes, visual aids and give one or two 1 2 3 complete dress rehearsals until I become familiar with the flow of ideas. 11. My body language is natural, not restricted by anxiety, I have 1 2 3 a clear and strong voice.

in 4 4 4 4 4 4 4 4 4 4 4

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12. I keep a permanent eye contact with my audience. 1 2 3 4 VII. The meaning behind the words. You cannot become an expert negotiator without an understanding of the power words and language. Here are some phrases and meanings that should be attributed to them. Match them. Expert statement 1. We do not normally offer discounts. 2. You're bankrupting me! 3. There are only crumbs left in the cupboard. 4. It is not our usual policy to give discounts. Meanings a) I can make an exception for you. b) We always give discounts to special customers. c) There's more to give. d) This could be my best deal so far this year. VIII. Expert negotiators are phlegmatic. They are normally in control of their emotions and only show that part of their feelings that is most likely to produce results. Match the following behavioral skills in negotiating with their description: a) pride; b) the defend/ attack spiral; c) check the temperature; d) learn to be dissatisfied; e) warm and tough 1. Expert negotiators are never satisfied. You should always walk away from a negotiation with a feeling that you could have got more. "I wonder if he would have given me an extra 1 per cent if I had pushed him harder." Are the words that should be in your head. 2. Non-expert-negotiators have a habit of wanting to hit back when attacked. This causes the other side to do no more that increase the attack. The result is usually a totally destructive environment where emotion becomes so strong that a good outcome for negotiation becomes a secondary objective. 3. Constantly check the personal temperature of the negotiation. If you find the discussions becoming heated and unproductive it is correct to intervene and admit it. User words as "I can see we are getting a little heated here. Why don't we take a short break and come back in better shape in ten minutes? 4. Without doubt the most destructive emotion within the negotiation room. This cause buyers to refuse a great deal and sellers to look elsewhere for a customer. If you want the other side to hate you just hurt their feeling. A principal problem of negotiators is the need to build strong, personal relationship with fellow negotiators. If wish to do this it will increase their sense of personal and professional pride. 5. An expert negotiator needs to look at two different aspects of a negotiation: the task at hand and the people involved the business and the personal dimensions. A negotiator has to be tough on the deal and warm towards the people. Unfortunately, too many negotiators adopt a cold attitude. This will achieve deals, but never the quality of deals that a warmer approach would achieve. IX. Write the answers to the following questions about your country and another country at your choice: (Joan Wilson - Foreign Office Institute U.S. Department of State)

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Romania Other country

1. Who are the country's national heroes and heroines? 2. What is the attitude towards gambling, drinking, drugs, religion, education? 3. What things are taboos in this society? 4. Which colors are positive in tone? Which ones are negative? 5. What are the special privileges of age and/or sex? 6. What are the important holidays? How is each of them observed? 7. What sports are popular? 8. What is the normal work schedule? How does it accommodate to environmental or other conditions? 9. How will your financial position and living conditions compare with those of the majority of people living in this country? 10. What is the history of the relationship between your country and the host country? 11. Where are the important universities of the country? If university education is sought abroad, to what countries and universities do students go? X. What would you do about the bill for dinner? Discuss in groups. A young American invited to dinner four couples - two American, and two Japanese - who had previously had him for dinner at their homes. Because he was a poor cook, he decided to entertain them at a restaurant instead of at his house. He made it clear that the invitation was to compensate for his inadequate cooking skills, but he did not explicitly mention his intention to pay for the restaurant meal, which he felt was implied by the invitation itself. When the waiter presented him the bill, all the friends asked the amount of their share. After a few rounds of insistence by both sides, the American friends conceded and thanked the young man for the meal. The Japanese friends, however, did not stop. They tried to press money upon their host, acted as if they did not understand, and protested that their wives would disapprove of them if they did not succeeded in paying. The young man felt he could not accept their money, because it would embarrass the American friends who had let him pay. The Japanese friends were insistent, and began to talk together in Japanese, a rarity in front of nonspeakers. The young man was very distressed, because the objective of the dinner was to thank his friends, not to upset them. What would you have done to extricate all parties from this discomforting situation?

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XI. Match the following steps in organizing the meeting and their content: 1. Consider the problem and determine the purpose; 2. Decide who should participate; 3. Arrange for meeting date; Time and Place; 4. Announce the agenda; 5. Physical Arrangements. a) Generally the better days for meetings are Tuesday through Thursdays. However, some executives consider a good time for meetings early Monday or Friday. A poor time is Friday afternoon and immediately after lunch. Good times are 9 to 11 a.m. and 2 to 4 p.m. psychologically desirable as the participants work more alertly to help accomplish the goals of the meeting so that it will end on time. Depending on the audience size and the purpose of the meeting, the chosen place may be in the executive suite, a company conference room, an auditorium, a hotel, or a convention center. b) Most often it is the meeting leader who words the question and prepares the agenda. The announcement is sent early enough to give the participants adequate time to prepare their thoughts on the matter. c) If the purpose of the meeting can be better attained by telephone, memos, letters, video teleconferencing or electronic mail, the participants should not be called together for a meeting. The meeting topic must be genuine, really important and meaningful for the conferees. It must present a difficulty within the experience of the meeting attendees. The problem should also be limited adequately in order to have enough time to solve it within the meeting or decided by the group or about which recommendations can be made to a higher administrative body. d) Business committees have a consistent group of attendees. The invitees should always be those that can have a special contribution to the problem solving. The more difficult the problem the smaller the group - sometimes five or fewer people. But a solution discovery meeting can have 10 or 20 participants for a brainstorming session. To review and discuss regular department activities 30 might be invited. For informational meetings, hundreds may be interested and gain useful explanations. e) Most likely the chairperson will arrange the seating, perhaps in a circle, or around the conference table, or U shape, so the conferees can easily see one another and the chairperson. Items to consider are chalk boards, whiteboards, marking pencils, chalk, erasers, pencils, papers, flip sheets, microphones, projectors, visual aids (charts, tables, graphs). Drinking water, glasses and ashtrays (if smoking is allowed) should be handy. Name cards may be useful if the participants are not personally acquainted. XII Translate into English: a). Negociatorii englezi reprezint o categorie aparte, fiind recunoscui drept cei mai abili, dar nu n sensul de a jongla n arta vicleugului. Pregtii n instituii specifice, care mbin diplomaia, psihanaliza, cu arta dialogului i a

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business-ului, britanicii au o clas nalt. Negociaz numai pe baza unor date concrete, semneaz dup o matur chibzuin i pe baza unor analize complete ale ofertei. Se in de cuvnt asupra celor convenite. Vin pregtii cu fie de caracterizare ale partenerilor i dein informaii la zi despre potenialul partenerilor i produsele sau serviciile care urmeaz a fi negociate. Au scheme de negociere pregtite n prealabil, astfel nct inspiraia de moment joac un rol minor. Echipa de negociatori nu este schimbat pe parcursul tratativelor, iar ntre membrii acesteia exist o adevarat comunicare spiritual. b). Negociatorii germani sunt condui de deviza "un om, un cuvnt", dnd dovad de corectitudine n absolut orice mprejurare. Sunt serioi, calmi, siguri de ei, buni profesioniti, punctuali, exaci n tot ceea ce ntreprind sau vorbesc. Au o educaie aleas, sunt protocolari, politicoi i meticuloi chiar dac uneori, prin superioritatea lor, dau impresia de exces de patriotism specific. Se strduiesc s obin cele mai bune condiii, dar las i partenerului "portie" de ctig. Cei mai persevereni dintre ei chiar se transpun n mentalitatea partenerului, dac acest lucru este necesar pentru atingerea scopului propus. c). Spaniolii i portughezii seamn mult cu romnii prin sorgintea latin comun. Sunt calzi, prietenoi, ospitalieri, i apreciaz partenerii care se intereseaz de cultura, istoria, i modul lor de via. De fapt, similitudinea cu italienii este recunoscut. Ritmul derulrii tranzaciilor este destul de lent, iar amnarea este deseori un subterfugiu agreat pentru meninerea temporar a stadiului discuiilor pe stand-by. Prefer negocierile directe, dar ocazionate de ntlniri protocolare, neoficiale i "n spatele cortinei". Inainte de negocierile propriu-zise, la care ntrzie adesea, n ciuda preteniilor disimulate ca partenerii s fie punctuali - aloc o parte din timp cunoaterii interlocutorilor, avnd o putere de introspecie deosebit. Formali n primele runde de tratative, treptat, recurg la elemente de ordin emoional. Mai mult, cnd nici nu te atepti, manifest o politee exagerat, vecin cu linguirea, ceea ce creeaz o stare euforica i "i fur" din timp. d). Negocierile cu parteneri rui sunt de regul dificile, obositoare, dureaz mai mult dect cu organizaii sau companii similare din Europa Occidentala sau SUA. Impresia vechilor negocieri "tovareti" persist, dei ambele tabere caut s nu o arate. Costul negocierilor este mai ridicat din cauza perioadei lungi de semnare a contractelor. De obicei, deoarece autoritile sunt mai birocratice i lipsite de flexibilitate, prefer parteneri cunoscui. Negociatorii est-europeni sunt extrem de precaui, deoarece sunt n joc de obicei banii firmelor de stat i orice eroare poate duce la pierderea serviciului pe care l au. Relaiile personale bune joac un rol major n eficientizarea temporal i de substan a afacerii. Din cauza srciei n devize convertibile, se ncearc plata n produse, fie parial, fie total iar compania care accepta barterul i sporete ansele de reuit. e). Negociatorii chinezi nu suport partenerii tineri. Ei nu accept s intre n negociere dac, din start, preul solicitat nu este redus pn la nivelul considerat de ei ca rezonabil sau dac nu li se argumenteaz convingator justeea preului solicitat. Sunt nite gazde excelente. Au nceput s aprecieze complimentele, dar manifest nc reticen fa de partenerii tineri sau de sex

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feminin. Se prezint cu echipa de negociere supradimensionat i adeseori, i schimb echipa parial sau total. Au mania de a inocula, n derularea discuiilor, aseriuni legate de relaiile politice, aa c tratativele sunt de multe ori anevoioase. Nu se grbesc niciodat. Echipele cu care se prezint la masa discuiilor au n componena lor muli specialiti care ntreab tot timpul cte ceva, sporind stresul partenerilor. In acest fel eti obligat s rspunzi minute n ir la un tir de ntrebri (legate mai mult sau mai puin de obiectivul negocierii), punndu-i interlocutorii ntr-un fel de defensiv permananent care creeaz o senzaie de oboseal fizic i psihic. f) 7 tehnici verificate pentru ratarea unei negocieri 1. Improvizai totul. In nici un caz nu v ostenii s stabilii dinainte ce negociai. Mai ales ferii-v s delimitai cu precizie obiectul negocierii (o clauz, un pre, un termen, o garanie, etc) 2. Strduii-v s torpilai disponibilitatea celuilalt. De la nceput, reprimai-v orice ncercare de a obine vreo umbr de nelegere, de respect, siguran, control. Tratai-l conform prezumiei de rea credin. Nu luai n serios ideea de negociere, pentru c acomodarea reciproc a intereselor este o utopie. Rezumai-v, cel mult, la a v trgui, adic la a schimba un lucru cu altul. 3. Cultivai adversitatea. Subliniai tot timpul diferenele i nu cedai ispitei de a admite c ai putea avea i vreun scop comun. Incepei fiecare fraz cu eu i scoatei-l pe noi", "mpreun din vocabularul dvs. Ideal ar fi s v certai. 4. Grabii-v s enunai primul oferta. Mai mult, facei-o n termen categorici, pentru a nu v lsa nici o porti de scpare. Astfel, vei fi tot timpul cu spatele la zid, vei avea motive s fii peste msur de nervos i, de ce nu, veti suspenda discuiile. 5. Tratai de pe pozitia celui care n-are de ales. De pild, aruncai toate resursele umane in joc, ncend negocierea de la nivelul patronului, cu toat echipa de consilieri alturi, pentru a v priva de posibilitatea de a v replia, la un moment dat, sub pretextul consultrii cu unul dintre experi. In general, avnd mereu o alternativ, v-ai simti prea relaxat, prea bine, prea avantajat. 6. Formulai o ofert minimal. Are sens oare, s cerei mai mult dect putei obine? Dac interlocutorul accept? In plus, ai dispune de un spaiu prea mare de manevr, ceea ce ar putea s v plictiseasc. 7. Fii crispat, grav, crncen. Dac avei simul umorului, uitai de el. Ar putea s v pun n pericol eecul.

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UNIT 2 FIGURES in BUSINESS

Objectives: - use of figures and numbers appropriately in business - make use of figures in oral and written presentation; graphs, statistics 2.1. Saying numbers correctly A) 0 is pronounced: - oh: - after a decimal point: 6.06 = six point oh six - when dictating or indicating a telephone number: 0944532680 oh nine double four five three two six eight oh - a room number: 303: three oh three - a bus number: 105 one oh five - in years: 1909 nineteen oh nine; 2003: two thousand oh three (American); two thousand and three (British); Nought: - when expressing a leading zero: 0.001% - nought point oh one Zero: - for the number zero: 0 - for temperature: 5 five degrees below zero - Nil: - sports scores: Romania won the match two nil (2-0) Love: - in tennis scores: The score is thirty love after the break. B) The decimal point Point, not comma is used for decimals in English. Comma is used for writing thousands, but computers do not use it. When reading, all the figures after a decimal are pronounced separately: - 10.33 - ten point three three (double three) but NEVER ten thirty three - 0.25 nought point two five - 10.002 ten point, oh oh, (double oh) two - 10,002 ten thousand and two Units of money are read like this: - $5.25 = five dollars twenty five. (when doing business, pronounce each figure separately, carefully) - 0.250 nought point two five oh C) When dealing with rates, in percentage, bear in mind the following reading: - 0.3% - one third of one percent - 0.25% - a quarter of a percentage point D) Hundreds, Thousands and Millions - British English: 225 - two hundred and twenty five - American English: 225 - two hundred twenty five; 1,999: one thousand nine hundred ninety nine year 1999: nineteen ninety nine year 2000: two thousand year 2005: two thousand and five year 2010: two thousand and ten or, twenty ten

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1,000,000: million, or ten to the power six (106 ) 1,000,000,000: a billion or ten to the power nine (109) E) Squares, Cubes and Roots 52 five squared 53 five cubed 5 the square root of 5 F) Fractions Fractions are usually similar to ordinal numbers: a half, a fifth, a quarter, 2/3 two thirds, 3/4 three quarters G) Foreign currency 1. How many lei-s are there to the dollar? 2. How many Euros shall we get per dollar? 3. The current rate is 35,000 lei to the dollar. H) Numeric adjectives Numbers can be used as adjectives before a noun: 1. A fifteen-minute meeting but NEVER a fifteen minutes meeting. 2. A twenty-dollar allowance, but NEVER a twenty dollars allowance. I) Mathematical symbols and expressions: 1. 2+5=7 two plus five equals seven 2. 8-3 eight minus three 3. 7x6 seven times six 4. 12:3 twelve divided by three 5. A>B A is more than B; A is greater than B 6. A<B A is less than B; A is smaller than B 7. A B = A is more or equal than B 8. A B = A is less or equal to B 9. 30 % = thirty per cent 10. AB approximately equal to 11. A B = plus or minus 12. A x B= multiplied by/times(or, when giving dimensions, by) 13. x2 = x squared 14. x3= x cubed 15. x 4= x to the power of four/five, etc J) Approximation is expressed by: - nearly: ...nearly eight thousand pounds for each year; - just under/over: ...just under the previous figure; - approximately: ...the rise was approximately equal to the one expected; - coming/ going up/down to: ...the trend is coming down to...; - roughly: ...its entry price level was roughly 1 million dollars; - more or less: ...the fall was more or less of ten pounds; - well over/under: ...the price raise was under the one predicted by specialists last year. K) Rates and ratios are expressed: - population density per (unit): ten items in one hundred were... L) When presenting trends, some specific expressions are used: upward movement: - a rise: ... a significant rise has occurred in; - an increase: ... an incredible increase in real estate prices; - a climb/jump:... a dramatic jump of the expenditures; - go up: ... the prices went up substantially last year. downward movement: - a fall: ... a dramatic fall in consumers goods sales;

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- a drop: a sudden drop in cars sales; - a decline: ...an important decline is noticed in book sales lately; - decrease: ... business sector has decreased gradually. M) Other ways of expressing tendencies and trends of different economic phenomena: - to level out/off: ... the prices leveled out this year; - to remain stable: ... sales level remained stable for the whole year; - to fluctuate: ... the export level fluctuated the last years; - to reach/come to a peak: ... the Japanese car industry reached its peak in 1995. N) Specific prepositions: - productivity raised from 50% to 75% - productivity fell from 60% to 40% - the salaries in budgetary sectors stayed /stood/remained at the same level - a basic salary increase of minimum 37,5% - productivity rose by three percent O) The extent of change is indicated through certain specific vocabulary: - fractionally/marginally/slightly/a little lower/higher - somewhat lower/higher -considerably/substantially/a great deal/noticeably/far lower/much lower/dramatically/lower/higher - grow - dramatically/sharply/rapidly - grow gradual/steady fall P) Contrast is also expressed specifically: - although/despite/in spite of/whereas/however/nevertheless/ - phrases like: in contrast (to); ...while ...;...against...; ...compared to...; in comparison (to)... on the other hand...; on the contrary. R) Similarity is shown using: - like/ alike/ the same/is similar to/ neither... nor/ similarly S) Describing size and dimensions: a. It is 6 meters wide and 12 meters long. b. It is 6 meters by 12 meters. c. It is square/rectangular/round d. It is L-shaped. e. Its like an H. f. It has a seating capacity of sixty g. It can take up to sixty people. EXERCISES: 1. 2. 3. 4. 5. 6. 7. 8. 9. I. Read the following aloud: 0. 02 per cent only! Incredible! Room service, for 609, please! I'm shivering! It must be less than 10 degrees below 0. My favorite team won 1-0. My grandmother was born in 1909. We shall get the 209 bus to reach to the zoo. Write down my telephone number: 0945306558. The score has already reached 15-0 for our tennis team. How much did the dollar raise? 5.04 percent.

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10. 0 is the first natural figure in mathematics. II. Read aloud and write the following: 1. The exchange rate has raised 3.233 per cent. 2. The difference is hardly over 0.02 per cent. 3. The price is around 20.50 in sterling. 4. Repeat, please, 0.25 or 0.025? 5. The dollar rose to 3.595 lei. 6. I said 12.002, not 12,002. III. Dictate and write: 1. Say it clearly, once again, 2,000,000,000 or 2,000,000? 2. The leu rate of exchange has become more stable in 2004. 3. The denomination of $ banknotes are 1; 2; 5; 10; 20; 50; 500; 10,000. 4. The divisions of the $ are silver coins of 1 and 5 (nickel), 10 (dime); 25 (quarter); 50 (half a dollar). IV. Calculate and read aloud: 1. 35+25= 2. 17-12= 3. 4+7+12+9-5-3= 1+2+3+4+5+6+7+8+9= 5. 5 =; 121 = 6. 32 =; 252 =; 35= V. The following text includes measurements in feet and inches, which are still used when talking about the peoples height in some Englishspeaking countries. However, it is easy to calculate the equivalent height in meters. 1 foot () = 30 cm 1 inch () =2.5 cm 5 feet = 5x30 cm = 1.5 m 6 inch = 6x2.5 = 15 cm So five feet six (56) = 1.5 m + 15 cm, which is 1.65 m VI. Look at the way numbers and figures are used in the dialogues. Compare the spoken form with the written form on the right. "That'll be thirty-seven pounds twenty, please..." (37.20) "Room four oh eight." (408) "Two hundred divided by one point four equals one hundred and forty-two pounds eighty-six..." (200:1.4=142.86) "... less two pounds commission ... comes to one hundred and forty pounds eighty-six pence" (- 2.00 = 140.86) VII. Read these amounts to a partner and get them to make the final calculation: 1. 2.50+4.15 = 2. 10% of $150 = 3. 5 x 14 = 4. 206 + 2,324 = 5. $16.95 x 2 = 6. $1000 -10% = 7. 60+ 15% = 8. $4,396 + $3,221 = VIII. How quickly can you find the answer to this sum?

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Five add three, divide by four, subtract one, multiply by six, take away five, three times, plus eleven, minus four, halved, equals what? IX. Give an example of each item below: 1. an odd number 2. a three-figure sum 3. four consecutive numbers 4. a multiple of 17 5. an even number 6. a fraction 7. a number with three digits after the decimal point 8. an equation X. Write a short paragraph about the beliefs and superstitions you know about numbers. After having revised the main ways of using figures in written and oral English for business, let us have a look on how to use them when having a business presentation to make possible a correct decision-taking process. XI. Describe the following graphs:

a)

b)

c)

..d)

e)

f)

XI. Name the following types of graphs: 1. column chart; 2. pie chart; 3. stacked chart; 4. doughnut chart; 5. bar chart.

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35 30 25 20 15 10 5 0 Jan Feb Mar Apr May Jun

a
Food

Jan Feb Mar Apr May Jun

70 60 50 40 30 20 10 0 Jan Motel Gas Food

Feb

Mar

Apr

May

Jun

26

10%

4%

24% 62%

Japan

Others

10

Europe

24

America

62

10

20

30

40

50

60

70

e XII. Read the following introduction text describing the development of ATM use and its future growth. Look at the graph and complete its description. More ATMs Between 1998 and 2004 world automatic teller machine (ATM) installations were predicted to rise by 45% according to Retail Banking Research. The growth began immediately after 1975 and... 1200 1100 1000 ..900 ..800 ..700

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XIII. Translate into English: A) Economia este arta de a profita cel mai bine de via. (George Bernard Shaw) Economul este cel mai bogat dintre oameni. (Nicholas Sebastian Roch de Chamfort, 1741 1791, moralist francez) Inelepciunea nseamn prevedere. (Publius Afer Terentius 190-159 .e.n. poet comic latin) Invtura este aur care are pre oriunde. (Epictet din Hierapolis 50-138 .e.n. filozof grec) Fiecare om este rodul propriei sale strduine. (H. de Balzac) B. Tendina de apreciere a monedei europene poate continua i n perioada urmtoare pn la un nivel de 1.2930 dolari/euro, iar n ceea ce privete piaa local pragul de 41.000 este un suport foarte puternic pentru cursul rol/euro. Pe piaa romneasc euro a ntregistrat ieri o apreciere minor, fiind evaluat de Banca Central la 41.o92 lei, cu ase lei mai mult dect cotaia de vineri. Piaa valutar interbancar s-a deschis ieri cu cotaii de 41.100/41.130lei/euro. Cotaiile au atins o maxim ded 41.170 lei/euro n primele ore de tranzacionare, dup care au sczut uor pn la 41.125741.155 lei/euro, nivel la care au staionat mai mult timp. Piaa s-a nchis ieri n cotaii de 41.075/41.105, lei/euro, la nivelul nchiderii de vineri, dup o edin calm, cu volume mai mici dect media unei zile obinuite.

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UNIT 3 DRAFTING and MAILING FORMAL WRITTEN DOCUMENTS

Objectives: business mailing make familiar with rules of formal business letter writing use appropriate tone, attitude and vocabulary

3.1. Guide for business mailing A wide range of services for mailing letters and packets abroad are offered by international mail. Easy reference to the international letter services are available. For business sending large postings of letters and printed papers abroad, a number of account services are available. - air stream available for bulk posting of air mail and printed paper - printflow services: economical ways of sending priunted papers abroad - swiftair express airmail service available to any place in the world. Size and weight limits are the same as for ordinary letters and for printed papers. A suplementary express fee is payable in addition to normal postage. - aerogrammes: stationery and envelope all in one; prepaid for posting any place in the world. Foir extra convenience, aerogrammes are also available at a count in pack of six. - advice of delivery: available for registered and insured items - compensation: may be paid where it can be poroved that losss or damage occured while the item was in our custody. A certificate of posting is asked to be produced - insurance: is available to most moajor destinations - registration: the international equivalent to Recorded Delivery which provides proof and posting and a signature on delivery, some additional security and a small amount of cover in the event of loss or damage. Available for letters, small packets and printed papers, except those posted in bulk. - International Business Reply Service: available from the local post office unit; it enables pre-paying postage on behalf of the overseas clients. It is available to certain destinations for letters and cards weighing up to 50 gms. International Reply Coupons: available from local post office enabling pre-paying postage - Fax (facsimile transmission): Not only is it cheaper and more costeffective to send documents by fax, but it is also not limited by language barriers. Equally, diagrams, drawings and charts can easily and quickly be communicated to offices around the world. Fax is also regarded as an essential

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and indispensable everyday business tool nowdays, as it saves time and money. It allows a document to be transmitted to many locations in one operation. The transmission is made out for hours and for continued reception when out of paper. Messages can be printed out when the paper is refilled and staff do not need to vigil over the fax machine. The use of transmit memory can allow the same documetn to be sent to several users withoyut rescaning the original, so simplyfying the sending operation. Polling also allows companies to achieve cost savings on transmission times. Information can be received at the user's convenience, even out of office hours. More than that, sales men, mobile engineers, managing directors and company chairmen no longer make daily visits to their office to update themselves on important issues or initiate major decisions, as the mobile fax can be used now from the office in the car. Vital information such as sales and financial reports, orders and business letters and confirmations, diagrams can be quickly and easily faxed through to their vehicles at the touch of a button. The inclusion of a PC facsimile interface allow users to receive fax messages directly from their PCs avoiding the need or intermediate paper print-outs, contributing to the paperless transmission. The growth of facsimile and e-mail transmission increased the number of people working from home. Keeping in touch with their offices via modern technologies, home working tends to become a welcome relief from the daily treck into the office, complete with traffic jaims and all. Computer: the word processor (WP) is an electronic device equivalent to a typewriter. Instead of typing directly onto a page, the document appear on an electronic screen. The documents are saved on a disk that may be retrieved at a later date for editing. Specialized programs are also tailored to handy mailing lists. Computers facilitate business to business communicartion and they can limk interested prople to information through internet. 3.2. Letter Layout and Style of Formal Business Letter Formal is considered a fairly old fashion style in nowadays business correspondence. Ideas are presented politely and carefully, and there is much use of fixed expressions and long words. The language is impersonal. Grammar and punctuation is important. It is not particularly the style of emails but it can be used if the matter is serious (a complaint). Neutral/Standard style is mostly used in professional/work e-mails. The language used is personal, simple, clear and direct. Contractions are used in short sentences. Informal style of e-mails is used only between friends. The messages can be short and they can include funny commentaries or remarks in conversational expressions and bad grammar or misspelt words will be tolerated. When preparing for a successful and effective written business message, it is important to have in mind several steps to take even if your organization has the best modern office technology for inputting ideas, processing messages, and storing, retrieving, reproducing and disseminating them: planning, organizing, composing, drafting, editing and revising. The written

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message must also be proofread and corrected before being mailed, sent by fax or by Internet. Apart for the specific purpose of the written message, there is the underlying general purpose of building goodwill. In a refusal of a collection letter, the purpose should be twofold to refuse the request or ask for money, but also to maintain the customers goodwill. For this reason, the writer must take into account his message adapting to the recipients views and needs, even if the sender has never met him or her. It is of great help to picture the recipient, - a business or professional person; a superior (boss), colleague, or subordinate; man or woman; new or longtime customer; young, middle aged or elderly; educational level, attitudes. All types of communication will also take into account areas in which the recipient is well informed, pleased or displeased, positive or negative, or neutral; interested, enthusiastic or uninterested or unreceptive. The next step is to choose the ideas to be written. When replying to a letter the main points to be dealt with can be jotted briefly in the margin or on a memo pad. For a welcome letter for a new customer, that selected your bank, for example to open an account, only one or two sentences will not suffice. He should be made aware of your bank policy concerning the opening accounts, and the message will also contain information about overall services available to them and the senders association eagerness to become his financial headquarters. After deciding what ideas to include it is important to select any specific facts, updated figures or quotations according to the senders organization policies, procedures. The order, in which the ideas are outlined, is often as important as the ideas themselves, as disorganized writing reflects disorganized, illogical thought process or careless preparation. The organizational plan will be pendent on the reaction expected from the recipient: direct-request; goodnews, bad news, or persuasive request plan. These are considered flexible guide patterns. A direct approach can be used when the message conveys good news, favorable or neutral information or exchange routine information between companies. The direct-request plan is used when the main purpose of the letter is making a request that requires no persuasion.
Direct-Request Plan/Good-News Plan 1. Main idea/Best news - request, main statement, or question - reasons 2. Explanations - all necessary details - easy-reading devices - educational material - promotion material 3. Courteous close, with motivation to action - clear statement of action desired - easy action - appreciation and goodwill

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The indirect-approach is used when an unfavorable reaction is expected to the information or request conveyed by the message. The main idea will never be present in the first paragraph. Some relevant, pleasant, neutral or receiver-benefit statements and then some reasonable explanations before the introduction of the unpleasant idea will take its place.
Bad-News/Persuasive-Request Plan 1. Pleasant, neutral or readers interest statements 2. Explanation - details, tactfully stated 3. Decision implied/statement of request and offer of additional help or suggestion 4. Positive, friendly close/action - invitation to future action/clear statement of action desired - easy action (stamped envelope, etc); dated action - willingness of further help - recipient benefit

Mind the following formal characteristics of a business letter shown in the following pieces of correspondence:

Main Idea Main Idea

ICC INTERNATIONAL CHAMBER OF COMMERCE The World Business Organization Department of Commissions Mr. Hernando Zerda N. International Trade Office Ecopetrol Fax 563 447 2465 2 November 2000 Dear Mr. Zerda, With regard to your query number T.S.134 to the ICC Banking Commission, please be advised that our initial response to this query, set out in our letter to you of 15 September, 2000, has been amended by the Banking Commission at its meeting of

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October 3-4. The full-amended text is the official response of the Banking Commission to your query. Please find below the opinion of the officers of the Banking Commission. ANALYSIS & CONCLUSION 1. Sub-article 39b covers the situation where the credit prohibits partial shipments and the quantity of goods shown in the credit is not given as individual items or packing units. This could be where there is no quantity described or where the quantity is expressed as a unit of weight such as metric tons. In these circumstances, the beneficiary has the ability to ship up to 5% less or 5% more provided the credit amount is not exceeded. If the shipment falls within 5% less than a quantity stated it will be deemed to be a partial shipment. 2. When issuing credits, banks wish to be aware of the total liability hereunder therefore the credit needs to express a maximum amount that could possibly be drawn hereunder. The credit would then have a clause that states that only one drawing is allowed hereunder and the drawing may be for any value not exceeding the value of the credit. In this way the provisions of Article 39 would not apply. The opinion rendered on this query reflects the opinion of the ICC Banking Commission. Neither the ICC nor any of its employees, nor any member of the Banking Commission, shall be liable to any person for any loss or damage arising out of any act or omission in connection with the rendered opinion. Yours sincerely, Ron Kats, Policy Manager - Banking Commission

The letter shown is sent from an institution (International Chamber of Commerce to an individual as an answer to his inquiry. The first main parts of a business letter is the letterhead that is printed on the top of the sheet of paper, usually of white color, It can be replaced by the senders address which is usually placed on the top left hand side of the letter. It is of considerable assistance to business correspondence when letters include the senders name and appropriate letters at the top: From Dir. Marshall, Sir David Smith, K.L.T. (The custom of printing letters after peoples names has arisen in modern times and has been determined by the great expansion of the Orders of Chivalry and higher honors, together with the multiplication of degrees and appointments. In business and officially it is polite to get all that lettering right: Letters are but abbreviations, and customs has evolved certain standards abbreviations and most people seek guidance about conventions.) A reply is often wrongly addressed because the writer has no knowledge of the letters recipient or sometimes his or her rank. When the writer is a woman, the practice gives the recipient the advantage of knowing whether she should be styled with a title (Lady Brown) or, much more often, Mrs. or Miss Brown. One also knows that the correct form of address is Mrs. Joan Davidson, instead of, according to her signature, Mrs. Davidson Joan, or Mrs. J. Davidson. Esq. or Mr. may be omitted because it sounds pretentious, but it presents no difficulty to which it replies. This system has some advantages over typing the name under the signature. It is not customary to include the letters after the name here and seldom a title.

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The inside or the receivers address is positioned on the left hand side, also, under the letterhead. It will contain either the surname of the addressee if the writer knows it, on the first line of the address, preceded by a courtesy title or the persons initial(s) or his or her first given name. The writer should know or be able to assume the addressees position in the company (Sales Manager, The Finance Director, etc). The letter can be also addressed to a particular department of the company. If the sender does not have any information about the person or department, the letter should go to, he can simply address it to the company itself. In UK, after the name of the addressee the followings are written in the order: Name of the building Number building and name of the street, road, or avenue Name of town or city and the postcode Name of the country Or the number of the fax code or/Internet address Both the addresses may be blocked (i.e. each line is vertically aligned with the one above), or indented. There are no rules stating that one style or other must be used, but any of them used, the writer must be consistent, i.e. not to block the senders address and then indent the inside address or the body of the letter. A comma, except for the last line, can follow each line of the address but the majority of firms now use the open punctuation, i.e. without commas. In order to direct the letter to a certain addressee, there is also the alternative Attention line: For the attention of the Security Department: For the attention of the Deputy General Manager Which is placed between the date and the salutation line. The date is written below the senders address, separated by it with a space, on the right hand side of the page. The month should not be written in figures, as they can become confusing. Should be abbreviated, as it simply looks untidy. It takes a moment to write the date in full, but it can take a lot longer to find a misfiled letter that was put in the wrong file because the date was written in a confusing way. As a salutation line is usually used Dear. The American Style of including both the Christian and the surname is growing in Europe, for example Dear John Watson. The younger generation considers it to be useful in the business world where informality is on the increase. When corresponding with a firm, letters should be addressed to an individual, whenever possible, such as the Chairman, The Managing Director, The Secretary or The Manager. When a firm writes to another firm Gentlemen is used instead of the usual Dear Sir, which is also adopted by a private individual when addressing to an organization or group. Mesdames is not normally used in business letters and it can be avoided by writing Dear Madam or Dear Mrs. Stephenson. Messrs has become archaic but it is still used for the profession of law or to firms with personal names: Messrs Berkley & Co. Messrs John & Mary Bloomfield, but it is never

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used when the firms name bears a ladys name: Josephine Dowel & Associates. The body of the letter may be full-block or indented, according to the senders wish. The length of the letter depends on the subject, but the right length includes the right amount of information. The letter should also make all the necessary points in a logical sequence, with each idea or piece of information linking up with the previous one in a pattern that can be followed. No jumping around statements or switching to other subjects are allowed. Before passing to the drafting of the letter, it is advisable to make a plan and then check if all the necessary information was included and put it into the right order. The first paragraph of the letter will settle the tone of the whole letter, and gives the reader his first impression about the writer and the company. The writer should thank his correspondent if he is replying to him, setting also the purpose of the letter. The main paragraph will concern the points that need to be made, answers to give or questions to ask. When closing the letter a thank-you line should be included in the letter as a reply if there was not such a line in the beginning. The letter will invite for further enquiries or correspondence and mention that the writer looks forward to hearing from the addressee soon. Simplicity and clear style, accuracy of the business letter lead to a better understanding and closer relationship of the business partners. But the style should not, however, be so simple that the letter become discourteous, and sound rude: complex sentences, passive rather than active, full forms, rather than abbreviated ones should be used. The stereotype formal style of ending business letters has become almost obsolete, except for official and formal letters to Ambassadors, High Commissioners, Governors, senior officials. The following endings of letters are now generally used, but the very formal style may occasionally be preferred:

Formal: I remain (or am)

Your Grace, Most Reverend Sir, Right Reverend Sir, Your Excellency, My Lord, Mr. President, Mr. Chairman, Sir, Madam, etc. Yours Faithfully, (or Yours truly) Faithfully is used on a matter of business, but truly is used when the writer does not know the recipient, but the subject of the letter is not business. For social style of ending a letter Yours sincerely (or Yours very sincerely) is commonly used. It is important that the letter actually have the right documents enclosed: if, in the body of the letter a document is mentioned as enclosed, the writer makes sure that it is that document itself enclosed, with it specific number of pages registered also on the bottom of the letter. The signature of the sender is laid on the right hand side of the letter, after the name of the writer and position typed not to induce confusion for the receiver. When the person entitled to sign the letter is not available, then a p.p. is mentioned down before the signature to make the receiver understand who signs the letter actually. When not having a letterhead, the sender's address is written on the top right-hand side of the page. As for the date, the abbreviation "th" can be left

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out after the date: e.g. June 12 instead of June 12th. The inside address (receiver's address) is written below the sender's address, on the opposite side of the page. When writing the salutation line, the surname of the addressee is to be written when it is known, preceded by a courtesy title. If you know nothing about the 5) company you are addressing to, the letter can be addressed simply to the company itself. If the letter begins with "Dear Sir/ Sirs/ Madam", it will close with "Yours faithfully", but if it begins with "Dear Mr. Peter/ Mrs. Weldon/ Ms. Duddles, it ends with "Yours sincerely". At the end, it is common and safe to sign with the given name and title. So that your written and oral communication will be easily understood, friendly and accurate, make your message clear by using words that are familiar to your receiver. Aim for unity, coherence, and emphasis in your sentences and paragraphs. Have an average sentence length of around 15-20 words and an average sentence length of around 4-5 lines in letters and 8-9 lines in reports. To make figures stand out clearly, you may find headings to be useful. Give your reader examples with appropriate easy-to-read characteristics or other visual aids. The courteous communicator is sincerely tactful and appreciative: he omits expressions that irritate, belittle, or have questionable humor and he also grants and apologizes and answers mail as soon as possible. Overall corectness requires correct language level and accurate facts, figures, word choices, grammar, spelling and punctuation. Nondiscrimination toward people because of their gender, race, ethnic origin or physical disableness is necessary. The body of the letter should be displayed in a block form or indented. Whichever style you use, you must be consistent and use that style all through the letter. Mind the different styles of the two letters:

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A.

Dear Sirs:

Thank you for your letter of 7th March in which you enquire about insurance cover for your shipments of computer components from Sydney to Rio de Janeiro. In view of the very different nature of the consignments, I would recommend that you adopt two different solutions. I suggest that you take out our marine all-risk valued policy. This provides cover against all standards risks such as wreckage, fire, theft and damage while loading and unloading, but you would be also strongly advised to include a "with particular average" clause. Thus, in the event of barratry (voluntary damage to goods in order to save the rest of the cargo) you would receive compensation. This solution would mean a policy at 70p% and therefore a total premium of $564,390, but the extra outlay is less worthwhile. for the extent of cover provided. Should you require further information, please do not hesitate to contact us. Yours faithfully, T.L. Lawrence Insurance agent The Commercial Bank Ltd Stratford Street Branch Barcelona

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CAS Blvd. des Italiens 3256 France

Dear Sirs, We are still missing your reply to our letter of December 16 (a photocopy is enclosed). As we have not advised our customer due to the difference in the amount claimed and the invoices, please advise us as soon as possible whether the documents may be released against payment of FF 32,305,413. As already advised, the relative documents are held at your disposal.

Yours faithfully D. Bartolomeo

Encl: Letter No. 237/December, 16 2001

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3.3. Electronic Mails E-mails are by far the most common method of writing business messages nowadays. Messages are transferred from one computer to another by cables of by phone-lines (using a modem). Often a central computer acts as a post office, providing each user with a space in its memory, called a mailbox, where messages can be left. The users can periodically check the mailbox for their messages. The content characteristics of e-mails are similar to the ones of ordinary letters, since they are used for both internal and external correspondence. Their format is simpler as the sender and the recipient addresses are included in the electronic device. But the formal, standard or informal style depends on the relationship between the correspondents. 3.4. Writing styles Formal Thank you for your letter/e-mail With regard/reference to... I would be grateful if you could ... We regret to advise you that ... Please accept your apologies for ... I was wondering if you could ... We note that you have not ... It is necessary for me to ... It is possible that I will ... However, .../In addition, .../Therefore, ... We would like to remind you that... If you require any further information, please do not hesitate to contact me. I look forward to meeting you next week. Informal Thanks for the... Re... Please, could you ... I'm sorry to tell you that I'm sorry for ... Could you ...? You haven't ... I need to ... I might ... But, .../Also, .../So, ... Don't forget that ... If you need more details, let me know. See you next week.

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EXERCISES I. Look at the following letter structure and identify its main parts and their position: a) date; b) letterhead; c) subject line; d) inside address; e) copies; f) body ; g) reference line; h) salutation line; i) signature; j) complimentary line.

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II. Correct the following sentences so that their meanings become clear. If necessary use more than one concise sentence: From one insurance company to another insurance company: Frankly, the information we have while it may disclose some contributory negligence on our assured's part which of course, is questionable, we still feel that your assured had he not been driving at the high rate of speed, that he was could have swerved to his right and avoided our assured's vehicle but due to the fact he was coming down a hill at such a tremendous rate of speed with no control over his car and struck our assured there was enough room to the right of our assured to have turned slightly and, therefore, avoided the accident. III. Match the following "main parts" of a business letter with their "content" and those from the letter before: 1. letterhead; 2. inside address; 3. attention line; 4. addressing line (salutation line) 5. reference line/ subject line; 6; body of the letter; 7. date; 8. complimentary close; 9. signature; 10. enclosure; 11. copies. a) draws attention to the topic of the letter and it can be used as reference throughout the letter; b) usually at the end of the letter when copies are sent to people other than the named recipient (c.c. - carbon copy); c) main part of a business letter containing: name and type of the company, the address of the main office or registered office, telephone, fax, the registered number with the country or city in which the company was registered, the logo of the company; d) ending line of a business letter before the signature: G.B. Yours faithfully, Faithfully yours, Sincerely; U.S.A.: Yours truly; e) the address of the addressee; f) It will include the typed position in the firm; p.p. (per pro) means for and on behalf of; g) the content of the letter; h) reference to a certain person in the recipient firm: for the attention of / private and confidential; i) courtesy titles: Dear Sirs (U.S.A. Gentlemen)/Sir/ Madam/ Sir or Madam; Dear Mr./Mrs./Miss./Ms.; j) copies of the letter sent to other recipients or different other documents attached; k) written below the sender's address or in the right hand side of the page: month never written in figures or in short. IV. Write Letter, Fax, or e-mail next to each of these descriptions: 1. This is used in routine day-to-day communication where the correct choice of words is not so important. The subject title is important to help the reader find it in files later. The style is informal and very direct. The content is very short as only the basic information is mentioned. 2. This is used for those situations where the writer wants to make a good impression or where the correct choice of words is important (e.g.) for a first contact with a possible new customer or for making a complaint). The style is careful and polite and there is much use of standard expression. 3. This is used for some day-to-day communication, particularly to transmit copies of documents that are not in electronic form. Then style is intermediate and depends on who will read it: informal, direct language can be mixed with some longer, standard expressions.

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V. Use the table to separate the formal/standard from the informal expressions used in business letters or e-mails: Formal/Standard Informal 1. What do you need?; 2. However.../In addition.../Therefore...; 3. Sory, I can't manage the shortage of...; 4. I promise; 5. Could you?; 6. Shall I...?; 7. Thank you for your mail received on...; 8. I look forward to meeting you next week.; 9. Please, accept our apologies...10. I was wondering if you could... 11. Please, could you...?; 12. I need to...; 13. I am afraid I will be not able to attend...; 14. Don't forget to... 15. Re:...; 16. We regret to advise you that...; 17. Don't forget to...;18. I would be grateful if you could...; 19. We noticed from our records that ...; 20. I'm sorry for...; 21. Please, let us know your requirements...22. We would like to remind you...; 23. But.../Also.../So...; 24. Would you like me to...25. See you next week; 26. It is necessary for me to...27. You haven't ...; 28. With reference .../regard to...; 29. I can asure you to... 30. You haven't ... . VI. Match the abbreviations with their meanings:

1. i.e. (id est) 2. e.g. (exempli gratia) 3. N.B. (nota bene) 4. P.S. (post scriptum)

a).Here are some examples... b) That is... c) add some information at the end d) special attention required at this point e) the person in charge to represent the manager

5. pp (per procurationem)

VII. Opening and closing an e-mail. Match the e-mail beginnings with the endings: Beginnings ... 1. I am writing with regard to your recent e-mail. We regret to inform you that there are no double rooms available for the nights you require. 2. Thank you so much for the wonderful present! It's exactly the book that I needed how did you know? I am really looking forward to reading it. 3. Patricia, I've just read your e-mail. I'm so sorry to hear about the result ... Endings a) Anyway, thanks for inviting, me and I'm really looking forward to it. Do you want me to bring anything? b) You know you can coun t on me if you need any support. I'll call you at the weekend to see how things are. c) Should you need any further information about the room availability we will be happy to assist you.

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4. Sorry, I can't make it to your birthday party at McArthur restaurant, as I am away on that very day. 5. I'm mailing this via "Contact us" link on your website. I'd like to know a few more details about the antivirus software that's listed on the site.... 6. I am writing to you with reference to our order no. TP 33. The goods arrived this morning, but you only sent 200 pieces instead of 300 that we ordered. 7. Yes! Great! I'd love to come to the party. .... 8. I've just heard from Albert about the Paris contract. It's fantastic news you worked really hard on this and you deserve the success. .....

d) I look forward to receiving this information as soon as possible. e) It's really great news, and I'm sure that it's only the beginning of your work in the French market. f) Please deal with this matter urgently. I expect a reply from you by tomorrow morning at the latest. g) Thanks again for the gift, and give my regards to your family. h) Anyway, sorry again that I can't come, but have a great time. I hope I can meet up soon. What about going to see that newly awarded film?

VIII. Fill in the gaps of the letter the missing words: terms; order; reach; list; discount; credit; prepared; units; well-known; latest; size; guarantee Dear Mr. Sanchez, Thank you for sending your current catalogue and price 1. ............... last week. We are interested in purchasing 10,000 000 2. .................. of product ref TTP 58 and 5,000 of product ref K800. However, there are one or two things we would like to clarify before going ahead with a firm 3 .................... 1. Do you give any 4. ............... on an order of this 5. ................. ? 2. Would you be 6. .............. to let us have the goods on 7. ................? Our normal 8. .................. of payment are 90 days after delivery, and we can, of course supply a bank 9. ................. . 3. We can find no mention of delivery times in your documentation. We need these items by the end of December at the 10. ................. If we can 11. ......... an agreement on these matters, we are sure that we can do more business with you in the future. We are 12. a............... ............... company that has been in the market for over twenty years. We look forward to hearing from you soon. Paul Smith IX. Translate into English: Dac dorii s v nsuii cu succes comunicarea interpersonal, nu v putei mulumi doar cu o singur tehnic. Trebuie s v cultivai aptitudinea unui ascultri empatice, ntemeiate pe ncredere, care s trezeasc n cellalt

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dorina de deschidere. Cnd vorbete altcineva "ascultm" de obicei pe unul dintre cele 4 nivele: - ignorm interlocutorul, neascultndu-l de fapt - ne prefacem c-l ascultm: da, da! Hm! Aa, aa! - ascultm selectiv, auzind doar fragmente din ceea ce se spune - ascultm cu atenie concentrandu-ne pe cuvintele rostite Ascultarea empatic este al cincilea nivel de ascultare, forma cea mai elevat a ascultrii. Aceasta nu nseamn o atitudine aprobatoare, ci o nelegere ct mai deplin, mai profund la nivel intelectual i afectiv. Nevoia uman imperioas este supravieuirea psihologic - a fi neles, a se putea afirma, a fi confirmat, a fi apreciat. A asculta pe cineva cu empatie nseamn a satisface aceast nevoie vital, dup care se poate trece la rezolvarea problemei, la influenarea interlocutorului. Dar ascultarea empatic comport i riscuri. Trebuie s fii foarte sigur de tine pentru a asculta cu o profund participare, deoarece te expui la rndul tu unor influene. Devii vulnerabil. Iat paradoxul: pentru a exercita o influen, trebuie s te lai influenat. Asta nseamn a nelege cu adevrat.

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UNIT 4 EMPLOYMENT FILE; JOB INTERVIEW

Objectives: - students will learn to self assess: draft application letter; CV; prepare the interview - formal letter skills development - interviewing skills
ROMANIA CABLE SYSTEMS Is looking for: FINANCIAL EXECUTIVE FOR RCS OPERATIONS IN HUNGARY Requirements: Relevant bachelor degree (post graduation degree is a plus) Minimum 3 year experience as consultant in international company Very good knowledge in International Accounting Standards Relevant experience in preparation of consolidated accounts Fluency in English is a must Knowledge of Hungarian is an advantage __________________________________________________________ Candidates should send their CV and letter of intention to :39.20.832, latest 28.10.2000

INSURANCE TRAINEE $5,000 per annum plus bonus plus luncheon vouchers We are seeking a young ambitious person with mathematical ability, to be trained an all aspects of marine insurance. Full training will be given. Call 001 342 9044 for further details and speak to Philip Donaldson Philip Donaldson Insurance Brokers
It is highly likely that you will change jobs and positions several times during your life. Responding to advertisements, to posted job openings in your current organization or to recruiters demands, some form of written presentation. Most "ads" use abbreviated forms: "Wntd" (wanted); "smll co" (small company); "slry" (salary); "usl bnfts" (usual benefits); "clk" (clerk); "accnts" (accounts); "mngr" (manager); "asst" (assistant), "vcs" (vacations); etc. When you seek a first position or you desire a new position, you must promote and "sell" yourself as a product. Therefore, market research is needed concerning job and career opportunities before starting to write and make a product attributes analysis that will attract the employer.

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For an adequate self-appraisal take an inventory of your employment qualifications. List your specific achievements, capabilities, interests, attitudes and characteristics under certain heading: 1. Work experience: dates, employers, titles, duties, responsibilities, successes, promotions.

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2. Education: schools you attended: junior colleges, colleges, universities, technical schools, -dates, names, locations, degrees, scholastic standing in each, accomplishments. 3. Extracurricular and professional organization achievements: membership in sports, church, social community, projects, coaching, student teaching, tutoring; achievements, honors, awards-scholarships, honor rolls, recognitions. 4. Interests, preferences, attitudes: integrity, enthusiasm, dependability, ability to communicate in writing and orally, intelligence, ability to listen, maturity, analytical, ability, to cooperate with others, emotional stability, decision-making ability, capacity of leadership, self-confidence, adaptability, sense of humor, determination, health and energy, etc, etc. The next step will be your job-getting campaign and determine which job and employers require what you have to offer. Published sources and various people can help to inform you about careers and jobs available in your domain. Annual reports, recruiting booklets, occasional articles in business and professional journals present companies' new ventures, expansions, additional products. After having evaluated your assets, and researched job opportunities and employers' requirements, you are ready to prepare your written "sales promotion". Prepare a CV (resume) organizing pertinent facts under appropriate headings, emphasize your strong points honestly. Write then an application letter. 4.1. CV (Rsum) The CV gives the reader a general image of the applicant's personality who you are, what you want, what you have to offer, where you can be contacted. There is no standard resum or CV; an all purpose resum is not recommended, so it is advisable that any one wishing to get the right job should make a highly personalized CV according to his or her objectives. Any human resource manager selects his employees according to the skills, abilities, know-how, accomplishments, achievements, objectivesand expectations of the would-be employe. A good CV will make the applicant stand out from the crowd. Prepare your resum ready for any time you may need it and keep it up-dated. Its content will provide information required by any employer and its layout will follow some general rules. Dates may be arranged in reverse chronological order, if preferred, and the headings and dates are placed usually either on the left margin or centered, and the subheadings begin at the left margin and dates near the end of the same line. It is desirable that the CV have only one page. The content will comprise: I) Opening section: a) b) Your name, address, telephone number job or career objective - Challenging position with a large corporation in Human Resources department to set up or expand training programs in business

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communication. - to use public relation experience in managing advertising or promotional campaigns position of secretary with increasing opportunities for different responsibilities - to obtain a challenging position as ....... - to apply my experience and education in the development of .......... - executive secretarial position making full use of my organizational and linguistic skills - to use my skills in management, organization, and problemsolving in consulting to help small and medium-sized companies through the growth process II) Summary of basic qualifications a) Education school names and locations, dates attended, degrees, certificates; major, significant courses; academic honors, grade-point average if high; achievements find out the exact English equivalent of the type of education: - two-year degree - three-year university degree - one-year post graduate degree - graduation expected in ............ III) Work experience - employers' names and locations, dates (beginning and ending month and year), titles, positions, specific accomplishments - sales manager; - English tutor; responsible for teaching classes to adults - played a key role in the development of programs - my duties/responsibilities included: It is advisable to use dynamic verbs: - participated actively in organizing conferences ; looked for sponsors to produce a promotional brochure - assisting branch manager in keeping inventory properly - volunteer work, research, publications the verbs should be used rather in active voice than passive designing and implementing an intensive training program supervising and coordinating duties for a secretarial staff of 12 providing weekly reports to predict market trends managing small-appliances store with annual sales of 650,000 researched, wrote and published over ...works on .....

IV) Achievements, awards - introduced a new procedure for dealing with customer service requests, reducing handling time by 20%

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- negotiated excellent terms with suppliers - introduced a new stock rotation system resulting in 20% fewer stocks honors, awards: - member of National Association of ............ - participating member of ................... - won top award at ........... for ......... V) Extracurricular activities; foreign languages, hobbies foreign languages - excellent German and Spanish - conversational (competence) Italian - developed a strong understanding of .... - firsthand knowledge of cultural differences; travelled and lived in ......... - passed the Cambridge Proficiency Examination in..... - Scored 600 on TOEFL test in March ....... hobbies: It is not desirable to write only general relaxing and entertainment activities usual to most of the people: music, reading, travelling, etc, but only if the applicant has a very specific activity in the field - photography, take and develop my own color pictures and films - clay modeling, take classes at the local fine arts school - music, play violin in an amateur classic quartet - jogging, participating in junior amateur local races - chess, participated in several national tournaments each year VI) References - usually provided upon request; They will never be supplied in the CV. 4.2. Cover Letter What Experts Say About Cover Letter " ... you need to make it easy for the employer to buy. You need to clearly state when you will be available to talk to the employer. Be specific: give telephone numbers where you can be reached both at work and off work. You could have a tremendous background and see yourself very well, but if the employer can't reach you, everything could be lost." (Lola M. Crawford, Resume Writing Made Easy) "A CV without a cover letter is like an unannounced sales person showing up at your door. If you are going to let in a perfect stranger, you at least, want to see their credentials. This is exactly what a cover letter does- it introduces you, a total stranger to the reader. It must be compelling, personable, and brief. It needs to specifically relate to the position in question. Remember you only have eight seconds to convince the reader to invite you in". (Barbara B. Vinitsky and Janice Y. Benjamin, "How to become Happily Employed") "No cover letter should carry the salutation: 'To whom it may concern'. It will concern no one if you don't personalize it. The surest way to get the information is to find the name in trade journals or call the company and ask for the name of the appropriate person".

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(Kenneth and Sheryl Dawson, Job Search, The Total System) The cover letter is rarely anything but a liability, but you must include it because its absence is worse". (Jeff B. Speck, Hot Tips, Sneaky Tricks & Last Ditch Tactics) "Poor grammar, bad punctuation, and misspelled words suggest that the applicant is either poorly educated or simply doesn't care about the impression created. The chances are unusually high that the employer is going to forgo reading the accompanying resume and quickly move on to the next job applicant". (Richard H. Beatty, The Perfect Cover Letter) A cover letter should be sent together with the applications forms and C.V., either explaining points that might not be clear, or giving information to emphasize your suitability for the job. The cover letter should not be used to repeat the details of your resume, such as work history, education, or personal objectives. The CV is about you, your experience and your skills. The cover letter is about what you can do for the employer. What the cover letter should contain: The first paragraph needs to grab the hiring manager's attention: you are interested in the company and you want to fill a need they have. Show that you work in the same field, that you have common professional interests, or you have been following the company in the news. Mention the source of information: a mutual friend or an associate. The manager will feel more obligated to reply to your letter. Be as specific as possible: Don't just mention the job position, but describe what the company requires from the position. This is a reply to your advertisment for (position/post), in (the source of information) of (date of issue) I am writing in response to the advertisment for a (position sought) in the (date of issue) of (name of the source) This lettrer and attached CV are in response to your adverttisment for (position sought) adevertised in (name of the source) Your recent advertisment in (name of the source) for a (name of the post) caught my attention (name of the person source of information, position held)) in your company suggested I contact you abouyt a possible opening for a (post) In a recent discussion (name of the person) expressed the belief that my experience in the field ............... would be a valuable asset to your company (name of the person) , who supervised my student internship in ........................, has encouraged me to write to you about (position sought) with your firm. I am a first year student studying foreign languages. In order to gain praxctical experience and finan ce my studies, I am interested in obtaining summer employment with your firm.

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 As a student in my final year of ................. I know how important is to gain practical experience in ........... . X company offers the opportunity of receiving a complete picture of all aspects of ......................(position/post) and has a long history of cooperation with universities. I am writing about the possibility of carrying out an end-of-studies project with X company in the ............... department. Although still a student in .................., I am aware of X company's approach to .................... . I am writing to enquire about the possiblitiy of becoming a summer intern with ................... Please find enclosed my CV. I believe that my experience in ........... will be of interest to you. In ........... issue of "Business Week", X company was described as being one of the most ................. companies today in the field of .............. . The highly positive article encouraged me to do some research on this company and I am now convinced that this is the kind of company I would like to work for. I am also convinced that X co. Uld put my qualifications and abilities to good use. I recently read an article in ............... about X company. It mentioned X;s intentions to develop and expand its activity in ............... . I would like to become a part of this effort and ................ After a thorough research of the companies working in the bfield of ..................... I feel sure that X company offers the most challenging and rewarding work opportunities for a .................... (position/post) In the second part of the letter state briefly the skills you bring that will specifically meet the employer's needs. The CV will give details. This section will highlight the way you will use your endowments and experience to the benefit of the company. The use of the personal pronoun is to be kept at a minimum. It can be used this way: "Here is how I can help you". I am an efficient secretary with the usual secretarial skills, excellent typing, shorthand and word processing. I think I can be an asset to your company as I have a keen sense of organization that makes me manage complex workloads. I have good communication skills and enjoy working with people. As youn will see in my enclosed CV, I have experience in ................. As my CV point out, I am competent in the field of .................... and I have poroven managerial skills in my work experience as a .................... The letter will close by indicating what you would like to happen next. Take action: Tell the potential employer where you can be reached, either by phone or by e-mail, but don't wait for his or her call. Let him know that if you don't hear from them within a few days, you will follow up with a phone call to make sure your CV and cover letter have reached the intended recipient, and to settle an interview. Be assertive but polite. I look forward to meeting you. I am confident my qualifications will be of interest for you, and I look forward to hearing from you.

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 I would be pleased to supply any further information you may find helpful. I look forward to discussing these issues with you in person. You may contact me for a meeting at your conveneience by phone.................. or by email ..................... . I will be in ................. (place) I would loke to meet you during that time to explore further possiblity of cooperation. May I call you to set up an appointment? Allow me to call you on ................ (date) if I don't hear from you before. Here are some content clues that should be taken into account when drafting a letter of application for a job/grant/ internship, etc limit your letter to approximative 200 words mention the name of a specific person in the company if possible make detailed reference to the source of information make the letter as clear and concise as possible don't mention any request a certain level of a salary don't mention any personal problems don't complain about former superiors don't mention reasons for the intention of leaving your present place of work As for the formatting of the cover letter there are some basic rules to keep in mind when drafting it: A three-line block, flush left, one space below the date and one space above the greeting. This block contains the address, the zip code, and the date. (The date may be separated from the block by one line) Another three-line block, flush, one space below the date and one space above the greeting. This block contains the addressee's full name and address, including zip code. A colon is better to use instead of a comma. The greeting should address a specific person in a formal manner: Dear Mr. Johnson, but not Dear William. If you don't know the name, address the letter to "Hiring Manager", "Human Resources Manager" or simply "Manager". You may use bullets and bold print in the body of your cover letter to organize and highlight information, and make it easier to read. If you do decide to use them, do it conservatively. The closing should read Sincerely, because you don't know the person. Leave enough room for the signature between the closing and your name when you print your cover letter. 4.3. Job Interview The employment interview is one of the most important events in the average person's experience, as the 20-30 minutes spent with the interviewer

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may determine entirely the future course of one's life. The marks of inexperience can be avoided by knowing a little of that actually is expected of you and by making a few simple preparations before the interview. Whether you are the interviewer or the interviewed person, you should plan the following steps: a) know the specific purpose; b) find out as much as possible about the other person - name, position, attitude, work, needs, background, biases; c) collect all the necessary facts and materials for attaining the objectives. d) plan questions you will ask and consider answers you may give to questions of the other person asks you; As for the interviewee, he should prepare himself mentally for success, and add some other particular aspects: a) the applicant should know himself - compare his or her strengths and weaknesses with the job requirements; b) read the latest annual report of the company or on-line database, talk to friends who work for that company; c) know the current beginning salary range for your type of job and experience; d) pay a lot of attention to your appearance as it always conveys significant non-verbal impression. Wear conservative, neatly pressed, appropriate clothing of good quality. Avoid gaudy colors and style (Men suits and ties, and women tailored skirted suits). Be well groomed, with a neat hairstyle, clean fingernails and shined, unstuffy shoes. A pleasant smile is desirable; e) know exactly when and where the interview will be held. Arrive a few minutes before. Know the interviewers name and how is it pronounced; f) rehearse your opening statement and handshake perhaps in front of a mirror; g) avoid negative body language as signs of nervousness and tension: frequently touching your mouth, faking a cough to think about the answer; gnawing on your lip; tight or forced smile; swinging your foot or leg; folding or crossing your arms, slouching, avoiding eye contact; picking at invisible bits of lint, etc.

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EXERCISES I. Mind the following text of a cover letter and comment upon the messages conveyed by each paragraph, their order and tone. Find their matches: a) If the name of the person you are to write to is given in the advertisement, then include it in the salutation. b) In the first body paragraph give examples of what you do now and underline how that makes you suitable for the post you are applying for. c) Remember that if you begin the letter Dear Sir or Madam, then you should end Yours sincerely, If you include the persons name in the salutation, end the letter with Yours faithfully, d) Make yourself as flexible as possible when it comes to interview availability. e) The heading gives a quick idea as to the content of the letter. The harassed reader can see at a glance what the letter is about. f) Always quote the reference number if it appears in the advertisement. g) In the second paragraph outline what you would expect from the job. Sound enthusiastic about it. Let your prospective employer know you feel challenged by and you are confident that you have the requisites to meet that challenge. h) Read the advert carefully, and in the body of your letter refer to all the points about the job that were mentioned there. i) Its best to put the phone number at the top left, so that the reader doesnt mix it up with the address. j) Always include the post code (GB) or the zip code (US) with the address. k) Check in the advert if you need to ask for an application form or a full job description.

November, 15, 2001 Astoria Federal Savings

Dear Sir or Madam,

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Please consider my enclosed curriculum vitae in application for the position of Personal Banker as announced on the Internet, on www.careerbuilder.com. I am particularly interested in your announced position because of your stated desire for a person able to fulfill the mentioned responsibilities. As you will see in my curriculum vitae, my continuing interest in this field is reflected not only in my education but also in the additional courses I have taken and the work experience I have achieved. I am willing, qualified and experienced in the area, I have excellent communication skills and my PC literacy, as mentioned in the CV is fully satisfactory. As far as the customer service background is concerned, I developed specific skills during my last job, which offered me the opportunity to meet various customers but did not meet my work location and work time conditions. I am aware of the reputation of Astoria Federal Savings and I believe I can make a meaningful contribution to the Marketing Department. Thank you for considering my application. I look forward to meeting you in Suffolk at your convenience. Sincerely, Anita Smithfield

II. Fill in the blanks the missing words in the following application letter for an internship: transcripts; complete; establishment; teachship Mr. M. Alvarez Principal Manager Munich Commercial High School As part of the requirements of a third year student in Foreign Languages and Literatures, I must a) .................. a three-month teachship in a school. I would like to take advantage of this b) .................. to develop my teaching knowledge and abilities in a foreign country. I am particularly interested in discovering teaching practices in European Union. Mr. Popescu, Head of the Linguistics department, at the University of ................., has encouraged me to write to you about the possibility of carrying out a teachship in your c) .................... . I am especially attracted by teaching professional economic English. I will be available from July 1 to September 15. In addition I will be in Germany for two weeks in March and would be happy to meet you then.

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I have enclosed my CV and a copy of my d) .................... .

Thank you in advance for any help you may be able to give me.
III. Petre Stefnescu replies to the advertisement above. Complete the letter and choose the suitable phrases from the following options. Dear Ms/Mrs./Mr.Smiths I am contacting/writing/talking to you in reply to the advertismenet for the work/job/post of Deputy Head Receptionist which you made /placed/wrote/ in this month issue of "Career" magazine. I greatly enjoy working in a Front Office and taking into account/concern/care/attention of guests, and would welcome the possiblity /occasion/opportunity to take on more responsibility by working for a guest house llike yours. As you will see from the enclosed /annexed/added CV, I completed a master course in Hotel Management after left/leave/leaving school and then worked part-time in a number of big hotels Bucharest and my birth town Cluj. Since/ For/ At the last year and a half I have been working as/like/of a receptionist in Intercontinental Hotel, where I gained valuable/expensive/appropriate experience of working with /of/together computers and dealing with a wide range of guests. I also have a good working understanding/ability/knowledge of fluent English, French and Spanish, and I also speak a little/small/few/ Italian. I would be available/prepared/willing for an interview from 15th of September. I look forward/ahead/before/up/ to hearing/hear/heard from you as soon as possible. Your truly/faithfully/sincerely Petre Stefnescu

IV. Read the following advertisement. Choose one of the following words to fill in the gap: 1. challenging; 2. communication; 3. competitive; 4. conference; 5. essential; 6. experience; 7. Golf; 8. minimum; 9. National; 10. opportunity; 11. Personnel; 12. professional
MANOR GUEST HOUSE and GOLF COURSE A splendid Tudor's-style 50-bedroom guest house offering a)..............facilities and its own Championship b)...............Course, situated in a large country estate in Sussexc)............Park. require a DEPUTY HEAD RECEPTIONIST A. d)...................... opportunity has risen to join our e)....................and enthusiastic Front Office team. You must posses excellent 6)....................and social skills coupled with a high level of guest care. Computer experinece is 7)................., together with a 8)................... of 3 years' Front Office 9) .................. In return we offer a 10)....................... salary, live-in accommodation if required, and the 11)...............to join one of Europe's most progressive guest house groups.

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Please forward Curriculum Vitae to the 12).............Manager, Johana Smiths, the Manor Guest House 64 Windsor Road Hallcroft Retford NOTTS, DN 23, 7QT

V. Separate the attitudes, when going for an interview, according to the following table A. Desirable Behavior B. Attitudes to avoid

1. Stick to the facts, state achievements without exaggeration. 2. Use expressions that indicate you are competent and dependable, with a positive attitude. 3. Smoke and use the first name (unless invited to do so), show disinterest, chewing gum, doodling. 4. Let the interviewer finish each question, then reply precisely to the question. Link your achievements to this answer. 5. Use expressions like: "yeah", "y' know", "cool", "stuff like that". 6. Make negative reference about former teachers or employers. 7. Tactfully relate your achievements to employer's needs whenever possible. 8. Show superiority complex and "know-it-all" feeling. 9. Take a time to weigh pros and cons of an idea- note the long and shortterm benefits and consequences of your decision. 10. Communicate clearly and accurately. VI. Mind the body language; add to the list various other significant gestures in business : - dont display dominant body positions, such as standing too upright, or with hands on your hips and your elbows sticking out, that would suggest too much confidence and dominance. - business man should smile and raise his eyebrows when meeting his partners, estimate the physical distance between them. An acceptable distance in Western Europe is an arms length, but an elbow length is suitable in the Mediterranean, and closer contact is acceptable in Eastern Europe - when covering the mouth, or touching the nose, means that the partner does not necessarily tell the truth, or he is thinking, or he thinks that the interlocutor is lying. - crossing legs in front of an American customer, should appear rather effeminate - using hands when expressing an opinion represents vagueness - open palm indicates firmness, truth, honesty and sometime submission - persuasiveness can be increased by an open body position when addressing to an audience arms and legs outward, upright position, frequent head nods and hand gestures VII. Answer sincerely to the typical questions of an interview where possible:

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1. Why did you leave the last job? 2. What are your future vocational plans? 3. What sort of professional position are you most interested in? 4. What course did you like best? Least? 5. What do you know about our company? 6. Why did you choose to work with us? 7. Do you prefer working with us or by yourself? 8. Can you take instructions without feeling upset? 9. Do you like routine work? 10. What size of city do you prefer? 11. Mention your major weakness. 12. What kind of books do you prefer? 13. What is the last book you read and when? 14. Describe your special abilities. 15. Mention the disadvantages of the professional field you chose. 16. Tell me about likes and dislikes of your last position. 17. Describe me a difficult situation you handled in your last position. 18. Mention some short-term and long-term goals. (5 and 15 years) VIII. After the interview send a brief "thank-you note" or an "e-mail" (if the job contact was made through the Internet or e-mail) immediately after the interview, then mail a second letter by post timed to arrive the week before the hiring decision will be made. IX. Translate into English: a) Din moment ce este destul de uor s faci un "click" pe un site, muli dintre candidai presupun, n mod eronat, c este la fel de uor s-i gseti i de lucru prin Internet, astfel nct ei renun s mai urmnreasc anunurile de angajare care apar n diverse publicaii. Cutarea Locului de munc n variant electronic presupune aceleai abiliti ca i n cazul cautrii tradiionale. Candidatul trebuie s fac cercetri, s-i stabileasc obiectivele, s fie rbdtor i s munceasc pentru a avea succes. b) Pentru businessmeni, selectarea inutei trebuie fcut innd cont de interlocutorii profesionali din timpul zilei. In cazul unei cltorii de afaceri peste hotare, ara vizitat trebuie s reprezinte un factor cheie n selectarea hainelor. Facei o impresie mai buna superiorului dvs dac v mbrcai mai formal. Felul n care v mbrcai v influeeaza direct chiar nivelul salariului sau al cifrei de afaceri. c) Pregtirea unui interviu nseamn s fii obinuit cu prezentarea propriilor caliti i mai ales a felului n care aceste caliti pot prezenta un avantaj pentru un potenial angajator. Iat cteva ntrebri tipice pentru un interviu: "Spune-mi cte ceva despre tine!" i se cere o descriere scurt, bine organizat a pregtirii tale, a carierei profesionale, a principalelor realizri i a obiectivelor de viitor. "De ce dorii s lucrai la noi?" "Ce cunoatei despre societatea noastr?" "Ce cri v place s citii?" "Cum v petrecei timpul liber?" "Spunei-ne cte ceva despre avantajele i dezavantajele trsturilor dumneavoastr de caracter."

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UNIT 5 INTERNAL FORMAL BUSINESS DOCUMENTS

Objectives:

familiarize with the various types of internal documents principles and rules of drafting and wording internal documents

Human activity of an organization is based on exchange of information, ideas, plans; the decision-making process implies internal communication in oral and written forms, making rules, proposals, concluding contracts and agreements. Both within and outside, communication is the lifeblood of the effectiveness of any organization. The company's goals are attained due to "downward", "upward" and "horizontal" effective communication. If the employees receive appropriate downward messages from the management they become more motivated and more efficient. They need and want not only clear job directions and rules of the activity in the organization, but also information about the strategy of the company, viewpoints on controversial matters. They need clear and correct information about their benefits- health care, fringe benefits, promotions, pensions, training, and work environment. Employers are then accountable for their decisions through effective downward communication. Upward internal communication has become increasingly more significant as the executives seek for comments from employees on controversial issues, listen more closely to their opinions, complaints, problems, suggestions turning them into participants to the management of the company. Horizontal communication is also important for the effectiveness of the company's activity. Peers must exchange information and ideas to solve problems, perform job duties, prepare for meetings, and cooperate on important projects. Memorandums, staff meeting reports, meetings, teleconferencing and videoconferencing, audiotapes, represent some ways of internal communication within companies. But there is still another oral communication channel, though unplanned by the sender, the "grapevine" through which news and rumors often travel quickly -often times quite accurately, sometimes inaccurately. 5.1. Memorandum In market economy system organizations are autonomous entities, so they become able to build their own specific culture. One of its characteristics is the internal correspondence that usually follows internal specific rules and regulations according to their target addressees. Memos have a format which is simpler than the correspondence conceived for external destinations. They miss the heading, but they bear a subject line which is compulsory, but they can omit the salutation line and complimentary clause.

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Memos are pieces of internal correspondence that are used to inform the staff upward, downward and horizontally. They are informative and can be conveyed either on paper or on internet mail. The purposes of memos are defined on two-tier stages: they give professional information to the reader and make him acknowledge it built positive images of the writer - build positive image of the organization itself - set and consolidate good relationship between the writer and the reader - avoid further correspondence on the same subject Memos provide detailed verbal and numerical information, classifications, background that is specific for the matter. Any negative elements should be presented as positively as possible. The reader should be focussed on his benefits that must be clearly and convincingly stated. The message will also indicate the steps the reader has to follow to set the problems. A positive and a goodwill ending will always make the addressee act accordingly to the writer's wish. The printed standard block form lines up the name of the writer, of the reader and the subject line vertically. Some organizations have the option to alter the order of these items, or request the sender to sign the document instead of initialing it. The signature goes below the last line, starting half-way over on the page, this way adding unauthorized information is prevented. The possible second page of the memo is set up as an ordinary external business letter. The format of the memo allows fast and easy typing, so that information should be easily filed. The body is typed in block fashion. The message is not supposed to end by calling for further information, as the reader might understand that the memo was not complete. Memo stationery quality is improving according to the increasing use of word processing systems. Memos can be sent via electronic mail (E-mail) or simply can be printed out on a computer paper. Formal memorandum reports may use a higher quality paper. The standard memo parts can be programmed to appear automatically with just a keystroke in a word processing system. Items as: reference initials, enclosures, file number, sender's department and telephone number are optional. It requires no inside address, salutation, complimentary close or full signature. A message-reply form of memo is a good time and expense saver for both sender and recipient. It can be transmitted in a three perforated sheets packet in different colors making up a message-reply packet.
MEMORANDUM (Company's name) DATE: FROM: TO: TELEPHONE: DEPT:

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SUBJECT: Message, comment, or reply Approval

For your: Comment Information

Here are some samples of memos:

a)

Memo To: International Department From: Accounting Department Date: December 7, 2005 Subject: Opening of new customer nos. for banks Please be informed that we opened in our evidences the respective customer numbers for the following banks: ABN Amsterdam - 4 000 537 Banca Commerciale Italiana - 4 000 412 Credit Commercial de France - 9 00247 Royal Bank of Canada - 4 000 328 Bayerische Landesbank 4 000 495 Rabobank Utrecht 4 000 867 Should you have any query do not hesitate to contact us. Angela Little Josie McKennitt

___________________________________________________________ Page 1 of 1 Memo-Open Nos

b)

Memo
To: International Department From: Accounting Department Date: 10 February ____________________________________________________________ Re: WHT payment for January 2001 _____________________________________________________________ GRAND HOTEL
From: The General Manager Please debit the account 9 DATE: September, 6, 2004 800 438 00 ROL by the amount of ROL 2520 342.37 representing 1% tax TO: All Front Office deposit interest paid in January 2000 which must be paid to the state budget. withheld on term Staff SUBJECT: Pricing policy Please verify the amount against individuals' deposits maturing by the end of January. It is clear that some clarification of our policy on pricing and room rates are needed. BASIC RATES: We have a basic rate of all room types. However, it is common for different rates to be charged. Alex Warner This is because the Sales and Marketing Department negotiate special Gina Lopez rates for different agents, corporate clients and other clients. The basic rates are: Standard room: 8o (double) Luxury/Executive Plus: 115 (double) Suite: Individually priced Standard discounts: Weekend rate (Fri/Sat or Sat/Sun) 15% discount Weekly rate: seven nights for the price of five Specially negotiated rates: Most guests come as part of a tour, through a tour operator, or as a corporate guest. In this case a special Rate will have been negotiated and will be on the computer for Reservations and the Front Office to access. Free Sales Agents: Free Sale Agents are sent availability charts every two weeks. They sell rooms at an agreed rate (usually the corporate rate). They don't have to check with us, so administration costs are kept low. Allocation Holders: Allocation Holders have a certain number of rooms which they agree to sell (usually at FIT rates). The customer pays them directly and they take commission and 61 on what is left to the hotel. pass For week-ends they have the rooms on a 48-hour release (in other words the hotel can take them back by Thursday and resell). If you have any more questions, please speak to the Reservations Manager or the Sales and Marketing Department

c)

5.2. Report In Great Britain, the adoption of limited liability as the usual system of corporate organization gave important impetus to the movement in favor of publication of balance sheet as a report of the activity of the commercial banks. The tide was running in favor to publicity, the growing strength of important joint-stock banks that voluntarily published reports on their activity, helping to turn the fashion. The publication of an Annual Balance Sheet in no way altered the private character of the Bank, or the responsibility of the partners to the full extent of their property. Governments in the European Union set the rule of publishing reports of the largest businesses according to criteria including revenue, employment and assets that should disclose the material social and environmental impacts on their operations each year, as part of the operating and financial review in their annual report. This new requirement will be welcomed as a move towards greater transparency. The growth of such reporting has been prompted partly by demand from investors who are increasingly concerned about the risks attached to the social, ethical and environmental impacts of businesses. Many companies seem to regard a sustainability report as primarily, a public relations document, but readers of the reports say that their purpose is to provide accountability and transparency. The guidelines give companies a clear template for what to include in reports, how to go about it and how to make sure that readers will value and trust the content. Reports can be about many things: an analysis of a problem, a summary of a completed job, the progress of a project, the results of an investigation. Reports provide information collected for a target specialized audience; it is made in order to find solutions for the problem it evaluates. They can be informative reports, providing information selected carefully and also its interpretation, while recommendation/problem-solving reports recommend/suggest solutions. Informative reports can be - Sales/production reports: numerical lists of sales/production for a stated period of time - Accident reports: description and evaluation of the nature and causes of a work accident - Audit report: states and evaluates facts revealed by an audit - make-good/pay-back reports makes reference to the period of time at which a capital investment will pay back - Scouting reports: identify strengths and weaknesses of a newly employed person or a potential customer/business partner and recommend/deny them or recommend strategies for getting the best of them.

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- Feasibility report: evaluate alternatives and make recommendations for a new product/service, a strategical step in business, a promotional campaign, etc - Justification report: makes reference to the need of an investment, a change in procedure/technology/strategy - credit report: make evaluations of business plans for being granted a loan - progress/interim reports - evaluate the work done so far and the still remaining on to the completion of a project - trip reports: share information and achievements/shortcomings drawn out after a visit to a customer/supplier - closure reports: a research upon feasible conditions for a new product/service evaluated economically/technologically under current conditions Planning and writing reports, making summaries, taking notes are important skills in business environment. There are several types of reports: long, short, formal and informal and, according to their way of delivery, reports may be oral or written (letters, memos, separate documents). They can be periodic and occasional. Its main parts are the Introduction, the body of the report and the terminal section. The first one will state the terms of reference, the objectives, and the procedure required, then the authority to do it. The body of the document will present a detailed account of what has been accomplished, and how much remains to be done. The terminal section will mention future plans and recommendations. As for the technical aspects, it is recommended for the paragraphs not to be bigger than 100 words, to contain just one idea, and to be separated by larger spaces. Typographical elements should be used, such as underlying capital letters, graphics in boxes, italics, etc. The sentences are recommended to be concise, and clear. Longer reports may have a summary, a table of contents or perhaps appendices with extra, non-essential information. Many in-company reports have a standard format and so the writer does not have to worry about the structure. Here are some techniques of report writing: - focus the first drafting of the ideas not on the language and grammar until the editing and rewriting stage keep the briefness of phrases and simplicity of grammatical structure use impersonal style and focus on relevant facts balance your points of view showing careful consideration for arguments the report writing style should keep with the target reader: a report written for a senior manager should be respectful and polite, with suggestions for the manager to consider. A report for junior staff is more likely to use a direct style and have short sentences and statements rather than suggestions.

Report drafting will take into consideration some technical basic steps: a) statement/definition of the matter b) selection of the sources and information needed c) data interpretation d) presentation of relevant criteria for reorganizing the information e) report wording and drafting

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Reports will be audience oriented to achieve effectiveness. The message will be clearly stated in a readable document by keeping the sentences short and simple, using familiar words. Verbs of action should be used to communicate ideas instead of redundant words. Simplicity and directness will improve the quality of the document, as a highly knowledgeable writer will always select the best words to convey plain and convincing ideas and solutions. Reports can be exclusively numerical or they can simply provide information that employees must know and use to solve professional problems. Reports can be formal or less formal. The formal ones will have specific format and elements: - title page/subtitles - a transmittal - Table of contents - Body - conclusions - List of illustrations, figures/drawings/graphics - List of references/ bibliography - Appendixes - Abstract The preparatory elements will personalize the document: - Name of the author - Target audience - Date - Subject - Coverage - Organization They are numbered by Roman numeral. Title report will name the report object will provide the name and position of the author date and the document submission. Preface or the Letter of transmittal states the purpose of the document, object and content. It is used when the audience reader is a single person or a well defined group. Table of contents: a list of the headings and subheadings of the report Body: the longest section of the document presenting the detailed information and messages ordered logically, according to the criteria selected and considered by the author(s). Heads, sub-heads graphics, quotations, footnotes should be used. Conclusions: the ending part will bring forth and summarize the main ideas, state clearly the solutions or recommendations according to the type of report. Abstract: it is a short overview of the most important ideas in the content of the document. It may consist of few paragraphs to be turned into an oral presentation, explaining the purpose, the plan and order of its ideas. Reports readability and legibility should be reader-oriented as it has a highly practical use. Here are some drafting techniques: - a two/three centimeters margin is needed to be kept all around the document page - a 2/three centimeter margin is needed on the left hand side if

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the document is bound - a double space between paragraphs is recommended for easy reading - headings and subheadings will separate ideas, verbal/numerical lists, quotations, graphics - typographical elements should make words, ideas stand out - bullets or dashes, numbers or letters should be used to systematize random information - paragraphs and phrases will be achieved by avoiding redundant and complex words by using action verbs, familiar words and non prepositional phrases 5.3. Minutes Minutes are documents that record the talks and decisions taken by the participants to a meting to fulfill a certain goal. The notes are usually taken by the secretary and then the document is fully drafted after the meeting from the notes, objectively and factually. A minute should carry the following type of information: - names of the participants - kind of meeting (occasion al, regular) - date /place of meeting - time the meeting opens - action of the group, stating exactly the decision and steps taken, the person in charge, motions and amendments, the voting results - the time of adjournment - the signature of the secretary and of the chairperson

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5.4. Surveys Question a large group of people called respondents or subjects. The questions will be drafted under the form of a questionnaire. The questions will be worded neutrally, avoiding assumptions about the respondents and having the same meaning to different people. 5.5. Writing Style There are three areas of grammar useful when formal, impersonal style is needed: Passive: An important decision is to be taken by the end of this month. In exchange for the flexibility, employees are expected to remain in close contact with their managers. It+passive: It is recommended that the commercial banks should cut down their interest. It was suggested that we use another carrier. Compound nouns: a planning meeting, a production planning meeting; the producers conference; the summer sales session; insurance documents; transport insurance documents Informal language elements, like: contractions (It's; we'll; there's) or words and phrases like big, OK, nice; no way, fantastic, should not appear in reports. Introduction/Background - As requested at .... on ..... here is my report. - The report will discuss/consider/describe/analyse/review... - The report is based on ... - I have divided the report into two sections. Findings - The findings/figures/results/investigations show that ... - It appears that ... This leads to the .... - The graph/table shows that ... Conclusions/Recommendations -Please, have a look on the report and let me have your comments. - Please feel free to contact me if you have any questions. Linking words Sequence: Firstly, ... Secondly..., Finally .... Talking generally: In general,... Usually, ... Onthe whole, ... Contrast: However, ... Nevertheless, ... On the other hand, ...

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Adding another point: In addition, ... Moreover, ... On another point, ... Examples: For example,... For instance, ... e.g. Alternatives: either... or..., Alternatively, ... Instead of ... Surprising situation: In fact, Acturally, ... As a matter of fact, ... Something is obvious: Clearly, ... Obviously, ... Of course, ... Most important point: Espeacially,... Above all, ..., Of course, ... Rephrasing: In other words, That is to say ..., i.e. Result/Consequence: As a result, ..., Therefore, ... For this reason ... New topic: In relation to ..., Regarding ..., With reference to ... Giving both sides of an argument: In general..., however... On the whole..., but... Making a statement less general: Many/Some... Usually/Typically/Often... Making a statement less certain: It is possible/probable that ... It seems/appears that ...tends to be ... Making a comparison less strong: - substantially/considerably/much (+comaparative adjective) - signiffcantly/relatively (+comparative adjective) - marginally/slightly (+comparative adjective) Concluding: On balance, ... Taking into account/consideration...

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EXERCISES
I. Fill in the blanks the following words: a) executives; b) messages; c) mail, d) devoted; e) generate; f) alienate. Thousands of hours are 1) ___________ daily to interviews, conferences, memos, reports, employees' manuals, letters, advertising, news articles, bulletins, newsletters and other types of messages. 2) ________ and their assistants need time for researching, thinking, planning, organizing, dictating, typing, editing, revising, proofreading, mailing, presenting and filing records. Computers, electronic 3) _____, videoconferences, are developments and ways to reduce costs and time of communicating efficiently. A significant fact to be considered is the wasteful cost of poor messages, inaccurate, inconsiderate unduly long and late communication that destroys goodwill and 4) _________ customers. They require additional 5) _________, or they can determine even loss of life or money. It is worth bearing in mind that successful messages help 6) __________ efficiency, goodwill, safety, profits and public credibility. II. Match the words with the definitions: A) denotations; B) connotations; C) euphemisms; D) bypassed instructions. 1) The meaning on which most people will probably agree to the dictionary definition. 2) Communication errors when instructing or discussing issues; words or sentences may convey unclear messages to the recipient; he should ask before putting them to practice, to determine the sender's intended meaning. 3) Mild, innovative expressions with which most people do not have negative associations. E.g.: maintenance worker or staff member instead of janitor; slender instead of skinny; laid off, terminated instead of victim of reorganization or staff cutbacks. 4. Qualitative judgments and personal reactions added to the connotative meaning of words: "Director's lounge", "executive suite", "rickety firetrap", and "rat-filled joint". They tell how the communicator evaluates the subject. III. Make the difference between connotations and denotations: Free enterprise Free manners Cheap product Sucker (customer) Sucker (candy) Cheap price

IV. What was the feedback of the new employee? An office manager handed a new assistant a letter, with the instruction "Take it to your stockroom and burn it." In the office manager's mind (and the firm's jargon the word "burn" meant to make a copy on a company machine that operated by a heat process. As the letter was extremely important, she wanted an extra copy. However, the puzzled new employee afraid to ask questions burnt the letter and thus destroyed the only existing copy!

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V. Your employer encourages young executives to enroll for additional university training whenever possible, and the firm pays tuition for the desirable programs. You would like to attend the Graduate School of Business Administration Management Program at Cambridge University branch in Bucharest. Because most classes meet three evenings a week and a few on Saturdays, they will not interfere with your job. You believe that the course definitely makes a graduate more knowledgeable in the management field, thereby increasing worthiness to the insurance company where you work. Some of the topics you foresee as particularly valuable to your present job are management communication, performance appraisals and basic human motivation. The program over one academic year costs $ 1,500; $ 300 is required to be submitted with your application and the remaining $ 1,200 by September 30. Today is July 14. Enclose your application with your memo to Mr. James Dawson executive vice president for his approval. VI. To conserve fuel, because of the current fuel shortage, you, as an Executive General Manager of an important bank, want to request all management officers to observe certain simple fuel -saving steps for fringe cars in service. You ask that all vehicles be shut off when idle. Examples include when drivers are on lunch breaks or any other break. Also, you want that operators run machines in such a manner as to conserve fuel without loss of efficiency. Excessive speed where it is not necessary consumes more fuel. You believe that cooperation of all employees could result in a 5 to 10 percent savings. Mention in your memo that you will make personal inspections periodically. Plan an attractive, easy-to-read format for your requests. VII. Match the missing words in the following text: 1. situation; 2. pattern; 3. insurance; 4. influence; 5. area; 6. investigations; 7. statements; 8. current; 9. increasing; 10. evidences; 11 conclusion; 12. circumstances. Reports are widely used in every economic a) ________. They announce, explain or recommend a policy drawn as a b) _______ of a specific study. They can represent a starting point for new approaches, developments of new methods and operations, or they can be a result of c) _________ of certain events and evolution. They may be external, called in by a firm reviewing problems, such as business associates, surveyors reports or credit and d) _______ investigation. Internal sources may lead to the drafting of a report, when management investigates e) ________ efficiency. Reports follow a similar f) _______, their length depending on the subject it deals with. Its title is its content for short: Evolution of Industrial Structures between 1990-2000, Report on Transport Infrastructure Up-grading and possible foreign investments, Financial Conditional upon Reforms, etc. As a beginning, the report may start with its own summary or with the g) ______ and conditions that determined it. Objectives and limitations may be also stated as reports must give a background to the subject they study, allowing the reader or the listener to understand how the h) _______ arose, how it can be corrected, improved on or changed. The body of the report itself consists of explaining the existing situation and offering evidence to support the i) ________ that the writer is making. Well selected and well presented facts, using visual aids also, are meant to convince

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and j) ________ the reader or the listener. The last part of the report is represented by conclusions formed on the k) _________, and brought about by objective statements, drawing together all the information about the situation. The conclusions draw out recommendations, suggestions to improve or change the l) ________ situation. VIII. Read the following Auditors report to the members of BPP Holdings PLC. using the dictionary when necessary. Make relevant its structure according to the following headings:
Parts Introduction Elements Terms of reference or objectives Procedure Findings Conclusions Recommendations if asked for Appendices

Body of the report Terminal section

AUDITORS REPORT We have audited the accounts that have been prepared under the historical cost convention as modified by the revaluation of certain land an buildings and on the basis of the accounting policies set out on pages 26-28. Respective responsibilities of directors and auditors The directors are responsible for preparing the Annual Report including, as described on page 16, the accounts. Our responsibilities, as independent auditors, are established by statute, The Auditing Practices Board, the Listing Rules of the London Stock Exchange and by our professions ethical guidance. We report to you our opinion as to whether the accounts give a true and fair view and are properly prepared in accordance with the Companies Act. We also report to you, if in our opinion, the directors report is not consistent with the accounts, if the company has not kept proper accounting records, if we have not received all information and explanations we require for our audit, or if the information specified by law or the Listing Rules regarding directors remuneration and transactions with the company is not disclosed. We review whether the statement on pages 9 and 10 reflects the companys compliance with those provisions of the Combined Code specified for our review by the Stock Exchange, and we report if it does not. We are not required to form an opinion of the effectiveness of either the companys corporate governance procedures or its internal controls. Basis of audit opinion issued We conducted our audit in accordance with Auditing Standards by the Auditing Practices Board. An auditing includes

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examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgments made by the accounts and whether the accounting policies are appropriate to the groups circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all information and explanations that we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts are free from material misstatements, whether caused by fraud or by irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the accounts. Opinion In our opinion the accounts give a true and fair view of the state of affairs of the company and of the group as at 31 December 1998 and of the profit of the group for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

ERNST & YOUNG Registered Auditor London March 4, 1999

IX. Fill in the blanks the e-mail with the phrases: above, based on the figures, can be seen, divided the report, as follows, identify opportunities, we suggest that, investigate the possibility, led to a situation, let us have, make reductions, see section 3.2., purpose of the report, shows that

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Subject: Cost-cutting measures: As requested at the Board meeting on 10 March, here is a brief summary of the full report drafted by the Commission appointed to find cost-cutting solutions. Introduction: The 1. ......... is to suggest ways to reduce costs across the company. It is 2. ........... sent to the commission by different departments last month. We have 3. ............... into three sections: background, findings, and recommendations. Background: As it 4 ...................... in table 1 in the document enclosed, demand for our products has been falling over the last year, and sales and profits are both down. This is 5. ............... where cost-cutting measures are necessary. Findings: There are three main areas cost reductions are possible: The marketing budget is very high. As mentioned 6. ............, sales have dropped severely, but the company is still spending big amounts on advertising and street posters, which is not justified. Production costs are also high. Table 2 in the report 7. .............. raw material costs raised by 12% last year. The Commission considers ways to bring these down. The company may also have to dismiss a small number of administrative staff that might become unpopular. 8. .................... of the full report for suggestions. Recommendations: The conclusion 9. ..................... the company should be able to cut costs significantly by the end of this semester. Our specific recommendations are 10 .................. : Marketing Department to 11. .................... in the advertising budget of 10% Production Department to 12. .........................of using different suppliers to bring down material costs. Head Office to 13. .................... for cutting a limited number of jobs, in case the situation deteriorates. Please have a look on the full report and 14. ................. your comments by 2 May at the latest. These will then be circulated to all departmental managers in time for the meeting on 15 May. Please feel free to contact the Commission if you have any questions.

X. Range up the characteristics of well written reports according to the following titles: A. Completeness and conciseness; B. Concreteness, Conviction, Objectivity; C. Consideration; D. Clarity; E. Correctness. a) Make yourself sure of the objectivity of your quotations, abstractions and statements b) The report will include all the facts needed. c) It is highly recommended honesty and objectivity in the writers research, analysis, interpretation, organization of the facts, figures and statements d) The pros and cons are to be clearly stated in the terminal section e) Make reference to the information source within the introduction, texts or supplemental list; include appropriate documentation f) Proofread and revise the first draft and the second draft of the report. g) Present both favorable and unfavorable facts and figures h) Emotional writing is to be avoided i) Give definitions of any technical terms J) Use transitional paragraphs between introductory, summary and conclusions k) Use highly specific words and figures l) The report will cover the what, when, why, who and how. m) Conclusion or summary statement should be based on adequate facts and figures

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n) Easy comprehension through figures compared, percentages, ranks, ratios using graphic aids o) Accuracy of facts, spelling and structure are required. XI. Write a report of a presentation that you accomplished. Describe how you prepared and delivered it, summarise the talk and evaluate your success. Make notes before you start, following the guidelines: 1st paragraph: The Task: Explain what you set out to do or were asked to do. 2nd paragraph: Discussion/Research: Summarise your discussion and describe the research or experimentation you did. Explain how you reached your decisions. 3rd paragraph: Methods: Describe the methods you used to solve the problem and /or prepare the presentation. 4th paragraph: Results: Describe your presentation and the reactions of the people in the class. 5th paragraph: Evaluation: Compare your own presentation and other presentations you heard. Evaluate your own success. XII. A. Match the following abbreviations with their meaning below: i.e.; e.g.; fig; pp; qv; cf; ch; ed; para; NB; intro.; cont'd. important note; pages; see another entry; edited by; that is; for example; introduction; continued; chapter; paragraph. B. Work out the meanings of these abbreviations used in business situations. The first is done as an example. 1. I heard my name called out on the PA system. (public address) 2. May I introduce Kay, who is Ms Brown's PA. 3. Salary up to 15K p.a. 4. If you are filling in a form, put N/A if the question doesn't apply to you. 5. encl. CV & photo 6. Ask them to reply ASAP. 7. Thank you for your letter ref. 4352. 8. We can supply 15 packs@ .19.99 (incl. VAT) per doz, with the usual 15% discount. 9. My tel no is 518362 ext. 414. 11. K. Wells p.p. Angela Brown, Export Dept. XIII. Read the following two minutes and mind the differences. A. Minute Of the meeting held at the Head Office of Insuconsult on 7/4/99 Present: Richard Mandel (Chairman) Amanda Adam (Designer) Jonathan Belgrave (Accountant) Sarah Windmill (bank officer) Subject: Project of a new building for Insuconsult

- RM opened the meeting and underlined the importance of reaching a

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decision on the project. He pointed out the importance of having a new building for the company branch for the following reasons: - the evolution of the new projects in insurance consultancy - the enhance the company's reputation - open new markets - J.B. agreed that the project was viable for the following reasons: - the bankers were favorable and ready to provide finance - raw material was to be bought from cheap sources - Local labor was cheap enough - A.A. outlined that the design for the new building can be ready within 30 days and the license for the construction in the same due time. - RM closed the meeting and announced that the loan contract will be concluded next week with the TUBank. SW confirmed. B.

MINUTE of the meeting held at the Head Office of Computer Jar Co. 23/3/99 1. Present: Mr. Adam Williamson (chairman) Sven Taco (secretary) 2. No business remained from the last meeting 3. Subject: Promotion of new banking products on the Internet Mr. Williamson presented a detailed report about the new ways updated to promote banking products through electronic devices, to challenge the new markets. He proposed that Publicity and Marketing depts. Should be involved in a promotion project through their representatives and have short presentations about the new opportunities. Dead line - 23/4/99 Proposer: Mr. Williamson Seconder: Ms. Jacqueline Drott Marketing Dept Carried unanimously Other developments: Next year budget report. Departments concerned are to form a committee to work on this. Mr. Williamson will chair the committee and he will notify the people concerned. Since there was nothing further, the meeting was adjourned. XIV. Match the following meanings of the word "survey: a). look carefully from a distance b). study/description of the general condition c). investigate the behaviour, opinion of a group of people d) act of surveying 1. Of the five hundred householders surveyed, 40% had dishwashers.

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2. He surveyed the crowds from the balcony. 3. Surveys show that 75% of people approve on the new law. 4. He hold a speech in which he surveyed the international political situation. XV. Translate into English: A. Memorandum: V rugm s revedei prevederile Codului de Conduit privind inuta i luai msurile corespunztoare. Angajaii mbrcai neadecvat vor fi imediat trimii acas i nu vor fi pltii pentru ziua respectiv. Tinuta Ca reprezentani ai bncii, angajaii trebuie s poarte haine potrivite locului de munc. Toi angajaii trebuie s fie totdeauna mbrcai adecvat. Imbrcmintea sport , extravagant, ocant, provocatoare nu este acceptat n mediul de afaceri. Atenia clienilor nu trebuie distras de modul n care suntem mbrcai i inuta noastr trebuie s le par decent. Doamne: s poarte haine care se potrivesc cu mediul de lucru, preferabil fust i jachet n culori nchise, cu cma de culori deschise

Domni: -

pantalonii pot fi purtai numai n combinaie cu sacou bluzele sau rochiile cu bretele sau fr mneci nu sunt admise i nici hainele din materiale sau culori speciale (care s-ar potrivi mai bine pentru sear sau pentru vacan) s nu se exgereze cu accesoriile prul va avea o culoare uniform (nu sunt admise uvie de alt culoare) machiajul i manechiura vor fi n culori naturale pantofii lustruii, nu sunt permise sandale sau cizme parfumul n cantiti controlate

S poarte costum i cravat, cu sacou n special n holul bncii sau n alte zone n care clienii au acces Culorile acceptate sunt: - Costume: preferabil albastru nchis, gri, negru - Cmi: cu mnec lung preferabil albe sau albastru deschis - osete: culori nchise - pantofii: n culori nchise, lustruii tot timpul Este obligatoriu s se brbiereasc zilnic

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B. Recomandri privind ntocmirea unei convocri pentru o edin eficient: 1. Specificai data, locul ora de ncepere i ora de ncheiere a ntlnirii. 2. Prezentai, n linii generale, scopul ntlnirii. In cel mult doua fraze, specificai motivul pentru care se ine edina i ce se urmrete. 3. Menionai particitpanii la edin. Acetia trebuie s tie cine va mai lua parte la edin, n ce departamente lucreaz i care va fi contribuia lor la desfurarea edinei. 4. Enumerai subiecte n ordinea n care vor fi abordate. 5. Anunai ct timp alocai discutrii fiecrui subiect. Atunci cnd alocati o limit de timp pentru tratarea fiecrei probleme, aceasta se va stabili n funcie de importana fiecreia dintre ele. 6. Specificai ce materiale trebuie consultate nainte de edin sau ce se cere fiecrui participant. 7. Distribuii ordinea de zi (agenda) tuturor membrilor grupului, cu cel puin o saptmn naintea edinei. C. Raport al Preedintelui Consiliului de Administraie si al Directorului General Banca TDR a confirmat n anul 2000 creterea conturat n anul precedent dei contextul macroeconomic a rmas dificil, n ciuda anumitor semne de relansare economic. Rezultatele bncii sunt elocvente: cu un rezultat net de 1030,8 miliarde RON, care indic o noua mbuntire a indicatorilor si financiari, TDR i-a manifestat capacitatea de a depi dificultile inerente perioadei de transformri pe care o traverseaz. Banca deine n prezent peste 29% din piaa creditului pentru persoane fizice, peste 19% din piaa creditului pentru societi i ca urmare a ncrederii de care se bucur, a atras un volum de depuneri ale clienilor mai mare cu 23% dect cel de la sfritul anului precedent. Preocuparea noastr a fost de a ntri prestigiul i imaginea bncii, de ai consolida identitatea, ca membr a unui grup internaional de marc, de a se implica n economia rii, de a crea produse i servicii noi, de a se adapta economiei romneti. In anul 2002 am reuit s mrim cota de pia a bncii noastre (market quota), calitatea serviciilor, profitul bncii i deci i veniturile acionarilor, n condiii de deplin siguran a resurselor clientelei noastre.

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UNIT 6 EXTERNAL FORMAL BUSINESS LETTERS

Objectives: students will become familiar with some types of external correspondence aspect, structure, language, attitude and tone of external correspondence

6.1. MAKING MEETING ARRANGEMENTS: ACCEPTING and DECLINING A formal invitation, usually in the form of a letter or printed card, is written in the third person. A reply follows in the same style. Other invitations are written less formaly. Any written invitation should be answered in writing too, not by phone. Invitations are organized according to the same three-part plan: main idea, explanation, and action. The main idea in the first paragraph is the invitation request. It includes as many w 's as possible: who, when, where, why, etc. e.g. it includes all the details that the reader will appreciate and need. The ending paragraph will state clearly the desired action of the reader, and makes it easy. When a reply is needed by a certain date, ask that in this paragraph. Information about the event will also be provided: to introduce a new product, or service, to celebrate a certain anniversary date, etc. The writer will state if an extention to a colleague or spouse is available and if any fee is necesary to be paid. An ask for a dead-line response or confirmation is needed. When accepting an invitation an appreciation for the invitation should be expressed first, and the pleasure to accept it. The date, time, place and subject or travel and accommodation arrangement and will be confirmed. The letter will also mention any need for special equipment, hand-outmaterial, room arrangement. When declining an invitation an appreciation for the invitation will be expressed firstly, then the regret for declining it and some reason. The writer will also wish success for the event. 6.1.1. WRITING STYLE Formal Inviting We would like to invite you to .../attend our.../Please let me know if you will be able to attend ... Before the negotiation it woulf be useful if you could prepare ... It would be helpful if you could bring... Thank you for your kind invitation. Informal I'm writing to invite you ... Would you like to come to... Please, let me know if you can make it. Please prepare ...before the meeting. Please bring to the meeting ... Thanks a lot for the invitation.

Prepare

Acceptin

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The date you suggest is fine. I would be delighted to attend the meeting. I am sure it will be very useful. Thank you for your invitation. Unfortunatelly, I have another appointment on that day. Please accept my apologies. I hope we will have the opportunity to meet on another occasion in the near future. I am sure that the meeeting will be a great success.

The date is fine for me. I'd love to come to the negotiation. It sounds like a great ideea. Unfortunately, I cannot join your meeting as I have scheduled another appointment. I hope we can meet some other time.

Declining

6.2. INQUIRY/REFERENCE LETTER Inquiries requesting information are usually written when facts are needed about a company, or a person. The way the questions are ordered, organized, drafted, whether they are written under the form of a memo, letter, or long survey questionnaire, makes it a clear and effective document. Mind the following suggestions and arrange them into a convenient and logical order: Cover only one topic in each question. Word your questions to get more than yes or no answers if you need a detailed opinion or description, such as: What kind of duties requiring responsibility did the applicant perform especially well? If you wish the respondent to rate a person, product or service, it may be better to define each category on your rating scale. - approachable likeable somehow pleasant neutral

- egotistica l unfriendly tactless

ex ag wi att fri tea tac

Make your suggestions specific. Include specific characteristics of the product or service you want information about. A single, and general question will probably bring a reply so general that it will be almost useless. Number the questions if you have more than one. Use a separate paragraph for each main question. Word your questions in a neutral way so you will

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not influence the answer. Questions must be carefully arranged starting with the ones that are easier to answer.

Bankers maintain strict secrecy about the affairs of their customers, but they are allowed to provide an opinion about their financial standing, in response to a request from another business or bank, as knowledge about their integrity, financial standing and creditworthiness is needed. The customers may supply goods or services on credit and will naturally want to know whether it is safe to do so. If a business person proposes to enter into a business agreement, the other party may require a reference, preferably a banker, to give an opinion concerning the customer's financial standing. The other party asks his own bankers to follow up this reference. They write to the bankers named, asking for an opinion in confidence as to the respectability and truthfulness of the customer concerned, in the way of business to the extent of a certain amount of money, the price of the business. The reply will contain a general indication of the creditworthiness of the customer, without giving any specific detail of the account. A usual form of an opinion is: "respectable and considered good for your figures". Banks take every possible care to protect their own business and their customers, and the practice of providing a status opinion about a customer, without that customer's express authority, does not harm at all. Usually, when the creditworthiness of a customer is a subject of an enquiry, he does not even know that any enquiry has been made. Any progressive organization replies to reasonable requests courteously, helpfully, and promptly. Such a message will always start with the best news -information that is useful to the reader, emphasizing the positive aspects. Among the most frequent inquiries are the request for information about personnel and credit applicants. Pertinent information about an applicant's qualifications, character, and general conduct in a message should be preferably addressed to the specific person interested, instead of "To whom it may concern". A letter of recommendation must be fair to the applicant, to the inquirers (prospective employer, creditor, landlord, or whomever) to the writer's conscience and reputation for integrity. The writer must abide by civil rights laws and be aware of possible legal problems. Favorable or neutral confidential recommendation letters (or even phone calls) are based on some main ideas:

6. the full name of the subject will be stated and the type of relationship
he or she had with the writer - employee, customer, friend, business partner. The dates, length of time, type of job, credit, or whatever is pertinent, using only facts.

7. an expression of pleasure, if sincere, will be present in the statement of purpose for the letter, replying confidentially to a request. A subject line can cover a part of the item: "Confidential report by request on James Thorndale as a credit applicant" 8. the letter will answer to all questions - direct or implied unless doing so

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would be legally risky. They will be arranged in the best psychological order, depending on facts. 9. the statements of evaluation (excellent, outstanding, and so on) will be backed by specific facts about performance record. 10. mention specific duties performed by the applicant 11. mention work habits showing personality characteristics 12. negative material will be treated honestly and fairly. 13. a candid statement of the writer's opinion will be included about the applicant's probable fitness for the position, lease, credit, membership, etc 6.3. INQUIRY for GOODS and SERVICES An inquiry (also spelt enquiry) is sent when a businessman wants some information about: - the supply of goods - leaflets or catalogues - quotations or prices - terms and dicounts - availability of goods - delivery times and deadlines - method of transport - insurance If a prospectrive supplier approaches suppliers for the first time, it is useful that he tell them something about his own business, the kind of goods he needs and for what purpose they are required. In the case of customers of long standing or repeat orders, the inquiry may be very simple.Often a phone call will do. The reply to an enquiry will be polite, direct, and prompt. It will start with the expression of gratitude for the enquiry and will end with the expression of interest in the addressee requirements:

WBP WORLDWIDE BICYCLE PRODUCTION

The Bradbury Cycle Works P.O. Box 328 Sydney June, 14, 2004

Dear Sirs, We are open to consider quotations for an export of 10,000 bicycles in India, Sri Lanka and Nepal. You will be very helpful to inform us the quantities that you are able to deliver at regular intervals, quoting your best terms f.o.b., Brisbane. We shall handle export formalities, but would ask you to calculate container transport to Brisbane for onward shipment Yours faithfully, Nicholas Milton Export Manager

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6.3.1. SPECIFIC VOCABULARY - We are retailers/importers/wholesalers in the ........trade and wolud like to get in touch with suppliers/ manufactrurers of........... - We are in the market - We are interested in importing... - We know about your products from... - Please send us prices and samples of...... - We would like to send us a firm offer for..../your current catalogue showing..... - We read your advertisement and we require ...for immediate delivery of ........... are interested in buying............................. and would like to have further details about.............. and would like to know if you can provide us with......... - Would you kindly quote us your best/lowest prices and terms of payment for.... - What qualities /quantities are you able to supply from the stock - If your prices are competitive/ if the qualkity of the goods comes up with our expectation/If the samples meet our customers' agreement we can probably place regular orders with you - We look forward to receiving your quotation/prices/reply by return/as soon as possible - Thank you for the information you can provide to us. - An early reply would be appreciated. - We usually settle accounts/make payments by........... - Payment will be made by....... - Please send us a pro-forma invoice for customs purposes. 6.4. OFFERS/QUOTATIONS Offers are sent without a preceding inquiry when a supplier wants to draw the attention of customers and new customers to a special product or range of goods. A firm offer is a subject to certain conditions, a deadline for the receipt of orders, or a special price for certain quantities. The quotations in reply to an inquiry may be simple ones, containing simply the prices and other information asked for. The sales businessman will take the opportunity to stimulate his correspondent's interest in the goods or services by including a sales message and the assurance that the customer will receive personal attention:

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VETMELLAS ROMANIA SRL

Animal Health Products, Feed Additives, Breeding Material

Dear Mr. Kalderimis, We want to present you our offer of premix with vitamins of different compositions that are created in accordance with the recommendations of the hybrid producing companies. The concentration of the premixes may vary from 400 g to 2 kg for one tone of final feed. The premix with minerals is the same for all the hybrids. Our offer includes premixes with both minerals and choline or with minerals only. The prices that we propose to you are negotiable and they depend of the means of payment, the quantity ordered, the duration of the contract, etc. The prices are in Euro and include the transportation to your warehouse and they refer to the quantity of vitamins and minerals needed for one tone of final feed. Premix with vitamins Cobb up to 28 days 14, 8 Premix with vitamins Ross up to 28 days 12, 6 Premix with vitamins with Arbor up to 28 days 11, 5 Premix with vitamins Cobb 29 days to slaughter 10, 5 Premix with vitamins Ross " 9, 3 Premix with vitamins Arbor " 8, 9 Premix with minerals from birth to slaughter 9, 3
We look forward to your answer. Best regards, George Ruskin 6.4.1. Specific Vocabulary Introduction phrases Thank you for your interest/inquiry in/about........... We are pleased to submit our lowest prices/to enclose our latest price/for the goods you inquired about. We can place a firm offer for............. This offer is firm subject to acceptance by .............. Kindly remember: this offer expires on..... Subject for prior sale Prices subject to change wuthout notice. The goods you inquired about are sold out, but we can offer you a substitute. Please let us have your order as soon as possible, since supplies are limited. While stocks last. We look forward to receiving a trial order from you.

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Discounts - For a quantity of 6o or more we allow you a special discount of 20% on the prices quoted. - The quantity discounts vary according to the size of the order. - Your initial order is subject to a special discount of...... - We can grant you % discount on orders exceeding ...in value /on repeat orders. - We quoted special prices, a,d therefore the offer is not subject to the usual discounts. Terms of payment Cash in advance. Cash on delivery (c.o.d.) Cash with order (c.w.o.) Our usual terms are cash against documents (c.a.d.)/pro-forma invoice We can allow you three months' credit for future orders As our prices are so favourable, our terms of payment are 30 days net. c.i.f./C.I.F. (cost insurance and freight) c&f/CF (cost and freight) f.o.b./FOB (fre on board) f.a.s./FAS (free alongside ship) franco domicile, free (buyer's address) ex works/ex factory. Prices are ex warehouse. Freight and insurance to be paid by buyer/you. Delivery can be made from stock/is not incliuded in the price. Delivery will be made within two months of receipt of your order.

Delivery terms

Offers for hotel accommodation - We are able to accommodate all the members of your group in single and double rooms. - The rooms at the back of the hotel are very quiet. - There is an extra charge of for private bathrooms. - Please let us know your expected date of arrival and the duration of your stay. - We shall reserve accommodation for you accordingly. 6.5. ORDER. ORDER ACKNOLEDGEMENT After acknowledging offers and quotations, the next step in concluding a sales contract is placing an order. An order is a piece of a business correspondence by which a purchasing department or a buyer asks for the goods or services that he intends to be

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provided with. Although orders are usually ordinary forms to be filled in, it is preferable that a letter is written and certain points are made clear. There could be some import regulations which makes it necessary to complete formalities or delivery instructions or other matters that might be underlined better in a letter. The sender needs to arrange items in a tabular form, one line for each and to be as clear as possible as for qualities, quantities, details about the color, size, material, price, identifying mark, means of transportation, delivery date and terms, methods of payment and currency should also be mentioned. If the order refers to a repeated sale, then the order should not comprise but only the information, instructions and details needed. Before placing the orders, detailes should be checked to prevent any missunderstandings or ignorance. Specific instructions for packing, marking, handling and transportation should be made clear and written in separate paragraphs. Orders can also be placed over the telephone, fax or e-mail, but they should be confirmed in writing as the document becomes legally binding for both partners. As in any other type of a business letter, politness and courtesy should be observed. The supplier usually sends an order acknowledgement and thanks his customer for the order. If any terms are changed, or if the goods are no longer available, the customer is notified in due time. The confirming letter will make reference to the order, identified by registration number and date and the articles. A reference should also be made to the invoice enclosed. Here are the order's paragraphs and what they shoud contain: 1. the opening refers to the offer made by the supplier or to the source of information regarding the supplier's address. Ordinary expressions used in cover letters for orders and acknowledgement of orders: - Please supply/send/reserve us the undermentioned goods/ number of rooms, etc - With reference to your qoutation, we enclose our order for prompt delivery of... - We accept your offer on these terms, and are pleased to place an order for..... - As the goods are urgently required, we should be grateful for delivery by.... - Please confirm that you can supply this quantity by the required date. 2. details about the goods or services ordered: quantity, quality, operations, price per piece or operation, total price, currency, payment terms; - The specification enclosed will supply you the necessary information about quantity and quality. - As for the delivery an payment terms they are according to the minute drafted on the occasion of our negotiations - It is understood that payment within 90 days is subject to 5% discount. - We take the liberty to reject any goods that do not tally with the samples submitted and with the terms already agreed upon. 3. Time and place of delivery and the person entitled to take the delivery 4. means of transportation, name of the carrier, route, instructions for handling and warehousing 5. the closing paragraph will make reference to the hope that the order placed should be executed promptly and that it will start a good business together

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- We trust that this initial order leads to further dealings between our companies. The supplier undertakes the delivery of the goods or services ordered under the business terms settled by the acknowledgement of the order. If delay in delivery, the supplier must inform the buyer at once and explain his position. He should express the hope that the customer was not being undully inconvenienced. He would then mention, the earliest date he could carry out delivery and would ask the customer for an extention of the time of delivery. By the present we confirm that the delivery will be made according to your instructions. Thank you for your order that we are hereby pleased to confirm. We thank you for your above oder and enclose our relevant confirmation. Sometimes it is advisable that the acknowledgement letter should mention steps that were taken for prompt delivery. Your order is already being carried out/executed/processed, and delivery will be made by January, 15, as requested. By the present we let you know that the delivery will be made immediately on receipt of your cheque/remittance of credit. 6.5.1. Refusal/Modifications of Orders If unexpected situations will arise, the sender can offer substitutes for goods which are short of stock or he can be in the situation of delaying delivery or offering a lower quality goods. In this case, he should offer compensation, stating that they represent a distinct improvement or for a slightly inferior article nearly as good. The seller may undertake to send these goods on aproval and ask the buyer to send them back carriage forward if they do not appeal to him. This is called trial order. - By the present we inform you that the goods ordered are out of stock for the moment/no longer available. We can offer you a substitute which is the same price and of similar quality. We regret to inform you that we are not in the position to supply more than originally orderd. We are, howeverm doing our utmost to meet your reqyest and as soon as more goods are avaib\lable we shall advise you promptly. We are greateful for your reqyuest order but owing to changes in the market conditions, we cannot accept it in the same terms. When submitted our offer we definitely pointed out that the .... per cent discount could be granted only for orders of... We would, therefore, advise you to increase the quantity ordered if you want to be the bebeficiary of this discount. The delivery time you asked by the order no. is far too short. We can supply only .... from stock the balance within..... weeks/months as it must be manufactured. We can book your order for partial delivery only. Please let us know by return/e-mail /whether it is convenient/acceptable to you. To our greatest regret, we are unable to raise the quantity of goods under contract since the steady increase of domestic demand does not allow it. We are sorry we cannot supply a larger quantity than originally agreed upon, but all our goods have been sold this quarter/for the next quarter/the

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first six months of the year/ for the second half of the year. We cannoit agree to the rescheduling of orders. We are pleased that you wanrt to order large quantities. We have immediately got in touch with the manufacturer and if the amount requested is available, we shall not fail to advise you. 6.6. COMPLAINTS/CLAIMS Faulty delivery, non delivery/short delivery, low quality of the goods supplied, wrong goods shipped, faulty paking/marking, non-observance of the buyer's instructions as transportation, handling, insurance, packing, late payment are the subject of complaints that seek to get a decision changed. They refer to a fault on behalf of one of the two partners during the execution of the contract. Claim letters ask for replacement or refund. The claimant must be sure that the facts arte mentioned clearly and accurately, and the details about the faults are correct. The letter must remain courteous and polite when setting forth the loss or inconvenience suffered and mentioning the adjustment the writer considers that must be made. The letter will never attribute the error to ill intention or mere negloigence. Courtesy and politness will restrain the anger and will make possible the writing of a convincing letter that is most likely to have a convenient adjustment. Both claims and complaints are sent only when the claimant is sure that the undestanding is not accomplished. When he decides he is entitled to cxlaim the refundinmg of a certtain amount of money as an adjustment, he will write the letter being specific about the price, identification markings of the goods or services in question, date of purchase, etc. When he claims damages it is advisable that the claimant should provide detailed inconveniences produced by the damage. Statements will be backed up by logic. The ending paragraph will indicate the writer's claim of refund or replacement. The solution suggested in this paragraph will express general terms and will build a common ground in order to keep the business on. Discourtesy and tough expressions will never be used under any conditions not even when stating inconveniences produced. When closing, the writer will indicate his expectations of a reasonable attitude on behalf of his counterpart. The letter should make the receiver understand that he might find help and understanding if he cooperates. If the complaint is backed up by real facts, the company will offer itself to settle things back or a compensation . When mistakes happen, they should be promptly admitted, but not with a defensive or cringing tone. When the complaints are partially justified it is advisable that the recipient focus on the right part of the complaint and ignore the partially wrong one. By admitting the right part of the complaint, even if it costs money, it will get a win-win position in the relationship with the damaged partner. Complaints may be also unjustified, so they need clarification. If the letter is a result of a missunderstanding, it can be easily cleared up. When a party is charged unfairly, it can recommend the claimant to find the real source of damage. A prompt, positive, understanding and cooperative reply, either to claims or complaints, wiil always privide valuable information about the business partners' relationship. 6.7. Adjustment Letter The letter that is meant to set back good business relationship between two partners by admitting compensation of the damage is known as

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adjustment letter. To reach effectiveness, the adjustment letter should bear the "you" attitude and tone that will make the writer understand the matter from opposite side. A reasonable attitude against the claimant will save a good deal of trouble. In order to achieve this, the adjustment letter will open with an apologetic attitude or an expression of regret for the inconveniences produced. The explanation of the circumstances causing the trouble should not become too obvious, to give satisfaction. It is advisable that the injured party should decide whether he is to blame or not. The second paragraph of an adjustment letter will state the compensation proposed, and the closing one will reinforce the writer's goodwill, as the prompt handling of complaints lead and make clear efficient business operations.

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EXERCISES: I. Read the following letter of invitation and identify the paragraphs conveying the ideas: Request., What?, Who? Where? When? Details about the program; Easy action; Reader's benefit.
HELLENIC BANK ASSOCIATION No. 131 Mr. Roberto Paviani Secretary General Italian Banking Association 2nd International Meeting on the Cooperation among the Banking Associations, Athens, October 18-20, 2001 Dear Mr. Paviani, Further to my previous letter regarding the organization of the 2nd International Meeting of Secretary Generals of Banking Associations from Balkan, Black Sea and Mediterranean countries, I would like to inform you that this is to be held between 18 and 20 October2000 at the Athens Hilton Hotel. Hoping that you will accept our invitation and that the proposed dates are convenient for you, I would appreciate it if you could complete and return the attached Participation form at your earliest convenience and preferably no later than July 7. 2001. The second attached form Traveling details is expected, if possible, no later than September 22, 2001. This will enable us to proceed with all the necessary details. Also, we would like to remind you that a parallel meeting will be held among participants, who come from BSEC member countries. The purpose of this meeting will be, as you are already informed, to explore the possibility of establishing a Union/Association of BSDEC member-states' Banks. For the time being we are working on the details of the agenda, which will be sent to you in due course. Finally, with the opportunity of this communication, I enclose our latest Annual Report on the H.B.A. activities during 2000. Looking forward to receiving your response. Best Regards, Andreas Paskalis General Manager 1, Massalias Street, Athens, Greece. Tel. 88564320.E-mail: jmanos@jba.gr URL: http://www.lba.gr

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II. Read the following declining semi formal letter of invitation and write the original invitation:

Alice Arnaud, 10-14 Beauchamp Street, London W1 Dear Mrs. Arnaud,

Dr. Backbone, Chairman of the Bell Group, thanks you very much for the invitation to a dinner party at the Ambassador Hotel on 12th September, in honour of the senior management of the American Telephone and Telegraph Company. He would be delighted to accept, but as he has already made arrangements to attend another important meeting which cannot be cancelled, Dr. Backbone unfortunately will not be able to attend the dinner. Dr Backbone has asked me to extend his cordial greetings to you, Mr. Schneider, Mr. Bronson, and Mr. Temple. Yours sincerely,

Secretary to Dr. B. Backbone

III. As Administrative Assistant to the president of Romanian Savings Association, write a letter inviting customers and their families to be your special guests at the grand opening of your new quarters on Thursday, Friday, and Saturday, the last three days of this month. There will be handsome gifts for both ladies and gentlemen, special door prizes, drawings every two hours, and refreshments. Children will receive balloons. Also, each current passbook holder will receive a special present. Your new building is graciously furnished with a number of authentic period antiques. A "SPECIAL GUEST" nametag, which you will enclose with your invitation letter, entitles customers to their gifts. IV. Write a letter of invitation to which you have the following reply:

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Ross Consulting Chartered Accountants Ross Consulting Stonecutter Court 1, Stonecutter Street London EC4A 4TR Rinaldi Loren Secretary General of Italian Banking Association 143, Dominicani Str. Rome Our Ref: /mls12ac Dear Mr. Rinaldi, I would like to thank you for your help in arranging the meeting In Rome last month to discuss the Technical Report prepared by Ross Consulting as a part of the EC PHARE project on technical assistance to Italy in the field of Money Laundering. The meeting was, for us, a very successful one and we have taken into account the opinions made at the meeting. The final version of the Technical Report has now been approved by the EC and we will be distributing it the next few weeks. I also passed on to the EC the request made at the meeting for further assistance; however I have not yet received a reply from them on this matter. I have enclosed with this letter a Ross Consulting publication on International Treasury Management. It was produced for treasurers of both banks and corporations, and I thought it might be a useful material for you. In addition, if you have any specific requirements for information and I can be of assistance, please do not hesitate to contact me.

Finally please pass on my thanks and best wishes for the future for those members of the Association who have attended the meeting with us and therefore contributed to the project. Yours sincerely, Malcolm Moore Ross Consulting

V. Match the following missing words with the gaps: a) departments; b) meet; c) arrangements; d) references; e) worthiness. When preparing credit 1) _________, even an insurance cover, customers will supply references, i.e. names of concerns or companies to assess his reputation and credit-worthiness. Banks usually supply this kind of information, but only in a general form as the companys capital or its capacity to 2) _________ its obligations. Trade organizations, representing the profession of the customers, can also supply trading 3) ________. Another source of information should be the customers business associates or partners, commercial 4) __________ of embassies or credit enquiry agencies. These ones can give much more details against a fee about a firms activity as it can research its financial activity, standing, credit 5) ________ and capacity to repay loans or fulfill obligations. VI. Read the following letters of status inquiry and draft a reply to each of them.

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X Commercial Bank 234, Strasbourg Bd. International Division web site: http:// www.trd.fr.e-mail: rof@trd.fr phone: 40- 2- 2110657; fax: 40 2110656 Vienna, December,19th, 2001 To:....... Fax:....... For the kind attention of............

Dear sir/ Madam, We have been recently contacted by a company named Commercial Trans ltd which has been presented itself as importer-exporter of computers proposing us a co-operation in this field. As we are not in the possession of any data regarding this entity, we would very much appreciate providing us with relevant information, as well as your opinion on the mentioned company. Please, rest assured that information offered will be confidentially treated and for our professional use only. We thank you in advance for your valuable assistance and hope to have the opportunity to reciprocate to you on similar occasions in the future. Hoping to hear from you soon, we remain Yours truly, ..............

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K Commercial Bank 253, Bouquinistes Bd. Rouen International Division web site: http://www.k.fr.; e-mail: somebody@k.fr phone: 40-1-3220864; fax:40-1-322928 Rouen, May 28th 2001 To:............. Fax:................. For the kind attention of Mr. Thorndike Deputy Manager

Dear Sir, We hereby take liberty to approach with the kind request of assisting us in obtaining a complete report on one of our customers, Larex Co. Ltd., address 23, Noiret St. account no. 22.1.354 located/headquartered in BTR Commercial Bank in Brazil. We would highly appreciate, Dear Sir, providing us with data regarding their shareholders, activities, financial standing for the last two years (if possible), and also your opinion on their reliability in relationship with your good bank and business partners. We assure you that this information will be confidentially treated, strictly for our own professional use. Please note that we will be ready to reciprocate by render similar services to you at any time your institution will request us to do so. Thanking you in advance for your prompt, kind assistance, we are looking forward to hearing from you soon we remain, Yours sincerely,

VII. Identify the main ideas and their order in the in the following:

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Academy of Economic Studies-Liverpool Faculty of Finance, Banks Stock Exchange and Insurance Dear Sirs, I had the opportunity to know Mrs. Amelia Warren when she attended my Financial Management of the Enterprise course during the Academic year 1997-1998. In this capacity I observed her high intellectual potential. As the course required, she developed analytical, quantitative and reasoning skills. She proved to be very motivated for individual work, a very hardworking and devoted person. A special mention should be made with respect to her deep insights on topics such as Evaluation Models of Options. This I can assess based on the discussions that I had with her in preparing a presentation on this topic. For all the above reasons, it is my opinion that she can easily face the international competition at high standards of your institution. Therefore, I strongly recommend her to be granted the scholarship she is applying for. Yours sincerely, Professor John Doe Dean of the Faculty Finance, Banking, Stock Exchanges and Insurance

VIII. Add the following spare parts to the following letter: Dear Sirs, As a reply to your letter of 21st of February, we have the pleasure to enclose the quotation for women dresses and trouser suits. You can obtain all the models you saw at our fashion show, except trouser suits in red which the smaller and medium sizes are out of stock for the moment. They will be available again in September. All other models can be supplied by the middle of July 2004, subject to our receiving your firm order by 15th April. Our c.i.f. prices are understood to be for sea/land transport to Bucharest. If you would prefer the goods to be sent by air freight, this will be charged extra at cost. a) We hope you agree that our pieces are very competitive for these quality clothes. b) We look forward to receiving your unitial order. c) Payment: irrevocable letter of credit d) Trouser suits sizes 8-16 in white, yellow, pink, turquoise, navy blue, black per 100 $2,650.oo e) Prices: valid until 30 April f) Delivery: c.i.f. Bucharest g) You will be receiving cuttings of our materials and color chart. h) Transport: sea freight i) Yours faithfully, R. Brown

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Fashionland Export Department IX. Fill in the blanks the missing words in the following letter of inquiry for goods: 1. quote; 2. place; 3. business Dear Sirs, We are in the a)................... of seasonal fruits and we are interested in importing for our developing market. We kindly ask you to b)................ us your best prices, qualities and terms of delivery and payment for bananas, mangoes, oranges and figs. We can c)................ large and regular orders if the quality, prices and terms are convenient for us. X. Mind the the structure of a) the inquiry and b) reference letter. Use the reference sentences to write the corresponding inquiry and reply letters: a). Inquiry: 1. How did you get in contact 2. Some information about your company, and the reasons for which you decided to write the letter 3. General request for information 4. Specific questions 5. Close with a reference to a possible future successful business. b). Reply: ...1. Thank-you line and reference to the inquiry for goods 2. Reference to the attachment to the letter if any. 3. Highlight several key points. 4. Answer any specific questions 5. Close the letter with the promisse to supply any further information. a) We are a distributor of bathroom furniture. b) We are attaching our current catalogue and price list. c) We look forward to an early reply, as we are sure that there is a market for your products in Romania. d) Could you also provide details of your delivery times, and whether there is any minimum order? e) Thank you for your email of 14 June inquiring about our products. f) You will note that our line of Magic mirror wardrobes is a special offer. g) Please send us information about your product range, including a price list. h) We met last Thursady on our stand at the Bucharest Trade Fair.

i) If you need any further information, please do not hesitate to contact

us. j) We dispatch the goods within 24 hours of a firm order, and for first-time customers our minimum order is 5,000. k) We are interested in trading your products on our market XI. Draft a corresponding letter of inquiry following the quotas offered for a hotel accommodation:

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RCA hote l

HOTEL
JL Kebun Karet 16 Jakarta Indonesia

Mr. Joseph Turner 10 Gresham St., Glasgow Dear Mr. Turner, Thank you for your letter of 5th June asking for hotel accommodation for the participans in the conference organised by the World Banking Federation in our town. We are pleased that you selected again RCA HOTEL. Our terms are as follows: Bed and breakfast Room and full board Up to two nights Per person, single room 60 75 2 persons, double room 8o 120 three nights or more per person, single room 2 persons, double room 45 75 70 115

Accomodation is still available for September, but we are almost booked up for July. Would you therefore let us know your wishes as soon as possible, so that we can reserve the rooms you need. We look forward to the pleasure of seeing you here again soon. XII. Match the words or expressions with the definitions: 1. to order a) official request for goods to be supplied 2. order 3. to fulfill an order 4. order fulfilment 5. cash with order 6. on order 7. order back 8. order picking 9. purchase order 10. delivery order b) to ask for goods to be supplied c) supplying items which have been ordered d) to supply items which have been ordered e) ordered but not delivered f) the goods will be delivered only if payment in cash is made at the same time as the order is placed g) official paper which places an order for something h) record of orders i) collecting various items in a warehouse to make up an order to be sent to a customer j) instructions given by the customer to the person holding his goods, telling him to deliver them

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XIII. Write a cover letter for an order according to the following instructions of the memo you received from your office manager, the information provided in the order form you sent previously and the swatch catalogue of the supplier by which a discount of 10% and 12% is alowed for orders of over 6,000.00 and 8,000.00 respectively. Calculate the total price. Is there any higher discount possible? Use the spare parts the cover letter of the order as a reply to the following memo.

MEMO:

To: Supplies Officer From: Office Manager Date: Thursdays, 12, June Could you please make some alterations to the order nr 36/10. June that we discussed recently within the board? Please, order two more drawer filling cabinets over the 4 ones that we already ordered.. We also need 20 fax rolls and 10 computers, two shredders and two binders. We do not need a postal scale, so please delete it entirely, but we need one overhead projector please check the items code in the catalogue. Please, specify that the 100 chairs we ordered for the conference room should be dark blue, the filling cabinets should be grey and the wall clock must be grey too. Should it bring us to over 5,000 to be entitled to ask for a discount and free delivery? Office Manager Geoffrey Austen
ORDER FORM ITEM CODE: DESCRIPTION QUANTITY UNIT PRICE J24 drawer cabinets 4 236 K30 chairs 80 40 128 MNP M1 FAX 6 65 DG 445 Fax rolls 30 12 X136 MNP Computers 50 1, 100, 00 20XCL Binders 25 199 7.38. GH Postal scale 1 225 10 FY Shredder 1 110 97OP Wall clock 2 50 12 S 8734 Flip chart 3 239 =========================================================================== TOTAL: 6, 271, 50 DISCOUNT: 5% DELIVERY CHARGE: ....350 TOTAL: 5, 993, 80 XIV. Make sentences of your own using the following: - to canal an order - call off an order - handle an order

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to update pass an order to smb. fulfill an order execute an order

XV. Read the following memo and write an appropriate letter:

8 pm Friday, 25 October 2004 KRK, I've sent part of the New Art Order all the block boards and 3, ooo pine planks. We can't send the over 2,000 until Monday when they arrive from Mill Zetter. Explain that to them. I don't have time to ask Betty to type the invoice. Don

XVI. Match each document-type on the left with a definition on the right: 1. an enquiry a) a request to supply (sent by the customer) 2. a quotation 3. an estimate 4. a conterproposal 5. an order 6. an invoice 7. a reminder 8. a receipt 9. a statement 10. a complaint b) a request for information sent by the customer c) an approximate calculation of the cost of something d) the price given for goods or a piece of work e) a letter where the customer tries to get better terms f) a document that proves you have paid for some goods g) a list of amounts paid and still owed, sent every month h) bill for goods supplied or work done i) a letter to a customer about an unpaid invoice j) a letter saying you are not satisfied about something

XVII. Complete the typical customer-supplier sequence with the words: a complaint; information; an inquiry; an invoice (with the goods); an order; the problem; a quotation; the quotation The customer............ 1. makes an inquiry 3. requests ............. 5. makes ................. 7. makes ................. The supplier............. 2. sends ............... 4. gives ................. 6. sends .................... 8. solves ..................

XVIII. Place the following e-mails in the correct order:

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a). Thank you for your e-mail received today. We supply and maintain large, ornamental plants for hotel lobbies and reception areas. We have been in business for more than ten years and have some of the city's best hotels among our clients. Please see the attached leaflet for more details of our products and prices. If you need any more information, please let us know. b) I saw your advertisement in a recent copy of the magazine "Hotel and Catering". I am interested in your service for our hotel lobbies. Please send more details. c). Your visit to our hotel last week was very useful and I now have the agreement of my line manager to go ahead with the contract. See attached our order as a Word file. Please acknowledge receipt of this e-mail and give us delivery terms. d). Further to your last e-mail, I am happy to provide you with the information you need: We cannot offer any discount for an order of twelve plants. We believe our prices are highly competitive and our terms of payment are one month's charges in advance. We think it would be useful for you to come to the site. Is next Tuesday morning at 10 am convenient for you? We can use the opportunity to make clear any other questions that you might have. e) I am writing about a visit by one of your maintenance staff earlier today. He left a lot of water on the carpet when he had watered the plants. This was not the high standards of service that we have come to expect from you in the past. f). Thanks for your prompt reply. I am interested in obtaining four large plants for our lobby and a further eight for the restaurant area. Would you give us a discount on an order of this size? Also, can you state your terms of payment as I could not find these on the document you attached? Do you need to come to the site to see if the conditions are proper for the plants? Here is our address. g). We are very sorry to hear that the service you received from our company was not up to the usual standards. Unfortunately, due to the big business, lately we had to employ temporary workers. We appreciate the time you have taken to bring this matter to our attention, and as we value our good customer relations, we are willing to give you one week's free maintenance. I apologize again for any inconvenience caused. h) It is now 15 days since you accepted delivery of our plants We attach an invoice for next month's charges. Please pay this asap. Thank you. XIX. Complete the sequence 1-17 with following business documents: enquiry; complaint; counter-proposal; order; receipt; quotation; statement; reply to enquiry; reminder; reply to complaint; regular orders

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Customer sends:

Supplier sends:

1 3 5

2 4 6. goods dispatched 7. invoice 8. a problem with the goods

9.

10. 11. problem settled 12. 13. payment 15. 17. further payments 14. 16.

XX. Work in pairs. You are going to exchange correspondence with your partner because you are interested in each other's products. A. Student A worksheet: Your company, Easilife Office Furniture, manufactures and supplies office furniture. Your address is 89 Cannon Street, Redford Notts, QT. Your partner, Voltec Computers Company sells computers that you are interested in. 1. Enquiry. Write a letter to the Sales Manager of Voltec Computer to ask for general information about their computers. Use the full layout of a business letter. 2. Reply to an enquiry. Reply to Voltec 's inquiry letter for goods enclosing some of your brochures, price list, etc. 3. Request for a quotation. Write an e-mail to Voltec asking for a quotation for some specific computers and spare parts you are intertested in buying from them.

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4. Quotation. Write a fax to Voltec. Give them a quotation of your products in the catalogue. State your terms of sale: price, any discounts (e.g. prompt payment), delivery time. Deal with any other questions in Voltec's last e-mail. 5. Counter-proposal. Send an e-mail to Voltec, making a counter-proposal. For example, you may want a better price, a larger discount or a shorter delivery time. 6. Reply to a counter-proposal. Reply by e-mail. Begin by apologizing for the delay in replying. Tell them that you can't accept their counter-proposal. However, you are prepared to offer something (less than they want). 7. Order. Their reply is acceptable and you want to make an order. Write a short cover letter to Voltec to send with your order form. 8. Dispatch advice. Write an e-mail to Voltec. Thank them for their order and tell them that the goods they ordered were sent this morning. 9. Complaint: The computers have arrived! However, one of them has a small fault. Also, there is a mistake on the invoice. Write a complaint e-mail to Voltec. 10. Reply to a complaint: Reply by e-mail. Apologize for the damaged furniture. Ask Voltec to return the piece, and say you will send a replacement immediately. Apologize and give a reason for the mistake in the invoice say you will send a new one. Student B worksheet. Your company supplies office computers. Your company's name is VOLTEC COMPUTER COMPANY and the address is Springtime Road, Milton Keynes, TQ8 5KP. 1. Enquiry. Write a letter to the Sales Director of Easilife Office Furniture to ask for general information about their office furniture that you are interested in. Use the full layout of a business letter. 2. Reply to an enquiry. Reply to Easilife's letter of goods enquiry, enclosing some brochures, price list, etc. You know the name of their Sales Director, so use it. 3. Request for a quotation. Write an e-mail to Easilife, asking for a quotation for some specific products (four executive desks, and four executive armchairs). You may think of other questions. 4. Quotation. Write a fax to Easilife. Give them a quotation. State your terms of sale: price, any discounts (e.g. prompt payment), delivery time. Deal with any other questions in Easilife's last e-mail. 5. Counter-proposal: Send an e-mail to Easilife, making a counter-proposal. For example, you may want a better price, a larger discount or a shorter delivery time. 6. Reply to a counter-proposal: Reply by e-mail. Begin by apologizing for the delay in replying, then tell them that you can't accept their counterproposal. However, you are prepared to offer something (less than they want) 7. Order: Their reply is acceptable and you now want to make an order. Write a short cover letter to Easilife to send with your order form.

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8. Dispatch advice: Write an e-mail. To Easilife. Thank them for their order and tell them that the goods were sent this morning. 9. Complaint: The office furniture has arrived! However, one piece is damaged. Also, there is a mistake on the invoice. Write an e-mail to Easilife. 10. Reply to a complaint: Reply by e-mail. Apologize for the faulty computer. Ask Easilife to return it, and say you will send a replacement immediately. Apologize and give a reason for the mistake in the invoice say you will send a new one. XXI. Pair work. The directors of a travel agency, "Treasures of the countryside" and an agro-countryside residence "Green Horse" exchange some business correspondence.

A) Worksheet: Student A: the Director of "Treasures of the countryside" travel agency

1. Write a letter to "Green Horse" residence - you enclose the latest cheque and apologize for its delay - provide the details about the following group of tourists coming from Paris Charles de Gaule to Bucharest Henry Coand. You will have probably 11 people. Ask for a quotation for 5 double rooms and a single - ask diplomatically, for some information about "The Green Horse'' residence's financial situation, mentioning that you read some rumors in the newspapers 2. Reply to the Director of "Green Horse" residence - refer to "Green Horse's" letter and mention that you hope they received your cheque - make a counter-offer as you do not agree to the new terms - inform Green Horse that your company has a good financial situation. 3. Reply by e-mail to "Green Horse" - refer to the "Green Horse" letter; you accept the quotation but not the new terms - a meeting is a good idea suggest a time and a place - you ask for a copy of "Green Horse" 's last annual accounts before the meeting 4. Reply by e-mail - thank for the "Green Horse's e-mail. You consider that the meeting will be useful - you do not agree to the extra-charge due to the re-modeling of the residence, as you can't recover it from your customers in your catalogue it is written that there will be no hidden extra-costs. Suggest you talk about that in the meeting You have some bad news two of your customers have cancelled their holiday at the last moment and now you only need 4 double rooms and a single

B). Worksheet. Student B: The director of "Green Horse" residence; Your companies have been doing good business together for
several years 1. Write a letter to your partner "Treasures of the Countryside" - remind your partner that payment of your last invoice is overdue

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- explain your decision that you started a new financial policy: to improve cash-flow: all clients must pay a deposit of 50% two months before the check-in day and 5o% one month after 2. Reply to the Director of "Treasures of the Countryside" - make reference to Treasures' letter and thank them for the cheque - give them a quotation for the accommodation: 60 for a double and 40 for a single. You would like a 50% deposit now, as mentioned in the last letter. This will guarantee the availability of the rooms. - let Treasures of the Countryside know that your company is in good financial situation. - suggest a meeting to discuss the matter in detail. When would be convenient to "Treasures..."? 3. Reply by e-mail to Treasures' letter - Treasures' counter-proposal is not acceptable. You need to discuss this in the meeting. You express your confidence in a compromise to acceptable on both sides - you have some bad news the government has raised a 6% tax for small business and so, your previous quote will have to go up 4. Reply by e-mail - thank Treasures for their e-mail. The time and place they suggest for the meeting is convenient. - confirm that the 4 double rooms and 1 single are available in the residence. You will discuss the new terms at the meeting, but you still need the deposit now to guarantee the availability of the rooms - Your annual accounts are confidential and cannot be shown to the clients. However, you are prepared to answer any questions in the meeting. XXII. Read the following text and answer the questions: There is a fly in my software A computer program A software called Custom has been founded by the employment department's learning technologies unit, and is designed to help hotel and catering trainees to cope with customers complaints that can usually make or break a business. The idea of such a program grew out of an unpleasant evening when its maker and his wife had a hotel. The couple were left standing in the hotel lobby while the receptionist continued making a personal phone call. During the meal they were ignored by the waiter and had their drinks at the bar and carry them back to the table. The couple complained to the manager who sympathised but said it was difficult to train staff in customer care. Hence the computer based training package. The first part analyses how complaints arise. The complaints included those from the few customers who go to a restaurant determined to make a fuss, perhaps in the hope of a free meal. The program includes ways of spotting those complaints, and the ones that can arise because of previous bad experience that somebody had before entering the restaurant. The program also identify the complaints that can occasionally arise merely from customer boredom. Somebody may have decided he cannot stand his dining companion and takes his unhappiness out of the food or the unfortunate waiter. The computer asks the waiter-trainee to make a profile of the customer according to the way he is dressed shabby, average or immaculate, to his accent a local or a non local, the way he speaks English, if he belongs to a group or he is alone, or how much alcohol he seems to have drunk. Then the computer suggests successful ways of

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tackling the customer. In the second part of the program the computer becomes less friendly. The trainee-waiter or receptionist takes part in a roleplay game with the complaining client. The computer is programmed to be angry, rude, reasonable or rambling. The trainee's task is to recognize the warning signs and calm down the situation. At the end of a sesion, trainees are told how many attempts it has taken to reach the correct response. The results are saved for the course tutor to read. But although the program uses graphics and text to good efect, it cannot yet convey complex factors such as the customers 's tone of the voice, body posture, or facial expression. However, the program producers say that there are no plans to incorporate a robot arm that grabs the user by the lapels. 1. Who is the software program going to help?

2.

What are the three causes of complaint that have nothing to do with the quality of service of food? What are they? 3. What questions does the computer ask in order to construct a customer profile? 4. Which factors decide how a customer will react during a complaint? Do you believe in the efectiveness of this kind of training? Give arguments. XXIII. Translate into English the following letters:

5.

A= Conducerea Bncii Veracruz Madrid i conducerea Bncii Veracruz Romania Au plcerea s v invite (request the pleasure of your presence) la receptia de inaugurare a Subsidiarei Banca Veracruz Romnia Care va avea loc n Bucureti, Mari 22 septembrie 2000, ora 18.00 In sala de Marmura a Casei Centrale a Armatei, Str. Constantin Mile nr 1

B) Stimai domni, Ca urmare a solicitrii dumneavoastr prin scrisoarea nr....... din data......, dorim s v propunem oferta noastr de mobil pentru birouri. Piesele sunt executate dup cele mai nalte standarde de calitate, din materiale uoare i rezistente, alctuite din module uor de manevrat i asamblat n forme diferite i ntr-o gam larg de culori, dup dorina clientului. Preurile i termenele de livrare i vnzare sunt prezentate n catalogul anexat prezentei oferte. In situaia n care se fac comenzi mai mari, acestea se pot modifica n funcie de cantitatea i calitatea solicitate. V invitm la sediul nostru din strada .............. pentru a v convinge i a negocia cele mai convenabile preuri.

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In sperana unui rspuns favorabil care s ne conduc la bune afaceri mpreun, rmnem ai dumneavoastr, ............................................. C). Urmare cererii dvs de ofert nr 26 din 14.Sept. 2004 alturat v transmitem urmtoarea ofert a "Circuitului a la carte" n Jogjakarta, Indonezia. 4 zile/3 nopi Leagnul civilizaiei javaineze unde putei descoperi vestigiile i urmele unei culturi milenare. De semnalat n primul rnd Borobudur, capodoper a arhitecturii religioase. Ziua 1: Sosirea la Jogjakarta. Primirea la aeroport i transferul la hotel. Vizita oraului: palatul sultanului, Kraton, muzeul Sonobudoyo, atelierele pentru baticurile musulmane i de argintrie. Ziua a 2-a: dimineaa se viziteaz templul Borobudur, temple budiste din secolul VIII i IX. Considerat ca cel mai mare din lume, cele 9 nivele simbolizeaz accesul ctre Nirvana. Dup-amiaza, excursie la templele hinduiste de la Pranbanam. Din luna mai pn n octombrie se poate participa la faimosul festival Ramayana care se desfoar n nopile cu lun plin (excursie facultativ). Ziua a 3-a: Jogiakarta. Zi liber. Posiblitatea organizrii unei excursii n Dieng, un interesant i pitoresc orael de provincie, n inima Javei. Ziua a 4-a Jogiakarta. Zi liber pn la ora trasferului la aeroport. (2 pn la 6 persoane) Pre: $ 350 /persoan: cazare cu mic dejun inclus; transferurile de la i la aeroport; excursiile prezentate n program; ghid vorbitor de limb englez/francez /german - nu sunt incluse: zborul pn la Jogjkarta; taxele de aeroport Orice modificare de program sau itinerariu aduce cu sine modificri ale preului. V rugm s ne confirmai, n termen de 30 zile numrul de turiti pentru care dorii organizarea acestui sejur. C) V mulumim pentru oferta dvs din data de ... pentru costume brbteti din stof. Considerm, ns, c raportul pre/calitate din catalog nu este satisfctor, mai ales n condiiile unor comenzi permanente i substaniale pe care intenionm s le facem. Avnd n vedere exigenele pieei Uniunii Europene, v sugerm o reducere cu 10% a preurilor oferite, cu plata la 30 zile de la expedierea mrfii. Pentru discutarea i a altor detalii, considerm bine venit o ntlnire cu reprezentanii firmei dvs ntr-o perioad pe care o lsm la latitudinea dvs. Ateptm cu interes rspunsul dvs ct mai curnd. D) Stimai domni, Am primit o comand n valoare de ..... pentru roii, castravei i ardei gras de ser de la clienii dvs Messrs X & Sons pentru care intenionm s

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tragem o trat la 3 luni. Avnd n vedere c nu cunoatem situaia financiar a acestei societi, v-am rmne ndatorai dac ne-ai sftui n aceast privin. Informaiile pe care ni le vei furniza vor rmne confideniale i contai pe servicii similare din partea noastr la nevoie. V mulumim pentru nelegere i colaborare. Al dvs, E). Stimai domni, Ca rspuns la scrisoarea dvs prin care ne solicitai informaii n privina societii X, ne face plcere s v confirmm c aceast firm este bine cotat pe piaa noastr i are reputaia de soliditate i solvabilitate financiar. In ceea ce privete creditul comercial pe care intenionai s-l acordai acestei firme, considerm c i va putea achita la termen obligaiile pe care le va angaja fa de societatea dvs. V rugm s considerai aceste informaii ca strict confideiale i neangajatoare. F. Firma TAREX, prin obiectul su de activitate i profesionalismul, seriozitatea i priceperea personalului calificat, a demonstrat practic avantajele tehnologiilor moderne de curare, ntreinere, igienizare pentru mochete, marmur, gresie, faian, geamuri i perei cortina (curtain walls). De aceea, recomandm clduros serviciile oferite de firma TAREX. Stimai domni, Ne face plcere s v informm c ai fost recomandai de firma X...ca fiind cei mai eficieni pe piaa de materiale de construcie. Firma noastr a ctigat cteva licitaii pentru restaurri de imobile din patrimoniul naional de art i, din acest motiv, suntem interesai n achiziionarea de materiale de construcie de bun calitate dar la preuri rezonabile i condiii de plat convenabile. V rugm s ne transmitei cataloagele dumneavoastr i lista de preuri aferent n cel mai scurt timp posibil. Avnd n vedere posibilitatea unor comenzi substaniale pe o durat ndelungat, colaborarea noastr poate s devin strns i benefic pentru ambele pri. Ateptm cu interes oferta dumneavoastr, G). Imaginai-v urmtorul scenariu: Primii o reclamaie de la un client nemulumit. Dvs i scriei imediat i reuii s-l mulumii cu rspunsul dat. Inseamn c i-ati scris clientului o scrisoare bun. Dar dac reuii s-l trasformai, prin aceast scrisoare, dintr-un client ocazional, ntr-unul fidel, atunci este o scrisoare aductoare de profit. Indiferent dac trimitei un fax sau o scrisoare, n ziua de azi, n condiiile unei concurene mereu crescnde, este foarte important ca toat corespondena dvs. s aibe efecte maxime. Pentru dvs. ca om de afaceri, efecte maxime nseamn afaceri profitabile, nseamn bani n cont. H) Stimai domni,

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Regretm s v informm c, dei ai respectat termenul de livrare al celor dou loturi de margarin, nu ai inut cont de specificaiile comenzii noastre. Acestea prevedeau un ambalaj corespunztor transportului cu tir frigorific care s protejeze marfa att mpotriva temperaturilor exterioare ridicate ct i a celor joase din interiorul mijlocului de transport. Avnd n vedere cele de mai sus, v facem cunoscut c ambalajul s-a degradat pe timpul transportului n proporie de 40%, ceea ce a determinat i pierderea unei cantiti nsemnate a coninutului i deteriorarea calitii acestuia. In consecin, ne considerm ndreptii s v solicitm daunele aferente pierderilor suferite ca urmare a nerespectrii instruciunilor de ambalaj stipulate n contract. Considerm binevenit o ntlnire a reprezentanilor firmelor noatre pentru negociere la data de 25 Octombrie 2006. V rugm s ne comunicai n cel mai scurt timp decizia dumneavoastr n aceast privin. Director general

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PART II BUSINESS RELATIONSHIP

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UNIT 1 BUSINESS CONVENTIONS

Contracts are agreements between two parties as a result of an "offer" and "acceptance". Other requirements must also be met for an agreement to become legally binding. The two parties must have full and legal capacity to enter into a legal agreement, i.e. they must be competent, so that the agreement should not be considered void either by law, statutory rule or an inherent defect. The setting of a valid contract does not require any particular formality, as it can be concluded in an oral or in a written form or even implied from conduct. However, certain contracts are valid only if made by deed: transfers of shares, certain types of lease, hire-purchase agreements, bills of exchange, promissory note. There are some different types of contracts :

Hire-purchase contract (HP) by which goods are passed in the possession of the purchaser as soon as he has paid an initial installment of the price. A hire purchase agreement often involves a finance company as a third party. The owner of the goods sells them outright to a finance company entering a hire-purchase agreement with the hirer. Franchising agreement by which a licence is granted by the franchisor to the franchisee to enable him to manufacture, or sell a product or service in a particular area or stated period. He pays a royalty on sales to his franchisor. Contract of employment (service) by which an employer and a employee set an agreement. It stipulates the job title, salary, payday, holiday entitlement, sick pay, pension, notice requirements, and disciplinary procedures. Larger organizations provide a company handbook giving a detailed account of company policies, disciplinary rules and any other relevant matters. Loan Agreement is the type of a contract by which the creditor undertakes to provide financing to a debtor who obliges himself to pay back the amount within a stated period of time together with an interest. Contract of licence: the licensor grants the licensee the right to sell, to produce or render a service under the name of the former. The licensor provides the latter with all the necessary technical

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documentation and information needed to exercise the right under the contract while he is bound to keep the confidentiality of this information against a third party. Mandate agreement: the mandatory undertakes to arrange business matters in the name of a mandator at his request against the payment of a certain amount of money for the service rendered called a commission. Silent partnership agreement: the silent partner provides an investment to an entrepreneur that will pay him back an amount deriving from the profits obtained in the entrepreneur's business results. Leasing contract: the lessor undertakes to allow the lessee the temporary use of equipment, means of transportation, buildings for a stipulated period of time and the lessee undertakes to pay the lessor a hire-pay as remuneration. Security Brokerage Contract: a Brokerage company undertakes execute buy/sell orders on the behalf of a natural/legal person as a Client. Insurance Policy: an Insurance company undertakes to cover the different types of risks: transportation, damages, fire, floods, accidents, life, etc.

1.1.

Charter Party: a ship-owner agrees to place his ship, or part of it, at the disposal of a charterer against a certain freight on the cargo to be carried. SALES CONTRACT

The Sales/Purchase contract has the object of transfer of the ownership from the seller to the buyer for an amount of money or for any other consideration. The seller undertakes to deliver the assets sold or hired and the buyer/purchaser undertakes to pay the purchase price according to the clauses negotiated and stipulated din the contract. The main parts of the contractare: Preamble of the contract that will include information about the number of the contract, date and place of conclusion, the seller and the buyer, their legal address, logoes, telephone number, bank account number. If the seller and buyer are legal persons they will always be represented by natural persons that will be identified by the data in their identity card Terms or Clauses of the contract: - Object of the contract: goods or assets sold or hired named) - Quantity of the goods/assets that make the object of the contract

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- Quality accoording to the nature of the goods/assets - Packing - Marking - Unit/Total Price and Terms of Payment - Sales/Hire Terms of delivery -Transportation -Insurance - Jurtisdiction and Arbitration - Contingencies. Claims and Penalties - Other clauses: guarantee, technical documentation, taxes, customs duties, amendments, cancellation, stamps - signatures of the two parties 1.2. FRANCHISING AGREEMENT The two main parties of the franchising contract are the franchisor that licenses the franchesee (a manufacturer, a distributor, trader, etc) to manufacture or sell a product or render a service on his behalf for a stated period of time. The franchesee, i.e the holder of the licence pays the grantor of the licence (franchisor) a royalty on sales, often as a lump amount as an advance against royalties. The franchisor undertakes to supply the franchesee with finance and technical expertise. 1.3. EMPLOYEMENT CONTRACT This type of contract is concluded between the employer and the emploee for a determined or undetermined period of time. The clauses are negotiated and stipulated in the contract and guaranteed by the two parties who undertake their rights and responsibilities that become binding under their signatures. 1.4. CREDIT FACILITY CONVENTION In order to execute a loan, banks need paid-in capital that is earned from financial activities, borrowed funds, and from customers' deposits. The source for lending is always the money deposited with the bank by the bank's customers, whether in a demand or time account. This will always limit considerations in the degree of risk that the commercial bank will take. It cannot jeopardize the safety of the depositors. The domestic and the international bank will always obtain certain basic information that usually is forthcoming in a meeting with the potential borrower. It will learn how much money is being sought, the purpose of the loan, how long it is needed for, and how it will be repaid. Banks make loans for worthwhile purposes: financing trade, expanding businesses, house building, and so on. They need evaluate the three C's of credit: character, capacity, and capital. That is the integrity of the borrower, his capacity to repay the loan, and the soundness of his financial position. Sometime the loan applicant's ability to repay the loan is pendant on the purpose of the loan itself. Loans can be self-liquidation, when the source of repayment is from the sale of imported merchandise, or capital-expansion,

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when the source of repayment is from increased sales. The financial statement of the borrower represents the financial position of the borrower and it usually consists of a detailed balance sheet and a profit and loss account statement. An audited financial statement requested by the credit officer will cover a certain period of the customer's activity. In international banking activity, the credit officer will consider the economic and political outlook of the foreign country before loaning money to a foreign borrower, its balance of payments being an important source of information. The bank's prior experience with the borrower and the nature of his business represents a subjective factor in the decision-taking process. When the loan is granted, the bank will also decide upon the interest rate to charge. That will depend on the cost of money to the bank. This includes the average interest rate the bank is paying to its depositors, the bank's operating costs, the return that the bank expects. The bank must also take into account possible losses and provide dividends to the bank's shareholders. There are also other considerations to take into account when a bank decides to allow a loan. If it is about a term loan, that is a second rate borrowing, the risk is greater and it must be compensated through a higher interest rate against the prime-rate borrowings that are short-term loans. The appropriate credit instrument is to be decided upon for the repayment of the loan too. The promissory note is the most customary that can be payable "on demand" of the bank. The banker's acceptance can be used for loans involving international trade. It is saleable to investors so that the bank merely commits itself to pay on maturity. The bank does not have to commit its own funds. Credit extension may involve advances, discounting of accounts receivable, overdrafts, or advances against collections. A loan can be secured by collateral assigned to the bank, such as securities or precious metals, or guaranteed. When an agreement is reached, the borrower signs the necessary documents and the amounts are disbursed to him. For large loans, banks often form a syndicate each of them disbursing a portion of the loan. One bank puts the deal together and carries the administrative burden during the life of the loan, being the "lead bank". A syndicate is sometimes desirable because of the legal lending limits on banks, the general relationship of the total demand for credit compared to the supply of loanable funds, or the prudent banker's desire to spread the risk. 1.5. CONTRACT OF LICENCE The agreement is concluded between the licensor who grants a licence to the licencee to sell a certain product, manufacture a preoduct, render a service, run a business. The licensor is entitled to continue performance of his rights but may also grant the same object of the contract to other persons. The licencee is not entitlerd to transfer the rights and obligations undertaken by the licence contract to another person without the consent of the licensor. The contract will also provide the providing of the technical documentation and the information needed to the licencee to perform his undertaken obligations. The latter is bound to keep confidential both the documentation and the information provided under the contract, against a third person. 1.6. MANDATE AGREEMENT The two parties of the Mandate contract are the mandatory who undertakes to set certain business matters by taking legal steps in the name

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and for the account of the mandator, while the mandator undertakes to pay him a certain amount of money a commission. The mandatory will perform his obligations undertaken by the contract in accordance to the mandator's instructions and interests and keep him informed on the matter.

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1.7. SILENT PARTNERSHIP The silent/sleeping partner will participate into a business managed by an entrepreneur by providing him investment. The entrepreneur undertakes to pay a certain amount or percentage of the profits arising form the silent partnership. The object of the business will be passed to the entrepreneur to be used for a certain period of time in business activities. The silent partner is entitled to check the books of the business regarding its activity. The silent partner is not bound to give back his profit share in case of loss. The contract ends when the stipulated time elapses. 1.8. LEASING CONTRACT Almost any asset can be purchased through leasing, from aircraft to zithers. Even renting a car for a few days is being considered a convenient short-term lease. Corporations lease both short-term and long-term as a method of financing property, plant, and equipment. Every leasing contract has two parties: the lessee the user and the lessor the owner. When the lessee decides on the asset needed, he negotiates a lease contract with a lessor. From the lessee's standpoint of view, long term leasing is compared to a form of financing with a secured loan. The principal benefit of long-term leasing is the tax reduction. If the corporate income tax were repealed, long term, leasing would virtually disappear. The contract is called lease by which the lessee has the right to use an asset and in return must make periodic payments to the lessor, the owner of the asset. The lessor is either the asset's manufacturer or an independent leasing company that has to buy the asset from the manufacturer, and then the lessor delivers the asset to the lessee: the lease goes into effect. If the lessor is an independent leasing company who purchase s the assets from a manufacturer, leases contracts that it concludes are called direct leases. It issues both debt and equity to finance the purchase. But of course, a manufacturer could lease its own merchandise. This type of lease contract is called sales-type leases. The most interesting feature of an operating lease is the cancellation option. This gives the lessee the right to cancel the lease contract before the expiration date. If the cancellation option is exercised, the lessee must return the equipment to the lessor. The value of a cancellation clause depends on whether future technological and /or economic conditions are likely to make the value of the asset to the lessee less than the value of the future lease payments under the lease. There are different types of lease agreements as it follows: financial lease does not provide for maintenance or service by the lessor and it is fully amortized; the lessee, in this case, has the right to renew the contract on expiration, but never to cancel it. In other words, the lessee must make all payments or face the risk of bankruptcy. Two special types of financial lease are the sale and lease-back arrangement and the leveraged lease. - sale and lease-back occurs when a company sells an asset it owns to another firm and immediately leases it back. In this case the lessee receives cash from the sale of the asset, and the lessee makes periodic lease payments, thereby retaining use of the asset.

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- leveraged lease is a three-sided arrangement among the lessee, the lessor and the lender by which the lessor purchases the assets, delivers them to the lessee, and collects the lease payments from the lessee. The lessor puts up no more than 40-50 per cent of the purchase price, while the lender supply the remaining financing and receives the interest payment from the lessor. The arrangement would be a leveraged lease if the bulk of the financing was supplied by creditors.

Manufacturer of the asset

Lessor owns the asset Does not use the asset

Lessee (firm U) uses asset does not own asset

Equity

Creditors

1.9. SECURITY-BROKERAGE CONTRACT A member of the public wishing to buy or sell shares can only do so through a broker. Finding a broker is most commonly done by personal recommendation, but otherwise the Stock Exchange provides, on request, a list of brokers willing to deal, and all a prospective client has to do is approach one of the firms and ask them to act for him. The person becoming the client of a broker has to complete a Security Brokerage agreement, which sets out the terms and conditions under which business shall be done. The broker usually wants to know details of his new clients financial position and his investment objectives. 1.10. INSURANCE POLICY Insurance is based on the principle of paying a relatively small amount of money, called a premium that is to cover against the risk of accidents, damage, theft, which could determine financial loss. When deciding to take out insurance, a broker or an underwriter can give advise on the specific type of insurance that cover certain requirements. The third party insurance type is compulsory when driving a motor vehicle, as the owner of a write-off car may lose a lot of money in case of an accident. The most advantageous insurance type is the all-in which enables the insured party to claim for any damage that might occur to his car. The insured party fills in a notice of claims when the damage, loss or theft occur and lodges it with the insurer and an independent surveyor assesses the compensation claimed. Properties can also be insured against fire, floods or burglary. But because of depreciation, little

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compensation is usually paid. Life insurance called assurance is more and more convenient for the people retiring as the state pension funds are lower and lower as they provide an additional source for them. Their premiums are calculated according to actuaries. Trade is also covered by insurance policies. 1.11. CHARTER PARTY Foreign shipping is backed by Charter Party contract that is an undertaking of a ship owner to place his ship or a part of it, at the disposal of a charterer, the latter agreeing to pay the corresponding freight on the cargo to be carried. The contracting parties are the ship-owner and charterer. 1.12 FACTORING AGREEMENT Financial service whereby a firm sells or transfers title to its account receivable to a factoring company, which then acts as principal, not as agent/adherent. The receivables are sold without recourse, meaning that the factor cannot turn to the seller in the event accounts prove uncollectible. Factoring can be done either on a notification basis, where the seller's customers remit directly to the factor, or on a non-notification basis, where the seller handles the collections and remits to the factor. There are two basic types of factoring:

Discount factoring: arrangement whereby the seller receives funds from the factor prior to the average maturity date, based on the invoice amount receivable, less cash discounts, less an allowance for estimated claims, returns, etc. Here the factor is compensated by an interest rate based on daily balances. Maturity factoring: arrangement whereby the factor, who performs the entire credit and collection, remits to the seller for the receivables sold each month on the average due date of the factored receivables. The factor's commission on this kind of arrangement depends on the bad debt risk and the handling costs.

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EXERCISES:

I. Fill in the blanks using the following words: 1. installments; 2. security; 3. amount; 4. money; 5. paid; 6. statement; 7. agreement; 8. default. When a person borrows a) ____________ or sells goods on credit, the lender wants a guarantee to cover the loan. If the borrower does not pay back the borrowed b) ___________, the lender may sell the goods which were given to him as a guarantee and may also use the guarantee amount in order to cover the loan. Such a contract is called a "loan c) __________". On the basis of this contract, the borrower obliges himself to pay back the loan at a certain date, or in several equal d) _____________ at periods established throughout a month or a year. If the borrower does not pay back at required date, makes any false e) _____________ to lender, dies, becomes insolvent or terminates his business by all reason, the payment of the loan is "accelerated" and the borrower or his successors must pay immediately the whole amount which remained unpaid. When a f) ____________ and loan agreement is drawn up, the identity of the parts, the total amount of the loan, the interest rate and the date the loan must be paid back must be taken into consideration. The contract will stipulate the description of the goods which secures the loan, and the date on which the installment is to be g) __________ back. It will also mention the lender's obligation not to sell or destroy the good and the right of the lender in case of the borrower's h) ___________ on his obligations. II. Find the place of the missing words (endorsed; details; assist; payment; invoices; redeem, bad-debts) in the following Object of Agreement The Agent is willing to 1. ................ the counter value of his shipments to his importers in Jamaica as simple as safe as possible and the Factor will be in a position to 2 ................. him for this purpose. This factoring Agreement makes its aim to effectivelly collect the 3. ........ .......... incurred by the Jamaican importers. The Agent shall remit the bad debts monthly using detailed memoranda carrying 4. .................. about the impoter (name and address, the object, value, time and and terms of payment of the debt) as to the Form enclosed. The detailed memoranda shall be accompanied by the export 5. .............., in copies and by the time of sight Bs/E or by any other financial documents signed by the importer to the Agent's order and 6. ................. by the latter to the Factor's instructions and enclosed with this Agreement should provide for 7. .................. to be made either in favour of the Factor or in favour of a third named by the latter. III. Translate into English: A) Dei nu poate fi definit exact, leasing-ul operaional este caracterizat de unele trsturi importante:

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echipamentele achiziionate n leasing operaional nu sunt de regul amortizate integral pe perioada contractului. De aceea, plile prevzute n contractul de leasing nu sunt suficiente pentru ca locatorul s recupereze ntregul cost al bunului care face obiectul contractului. Aceasta se ntmpl deoarece durata contractului de leasing operaional e de regul mai mic dect durata de via a bunului. Astfel, locatorul se ateapt s recupereze costurile activului prin renoirea contractului de leasing sau prin vnzarea bunului la valoarea lui rezidual. (residual value) caracterisitica cea mai interesant a leasing-ului operaional este opiunea de anulare. Utilizatorul are dreptul de anulare a contractului nainte de data expirrii acestuia. In acest caz utilizatorul trebuie s napoieze echipamentul locatorului. Valoarea clauzei de anulare depinde de valoarea activului care trebuie s fie sub valoarea plilor prevzute n contractul de leasing.

B) Contractul este un acord, o nelegere ntre dou sau mai multe pri contractante, sub form scris sau verbal. De obicei, pentru aceste contracte societile, instituiile, organizaiile au pregtite contracte tip pe care le completeaz atunci cnd este nevoie. Unele clauze, cu variaii nesemnificative de coninut, se gsesc n toate tipurile de contracte, cum ar fi: obiectul contractului, notificri, for major, cesiunea, ncetarea contractului. Conveniile scrise permit determinarea clar a obligaiile i drepturile prilor. Dac acestea nu pot ajunge la consens deplin n ceea ce privete fiecare termen n contract, aceasta nu trebuie s mpiedice semnarea contractului totui atunci cnd majoritatea condiiilor au fost ndeplinite i tranzacia este destul de important. Orice notificare/comunicare ulterioar semnrii contractului devine valabil pentru nelegerea ntre pri numai dac va fi transmis prin scrisoare, fax sau telex confirmat. Aceleai comunicri nu pot deveni parte integrant din contract dac ele nu capt o form scris i confirmat de ctre cealalt parte contractant.

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UNIT 2 ORDINARY CLAUSES in BUSINESS CONVENTIONS

2.1. PREAMBLE The formal business agreement between two contracting parties makes its general presentation in the preamble of the contract. The main information provided by it makes complete reference to the seller, franchisor, employer, creditor, licensor, sleeping partner, lessor, insurer, ship-owner, or adherent on one hand, and buyer, franchisee, employee, borrower, licensee, entrepreneur, lessee, insured, charterer, and factor on the other hand. The information refers to the full legal name of the contracting parties, their post and e-mail address, telephone number, the binding relationship established by the type of contract agreed by them. The same full information will be provided about the natural persons representing them. The stipulation of the date of the contract registering is also necessary. CONTRACT OF................... Nr.............../date Concluded by the undersigned: X Ltd. residing at ...................registered at the Registrar of Companies under no.../ represented by Mr. ..................., hereinafter referred to as the ("Seller") on one hand and Y Inc. residing at.......................... (registered at the Registrar of Companies under the no. ................../date, represented by Mr. ................ hereinafter referred to as the ("Buyer") on the other hand, whereby it is agreed the following: Subject to the terms and conditions specified herein the (Seller) sold and agrees to deliver to the (Buyer), and the (Buyer) purchased and agrees to accept the following: 2.2 QUANTITY Quantity clause is present in any business contract according to its object and nature. The seller, hirer, franchisor, licensor, mandator, the silent partner, lessor, broker, insurer or the ship-owner will make reference to the quantity of the object of the contract in a specific clause. It is established according to the type of contract, nature of assets/goods/services and international trade usage. Different measurement units are used to determine the different quantities. Length............................... Centimetre .....GB/US 0,394 inch (in)

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Metre (yd) Kilometre (km).................................... Square metre (m2).............1 are (a) Ares .................................1 hectare (ha) Weight GB/US 1 grain 437 grains 16 drams (dr) 16 ounces 14 pounds 2 stone 4 quarters 112 pounds 100 pounds 20 hundredweight 2000 pounds 2240 pounds Linear Measure G&B 1 inch (in) 12 inches 3 feet 5 yards 22 yards 220 yards 8 furlongs 1760 yards 3 miles Square Measures GB/US 1 square (sq) inch 1 foot (ft) 1 yard (yd) 1 rod, pole or perch 1 chain (cn) 1 furlong (fur) 1 mile 1 mile 1 league 1 ounce (oz) 1 ounce 1 pound (lb) 1 stone (st) 1 quarter Surface ..................................

49.4 inches or 1.094 yards ......0.6214 mile .GB/US 0.025 acre 2.471 acres Metric o.065 gram (g) 28.33 grams 28.35 grams 0.454 kilogram (kg) 6.356 kilograms 12.7 kilograms 50.8 kilograms 5o.8 kilograms 45.5 kilograms 1016.o4 kilograms 0.907 tonne 1.016 tonnes Metric 25.4 milimetres (mm) 30.48 centrimentres (cm) 0.914 metre (m) 5.029 metres 20.17 metres 201.17 metres 1.609 kilometres 2.609 kilometres 4.828 kilometres

Hectares ............................1 square kilometre (Km 2) 0.386 square miles

1 hundredweight (cwt) 1 hundredweight 1 short hundredweight (US) 1 ton 1 short ton 1 long ton

6.452 sq centimetres

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144 sq inches 9 sq feet 484 sq yards 4840 sq yards ..40 sq rods 4 roods 640 acres Cubic Measure GB/US

1 sq foot 1sq yard 1 sq chain 1 acre 1 rood 1 acre 1 sq mile

929.03 sq centimetres 0.836 sq metres 404.62 sq metres 0.405 hectare 10.1168 ares 0.405 hectare 2.59 kilometres or 259 hectares

1 cubic (cu) inch 1728 cu inches 27 cu feet 1 cu foot 1 cu yard

16.39 cu centimetres 0.028 cu metre 0.765 cu metre

There are numerous standard measurement units used in international trade :

o barrel for crude oil o bale for cotton, wool or paper o bag (70 Kos) o sack (100 Kos) o bushel for grains o drum, demijohn, carboy, can, for
chemicals

o sets for china, glass

Allowances are also used for fungible goods. The time, the place and the way of ascertaining the weight will also be mentioned in the quantity clause. The contract will always mention whether gross or net weight is understood. The documents needed to ascertain the quantity are: the B/L (Bill of Lading) for the sea transportation the Way Bill or Air Consignment Note for river transportation, land and air the mail receipt for mail transportation

Mind also the ways various products are prepared and packed for sale: A string of bretzels; a bar of soap; a tube of tooth paste; a sample of packet of hair conditioner; a loaf of bread; a cartoon of beer; a 400 g tin of baked peas; a packet of cornflakes; a bunch of grapes, a pack of different soup vegetables; a few sheets of paper; a pair of shoes.

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2.3. QUALITY clause refers to the quality of the goods, services that make the object of the contract. It may involve detailed description from physical, chemical, biological point of view, or the goods state (solid, gaseous, liquid), shape, colour, size, content, place of origin, crop year for wines. The technical specification is enclosed to the contract making detailed reference to the specific characteristics of the merchandise that makes the object of the contract. material that the product is made of power consumption output per time unit operation speed operation /use instructions, etc

Before concluding the contract the content of the quality clause will be established according to samples, specimens, patterns that will represent references for the goods delivered. In certain situations the brand name /trade mark will be mentioned. Catalogues are also means of confronting the quality of the products offered to those ones delivered. Roman trade rules and principles are mentioned till nowadays by the expressions: "tale quale" or "tel quel" when the product is taken delivery of and paid by the buyer as it is. He takes the risk of any subsequent damage. Products can also be qualified by specific expressions: Fine (F), finest (FF), super fine (FFF) or fair, good, extra, waste, rejects, f.o.q. (fair average quality), g.o.b. (good ordinary brand). The quality checking will be confirmed by a specialized document: Works Test Certificate (WTC) which guarantees the quality of the goods for a limited period of time. EXERCISES I. Fill in the blanks the missing words (hereinafter; whereby; registered) in the following preamble of the:

Franchising Agreement
Concluded today ... between undersigned Black and White SA, the Romanian branch of Black and White, residing at C.A. Rosetti Square no 430, district 1, Bucharest, 1. ............... in the Companies Registrar under no. J/34/4002/2000 and represented by Mr. Josph Stein, in capacity of Managing Director 2. ................ referred to as the Franchiser and SC ProdService SRL, residing at Tache Ionescu Blvd. District 4, Bucharest, Romania, registered in the Companies Registrar under no J/36/2090/1998 and represented by Mr. Radu Gheorghe, in capacity of Director, hereinafter referred to as the Franchisee, 3. ................ have agreed the following: II. Find the matches of the following contract partners in the contracts:

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Sales contract Distributorship contract Contract of agency Commission agreement Contract of lease Loan agreement

seller distributor principal seller consigner consignee lessee borrower franchiser franchisee Company

Credit Card Use to Purchase Goods and Services

factor

adherent

III. Bear in mind the following specific words and expressions: Submission of a sample; inferior quality; quantity is ascertained; conformity to quality; meet the requirements/needs of; quality stipulations; to provide customized assistance; in the name of; on behalf of; for the account of; specification; up to standards; below standards; undershipment; overshipment; to relegate smth to. IV. Find the place of the missing words in the text: command; amounts; goods; want; supply; unlimited; necessarily; value A 1. ............ is significant in economics only when a person is prepared to give up something in order to satisfy it. As the strength of the different wants varies, so will the 2. ............... which people are willing to give up in order to satisfy them. We can say, in other words, that people are willing to give up different amounts for different goods because these goods have a different 3. ............. to them. Value means the rate at which a particular good or service will exchange for other 4. ............... . It is important to note, however, that while to have value a good must be capable of satisfying a want, a good which satisfies a want need not 5. ................... have value; but, in normal circumstances, the 6. ............... of it is so great, that nobody will give anything in exchange for it. Because it has no power to 7. ............... other goods in exchange, it has, in economics, no value. We call such goods "free goods". All other goods are "scarce goods", implying, in economics, no more than that their supply is not 8. ................... . V. Supply the missing prepositions: A perfectly competitive industry, 1. ...... which all firms and consumers believe that their own actions have no effect 2. ....... market price, must have many buyers and many sellers. Even if all firms 3. ...... an industry made homogenous or identical goods each firm might be able to have some discretion 4. ......... the price it charged if the buyers have imperfect information 5. ........... the quality or characteristics of the products of different firms in the industry. If we are not to regard each firm in a competitive industry as being unable to affect the price 6. .......... which it

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sells its output, it is not sufficient that all firms are selling a homogenous product. We must also assume that buyers have almost perfect information 7. .......... the characteristics of the products being sold so that they know the products 8. ........ different firms in a competitive industry really are identical. VI. Translate into English: Mostra este o parte reprezentativ de produs, de dimensiuni reduse, fr utilizri practice sau un exemplar complet al acesteia reprezentnd obiectul contractului. Mostra poate fi i ofert avnd funcia de informare sau de comand. Marfa livrat de vnztor trebuie s aibe calitile mostrei. Cumprtorul poate contesta calitatea mrfii dac aceasta nu corespunde mostrei avnd dreptul la despgubiri sau la reduceri de pre. Conform clauzei Rye Terms cumprtorul primete marfa livrat n starea n care se afl la sosire. El poate solicita ns o reducere de pre dac aceasta nu este ntr-stare convenabil. Clauza Sound delivered permite cumprtorului de a refuza marfa care ajunge la destinaie n condiii necorespunztoare. Refuzul mrfii produce efecte numai dac vnztorul este anunat n termenul stipulat n contract.

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UNIT 3 SPECIFIC CLAUSES

3.1. RIGHTS and OBLIGATIONS Various types of business agreements contain a specialized clause referring to the rights and obligations of the parties to the contract. They are specific for each type of business contract. The rights and obligations are usually stipulated separately in the contract. Here are some language samples used: Rights The agent is entitled to intermediate the Principal's all exports of ........ on terms and conditions as laid down in the present contract The right of agency is guaranteed by the Principal for the whole period of validity of this contract, i.e. one year from the date of coming into force. - The Agent shall exercise all reasonable skills, care and diligence in the performance of the Principal's ........ The Principal is the owner of the ...... and is entitled to call off the rights of agency in the event of non-fulfillment of the provisions of this contract. The Principal shall notify the Agent in writing, if he considers that the Agent has not discharged his obligations under this contract, stating the reasons therefore, and offering a .....day-delay to correct the defects. The Principal shall have the right to register the trade mark of the ....... sold in (country...........) in respect of the (country.............) legal provisions. The Seller is within his rights to handle the export of the products directly or through his traditional.....The Lessor owns the leased .......and any improvements that the Lessor or Lessee makes to the ........, during the whole period of this Lease Contract and after the termination of the Contract until the payment of the residual value by the Lessee. The Lessor shall not be liable for the stolen or lost .......... or for the damaged ones, because of a faulty use during the guarantee and postguarantee period.

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The Lessor shall be entitled to receive the hire calculation and paid out according to art. .. of this contract If the Franchisee fails to fulfill his duties ensuing from this agreement, the Franchiser, as the owner of the technical expertise (know-how), may withdraw the Franchisee the granted licence to use this technical expertise (know-how) In the circumstances, the Franchiser shall notify the Franchisee thereof earlier, allowing him 30 days to meet the deficiencies ascertained. Should the Franchisee fail to adjust the deficiencies within the time allowed, the Franchiser may call off the agreement in conformity with the procedure stipulated in art..... The agent may intermediate export of ............... outside (name of the country.............) only with the prior approval of the Principal. The Agent shall provide within a month or in case of need, pertinent written data and information about his activity and about the trading system, the volume of the sales, prices, the terms of payment, the quality, the new models and about all interesting information concerning the (merchandise, service) sold by competitors and about law modifications, currency restrictions, rates of exchange, tax, and duty regulations, etc., witch may affect the business in ...... Within the period of validity of this contract the Principal cannot entitle a third person to intermediate his (merchandise, service ............) export to (name of the country.......) without written notice to the Agent concerning withdrawal of the agency right on the conditions as laid above in the Art. ....... The Principal shall pay the Agent a commission covering the Agent's fees and benefits. The amount and payment terms will be presented in the Art. .... of this contract. The seller is bound not to take direct agreements with foreign buyers for the period of this Agreement stands valid. The Lessor is entitled to withdraw the (....) in the event of bankruptcy of the Lessee, according to the Law No .... and the subsequent modifications. The withdrawal is made according to the terms provided by the art. ..... and shall not release the

Duties -

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Lessee from the payment of hire for the whole lease period as well as from the damage provided for by the law. The set-offs can not be greater than the value of the hire which must be paid during the whole period of this Contract.

EXERCISES: I. Fill in the blanks the missing words in the Rights and Obligations Clause in a Factoring Contract: outstanding; control; debt; should; factor; complaints; entitled; amount; documents; whether 4.1. The Adherent binds himself to a) ............ the collection of his outstanding debts to the Factor or to any person appointed by the latter, stipulating that the agreements concluded with his partners there is no forbiddance in factoring his bad debt in favour of the Factor. The Adherent accepts the credit b). ............... of his bad debts to be in the hands of the Factor which actually is the object of the present contract. He also undertakes to make all c) ..................... and evidence available to the Factor for factoring the bad debts. The Adherent is bound to immediately convey any importer's request to the Factor to postpone or prorogate any d)................. debt. It is the Factor to decide e) ................... payment is to be postponed or the outstanding debt prorogated. 4.2. In the event the Adherent collects the outstanding debt to which the Factor is subrogated, he is deemed to collect the f) .............. for the Factor's account at the latter's depositor. The Adherent must immediately credit the Factor's account with the respective g) ................. , failing which, the Factor may write the relevant amount off the sum of the further outstanding debts which are to be transferred to the Adherent account. 4.3. In the event the importers reject paying out the bad debts because of complaints about quantity or quality defaults of the goods supplied by the Adherent, the latter is bound to handle the h) .................... within 30 days so that the Factor might collect the bad debts as good money. 4.4 The Factor is i) ................. entitled to claim from the Adherent both the outstanding debts and the bad debts the importer rejects to pay. 4.5. j) .................... the bad debts fail to be collected because of the Adherent, upon the signature of the Agreement, the Adherent is bound to send to the Factor a Bank Letter Guarantee of 120% of the value of the bad debt to be further utilized by the Factor. Any delay in conveying such a Bank Letter of Guarantee brings about gaps in meeting the terms of the Agreement. II. Translate into English: Art. 4. Drepturile i obligaiile Francisorului 4.1. In calitatea sa de titular al dreptului de proprietate asupra know-how, Francizoul poate retrage Beneficiarului dreptul de utilizare acordat n cazul nendeplinirii oricreia dintre obligaiile ce i revin, conform prezentului contract. In astfel de cazuri Francizorul l va aviza n prealabil, n scris, pe

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Beneficiar, acordndu-i un temen maxim de 30 zile pentru remedierea neajunsurilor constatate. Dac n decursul acestui termen, Beneficiarul nu corecteaz situaia, Francizorul poate rezilia contractrul conform procedurii menionate la art. 12. 4.2. Francizorul are dreptul de a solicita Beneficiarului ncetarea preparrii i distribuirii anumitor produse, dac acest lucru se justific prin condiiile economice, sanitare sau de alt natur necorespunztoare. 4.3. In astfel de cazuri Benenficiarul va fi despgubit pentru pierderile suferite pentru produsele din stoc, primind de la Francizor contravaloarea acestor produse (mai puin pierderile din profit). Dac Beneficiarul nu d curs cererii Francizorului, acesta din urm nu va fi rspunztor pentru eventualele pagube suferite de Beneficiar, ca rezultat al distribuirii produselor respective. 4.4. Persoanele abilitate de ctre Francizor au dreptul s viziteze oricnd, n timpul orelor de lucru, restaurantul Beneficiarului pentru a verifica respectarea prevederilor contractuale. 4.5. Francizorul are dreptul la ncasarea redevenelor (royalties) pentru prestaia sa calculate i achitate conf. Art. 5 al prezentului contract, cu condiia respectrii tuturor obligaiilor sale contractuale.

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UNIT 4. PAYMENT INSTRUMENTS and SERVICES

Nations, companies and individuals have engaged in trade for centuries and from the beginning have searched for the best financing alternative. Financing the flows of goods and services has become a key component of maximizing profit from trade. Today sellers have different alternatives to get paid for the goods shipped or services rendered. But each alternative addresses certain risks for the buyer and the seller. Trade payment methods have been used effectively to expand markets for goods and services and to facilitate a variety of financial transactions, either as a method of payment or as a credit enhancement, within as well as across the borders of sovereign states. They provide powerful leverage for importing and exporting customers. Trade solutions are customized to the customers' needs, integrating different methods of payment to form a truly end-to-end trade proposition. If one of the following payment methods is selected by the business partners, documents covering shipment of the merchandise are handled outside banking channels. The banking system is involved only in the remittance of funds.

1. Cash in advance: the seller receives cash from

the buyer prior to shipment. The seller ships the goods when convenient while using the buyer's funds. The buyer has no control over the goods, as the seller may refuse to ship them. and payment is made on terms negotiated in advance with the seller. The buyer has full control over the goods and can pay when convenient, even refuse. buyer, but retains ownership. Payment is made if and when the buyer sells the goods, i.e. payment is contingent upon sale of goods. However, if the seller selects payment under a Collection or a Letter of Credit, a bank adds its service and documentary expertise on behalf of the buyer, the seller or both. The seller's draft and documents covering the shipment are presented through the buyer's bank for payment, so the title documents are in control of the bank, although the buyer may refuse to pay or accept the draft. Trade involves buyers and sellers seeking to exchange goods or services despite their differences in language, national custom, credit procedures and accounting practices. Historically, merchants have sought

2. Open account: Goods are shipped to the buyer

3. On consignment: The seller ships goods to the

4. . Collection: the goods are shipped to the buyer.

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ways of minimizing these differences and facilitating trade. The special protection and opportunities offered by Letters of Credit apply to both domestic and international trade. 4.1. LETTER of CREDIT. If the contract of sale establishes Letter of Credit as method of payment, the buyer must apply to its bank for a Letter of Credit in favor of the seller. The application and the agreement with the bank is separate and distinct from the underlying contract of sale between the buyer and the seller. The contract between the buyer (as Applicant) and its bank evidences the buyer's reimbursement obligation and responsibility to its bank and sets forth the terms and conditions to be included in the Letter of Credit. The Applicant is obligated to the bank for any amount paid under the Letter of Credit. Therefore, the Applicant must use sound business judgement when entering into a contract with a party in whose favor the Letter of Credit will be issued. The buyer's bank (Issuing bank) undertakes to the Beneficiary (seller) and provides a specialized service. The seller presenting the documents must comply strictly with the terms of the Letter of Credit to have the right to receive payment from the bank. This right is not contingent upon the seller's actual compliance with the underlying contract of sale but rather upon the bank's determination of complying documents. By the Letter of Credit the seller may be requested to present quality and quantity certificates of the goods (laboratory testing certificates, inspection certificates) along with other documents. The buyer and the seller must agree beforehand on the responsibility for payment of these services, as the buyer's and seller's integrity are paramount in any exchange of goods or services regardless of payment methods. The parties to the Letter of Credit are:

Applicant: the party that makes the application for the Letter of Credit to the Issuing bank, usually the buyer or the importer Beneficiary the party in whose favor the Letter of Credit is opened, usually the seller or the exporter Issuing Bank the Applicant's bank, the bank that undertakes to the Beneficiary to issue the Letter of Credit Paying Bank the bank entitled to make the payment to the Beneficiary Negotiating Bank the bank entitled to negotiate against strictly complying documents by the terms and conditions of the Letter of Credit Confirming bank the bank that can add its own undertaking to that of the issuing bank, on request In most of the transactions, there are at least two banks involved a bank in the country of the buyer and another one in the country of the seller. A bank may play several roles in a single transaction. If

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the Issuing bank sends the Letter of Credit to the Beneficiary, payable at its own counters, then the bank is playing the role of both Advising Bank and Paying Bank. The formal language used in the Letter of Credit depends on the type of the document, so it is important to understand them. Letters of Credit may be issued under the form of "revocable" or "irrevocable" and either "confirmed" or "unconfirmed". A Revocable Letter of Credit may be amended or canceled by the issuing Bank at any time or without prior notice to, or agreement of, the Beneficiary, An Irrevocable Letter of Credit cannot be amended or canceled without the agreement of the Issuing Bank, the Confirming Bank and the Beneficiary. An Irrevocable Letter of credit is a definite undertaking by the Issuing Bank to pay, provided the Beneficiary complies strictly with the Letter of Credit. Once the payment is made by the Paying Bank the authority to pay becomes an irrevocable obligation on the part of the Issuing Bank to reimburse the Paying Bank. The paying Bank is thus protected and will receive funds from the issuing Bank in accordance with the Letter of Credit. Beneficiaries do not always rely on the stability of an Issuing Bank, particularly when that bank is in another country or is unknown to the Beneficiary. Consequently, a Beneficiary may request that the Applicant instruct the Issuing bank to have its Irrevocable Letter of Credit confirmed by a Bank in the Beneficiary's country. A Confirming Bank is the bank which, at the request or with the consent of the Issuing bank, adds its own irrevocable undertaking to that of the Issuing Bank. The Confirming Bank must be satisfied with the Issuing Bank's financial stability and with the political stability of the country in which the bank resides. This is mandatory, since failure of the Issuing Bank to fulfill its irrevocable obligation (because of political restraint, war, insolvency or other reasons) will not relieve the Confirming Bank of its irrevocable obligation to pay the Beneficiary. If the Letter of Credit is issued in negotiable form, the Beneficiary can present the draft and documents either directly or through a local bank to the Paying Bank, in order to obtain funds before actual payment. When negotiations are made with recourse, the Beneficiary receives funds either for full or partial value of the drafts drawn on the Paying Bank, i.e. similarly to cashing a check at a bank other than the bank on which it is drawn. Letters of Credit sometimes provide for negotiation without recourse. Under such instructions, the Negotiation bank has no recourse to the Beneficiary after it has honored the Beneficiary's draft. Many different types of Letters of Credit were developed to meet the needs and requirements of buyers and sellers throughout the world.

Revolving Letter of Credit is more efficient and cost effective when the Applicant and the Beneficiary agree to ship goods on a continuing basis. A special Letter of Credit for handling multiple shipments, renewable over an extended period of time, a Revolving one, may operate automatically Installment Letter of Credit incorporates a schedule for shipment or drawings. If the Beneficiary fails to present strictly complying documents for a scheduled shipment or

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drawing, the Beneficiary will not be entitled to draw under the Letter of Credit for that or any future shipment or drawing.

Red Clause Letter of Credit is used when an Applicant wants to advance cash to the Beneficiary to purchase the goods or effect shipment under the Letter of Credit. It restricts negotiation or payment to a specific bank. It is referred to as a "red clause" simply because the clause is sometimes printed or typed because the clause is sometimes printed in red ink. A "red clause" is typically used when there is a close business relationship between the Applicant and the Beneficiary. Back-to back Letter of Credit is used when the Beneficiary of an Irrevocable Letter of Credit seeks to use the instrument issued in its favor as a basis for requesting a bank to issue a companion Irrevocable Letter of Credit in favor of the manufacturer or supplier of those goods needed for shipment under the fist Letter of Credit. The Beneficiary of the Irrevocable Letter of Credit (a broker or a middleman) will become the Applicant of the second Letter of Credit and will ask for a collateral for the issuance of the second Letter of Credit. The two Letters of credit used jointly to facilitate the purchase of the same goods are called Back to back Letters of credit. Transferable Letter of Credit is used by the beneficiary to request it to be available to one or more partners, named transferee, but only once. If partial shipments are not prohibited, portions of the Transferable Letter of Credit may be transferred separately, but the amount transferred cannot exceed the amount of the original Letter of Credit (Master).

4.2. CHEQUE Even by the end of the 17th century, customers of banks were beginning to settle debts by writing letters to the bank ("the drawee"), instructing it to pay money to the person stated (the "payee") at the same time debiting the account of the person paying (the "drawer"). Such a method of settling debts was very convenient to the customer for it saved him carrying around large sums of money and also permitted him to write his instructions for any odd amount. Above all, to the banker it possessed the inestimable advantage that, if the payee were also one of his customers, he would probably, instead of actually withdrawing the sum authorized, pay the "check" into his own account. If so, the deposits held by the bank would not be touched and the transaction could be recorded by a mere book entry. Consequently, when the right of the large London banks to issue notes was withdrawn they encouraged this cheque system, and from about the middle of the eighteenth century they even issued checkbooks. The system was more complicated, however, when the drawer and the payee were customers of different banks. The payee would pay the check into his own bank, which would credit his account and then, in order to receive reimbursement, present it for payment with other checks to the drawee (the

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bank on whom it was drawn). Such a procedure necessitated each bank's holding large amounts of ready money, while clerks had to go from bank to bank collecting the sums in due. In time these clerks hit on the idea of meeting at a suitable coffeehouse in order to set off one check against another and pay over the balance due. Their employers, the banks, took up the idea and in 1773 the first clearinghouse was set up in London, the famous Lombard Street. The result was a great saving in the amount of cash actually used to settle debts. All the cash deposits could now be used as the reserve, and money could again be 'created', not only by issuing banknotes, but also by granting a loan to the borrower. Simply giving him a deposit, which is a credit in his account on which he could draw by writing checks, did this. Later, as each clearing bank adopted the custom of keeping deposits at the Bank of England, it was possible for the daily settlement to be made by an adjustment of their accounts there. The check system developed rapidly during the nineteenth century as one bank after another lost its right to issue notes. A cheque is a written order to a bank given by someone who has money deposited with that bank, to pay a certain amount to a person named. There are three parties to the cheque: - the drawer is the person who makes out or draws the cheque - the drawee is the bank on which the cheque is drawn - the payee is the person to whom it is made payable A cheque is payable on demand. It is both. It is both a payment and a credit instrument, negociable through endorsement and largely used in commercial transactions. A cheque includes the following essential elements: 1. the word cheque included in the text; 2. the exact name of the drawee (the bank that honours the cheque); 3. the drawers signature and that of the bearer; 4. the name of the payee; 5. the drawer's signature. Cheques may be crossed or uncrossed. An uncrossed cheque is an open cheque. A cheque is crossed for safety, with two lines printed across it. The cashing of a crossed cheque is restricted to a person possessing a bank account. It is paid only by the banker on whom is drawn. Crossing may be general or special. A crossing is a material part of a cheque and no person may obliterate it. The drawer of a cheque may cross it either generally or specially. Cheque Books are printed are books of blank forms for writing out cheques supplied by bankers for the value of the stamp duty only, to all customers having running accounts with them. There are also cheques which are given to persons traveling abroad. 4.3. BILL of EXCHANGE Bills of exchange were in use long before cheques, and they were first mentioned in history in connection with merchants from Lombardy. At that time the bill of exchange was not a negotiable instrument, and in the Middle Ages, (13-14th century) it was not even transferable in payment of debts. From 1663 endorsement was permitted and the bill of exchange was made payable to bearer. It was in 1764 that the bills of exchange and the promissory note were finally recognized by the law. During the nineteenth century, the bill of exchange was the accepted

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instrument of financing trade, both internal and foreign, but since then the cheque system has displaced it for internal use, while in foreign trade it has been replaced by other methods, notably the bank draft and telegraphic transfer by which bank deposits are directly transferred from one bank to another. When a nation is trading with another nation, the goods are paid chiefly by the money which is received from the sale of current exports. In normal times, importing and exporting are done by private individuals and firms, and payments are arranged through banks, who exchange the currency of one country for the currency of another provided that they have the necessary reserves of that currency. Such reserves are earned by customers who export to foreign countries. The actual process is as follows. A exports $20 000 worth of wheat to X who, in order to settle the debt, pays 10 000 into his bank in London. A, however, wants payment in dollars and so the bank cables its branch in New York, authorizing it to make this equivalent dollar payment. It can only do this if it has these dollars in reserve. These reserves have been secured by the payment into the bank of $20 000 but B, who has imported British cars to that value. Y is paid from the 10 000 which X deposited for the wheat. Thus the two transactions cancel out and the reserves remain the same. Assume: a) rate of exchange is $2.00 to the sterling b) no currency restriction c) A is US exporter of wheat; X is UK importer of wheat; d) B is US importer of cars; Y is UK exporter of cars.
X 10000

Branch pays A $20000

wheat

Pays bank

to

cables to branch in the USA Reserves $20000 down $20000 up Reserves 10000 up 10000 down

pays Bank B

20000

to

cables bank in UK 10000 worth of cars

Bank pays 10000 Y

The generally accepted custom of business was that an importer should be allowed a period of grace, usually three months, before payment or the goods would be required. This was arranged as follows: When Y was ready to ship his cars to B he would draw up a bill of exchange for the value of 10,000 as shown. This would be sent to B together with copies of the shipping documents, such as the bill of lading and insurance certificate to show that the cars had actually been placed aboard the ship. On receipt of the bill, B would "accept" it, by writing "Accepted" and his signature across the face of the bill, and then return it to Y. This acceptance of the bill by B would be condition for handing over the original bill of lading, the documentary title to the cars.

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Y could now do one of three things: 1. - he could hold the bill until it matured at the end of 3 months; 2.- he might be able, after endorsing it to get another merchant to take it in settlement of a debt which Y owed; 3.- he could sell the bill, usually to a discount house. The probability is that Y would choose the latter course, and after endorsing it he would take it to a discount house and sell it to a lower price than its face value, the exact amount depending on the length of time it still has to run to maturity, the prevailing short-term rate of interest and the opinion of the discount house as to B's financial standing. Through the process of discounting the Bill of Exchange has advantages to all concerned. The exporter Y can quickly regain liquidity by selling the bill, while B obtains three months credit, during which time it is probable that he will be able to sell the cars which he has imported. Discount houses do not usually hold bills for their full currency, as they are assembled in 'parcels' and sold to the commercial banks who like to have so many falling due each day. There are a few 'running brokers' who act as agents in the process of discounting. From the risk point of view, the accepted bill is almost as good as cash. However, bills are drawn on firms whose financial standing is little known. Thus, the discount house is either reluctant to discount the bill or will do so only at a fairly high rate of interest. The difficulty can be overcome by getting a firm of international reputation to accept responsibility for payment should B default. It is obvious that any firm accepting such a bill must have adequate knowledge of the credit-worthiness of the trader upon whom it is drawn. Merchant banks that specialized on financing trade possess such knowledge. In their capacity of accepting bills, such merchant banks are known as "acceptance houses". They charge a small commission which is willingly paid because the rate of discount on a "bank bill", that is, one bearing the name of an acceptance house, is lower than on a "trade bill", a bill accepted only by the trader. The decline of this business has increased the importance of merchant banks - the "issuing" business connected with the raising of capital by industrial and commercial firms. Merchant banks also underwrite them and arrange for the payment of dividends to the stockholders as they fall due. They also carry on some domestic banking business and act as trustees and investment advisers to trust funds, pension funds, college endowments. 4.4. DEMAND GUARANTEES A company entering into a contract for the purchase of goods or services may wish to have security for the counterpart's performance of its obligation, particularly when no other dealing were concluded between the two. Some times ago it was used to require the furnishing of a cash deposit as security, but this became prohibitively expensive. A more convenient safeguard took its place: the provision of a written undertaking by a bank in favor of the buyer payable on demand. These undertakings are known under the common name of bonds, guarantees, demand guarantees and standby letters of credit. The demand guarantees is the substitution of cash guarantee, which is designed to provide the beneficiary with a speedy monetary remedy against the counterpart-underlying contract. The demand guarantee is payable solely on presentation of a written demand and any other specified documents. The guarantor must pay any demand within the amount stated,

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regardless whether the underlying contract has in fact been broken and regardless of the loss actually suffered by the beneficiary. By issuing a letter of guarantee (LG) a bank accepts to pay the obligation of a person to a third party, in case that this person does not fulfill the obligation himself. The bank issuing a bank guarantee letter accepts a very big risk. The risk is that the bank will pay an amount equal to the one referred on the LG to a third party, under certain conditions. Of course, in such a case the bank pays and then turns to its client and asks for the money. However, the amount of money has collectibility problems. The bank guarantee is usually given in the form of a letter which contains the following essential elements: - types of guarantee (simple, solidary) - name and address of the guarantee bank - the name and address of the legal or natural person to be guaranteed - the name and address of the beneficiary - the object of guarantee - value of the guarantee expressed in a specific amount - validity of the guarantee - special clauses related to the extension of the date of payment. A bank guarantee may be: simple - when the guarantee bank can request the beneficiary to sue first the principal debtor and only after he has failed to effect payment, to demand execution of the bank and solidary - when the beneficiary can demand execution of the bank without previously suing the guaranteed principal debtor and the bank being in no position to object to this procedure, respectively to oppose the benefit of discussion or division. The content of a letter of guarantee includes usually the following wording: " in consideration of the above, we ________ bank do grant the required guarantee in favor of the above firm and hereby irrevocably and unreservedly engage ourselves, weaving the benefit of discussion, to pay you within ________ days, irrespective of any contestation objection or exception of the said firm, and without being entitled to investigate whether your claim is grounded or not, any amount not exceeding ...........to which our present guarantee is limited." The commission charged by a bank for issuance of LGs usually depends on the risk accepted and on the maturity of the LG. There are LGs with specific maturity date (they are valid until a specific day and the guarantor has no obligation after this date) and there are also open LGs. A bank guarantee letter is a document annex used in making payments in international economic exchanges, whereby a first order bank undertakes to make payment, if legal or natural person, called the principal debtor fails to pay a certain amount of money at the stipulated time, in favor of another legal or natural person, called the payee. As a rule, banks issue guarantee letters. As an exception, reputable commercial firms can also issue guarantee letters. They are issued to guarantee an export, an import, open a letter of credit, refund advance money or to participate in a tender. The obligation assumed by the issuing bank of the guarantee letter is a secondary one, while the main obligation to make the payment out rests with the principal debtor. Any obligation deriving from a bank guarantee letter over and above the amount of the principal obligation is null and void. In the event that the principal debtor has not settled his account when a payment is due, the beneficiary approaches banks within a specific date for which the bank guarantee letter has been

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issued. If the bank fails to effect payment, the beneficiary resorts to the court of law to obtain execution of the guarantee letter and payment of the amount. It is only after he has cashed the amount that the beneficiary must return the guarantee.

EXERCISES:

I. Open the brakets using the appropriate form of the capital letter words in brakets in the following text: The Documentary Credit consists of a written 1. (UNDERTAKE) on the part of the bank 2. (PAY) on the instructions from the buyer (applicant) a certain amount to the Seller (beneficiary) within a 3. (PRESCRIBE) time limit and against surrender of stipulated documents 4. (COVER) the shipment of goods contracted for beteween seller and buyer. The handling of of a Documentary Letter of Credit (INVOLVE) a minimum three, but in most cases four parties: buyer, seller, issuing bank and advising bank. It 6 (REPRESENT) an independent transaction from the actual contract entered into, between buyer and seller and the banks 7. (BE NOT CONCERN) with the terms of such contracts and are consequently not bound by them. Once a DL/C has been established, the bank 8 (ADHERE) strictly to the terms of the credit. II. Fill in the blanks the missing verbs in the correct grammar form in the following letter: sign, be available, might; inform; be payable Dear Sirs, We make reference to our order No ...... of 28 February 2005. We 1. ............. you that we instructed our bank to open an Irrevocable Letter of Credit in your favour in Bucharest. The credit, amounting to 2,000 (two thousands pounds) 2. ................ till April 15 2005. As the Bill of Lading 3. ................ might arrive late in London, we agreed that this credit 4. ................... against the loading Certificate of the ship owener, not against the Bill of Lading. The certificate 5. ...................... by a maritime agency and it will mention that both the Bill of Lading and the invoice have been sent by e-mail to the bank ... London. III. Fill in the blanks the missing words in the following Letter of Credit: 1. installment; 2. schedule, 3. law; 4. statement; 5. expiration

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Irrevocable Standby Letter of CreditWorld Development Bank 56-70 Wall Street, New York, 1002
March, 3, 2005

Refine Realty Corp. 230 May, South Drive Chicago, Il, 12003 Sirs: By order of our client Hotel Macedonia Corporation, New York we hereby issue our Irrevocable le Standby Letter of Credit nr 825 in your favor, for an amount not exceeding in the aggregate U.S.$2,ooo,ooo effective immediately and expiring at our office on September 30, 2006. Funds under this letter of Credit are available to you against draft(s) drawn on us, mentioning thereon our Letter of Credit no 825, in accordance with the following a)................ of payments: 1. U.S. $1,000,000 beginning on 1 May 2005 and up to an including May 30, 2006 accompanied by your signed b)................. that "the amount of said draft represents the first installment for the purchase of the hotel "New California", Los Angeles. 2. U.S. $1,000,000 beginning on June 1, 2005 and up to an including June 25, 2006, accompanied by your signed statement that "the amount of said draft represents the final c).................. for the purchase of the hotel "New California", Los Angeles. We hereby undertake with you to honor each draft drawn under and in compliance with the terms of this Letter of Credit, if duly presented together with the documents specified at this office on or before the stated d)................. date. Except as may be otherwise stated, this Letter of Credit is subject to the International Chamber of Commerce's Uniform Customs and Practice for Documentary credits in effect on the date this Letter of Credit is issued and is subject to and governed by New York State and U.S. Federal e) .........., without regard to principles of conflicts of law.

IV. Draft a reply to the letter above underlying the following - you agree on the revolving irrevocable letter of credit - you agree on the original domicile of the Letter of Credit but you ask for the surrender of the following documents against payment: - invoice (3 copies) - insurance policy blank endorsed, covering maritime risks, breakings, theft, war - bill of lading issued at order, blank endorsed, freight paid in advance Dear Sirs, We were noticed by the BRD LIPSCANI Bucharest about the opening of a L/C in our favour, domiciled Midland Bank Budapest, of in value of 250,000 for the pazment of the goods that make the object of your order no. 032-N-24 of June, 2nd, 2006. We kindly ask you to request to your issuing bank to operate the following changes in the Letter of Credit according to the following:

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- revolving irrevocable character of the Letter of Credit - original domicile of the Letter of Credit to remain the same V. Explain in your own words the following flowchart representing the working mechanism of the cheque:

Issuer

Payee

Issuer's Bank

Payee's Bank

VI. Fill in the blanks the following missing words: a) credit; b) bank; c) order; d) honored; e) cheque; f) himself; g) parallel; h) cross; i) account; j) fraudulent; k) collection; l) balances. A cheque is an "unconditional 1) _______________ in writing addressed by one person to another, signed by the person giving it, requiring the banker to pay on demand a certain sum in money or to the order of a specified person or to bearer". The drawer is the person who draws the 2) __________ and the payee is the person to whom the money is made payable. The bank on whom the cheque is drawn is called the drawee 3) ___________. The drawer and the payee can be one and the same person when a person draws a cheque payable to 4) ___________. The banker has the duty to honor cheques drawn by the customer according to the 5) _________ money available in the customer's account, or within an agreed overdraft limit. The cheques are paid and debited against the credit 6) __________ held on customers accounts, by being passed through the clearing system. Unpaid cheques are returned with a reply indicating the reason for not having been 7) ______________. One precaution taken for ensuring that persons who are not entitled to it cannot obtain its value, is to 8) ____________ the cheque. In this case, the drawer will make it more difficult for a 9) ___________ person to obtain value for it. Crossing can be general or special. A general crossing is represented by two 10) ___________ lines on the face of the cheque. This kind of cheque may not be cashed over the counter of a bank but must be paid into a banking account for 11) ____________. The name of a particular bank is written across the face of a cheque with a special crossing, that can only be paid into an 12) ____________ at that bank. VII. Read the following text and draw the main ideas from it in a written form: Endorsement is defined as the signature of a cheque by the holder

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followed by delivery of the instrument whereby the holder of a cheque payable to his order negotiates it to another person, who takes it as a new holder. In order to operate a legal transfer of an order cheque, a correct and genuine endorsement is necessary. Every endorser guarantees the genuineness in all respects of the drawer's signature and all previous endorsements. An endorsement can be blank or special. A blank endorsement specifies no endorsee and its effect is to make the instrument payable to the bearer. The holder writing above the endorser's signature a direction to pay the cheque to, or to the order of, himself or some other person can convert it into a special endorsement. A special endorsement specifies the person to whom, or to whose order, the instrument is to be payable. VIII. Read the text and fill in the blanks the missing words: a) travelers; b) evidence; c) signature; d) charge; e) cash; f) safety; g) account; h) currencies. Travelers' cheques are the usual method by which 1) _________ take money abroad to provide expenses. They are available in different 2) _________ and are exchanged for local currency at the at the cashing banker's rate of exchange for sight drafts. At most a passport or some 3) ________ of identity is requested as a condition of cashing. The holder signs the cheque in the presence of the bank officer and his or her 4) ___________ must agree with the one already on the cheque. Travelers' cheques issued but not used, can be either paid into the holders bank 5) _________ or cashed by the issuing bank. If lost, most banks replace them free of 6) ____________ Simplicity, general acceptability, cheapness and 7) __________ are the main advantages of the travelers cheques. Hotels and shops accept cheques in payment, and they can be used in place of 8) ____________ when banks are closed. IX. Fill in the blanks the missing words: 1) bill; 2) ownership; 3) prior; 4) recourse; 5) person; 6) payment; 7) acceptance; 8) payment; 9) consequences. The a) _____________ who draws a bill is the drawer; the person on whom it is drawn is called the drawee and the person to whom it is drawn payable is the payee. When the drawee accepts the b) ___________, he is known as the acceptor. An acceptance of a bill of exchange is either general or qualified. Discharging a bill is the performance of setting free or c) ___________ of a bill, after which all rights are 'extinguished'. When a bill is endorsed, that is its d) ___________ is transferred, it is signed on the back by the endorsee. Most bills are accepted when presented for e) __________, and duly paid when presented for payment. However, acceptance or f) __________ is refused, then the bill is said to be dishonored by non-acceptance or by nonpayment. The person presenting the bill must give notice of dishonor to g) ___________ parties and have the bill 'noted' or protested with a notary public. Failure to take the proper steps promptly may have serious h) _____________. An immediate right or i) ______________ against the drawer and endorser accrues to the holder if the bill is dishonored. X. Look at the following bill of exchange and identify the main parties to the bill: _______________________________________________

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Address 23rd April, 1992 10,000 Three months after date, pay to me or to my order Ten thousand Pounds, value received.

(Signed) "Y"

To "B" Address _____________________________________________________________ XI. Match the following missing words: 1. demand; 2. institutions 3. underlying; 4. payment; 5. supplier; 6. performance; 7. guarantee. A demand guarantee is defined as an undertaking for a) __________ of a stated sum of money on presentation to the party giving the undertaking of a demand for payment as may be specified in the guarantee within a specified period of time. Most of the guarantees are payable on first written b) ___________ without any additional documents. Whereas documentary credits are used to ensure that the supplier is paid, demand guarantees safeguard the buyer against non-performance, late or defective performance by the c) ___________. Demand guarantees are issued usually by banks and recently by other financial d) _________. Demand guarantees are defined by three parties: the account party (or principal) which is usually the seller, supplier or the contractor, whose e) __________ is required to be covered by the guarantee and who gives instructions for its issue. The guarantor is the bank or other party issuing the f) __________ on behalf of its customer, the principal. The beneficiary is the part in whose favor the guarantee is issued. This is the other party to the g) ________ contract, the buyer. XI. Explain the following flow chart representing the mechanism of issuing the letter of guarantee using your own words:
Guarantor instruction letter Principal

Guarantee

Importer's Issuing Bank

Beneficiary Reimbursement Bank

Exporter Advising Bank

Corresponding Bank

V. Translate into English: a) Cecul este un instrument de plata care pune in legatura trei

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persoane: tragatorul, trasul si beneficiarul. Instrumentul este creat de tragator, care, in baza unui diponibil constituit in prealabil la o societate bancara, da un ordin neconditionat acesteia, care se afla in pozitie de tras, sa plateasca la prezentare, o suma determinata, unei terte persoane sau insusi tragatorului aflat in pozitie de beneficiar. Deci, tragatorul emite cecul, posesorul legitim il incaseaza, iar trasul il plateste. b) Procedura de completare a cecului de calatorie a fost astfel adoptata incat sa nu faca posibila folosirea frauduloasa si falsificarea acestora. Astfel, titularul va semna pe dreapta documentului, la momentul cumpararii acestuia de la banca si in stanga jos numai in prezenta prestatorului, atunci cand sunt platite diverse servicii sau marfuri. Prestatorul va putea astfel sa compare cele doua semnaturi si sa autentifice originalitatea cecului. Daca prestatorul are dubii in privinta semnaturii titularului, acesta mai poate semna o data pe spatele cecului. Este foarte important ca semnatura sa fie facuta in prezenta prestatorului si nu inainte, pentru ca altfel cecul nu va fi acceptat. c). Cambia este un instrument cu ajutorul cruia, n calitate de trgtor, v putei plti o datorie fa de o anumit persoan (beneficiar) prin intermediul unei alte persoane (tras) care v era datoare i creia i ordonai s plteasc beneficiarului sau posesorului cambiei suma respectiv la o anumita dat. Atunci cnd dorii s facei o plat n condiiile de mai sus, formularul de cambie va avea urmtoarele elemente: - numele i semntura dumneavoastr; - numele trasului; - adresa, numrul contului i banca trasului; - data i locul emiterii; - locul plii; - scadena; - numele beneficiarului; - adresa, codul fiscal i stampila dumneavoastr; - suma n litere i n cifre; - moneda. Cnd unul dintre debitorii dumneavoastr dorete s se achite de obligaie prin emiterea unei cambii pe care v-o remite, n calitate de beneficiar al cambiei avei urmtoarele posibiliti de a va exercita drepturile: A): - s prezentai cambia trasului pentru acceptare pentru a fi sigur de plata acesteia la scaden; - s prezentai cambia trasului la plat; - s girai n favoarea unui ter fa de care avei obligaie; n acest caz va trebui s nscriei pe verso-ul cambiei urmtoarele date: - numele dumneavoastr; - numele persoanei creia i girai titlul (giratarul) - data girrii - semntura dumneavoastr dup care predai cambia persoanei n cauz. B): - s o scontai la banc nainte de scaden; vi se va plti suma nscris pe cambie, mai puin comisionul bncii pentru astfel de operaii.

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PART III
ECONOMICS

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UNIT 1 BUSINESS MANAGEMENT

Management may be the most important innovation of this century and the one the most directly affecting the young educated people in colleges and universities who will be tomorrow's "knowledge workers" in managed institutions, and their managers the day after tomorrow. Within the life span of today's old-timers, our society has become a "society of organizations". In this century, the major social tasks have come to be performed in and through an organized institution - business enterprises, large and small; school systems; colleges and universities; hospitals; research laboratories; governments. Of course many large and complex businesses started from a one-man shop. But beyond the first steps growth soon it entails more than a change in size. At some point (and long before the business becomes even 'fair-sized') quantity turns into quality. At this point "owners" no longer run their own business even if they are the sole proprietors. They are then in charge of a business enterprise - and if they do not rapidly become managers they will soon cease to be the owners and be replaced, or the business will go under and disappear. The roots of the disciplines of management go back 15o years. But management as a function, management as a distinct work, management as a discipline and area of study - these are all products of this century. 1.1. MARKET ECONOMY All societies are faced with the question of what to produce, how much to produce, who produces it, who will receive the goods. The answer to all these questions is provided by the economic system of the society. The government can direct the factories on what goods to produce and how much of these goods, and management and private businesses can determine what and how they should produce. In one type of system people buy goods and services with income earned from production. In another the government gives purchasing power but not earned by producing goods and services. Land, labor, capital and entrepreneurship are required to produce any goods or services. Land includes the natural resources growing on or under the earth's surface. Labor includes that total human resources to turn raw materials into goods and services. Capital is the total money, tools, machinery and buildings used in the process of labor. The final factor is entrepreneurship, that is the skills and risk-taking to turn the other factors of production into goods and services. In a capitalist economic system, people, or in economic terms, households, own privately all these factors of production as opposed to being owned by the state in a command system. That is why, a capitalist system, a market system is organized from the bottom up, as the consumer gives the orders. They are transmitted to retailers, dealers, and so on. By an elaborate division of labor, economic activity is carried on with no plan or no committee giving orders but by a system of market competition ordered by the consumer's choice itself. Consequently, private enterprise is characterized by decisions that are taken in the market place, as opposed to the state planned and owned economic system. Prices function as a major signal or indicator as to what should and what should not be produced, because market economy system is

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governed by the laws of competition and is also regulated by supply and demand. The consumer is the one that benefits from this competition because he is going to get better products and services at lower prices. Competition in business is a sort of competition in sports or competition in any thing in life, as it keeps you on your toes, you have to keep improving, and it helps you sharpen. This is also the way of obtaining profit that encourages the private enterprise system to look for those cost-cutting technologies, for lowering the prices and for improving quality. Profit helps fuel the system, and generates progress. It grows people who are likely to come up with new ideas, new technologies, that are going to cause us to leap forward in the process of economic growth and development, bringing new goods and services on the market. Secondly, the entrepreneurs create new jobs. Entrepreneurship is the place for individuals who want to do their own thing, who do not like to see themselves fitting into the mold of some bureaucratic structure, be it corporate or be it public, for people who want to go out there and work their own hours, set their own times, work 70 hours one week if they want to, and take off for a week if they feel like it. It allows you to do research and development that would not be done if it weren't for a good profit. It allows a whole series of very tangible asset development programs that can tend to make an organization much stronger for the future, for new employees. In the command economy, the government makes all the decisions concerning production, distribution, and consumption, as it owns all the major factors of production. All the natural laws of competition, supply and demand do not operate any more. An elaborate system of command is determined by the state property, so orders are given and orders have to be obeyed, as the only owner of the factors of production makes conscious economic decisions, running the whole society as an obedient army, to a central direction. The consumer is not the one to decide for himself in the market, but only the state. Today, more and faster than ever, the world is confronted with the necessity for change in systems, felt not only in ex-communist and centralplanned economies, but even, to some extent, in the developed capitalist economies, which have, as an imperative short-run goal, to adapt to a permanently changing environment. We shall focus on the countries that have to change their systems entirely and dramatically - the former communist countries - which are challenged nowadays with a tough problem: transition to market economy. What should be the best possible ways in which a market system can be built for these countries? 1. The most important component of transition is the privatization of former state-owned enterprises, former industrial giants which are very inefficient and costly. The governments of these countries must create a competitive environment to force newly created private enterprises to operate with the discipline of competition. One of the most common means in achieving this goal was to open up national markets for the international trade and investment. 2. Another topic that must be handled is the critical role which governments of these countries should exercise as facilitators of the development process, in the sense that they should provide with human resources through education and create the infrastructure that the public sectors need in order to attain effective performances. Such programs must

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take into account that any program a government decides to overtake must be tailored to its capacities to govern, otherwise people's trust will be more and more diminished and social movement will appear. 3. The third problem relates to the large state-owned enterprises which occasionally performed well, but which are very risky due to several factors, such as: -low productivity -padded payrolls -disregard of the environmental forces The government should create incentives to sell these factories to potential investors, (if any) or to close them down. But closing down these giants, will bring very high levels of unemployment, which is an acute and terrible cost suffered due to the transition and which should be handled with care. That is why governments should come with efficient social protection programs either internally or externally financed. 4. It is difficult to judge the performance of each economy only by drawing lessons from some other countries' experience. In order to implement a good and reliable market oriented system, particular elements of each country's culture, values, history and aspirations must be taken into account and conclusions drawn locally. Each country must strive very hard to achieve the system that best suits its internal conditions. 5. Another problem is constituted by the type of capitalist system that will be implemented in each country, primarily related to the size of the public sector, workers-employers concepts, providing infrastructure education, assistance in critical projects, etc. 6. An important point relates to the integration in the developed countries structures, which is a goal recognized by all former communist countries. This may have several reasons: -to obtain economic and financial assistance -to get security provided by these institutions -to get consulting when necessary 7. There are countries based upon an economic market system with emphasis on private ownership, on productive activities and an extensive use of market regulatory forces, countries that have been developing for more than a century. Countries facing today economic transition must achieve their goals very fast, within a decade or two, in order not to be critically affected by the financial differences on the international market. This also represents an impediment for them. All these aspects are taken into account by those countries, which found themselves in transition in order to accomplish their development goals in short time and fewer social costs. 1.2. ECONOMIC POLICY The stance the any government takes towards any aspect of economic activity will be included within the term "economic policy". Macroeconomic economic policy - is represented by those policies that impinge upon the operation of the economy as a whole. Particular attention is paid to monetary policy as long as nowadays governments attach a considerable importance to it, as it is a main element of macroeconomic policy. The purpose of economic policy is to attain objectives. Only if those objectives are clearly identified, can the design, implementation and evaluation of economic policy be conducted. The conventional four objectives are usually held to be: - a high and stable level of employment. A certain level of

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unemployment is appropriate for the efficient operation of a changing economy, since, it will take people a period of time to switch between jobs, or retrain for a new job. - a low and stable rate of inflation, which is considered a necessary objective of economic policy, in order to try to avoid the costs associated with inflation. - a high rate of economic growth, since economic growth provides for the increase over time in the living standards of the population - a satisfactory balance of payments which implies that a country is able to pay its international terms and to purchase imports, while a surplus would imply that the stock of overseas assets is, in addition, increasing. - a satisfactory distribution of income and wealth is put forward as a fifth objective. The distribution of income refers to either individuals (there should be neither very rich nor very poor) or regions. 1.2.1. FORMS of ECONOMIC POLICY The purpose of monetary policy is to control some measures of the money supply an/ or the level and structure of interest rates. The importance attached to it within the government's policy package will depend upon its view of the operation of the economy and upon the decision it has reached regarding the priority given to different objectives. Fiscal policy is concerned with decisions regarding the level and structure of government expenditure and taxation. It has traditionally been regarded as having its impact through its influence on the level of aggregate demand within the economy; an expansionary fiscal policy would involve increasing government expenditure relative to taxation in order to boost the level of spending within the economy and there by bringing more people into employment and enhancing economic growth. Alternatively, a contractionary fiscal policy would involve raising taxation relative to government expenditure, with the purpose of reducing aggregate demand and lowering inflation and the demand for imports - though with the side-effects of lowering employment and growth. Exchange rate policy involves the targeting of a particular value of the exchange rate. One of its major purposes is to influence the flows within the balance of payments, and may perhaps be used in conjunction with other policies such as exchange control, import tariffs and quotas. Prices and incomes policy is intended to influence the rate of inflation by means of either statutory or voluntary restrictions upon increases in wages and/or prices. The range of prices and incomes over which such a policy may prevail, and the degree of statutory control involved, is subject to considerable variation. National debt management policy is concerned with the manipulation of the outstanding stock of government debt instruments held by the domestic private sector with the objective of influencing the level and structure of interest rates and/or the availability of reserve assets to the banking system. It involves decisions regarding the issue of new government securities and monetary policy has as one of its concerns the level of interest rates. 1.3. MARKETING When getting into business an executive must adopt a marketing model of crafting and implementing strategies for making the business profitable. The marketer should consider its target market, understand its wants and

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needs then use the elements of an appropriate marketing strategy and plans that will satisfy these needs. The marketing mix must also be adapted to the business organization needs and objectives. The marketing manager has to weigh the behavioural forces and the marketing elements in his marketing mix with a keen eye to resources with which he has to manage his business. His marketing mix approach is modelled, crafted and implemented according to the marketing specific strategyfor each product offering or for each market segment. Depending on the organizational structure of the firm. The marketing manager needs two sets of information: the elements that go into the mix, and the forces that influence the decision variables. The variables used in making a marketing mix are the price, promotion, product and distribution or placement, that make the perspective of the marketer from the consumer' s point of view. Sometimes they are referred to as the four P,s (J. McCarthy, 1960). They are mainly used when crafting a marketing strategy and a marketing plan making the marketing management perspective. These mix variables can be changed on long term, but in short term it is difficult to alter the product or the distribution channel. Therefore, marketers' work is limited to handle only a half of their tool kit. This limitation underscores the importance of long term strategic planning. 1.4. MARKET SEGMENTATION In economics, market is defined as being the place for all potential customers to share for a particular need or want. Marketing is the process of developing, pricing, distributing and promoting the goods or services that meet the needs or wants of the customers. When the activity of market research, new product development, distribution advertising, promotion, product improvement and so on, are combined successfully the product almost sells itself. This happens only when the product or service is better that those of the competitors. Marketing opportunities are generally isolated by market segmentation according to customers needs and requirements, or buying habits. But the producers or service providers must take into account the existence of competitors when they identify a target market. The marketers have then to design their marketing strategies and plan their marketing programmes and then organize, implement and control the marketing effort. That can be considered classified as the 4 Ps: Product, Price, Promotion, and Place. There are several elements to be considered in marketing a product: quality, features, style, trade mark, brand name, size, packaging, services and guarantees; as for price, it includes price list, discounts, the length of the payment period, possible credit term. Promotion groups together advertising, publicity, sales promotion and personal selling; while place is an integrated concept of distribution channels, coverage of the market, location of points of sale, inventory size; another marketing plan step is to create long term demand on the market by changing the particular features of the product to meet the customer needs or market conditions. Marketing can also influence or even change consumers needs or wants, by regulating the level, timing and character of demand. 1.5. MARKETING DECISION-MAKING PROCESS In the end of the Second World War, a new economic era began. The production systems of the countries that had been at war had been destroyed, and in 1945 they began an enormous effort to recover.

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Today we can see the development of a wave of social change the third wave which at the end of the war set in motion. Change is happening so fast that all organizations, and especially companies, have to adapt constantly. The improvement in peoples standard of living, the development of new technology and the growing pressure of demand are a challenge which must be met. Thus, no company can look-in on itself as companies used to do in the past. A company cannot ignore the world around: it must become an open system in constant intercourse with the society. In order to survive, then, the company must adopt a strategy of openness towards society in which it operates. This strategy will determine the existence of exchanges (flows) with a variety of entities. Of course, this opening to the outside requires a type of management which will always be aware of the large variety of exchanges generated: adaptive management that opens the company to the outside and uses the so-called instrumental cycle as an important technique. The instrumental cycle defines three sequential and interactive aspects of decision-making: - Planning, which consists of identifying the means the company has at its disposal, looking for the best opportunities and the best way to take advantage of them. - Organization which consists of the means by which the company puts its planning process into practice. - Control which makes it possible to assess the results obtained and compare them with the results required. Historically speaking, however, this change has taken place gradually. Company slowly began to realise the need to open up to the market. This evolution is normally considered to have four stages: - production - sales marketing - social marketing At the beginning of the century there was the first major explosion of demand. This increase in demand naturally caused companies to expand a great deal. It was the age in which mass production reached its height. As demand was high, the entrepreneur made decision on the basis of the companys interests and internal information. No one was concerned with the market as any product sold as long it was reasonably priced and of minimum quality. So the main concern was production. In October 1929, a deep crisis beset the economy of the USA. This crisis had repercussions all over the world. The thirties began under the shadow of economic depression. Faced with difficulties from the point of view of demand, companies had to try a new course of action. It was no longer enough just to produce; production had to be sold as well; the customer had to be pushed into buying. What had to be done to increase sales? Well, companies improved their manufacturing process, tried to reach new markets and included psychology in the training of salesmen. Competition increased and, with it, efforts were now begun to analyze the market and set up distribution systems. Around the fifties, after the end of the Second World War, a new company consciousness began to develop. While in the preceding period

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attention was paid mainly to the companys need to sell, in this stage they began thought to the customers needs. This is the so called marketing attitude. For the first time, there was market research and studies, production planning, concern about determining prices, advertising campaign. The emphasis was now on identifying the markets needs and values and adapting the company to them to ensure its success. More recently, the social outlook of the company has to led marketing to concern itself with the more profound interests of the consumer and society. Concern of an ethical nature has begun to appear. Products and services are not an end to themselves but a means to towards satisfying the customers wants and needs. That leads to the marketing concept that is a programme to be completed. To achieve this, the concept is accompanied by two of its basic components: integrated marketing and marketing management. The first one is merely the transmission of the marketing concept to the whole company. At a bank, for example, it means that all the departments recognize the effects of their actions on attracting and keeping customers. Marketing management is the analysis, planning, activation and control of the programme, designed to find out to satisfy the wants and needs of the markets in question, while bearing in mind the company; and marketing management is the development of the work needed to put it into practice. 2. TRADING Since the aim of economic activity is to satisfy wants, production of goods is not complete until the good is in the hands of the actual consumer. Hence, anybody who takes a part in this process, whether he be, for exemple, the farmer who milked the cow, the lorry driver who drove the milk-float to the town, or the roundsman who delivered the bottle on the doorstep, are all producers. In other words, in an exchange economy, even after the good has been made, the further stage of getting the good to the actual consumer is necessary before production is complete. Sometims the manufacturer sells to the consumer directly. Farmers, for instance, sell eggs at the door and many brewers own their own public houses. The majority of goods, however, especially foodstuffs, clothing and goods used in home, are distributed in two main stages, performed first by the wholesaler, who buys in bulk from the manufacturers, and second, by the retailer, who buys from the wholesaler and sells to the actual consumer. These wholesaler and retailers are the final links in the chain of production. 2.1. COMMODITY EXCHANGE A commodity exchange is the market where commodities are traded. The main terminal markets in commodities of the world are in London and New York, but in some commodities there are markets in the country of origin. Some commodities are dealt with at auctions (e.g. tea, grains) each lot being sold having been examined by dealers, but most dealers deal with goods that have been classified according to established quality standards. In these commodities both actuals and futures contracts are traded on commodities exchanges, often with daily callovers, in which dealers are represented by commodity brokers. Many commodity exchanges offer option dealing in futures, and settlement of differences on futures through a clearing house. As commodity prices fluctuate widely, commodity exchanges provide users and producers with hedging facilities with outside speculators and investors helping

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to make an active market, although amateurs are advised not to gamble on commodity exchanges. The fluctuations in commodity prices have caused considerable problems in developing countries, from which many commodities originate, as they are often important sources of foreign currency, upon which the economic welfare of the country depends. Various measures have been used to restrict price fluctuations but none have been completely successful. EXERCISES: I. Fill in the blanks the missing words in the following text: assistance; protection; international, systems, environment; economies; development; unemployment; goals; infrastructure; sell; elements; trade; transition; enterprises; performance; movement; ownership Today, more and faster than ever, the world is confronted with the necessity for change in systems, felt not only in ex-communist and centralplanned a) ....................... , but even, to some extent, in the developed capitalist economies, which have, as an imperative short-run goal, to adapt to a permanently changing environment. We shall focus on the countries that have to change their b) .................. entirely and dramatically - the former communist countries - which are challenged nowadays with a tough problem: transition to market economy. What should be the best possible ways in which a market system can be built for these countries? 1. The most important component of c) ......................... is the privatization of former state-owned enterprises, former industrial giants which are very inefficient and costly. The governments of these countries must create a competitive d) ...................... to force newly created private enterprises to operate with the discipline of competition. One of the most common means in achieving this goal was to open up national markets for the international e) ............... and investment. 2. Another topic that must be handled is the critical role which governments of these countries should exercise as facilitators of the f) .................... process, in the sense that they should provide with human resources through education and create the infrastructure that the public sectors need in order to attain effective performances. Such programs must take into account that any program a government decides to overtake must be tailored to its capacities to govern, otherwise people's trust will be more and more diminished and social g) ....................... will appear. 3. The third problem relates to the large state-owned h) ................... which occasionally performed well, but which are very risky due to several factors, such as: - -low productivity - -padded payrolls - -disregard of the environmental forces The government should create incentives to i) ................... these factories to potential investors, (if any) or to close them down. But closing down these giants, will bring very high levels of j) .......................... , which is an acute and terrible cost suffered due to the transition and which should be handled with care. That is why governments should come with efficient social k) ..................... programs either internally or externally financed.

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4. It is difficult to judge the l) ......................... of each economy only by drawing lessons from some other countries' experience. In order to implement a good and reliable market oriented system, particular m) ..................... of each country's culture values, history and aspirations must be taken into account and conclusions drawn locally. Each country must strive very hard to achieve the system that best suits its internal conditions. 5. Another problem is constituted by the type of capitalist system that will be implemented in each country, primarily related to the size of the public sector, workers-employers concepts, providing n) ................... education, assistance in critical projects, etc. 6. An important point relates to the integration in the developed countries structures, which is a goal recognized by all former communist countries. This may have several reasons: - -to obtain economic and financial o) ................... - -to get security provided by these institutions - -to get consulting when necessary 7. There are countries based upon an economic market system with emphasis on private p) ........................ , on productive activities and an extensive use of market regulatory forces, countries that have been developing for more than a century. Countries facing today economic transition must achieve their goals very fast, within a decade or two, in order not to be critically affected by the financial differences on the r) ..................... market. This also represents an impediment for them. All these aspects are taken into account by those countries, which found themselves in transition in order to accomplish their development s) ............... in short time and fewer social costs. II. Match the following words with the definitions: 1. goal, 2. challenge, 3. privatization, 4. enterprise, 5. competition, 6. means, 7. payroll, 8. trade, 9. investment, 10. infrastructure, 11. productivity, 12. incentive, 13. unemployment, 14. implement, 15. market, 16. environment. a) to take part in a contest to prove who is the best; b) to buy shares, property in order to earn interest or bring profit; c) project or undertaking, especially one that is difficult or needs courage; d) action or methods by which a result is brought about; money, wealth, resources; e) measure of the output of an organization or economy per unit of input (labor, raw materials, capital, etc); f) event in which people compete, contest; g) thing that encourages somebody to do something; h) state of being not employed; i) the goods or services requiring substantial investment considered essential to the proper functioning of an economy: roads, railways, electricity supply, sewerage; j) conditions, circumstances, natural conditions affecting people's life; k) the process of selling a publicly owned company to the private sector; l) the activity of selling goods or services in order to make a profit; m) object of one's efforts; target; n) to put into effect; carry out plans, policies, a program of reforms; o) the place where buyers and sellers meet to exchange items of value; p) the evidence of the employees of an organization and of their wages.

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III. The best specialists do not always make the best managers. Although in some ways, a specialist is capable of becoming a manager, because of strong analytical skills, other factors make the move difficult. Match the titles with the following managerial skills: Interests in Subordinates; Motivation; Communication; Attitude; Leadership; Career; Assessment; Potential and Promotion; Self Awarness .................................. a) Do you have the capacity and ability to learn the skills? Training and special courses will help. But it is more important for you to establish a good record as a specialist. Management will look first at what you have done to see if you have been a "winner". "Has this person been in tough situations and if so, how did he handle them?" ............................ b) Learn what your superior thinks, are your strong points and weak points. How is each affecting your work performance? Are you a responsible person? If you accept responsibility, other people will more readily look to you for leadership? Being responsible means being accountable and answerable. ............................. c) Money isn't the key motivation for many managers. If you decide you want to be a manager for status or money, you may fail. Good managers are motivated by the challenge to organize and run jobs. They feel a sense of accomplishment when they can get others to do as much or more than they could do by themselves. They also believe in change. They want to see progress. They feel uncomfortable if problems are not tackled. They do not feel at ease if they must go along with conditions as they are. Good managers also have missions. They know their purpose in life. ................................... d) The more difficult it is for you to plan your career, the more you need to learn about yourself. You need to decide what you want out of life. Your move to a managerial position will involve your whole family. It can mean a drastic change in your life style. You will probably give up some of your old friends certainly you will be making new ones. You may have to work long hours, either at the office or at home. Your take-home pay may not increase significantly at first, yet you may feel it necessary to raise your standard of life. You must force yourself to consider your career and then see what your next step should be. ............................... e) How you really feel toward management in general should be considered. You must agree with all the basic goals of management to the extent of seeing the position as a "we" function rather than a "they" one, as the manager is responsible for all the work in the department, and he cannot solely place the blame for the poor performance on an individual. Managers must also be willing to acknowledge that they are not perfect and that they make mistakes. Thus, they avoid conflicting, defensive reactions of the subordinates. The best managers have a positive attitude. They are positive about what they want and what they expect from the others. ................................

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f) Are you aware of the difference between assertiveness and aggressiveness? Do you know when and how to be assertive? A manager who is properly assertive can make things happen, handle difficult human relations problems, get ideas across and provide the leadership that will result in achieving organizational goals. .......................................... g) A mature manager creates an environment in which his subordinates develop fully. Such a manager is aware that subordinates' problems, both on and off the job, that affect their performance. So their problems are his or her problems too. ......................................... h) Management by leadership is the style the most sought after by every company. This type of manager is sensitive to the feelings of others and participates with subordinates in discussions leading to department decisions. Good leadership is not just giving orders. But, effective managers facilitate the accomplishments of their subordinates. That is true leadership. ................................ i) Listening is more than just hearing. In addition, managers must help their people to do a better job by listening, as it requires an active use of the ears, eyes and mind. By building trust and improving two-way communications, managers are able to get problems out in the open and provide guidance to solving them. IV. Match the words with the definitions bellow: a) regulation; b) deregulation; c) monetarism; d) infrastructure; e) recession; f) intervention; g) inference; h) supply-side theory; i) laissez-faire; j) crowding-out. 1) the concept in economics suggesting that a reduction in private expenditure results from an increase in government expenditure 2) the removal of controls imposed by governments on the operation of markets 3) (social overhead capital)- the goods and services usually requiring substantial investment, considered essential to the proper functioning of an economy, for example roads, railways, sewerage and electricity supply constitute essential elements of a community's infrastructure. 4) a school of thought in economics that places money at the center of "macroeconomic policy. Based on the quantity theory of money, and first expressed by the Scottish philosopher David Hume (1711-1776), it relates the price level to the quantity of money in the economy. 5) a slowdown or fall in the rate of growth of GNP. A severe recession is called a depression. 6) an economy in which government intervention is kept to a minimum and market forces are allowed to rule. The term is attributed to J. Gourlay (1712-

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1759) is best translated as "let the people do as they think is best." 7) an approach to macroeconomics that emphases the importance of the conditions under which goods and services (including labor) are supplied to the market in determining the level of employment and output in an economy 8) a logical process by which it can be reached a conclusion from facts or reasoning 9) interfering or becoming involved 10) control by rules and restrictions made by an authority V. Read the following functions of a wholesaler and a retailer. Separate them into two columns: The work of the wholesaler consists of buying goods from the manufacturer and selling them in small quantities to retailers according to their requirements. The retailer performs the last stage of the productive process, for it is he who puts the goods in the hands of the actual consumer. They both perform valuable functions which justify their existence in the chain of distribution:

a)

b)

c)

d)

e)

Since many shops, especially those stocking a large variety of goods, order their suppliers in small quantities, it is not economical for each producer to sell directly to the shop. Such a practice would mean employing many salesmen and representatives, packing many separate parcels and making numerous transport journeys. Manufacturers abroad could rerely be bothered to ship small parcels to individual retailers or to undertake the foreign currency transactions involved. These tasks are left to a wholealer, the import merchant who is known and trusted. Often the import merchant goes abroad to establish and develop trade connections. Customers like the convenience of being able to obtain a good at a shop just when they require it. But such ready service means holding stocks. Often, however, the retailer has neither the facilities nor the financial reserves to do this. So he leaves it to the wholesaler, knowing that, should there be a sudden run of good, he can quickly obtain supplies from him. With many products, particularly vehicles and machinery, the manufacturers insist that the wholesaler provides an efficient maintenance service, such as minor repairs, periodic overhauls and carrying a range or spare parts. In this way both the manufacturer and the customer benefit. The former can guarantee quality of service and thereby preserves the reputation of his product, while the latter knows that his machines can be repaired quickly and efficiently by a local agent. In the course of his main business, the seller performs many services for the convenience of the customers, all of which help to build up goodwill. Where the good is not in stock, he will order it, and in other matters where contact with the manufacturer is necessary, the seller will often act for the customer. Thus goods are returned to the

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manufacturer for repair, or he himslf mai maintain a repair service.

f) They take the goods to where it is most convenient for an easy reach of

the customer. They are congregated together in the centre of most towns, though, with goods such as groceries which are in everyday use, small shops are often dotted around residential districts. Where customers are very dispersed, as in the country districts, the seller may have travelling shop of some form or another. g) He often advises the manufacturer, particularly as regards advertising and marketing the product. He himself can advertise, especially if the good is being imported from abroad. Moreover, he acts as a channel of information to and from retailers. h) What is the right good depends on the customer, for different people have different tastes, and what suits one may be undesirable to another. Thus having the right good depends largely on stocking different varieties of the good so that each customer can make his or her own choice, pay for it, and take delivery there and then. i) He maintains close contact with his customers. From them he discovers, either through a chance remark in the course of converation or by direct suggestion, how a good could be improved or what type of good people would like. This information finds its way to the manufacturer, who will probably act upon, and eventually the modification or the new good will be produced. VI. Match the following types of retail outlets with their description: 1. independents; 2. Multiples; 3. Supermarkets; 4. Hypermarkets; 5. Department Stores; 6. Co-operatives; 7. Mail-Order. a) Urban congestion, lack of adequate parcking space and rising rents out-of-town shopping centres to cater for the car-borne weekly shopper. b) Can be defined arbitrarily as organizations of ten or more shops. They can sell a particular sort of goods. Their chief advantages are that they can obtain the economies of bulk buying and centralised control, eliminate the wholesaler, invite instant recognition through their standardised shop fronts and establish a reputation through brand names. c) They sell by agency and illustrated catalogues, purchases ususally being arranged through weekly interests-free payments. Over one-half of all sales are accounted for by women clothing and household goods. d) They are mainly small shops with no other branches and they account for two-fifths of the total sales through shops. Yet, in spite of their advantages of individual attention to customers, handy locations for quick shopping trips, and the willingness of owners to accept a lower return of the benefits of being their own boss, they are steadily losing ground to the larger stores. e) They may be defined as self-service shops. While organisationally they would count as multiples, their share of the food trade warrants separate attention. They accounted for half th grocery trde and a third of total retail food sales. They secure the benefits of economies of scale, low labour costs, a clear and attractive display of merchandise and bulk buying to the extent of their own labelling. As a result they have highly competitive prices, allowing them to gain ground rapidly.

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f) Competition from multiples has forced them to alter somewhat the traditional picture of separate departments under the control of a buyer enjoying some degree of autonomy (which led to the epithet many stores under one roof). Instead, a more streamlined approach with an increasing degree of bulk-buying by central office, more self service and extended credit facilities, have allowed them to retain an important percentage of the market. g) A group starting trading by subscribtion. Profits are distributed to members in proportion to their purchases. They charge the current market price for their goods. This type of retailing is chiefly important in the marketing of agricultural products, where production is carried on by many small farmers. VII. Match the following missing words in the text: 1. communicating; 2. wholesaling, 3. transactions; 4. managed; 5. distribution; 6. exchange; 7. digital; 8. information; 9. environemnt; 10. business; 11. service. Electronic commerce is not a new concept. Companies and consumers have been using electronic media to conduct commercial a)___________ for years. To date, electronic commerce has been inhibited by high costs and complexity and the lack of standard applications for viewing and shareing b)_________ once connected. The Internet, specifically the World Wide Web, has changed this scenario radically. Connectivity over the Internet is cheap, increasingly secure and built on standards which make c)___________ with anyone a straight forward task. Now, Internet commerce - the d)_______________ of goods and services for value on Internet is evolving into a more cost-effective and powerful way to do business. Business-to-business-commerce includes online e)__________, where business sell goods and services to other businesses on the Web. In Internetbased corporate f)___________, wholesaling merges into a system where individual employees make purchases of office materials and supplies using the corporate supply chain trading. Business work closely together via the Internet to automate and streamline the supply of goods for production and g)__________. In business-to-consumer-commerce companies market physical goods to consumers online in a more personalized, dynamic h)___________. Business-to-consumers-commerce increasingly includes the delivery of i)_________ goods - software, electronic media, and information. Consumers also look more frequently to the Internet for the delivery of j)_________, including ticketing, reservations and financial services. In short, Internet commerce business-to business and business-to-consumer will dramatically impact the way goods and services are k)__________, bought and sold all the way from from manufacturer to consumer. VIII. Match the following specialised words with their definitions: a) auction; b) access; c) capital; d) annual report; e) charge; f) bar code; g) agency; h) allowance; i) barter j) cost; 1. to obtain data from or to place data into a computer memory 2. the business carried on by a commercial agent. 3. a tax free amount that may be deducted before a particular tax is calculated 4. the annual accounts and directors report of a company issued to shareholders

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5. method of sale in which goods are sold in public to the highest bidder

6.

a bar consisting of an array of parallel rectangular bars and spaces printed on a package for sale in a retail shop. A laser scanner is pased over it at the retailers check-out till the price and description of the goods are displayed on the till screen and the computer-controlled stock record is simultanously reduced. 7. a method of trading in which goods or services are exchanged without the use of money 8. the total value of the assets of a person less liabilities 9. a legal or equitable interest in land, securing the payment of money. 10. an expenditure, usually of money, for the purchase of goods or services IX. Fill in the blanks the missing words: 1. floor; 2. bid; 3. globalization; 4. negotiable; 5. events; 6. leader; 7. financial guarantee system; 8. electronically; 9. exchanges; 10. guarantee; 11. open outcry The rapid opening of economies in the Central and Eastern European countries, as well as the rapid a).................... of international markets and the subsequent opening of commodity markets led to the demand for risk management tools. As a result, many commodity and derivative b)..................... were formed as a starting point of a rapid consolidation process. The Romanian Commodity Exchange became the c).............. in the national market and has excellent terms with the world's major exchanges. It is the founder of the Association of Futures Markets and participates in international professional d)................. RCE shifted from the traditional open bidding system to the system by which members trade futures contracts e).................... while at their offices. f) ...............and offers are captured on a time-priority basis. The margin system means four levels of g)................ which ensures the total safety of trading. The electronic system operates only for the derivatives market, while the transactions for spot, forward and auctions market are performed using the h)............. ............ system. Trading takes place on the Exchange i).............. and the brokers make bids and offers in the pit, in an open outcry system. Fees and commissions are j)................... with the brokerage companies. Investors are protected by a k)............... ........... .............., exchange-clearing procedures and the transparency of floor operations. X. Use the dictionary and match the following specific professional terms with their definitions: a) offer; b) clearing house; c) pit; d) option; e) callover; f) hedging; g) auction; h) spot goods; i) gamble; j) bid price. 1. A method of sale in which goods are sold in public to the highest bidder. In most auctions the goods to be sold are available for viewing before the sale and it is usual for the seller to put a reserve price on the article offered. 2. The price at which a buyer is willing to close a deal. If the seller has made an offer, which the buyer considers to high, he may make a lower price, or on more advantageous terms. The seller may accept it, or make a counteroffer. 3. A meeting of commodity brokers and dealers at fixed times during the day in order to form a market in that commodity. It is usually used for trading in futures, in fixed quantities on a standard contract, payments usually being settled by differences through a clearing house. 4. Play games of chance; risk money by investing in a commodity.

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5. A centralised and computerised system for settling indebtness between members. 6. An operation undertaken by a trader or dealer who wishes to protect an open position, especially a sale or a purchase of a commodity, currency, security, etc that is likely to fluctuate in price over the period that the position remains open. For example, a manufacturer may contract to sell all that he can produce of his product for the next six months. If his product depends on a raw material that fluctuates in price, and if he does not have sufficient raw material in stock, he will have an open position. He may decide to hedge his sales by buying the raw material he requires on a futures contract; if he has to pay for it in a foreign currency he may also hedge his currency needs by also buying that foreign currency forward. 7. Commodities that are available for immediate delivery, as opposed to futures in which deliveries are arranged for named months in the future. 8. The price at which a seller makes it known that he is willing to sell something. If there is an "acceptance of the offer a legally binding contract has been entered into. 9. An area of a stock market or commodity exchange in which a particular stock or commodity is traded, especially one in which dealings in certain commodities takes place by open outcry. 10. The right to buy or sell a fixed quantity of a commodity, currency or security at a particular date, at a particular price (the exercise price). Unlike futures, the purchaser is not obliged to buy or sell at the exercise price and will only do so if it is profitable. XI. Choose the best alternative to complete each sentence: 1. You must keep staff _________ especially when things get difficult. a) generated; b) motivated; c) frustrated; d) electrified 2. Weigh up the _________of each alternative before deciding. a) checks and balance b) assets c) pros and cons; d) profits 3. A good manager must be able to handle _________situations. a) sensible b) impressive c) touching d) touchy 4. He decided to let things_________so he dropped the subject until later. a) freeze b) ice over c) cool down d) flare up 5. She ______creating a better atmosphere amongst the staff. a) set about b) set off c) set out d) set down 6) We need to have ___________arrangements in case things dont work out. a) container b) contingency c) consolidated d) consecutive 7) In a meeting you must stop people talking at __________purposes a) opposite b) angry c) cross d) opposing 8. Why doesnt he stick to the point? Hes always going off___________ a) at an angle b) at a tangent c) by the way d) on the side 9. Its always difficult when a team is working________a deadline. a) in b) at c) to d) opposite 10. Try to ensure that each employees _________is not too great. a) workload b) working practice d) work-to-rule d) working party 11. Those who cant manage their time efficiently always have high stress______ a) grades b) standards c) performances d) levels 12. The more responsibilities she _________, the more mistakes she made. a) took off b) took on c) took down d) took out 13. I hope the project continues to run as__________ as it has so far.

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a) calmly b) confidently c) smoothly d) wisely 14. After _______ many unforeseen obstacles they just managed to meet their deadline. a) overtaking b) overcoming c) overwhelming d) overriding 15. What can you do to improve__________in this department? a) morale b) mortality c) moral d) temperament XII. Make the family words starting from the following: competitive; consumer; investment; leadership; production; supplier; beneficiary; advertising; management; business; XIII. Fill in the blanks the following missing words: 1. money; 2. rules, 3. competition; 4. need; 5. share; 6. abundance; 7. amount; 8. specific; 9. demanding; 10. effectively; 11. marketing Marketing begins with the consumer a)_________. Something is produced in response to that need. In a marketing society, the consumer b)__________. Marketing societies have produced a great c)_________ and variety of consumer goods. They have done this by means of d)_________. Each producer competes with every other producer for a e)_________ of the market. The market is people who have f)_________ and are ready to spend it. But consumers have a finite g)________ of money to spend. They will buy only what they want and need. As a nation becomes more developed, consumers become more h)___________. Their needs become more i)_________, and they want products that satisfy their changing needs. Only those producers who compete j)___________ will sell their products and survive. Successful producers are guided by the k)__________ concept: respond to consumers needs and wants. XIV. Match the following words with their definition: 1. consumer; 2. merchandising; 3. store-count-distribution; 4. distribution; 5. product-lifecycle; 6. brand awareness; 7. brand loyalty; 8. motive. a) consumers well established preference for the brand; they continue to buy it despite possible advantages of competing brands b) moving goods from one place to another before their sale to consumers for example, from producer to wholesaler; from wholesaler to retailer. c) Sales promotion; paid promotion through minor media d) One member of the market, the user of a product e) Consumers knowledge that the brand exists f) A desire that moves a consumer to act upon a need. The motive for a purchasing decision may be conscious or unconscious, rational or emotional g) The number of stores that carry a given brand

h)

The stages that a product typically goes through to get to the final consumer

XV. Translate into English: A Ca urmare a lrgirii comerului s-a trecut de la sistemul simplist al trocului (barter) la folosirea anumitor mrfuri ca msur a valorii, ca un echivalent general pentru restul produselor, aa nct s fie facilitat (facilitate) i accelerat (stimulate) circulaia bunurilor ntre comunitile omeneti. Drept instrument pentru efectuarea plilor au fost folosite, de-a

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lungul timpului, diferite produse ca vite, blnuri i unele obiecte cu o valoare simbolic recunoscut (generally admitted), de pild pietre deosebite sau scoici, ajungndu-se pn la urm la o utilizare generalizat a metalelor, care vor ncepe mai apoi s fie btute ca moned (coin) pentru o ct mai lesnicioas mnuire (easy handling). Dar banii nu vor rmne prea mult vreme doar mijloace de intermediere ntre participanii la viaa economic. Intruct ofereau putina de a achiziiona orice i oricnd, banii au devenit ntruchiparea (embodyment) bogiei i puterii, fiind cutai, nmulii i tezaurizai (stocked) tot mai avid (greedy) Un fapt important n evolua relaiilor economice i sociale l constituie, nendoielnic, extinderea (development) mprumutului; ntr-o prim faz numai de produse destinate consumului (consumer goods), n special cereale, iar ulterior i unelte ale muncii i instrumente bneti. (payment instruments). Imprumuturile apar acordate (grant) nc de la nceputuri contra (against) unui anumit pre dobnda ceea ce asigura o substanial surs de ctig creditorilor, respectiv deintorilor de disponibiliti (resources) n mrfuri i bani care ncheiau asemenea tranzacii (understandings, contracts). B). BRM tranzacioneaz contracte spot i forward pentru cereale, produse petroliere, produse metalurgice, deeuri. De asemenea, BRM organizeaz licitaii interne i internaionale pentru mrfuri fungibile i non-fungibile. BRM se implic att n procesele de privatizare, restructurare i lichidare, ct i n operaiunile comerciale de vnzare sau achiziie de bunuri i servicii. Licitaiile se organizeaz att pentru societi comerciale private ct i pentru societi la care statul sau o autoritate public este acionar. Tranzacionarea mrfurilor are loc n ringul bursier prin sistemul strigrii libere. Reprezentanii vnztorilor i ai cumprtorilor se ntlnesc fa n fa i negociaz liber preul. Avantajele pieei fizice organizate n ringul BRM sunt: transparena, tranzaciilor, corectitudinea acestora, comisioane mici, utilizarea informaiilor n timp real. C. Mecanismul ce ofer posibilitatea transferului de risc la care sunt supui productorii i angrositii se numete n termeni bursieri hedging. Activitatea de hedging implic decizii importante care necesit participarea la tranzacii prin intermediul unui broker. Pentru nceput, se depune o sum care reprezint o garanie pentru o execuie corespunztoare i pentru eventualele pierderi pe piaa futures. Dac acionai short (vnzare) poziia dumneavoastr se mbuntete cnd preurile scad sub preul dumneavoastr de vnzare i se nrutete atunci cnd preul crete peste preul de vnzare. Dac acionai long (cumprare) pe piaa futures, poziia dumneavoastr se mbuntete cnd preurile cresc peste preurile dumneavoastr de cumprare i invers. Short hedge are loc atunci cnd planifici s cumperi o marf i doreti s te protejezi mpotriva scderii preurilor. Atunci vinzi contracte futures i cnd vei fi gata s tranzacionezi marfa, vei cumpra contractele futures i vei vinde simultan, de exemplu, cereale. Short hedge protejeaz vnztorul mpotriva scderii preurilor. Vnznd contracte futures putei fixa un pre pentru marfa dumneavoastr i vei completa operaiunea prin rscumprarea contractelor futures i vnzarea simultan a mrfii pe piaa cash. D. BRM tranzacioneaz contracte spot i forward pentru cereale, produse petroliere, produse metalurgice, deeuri. De asemenea, BRM organizeaz licitaii interne i internaionale pentru mrfuri fungibile i nonfungibile. BRM se implic att n procesele de privatizare, restructurare i

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lichidare, ct i n operaiunile comerciale de vnzare sau achiziie de bunuri i servicii. Licitaiile se organizeaz att pentru societi comerciale private ct i pentru societi la care statul sau o autoritate public este acionar. Tranzacionarea mrfurilor are loc n ringul bursier prin sistemul strigrii libere. Reprezentanii vnztorilor i ai cumprtorilor se ntlnesc fa n fa i negociaz liber preul. Avantajele pieei fizice organizate n ringul BRM sunt: transparena, tranzaciilor, corectitudinea acestora, comisioane mici, utilizarea informaiilor n timp real.

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In any legal system individuals or companies may be regarded as having rights and duties enforceable at law. A company can sue a partner for breach of a contract in virtue of its legal personality. Without it institutions and groups cannot operate, for they need to be able maintain and enforce claims. Individuals, limited companies and public corporations are recognized as possessing a distinct legal personality, the terms of which are circumscribed by the relevant legislation. It is the law which is the foundation of legal personality for it will determine the scope and nature of personality. Legal personality involves concepts such as status, capacity, competence as well as the nature and extent of particular rights and duties. The whole process operates within the confines of relevant legal system which circumscribes personality, its nature and definition. Legal personality is crucial. Without it institutions and groups cannot operate, for they need to be able to maintain and enforce claims. Individuals, limited companies and public corporations are recognized as each possessing a distinct legal personality, the terms of which are circumscribed by the relevant legislation. It is the law which is the foundation of legal personality for it will determine the scope and nature of personality. The status of a particular entity may well be determinative of certain powers and obligations, while capacities will link together the status of a person with particular rights and duties. This is particularly true in international law. In international law, personality needs consideration of the inter-relationship between rights and duties afforded under the international system and capacity to enforce claims. One of the distinguishing characteristics of contemporary international law has been the wide range of participants performing on the international scene. These include states, international organizations, regional organizations, non-governmental organizations, public companies, private companies and individuals. Public companies, which may be known by a variety of names, for example, multinational public enterprises or international bodies corporate, is characterized in general by an international agreement for cooperation between governmental and private enterprises. Such enterprises may vary widely in constitutional nature and in competences. They can have an intergovernmental structure and operate in a global commercial activity. The personality question will depend upon the differences between municipal and international personality. If the entity is given a range of powers and is distanced sufficiently from the municipal law, an international person may be involved, but it will require careful consideration of the circumstances. Transnational or multinational enterprises are also subject of international legal personality. They constitute private business organizations comprising several legal entities linked together by parent corporations and are distinguished by size and multinational spread. There are different legal forms in which entrepreneurship may be organized according to the size of the firm and according to the way of raising capital. For working or short-term capital a firm can find help in a variety of ways, most usually through the commercial banks, but also by hiring buildings

UNIT 2. BUSINESS INCORPORATION

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and sometimes machinery, buying factors, obtaining the customary trade credit terms and taking deposits in advance from customers. The sole-proprietor or one-man firm is the oldest form of entrepreneurial organization. Such one-man firms range from the rag and bone man, chimney-sweeper and window-cleaner working on his own account to the farmer, shopkeeper and small factory-owner who employs other workers and may even own many separate units. Nevertheless, these businesses all have the same characteristic of being owned and controlled by a single person. It is the person's task to make all decisions regarding the policy of the firm and it is he alone who takes the profit and bears any losses made. This makes for energy, efficiency, a careful attention to detail and close relationship between employer and employee. The sole proprietor, however, suffers from the main disadvantage. First, the development of such a firm must proceed slowly because the sources of capital are limited. The success of the venture, especially in its early stages, depends on the person in charge, and nobody is likely to provide capital for the business unless he has that confidence in the proprietor, which comes from personal contact. Hence, the main source of capital is the personal savings of the owner himself, together with such additional sums, as he may be able to borrow from the relatives or close friends. Expansion of the business may take place by ploughing back profits, but this will probably be an extremely slow process and such firms generally remain comparatively small. In the event of failure, not only the assets of the business, but also the private assets of the proprietor can be claimed against creditors, meaning that there is no limited liability. It is typical for agriculture and retailing where management requirements make the small technical unit desirable. A larger amount of capital is available when persons combine in a partnership. Each partner provides a part of the capital required and shares the profit on an agreed basis. Yet, the amount of capital that can be raised this way is still inadequate for large-scale production. The result is that the partnership remains relatively small, particularly suitable to certain types of business, such as retailing, and certain professions (doctors, dentists, consulting engineers and lawyers). The risk inherent in unlimited liability is increased because all partners are liable for the firm's operations, irrespective of the amount of capital that they have individually invested, and their private fortunes may be called upon to meet the demands of creditors. Any action taken by one colleague is legally binding on the others. Hence not only must each partner have complete confidence in the others, but the risk of unlimited liability increases. Finally, by giving notice to the others, one partner may terminate the partnership at any time, while it is automatically dissolved upon the death or bankruptcy of any one partner. This means that surviving partners have to either buy his share or find a purchaser acceptable to everyone. In such circumstances, therefore, the continuation of the business may involve great trouble and expense. In Great Britain, the joint stock company type first developed in Tudor times when foreign trade began to expand. The government, wishing to foster such trade, often granted the promoters a charter, which enabled them to form a company and to carry on trade in various parts of the world, usually in a free form of competition. Two such companies were the East India Company and the Hudson's Bay Company, still existing today. Nevertheless, until the middle of the nineteenth century, people were

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reluctant to take shares in such companies, as they enjoyed no limited liabilities. But the industrial revolution made it essential that more capital should be available to industry. Hence, in order to induce more savers to invest, the privilege of limited liability was granted by statute in 1855. The advantages that the most important form of a business organization enjoys over the partnership are chiefly that there is limited liability, a larger amount of capital can be raised, since investors can spread their risk and sell their shares easily, and, should the need arise, expansion is much easier. Against the advantages, however, certain disadvantages have to be considered. The company's corporation tax could be more than the income tax that would have been paid had the business remained as a sole partnership. Furthermore, any assets of the company that have been built up over the years will increase the value of the original shares (usually owned by a family). When the time comes to wind up the company, e.g. owing to retirement, any increase in the value of the shares will be subject to capital gains tax. 2. 1. PRIVATE COMPANY This type of a company organization allows the business to be privately owned and managed. It is thus particularly suitable for a medium-sized either commercial or industrial organization not requiring finance from the public or for a speculative venture where a small group of people wishes to try out an idea and is prepared to back it financially to a definite limit before floating a public company. While they are considerably more numerous than public companies, they are much smaller. They encounter difficulties when they want to expand as neither their shares nor debentures can be offered for sale to the public. Thus, in order to find additional investors, it is usually necessary to convert the business into a public company with its shares quoted on a Stock Exchange. But before embarking on such an issue, the company must have a fairly substantial size and arrange for a life insurance company or an investment trust to purchase shares or debentures; help may be obtained from the new-issue market, where both issuing houses and merchant banks may help firms to raise capital. But in order to obtain a loan, it has to pass first a searching investigation regarding its present financial position and business prospects. 2.2. PUBLIC LIMITED COMPANY It carries the letters PLC after its name is the largest of all types, and at least two shareholders own it, but most of them have hundreds or even thousands of shareholders. Its shares can be issued to the public and can be sold through the Stock Exchange. A private company can "go public" and apply to the Stock Exchange to be listed or quoted in order to become a public limited company. The company will have to satisfy the council of the Stock Exchange that is soundly based and a reasonable investment for the public. It is controlled by the Board of Directors, which is elected by the shareholders. The Board manages the running of the firm that is obliged to hold an Annual General Meeting to report to shareholders and elect directors. The company uses its profits (after deduction of dividends) to finance future investments. Capital may also be obtained by further share issues, borrowing (often from international banking consortia) and from Government

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granting loans. 2.3. HOLDING The optimum technical unit of a business may be much smaller than the optimum financial unit. The financial economies of scale can be achieved by organizing a group of firms through a single "holding company", leaving the individual subsidiaries to continue working in their own name as separate technical units and retaining a great deal of independence of action. Furthermore, having subsidiaries with diverse interests may secure a riskbearing economy. However, while this theoretical justification for the formation of a holding company may be valid, in practice such companies have been formed in order to obtain controlling interests, often for monopoly purposes. 2.4. JOINT STOCK COMPANY This type of a company is organized on the agreement of two or more parties to work on a project together. Frequently, it is formed when companies with complementary technology wish to create a product or service that takes advantage of the strengths of the participants. It is usually limited to a project, differs from a partnership, which forms the basis for cooperation on many projects. 2.5. SETTING A COMPANY Setting up of a company begins with lodging a Memorandum of Association and the Charter of the company or Articles of Association with the Registrar of Companies. The Memorandum generally contains the following clauses stating: - the name of the company and its logo; the company is free to choose its name, within certain bounds. The Department of Trade will not allow a name which is too similar to that used by an existing company, especially one in the same type of business. - the country in which the registered office (where the premises is situated) - limitation clause: it shows whether the company is limited by shares or by guarantee, as commercial companies are limited by shares, or non-profit bodies, such as professional associations, are limited by guarantee. - the objects for which the company was constituted; this states the type of business that the company will undertake. This is to protect investors from putting their money into a company which would then use it in a different manner. - capital clause: it gives details about the amount of the authorized capital and its division into shares and the different categories of shares -association clause: includes the names of the founder members and the number of shares they each subscribed Lodged together with the Memorandum, The Articles of Association are a contract between the company and its members comprising rules and regulations for the internal activity of the company and specifying such things as : - the voting power of its members,- the appointment of directors,- the distribution of the profits, etc. After the Memorandum and the Articles have been registered and the necessary fees have been paid, the Registrar issues the Certificate of

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Incorporation and the company can start doing business. Here are the Governmental institutions that a company should be registered with: Notary Office The Court of Commerce The Registrar of Commerce Tax/Fiscal Office The Gazette 2.5.1. STRUCTURE OF A BUSINESS/DECISION TAKING PROCESS In a small business, the few employees know their role as there is a direct contact between the employer and the staff. As the business grows larger, the need for formal written structure tends to emerge. The organizational chart is drawn showing people in authority and those under their supervision. Here you have an illustration of a company framework:
Board of Directors

Managing Director

Company Secretary

Buying and Marketing Executive

Administration Executive

Chief Accountant

Registrar

Personnel Officer

Technical Officer

Deputy Accountant

Deputy Accountant

Office Services Supervisor

Section Leaders

Section Leaders

Finance

Audit

Credit Control

Credit Control

Budgeting

Financial decisions are crucial. The secret of success in financial management is to increase value. The problem is how to do it. The financial manager has two broad responsibilities: What investment should the firm make? How should it pay those investments? The first involves spending money; the second involves raising it. Companies need an almost endless variety of real assets: tangible (machinery, factories, offices): intangible, (technical expertise, trade marks, patents). To obtain the necessary money, the company sells financial assets or

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securities. Their value consists in their claim on the firm's real assets and the cash they produce. If the company borrows money from the bank, the bank has a financial asset that gives it a claim to a stream of interest payments and to repayment of the loan. The company's real assets need to produce enough cash to satisfy these claims. Financial assets include not only bank loans, but also shares of stock, bonds, lease financing obligations, and so on. The financial manager stands between the firm's operations and the financial markets, referred at as sources where the investors hold the financial assets issued by firms. He traces the flow of cash from investors to their firm and back to investors again. The flow starts when securities are issued to raise cash to purchase real assets to generate cash inflows later, to repay the initial investment. The cash is then either reinvested or returned to the investors who purchased the original security issue. The shareholders are made better off by any financing decision of the financial management that increases the value of their stake in the firm. A good capital budgeting decision is one that results in the purchase of a real asset that makes a net contribution to value. Financial decisions cannot be separated from financial markets either. The financial manager must know whether the value of the firm would increase through an issue of shares to stockholders. He must have considered the interest rate on the loan and concluded that it was not too high. He must also cope with time and uncertainty. The investment, if undertaken, may have to be financed by debt that cannot be fully repaid for many years. The financial manager has to decide whether the opportunity is worth more than its costs and whether the debt burden can be safely borne. The financial manager is anyone responsible for a significant corporate investment or financing decision. But usually responsibility is spread out throughout the firm. The engineer who designs a new production facility, the marketing manager who commits to a major advertising campaign, but also the top manager is, of course, continuously involved in financial decisions. Nevertheless, there are managers specialized in finance: the treasurer the most directly responsible for obtaining financing, managing the firm's cash accounts and its relationship with banks and often financial institutions in the financial market, and making sure the firm meets its obligations to the investors holding its securities. Larger companies usually have a controller who checks that the money is used efficiently. He manages budgeting, accounting, auditing. There can be a chief financial officer appointed to oversee both the treasurer' and the controller's work. He is involved in financial policy making and corporate planning but he also can have managerial responsibilities beyond strictly financial issues and may also be a member of the Board of Directors. But the ultimate decision often rests by law or by custom with the Board of Directors. Only the Board has the legal power to declare a dividend or to sanction a public issue of securities. Boards usually delegate decision-making authority for small or medium sized investment outlays, but the authority to approve large investment is almost never delegated.

Firm's operation (a bundle of real assets)

Financial Manager

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Financial markets (investors holding financial assets)

2.6. DEBIT and CREDIT Everyone has seen the disastrous consequences of excessive accumulation of debt by a person or by a business. Yet, growth and prosperity have flourished most when overall indebtness was rising rapidly, and economic depressions have accompanied periods of debt reduction. People that borrow are often considered as lacking thrift and responsibility. But people with good credit ratings are viewed everywhere with respect - sometimes even envy. Every one knows what debt is when he owes it, but people sometimes forget that most of the financial assets they try to accumulate are the debts of others. The types of debt owed by each sector reflect differences in both borrowers' credit needs and conditions under which lenders are willing to supply funds. One important difference between debts is their maturity - the length of time before the debt must be repaid. This varies from "on demand" to several decades. Other characteristics that vary with the types of debt and borrowers are the collateral a borrower offers, the contractual arrangements for payment of interest and principal, and the negotiability of the debt instrument itself. There are also other types of claims that are more or less like debt. A business needing capital can obtain it either by issuing shares of stock of by borrowing. A stock certificate represents an ownership interest (equity), while notes and bonds are forms of debt. Both are claims against the income and assets of the business, but debt is a prior claim. The concept of debt includes the money-type liabilities of government and financial institutions - currency, deposits and share accounts. Most people are familiar with home mortgages, installment contracts, charge accounts, personal loans and credit cards. Some kinds of debt, like home mortgages, are typically long-lived, with repayment schedules that span most of a person's active working years. Most borrowings are used to bridge gaps between tax collection of specific projects - highways, schools and other public structures that would be hard to pay for out of current income. Apart from the role of commercial banks in providing checking account services, financial institutions act largely as middleman - accepting funds from savers and lending them to borrowers. The major types of organizations in this category are saving institutions, life insurance companies and pension funds. They receive funds from their shareowners and policyholders with the promise to return them upon request or under other fixed contractual conditions. Generally, a financial institution "goes into debt" at the initiative of its creditors (customers whose accounts it holds) and they "borrow" deposit funds in much the same way other corporations acquire funds through the sale of securities. 2.7. CORPORATE DOCUMENTS. BUSINESS PLAN Loans and overdrafts are usually allowed on formal agreements. Usually a loan is covered by a negotiable security. It is the market forces that control the level of interest for a loan. The money allowed for the loan is deposited in the customer's account while for the overdraft; the customer is given permission to overdraw amounts up to a certain limits. When negotiating an application of a customer for a loan, the bank manager has to consider the basic principles of bank lending. Each case is weighed according to its merits. The advance is granted to a sensible borrower

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upon whom the baker can rely to repay the debt from a reasonable certain source. The relationship between the banker and a customer is based on mutual confidence; a detailed discussion of the borrower's requirements and prospects presented in the form of a business plan is essential. There are certain points to be considered before a loan is made: - the trustworthiness, the good character, integrity and business ability of the applicant; - Is the amount required adequate for his needs, or has he requested too much or too little? - the purpose of the advance; the bank does not finance speculative enterprises or gambling; - the period the advance is required for; - the adequacy of the security offered. The banker evaluates the plan of the business that is to become the source of loan repayment. Business Plan 1. Who You Are Name of the business Business address Home address Telephone number Date business commenced Legal status (sole trader, partnership, limited company) Main activities 2. Key Personnel Details of the key people in the business Name Date of birth Position in the business Academic/professional qualifications Experience and knowledge in the business domain Previous employment Name of the employer Position held Date Information on the background or the key personnel should be given on a separate sheet. Proposed additions to the present management team Skills required Position Proposed salary What contingency plans do you have if your key personnel are unable to work through illness or injury 3. Premises Describe your premises, including size, location and state of repair If freehold Value

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Mortgage outstanding Monthly repayment amount Name of lender If leasehold Date lease expires Option to renew When payable Date of the next rent review Uniform business rate: Annual amount When payable Insurance: Amount of cover Annual premium When payable Are the premises adequate for your future needs? If not, what future plans do you have?................................................................................................................. Any competitive advantage in relation to the premises, its location and your customer base? Plant, machinery and equipment Detail existing plant and equipment Description Life expectancy Value What capital expenditure do you anticipate during the next 12 months? Description Life expectancy Value

5. Products and services What are the products and services offered by your business and what proportion of turnover does each contribute? % % % Include any catalogue or promotional brochures with your business plan What further products or services are being developed? Who are your key suppliers and what credit terms will they offer you? Supplier Days Credit What stock levels are required in your business? Raw materials Amount Finished goods at cost Amount 6. Pricing What is the basis for calculating your prices? How do your prices compare with the competition? Product/Service Days of Credit

Credit reference taken

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7. Customers Who, where and how many potential customers do you have? What are the strengths of your business that will influence customer decisions to purchase your products and services? 8. Competition Who are you major competitors and where are they based? What are the strengths and weaknesses of your competitors? Is the market static, declining, growing, seasonal and why?

9. Promotion What level of sales do anticipate? In the next 6 months? In the following 6 months

you Amount Amount Amount

Details of firm orders currently in hand Customer Amount What assumptions have been made in making your sales forecasts? How do you intend to promote and sell your products and services? Method Cost 10. Financial information-existing businesses How long have you been trading? What changes to the business are planned? What do you hope to achieve as a result of these changes? Financial information or the last three years Year Sales

Gross profit (margin)

Net profit (margin)

Attach trading, profit and loss and balance sheets to the business plan where available Existing financial commitments Amount Overdraft

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Loan Hire purchase Leases Other financial commitments Total commitments Give details of any borrowed monies repaid during the last three years 11. Financial information-start-up businesses What are your total start-up costs? What is your own contribution? 12. Financial projections (Your financial projections are to be calculated on an annual basis) 12.1 Gross profit Less direct costs Purchases Labor Total direct costs Gross profit Direct costs are the cost of goods and include costs to purchase raw materials and work carried out by subcontractors. Wages and salaries of employers should be included as overheads in section 12.3 below because they are direct costs which incur irrespective of whether the goods are sold. 12.2. Calculate your gross profit margin 12.3 Calculate your annual projected overheads Indirect costs Business salaries Drawings Rent Rates Light/heating Power Telephone Insurance Maintenance Advertising Other expenses Bank Interest/Leases Total overheads 12.4.Calculate your estimated profit Projected annual sales Less break-even sale Gross profit margin 13. Financial requirements Total borrowing requirements (this figure should take into account any grants and cash injected into the business by yourself/business partners and be based on the maximum borrowing figure on the cash flow forecast form) Amount relating to capital expenditure (e.g. premises, machinery and equipment)

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What assets are available as security? Value of business assets Value of personal assets Total value of assets Sources of repayment Net profit generated by the business Other sources (sale of assets, cash injections) Key risk areas (these should include technical, financial and marketing risks) Contingencies or key risk areas EXERCISES: I. Match the following words with the definitions: 1. goal, 2. challenge, 3. privatization, 4. enterprise, 5. competition, 6. means, 7. payroll, 8. trade, 9. investment, 10. infrastructure, 11. productivity, 12. incentive, 13. unemployment, 14. implement, 15. market, 16. environment. a) to take part in a contest to prove who is the best; b) to buy shares, property in order to earn interest or bring profit; c) project or undertaking, especially one that is difficult or needs courage; d) action or methods by which a result is brought about; money, wealth, resources; e) measure of the output of an organization or economy per unit of input (labor, raw materials, capital, etc); f) event in which people compete, contest; g) thing that encourages somebody to do something; h) state of being not employed; i) the goods or services requiring substantial investment considered essential to the proper functioning of an economy: roads, railways, electricity supply, sewerage; j) conditions, circumstances, natural conditions affecting people's life; k) the process of selling a publicly owned company to the private sector; l) the activity of selling goods or services in order to make a profit; m) object of one's efforts; target; n) to put into effect; carry out plans, policies, a program of reforms; o) the place where buyers and sellers meet to exchange items of value; p) the evidence of the employees of an organization and of their wages. II. Match the words with the definitions bellow: a) regulation; b) deregulation; c) monetarism; d) infrastructure; e) recession; f) intervention; g) inference; h) supply-side theory; i) laissez-faire; j) crowding-out. 1) the concept in economics suggesting that a reduction in private expenditure results from an increase in government expenditure 2) the removal of controls imposed by governments on the operation of markets 3) (social overhead capital) - the goods and services usually requiring substantial investment, considered essential to the proper functioning of an

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economy, for example roads, railways, sewerage and electricity supply constitute essential elements of a community's infrastructure. 4) a school of thought in economics that places money at the center of "macroeconomic policy. Based on the quantity theory of money, and first expressed by the Scottish philosopher David Hume (1711-1776), it relates the price level to the quantity of money in the economy. 5) a slowdown or fall in the rate of growth of GNP. When the phenomenon is severe, it is called a depression. 6) an economy in which government intervention is kept to a minimum and market forces are allowed to rule. The term is attributed to J. Gourlay (17121759) is best translated as "let the people do as they think is best." 7) an approach to macroeconomics that emphases the importance of the conditions under which goods and services (including labor) are supplied to the market in determining the level of employment and output in an economy 8) a logical process by which it can be reached a conclusion from facts or reasoning 9) economic interfering of the state becoming involved 10) control by rules and restrictions made by an state authority III. Make compound nouns with the word "unemployment" and the following words; find their meaning in the dictionary and write your own sentences using them. - classical, cyclical, frictional, seasonal, structural, voluntary. IV. Read the text and fill in the blanks using the following words: 1) liabilities; 2) project; 3) overview; 4) business plan; 5) marketing; 6) background. The format of the information presented depends entirely on the nature of the applicant's a) ___________. The file will comprise a b) _____________ and a cash flow forecast that will present the sales from a realistic rather than optimistic point of view. The project for the business plan will have a general business c) _________ providing information such as: business name, address, telephone number, e-mail address, principal activities, date started and details of premises and equipment. Details about d) _________________ of key personnel including names, age, and qualifications experience, details of personal assets and e) ___________ will also be present in the business overview plan. Information about products and services being offered, their prices, customers, suppliers, competition and f) ____________ plan are included in the file. V. Fill in the blanks using the following words: 1) due; 2) survival; 3) forecast; 4) collecting; 5) actual. Cash flow is vital for the a) _____________ of a business. Even if it is

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profitable, delays in b) ___________ funds could dry up the cash and jeopardize the business. The cash flow is meant to show when money will be coming in and going out of the business, highlighting if and when additional finance is required to meet the debts as they become c) ___________ The cash flow d) ____________ will help set out all needed relevant figures to predict ups and downs of the business more accurately. The form allows the manager to enter the e) ____________ figures on a month by month basis, to check them against his projections and get an early indication of any significant discrepancies to take the necessary corrective action. VI. Content of a Business plan. Match the titles of the content with the content itself: 1. Contents page; 2. The owner(s); 3. The business product or service; 4. The market; 5. Advertising and promotion; 6. Premises and equipment; 7. Business organization; 8. Finance; 9. Expansion; 10. Any other information. a) The name and the address of the business is written down first, then a detailed description of the products or services offered, how and where it will be produced, who is likely to buy it (the market), the quantities. b) The content will be summarized in this page by listing the headings of all aspects of the business plan. c) This section will supply information about the promotions of the business to the potential customers. d) This part will give information about costs of production or the service and the prices the business will charge. It is advisable to prepare a budgeted trading, Profit and Loss Account for the first year. How much money is needed for the beginning and the ways this money will be repaid, over what period. The section will also include a Cash Flow Forecast, which gives a monthly guide to expected incomes and expenses. e) This section will give general indications about future business plans, about keeping on a steady output or about a dramatic expansion possible. f) Description of the premises including size, value, mortgage outstanding, rent payable. It will provide details about planning regulations and new equipment if necessary. g) This page will give details about the business owner, his or her educational background, qualifications, previous jobs, (including part-time and holiday jobs), skills, and hobbies that significant for the business. h) Relevant information about the business owner, about his employees that might be relevant for the success of the business. i) Market research details carried out for the relevance of the new business: prospective customers -number, age, social class, the price they might be prepared to pay for the new products or service, competition. j) The form that the business will take: Sole Trader, Partnership, Company or

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Co-operative. VII. Match the definitions and the words: 1. loan; 2. credit rating; 3. current liability; 4. current assets; 5. capital asset; 6. margin; 7. market-maker; 8. real terms. a) the difference between the prices at which a market maker or commodity dealer will buy and sell. b) a dealer on a stock exchange that undertakes to buy and sell securities as a principal and is therefore obliged to announce prices at which he will buy or sell a particular security at a particular time. c) Money lent on condition that it is repaid either in installments or all at once, on agreed dates and usually that the borrower pays the lender an agreed rate of interest (unless it is interest-free) d) An assessment of the credit-worthiness of an individual or a firm, i.e. the extent to which they can safely be granted credit. Banks provide confidential trade references, but credit reference agencies have grown up lately, gathering information from a wide range of sources which is then provided, for a fee, to interested parties. e) assets that form a part of the circulating capital of a business and are turned over frequently in the course of trade. f) An asset that is expected to be used for a considerable time in a trade or business (land, buildings, plant, machinery, etc) g) amounts due to the creditors of an organization that are due to be paid within twelve months. h) a representation of the value of a good or service in terms of money, taking into account fluctuations in the price level. VIII. Translate into English: Planificarea financiar stabilete principiile schimbrilor din cadrul unei societi comerciale. Aceasta identific obiectivele financiare ale firmei, analizeaz diferenele ntre aceste obiective i situaia financiar curent a companiei. Ea realizeaza i un plan al aciunilor necesare companiei pentru ai atinge obiectivele financiare. Cea mai nsemnat parte a activitii de planificare din lumea de astzi a afacerilor este de natur tactic; adic este pe termen scurt i se adreseaz problemelor zilnice cu care se confrunt operaiunile firmei Planificarea devine strategic atunci cnd este folosit ca baz a deciziilor pe termen lung, adic proiectele sunt integrate i resursele sunt alocate de aa manier nct s rspund obiectivelor de lung durat ale companiei.

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UNIT 3. MONEY, BANKING and FINANCIAL MARKETS

For thousands of years, gold was the ultimate money. It could buy anything including hearts. It was wealth and power to be sure, but it was also enchantment, with a special luster and reassuring weight and feel. The lure of gold drove ships across stormy seas and explorers across rugged mountains to places as remote as Canada's Klondike region near the Arctic Circle. Gold isn't used as money any more. It still glitters, but it's treated more like soybeans or pork bellies than a ransom fit for a king. Money didn't exist in ancient times, so people had to trade with each other - or barter - to obtain the items they wanted. The first trades were probably animal skins for grain, or cotton for livestock. But these exchanges were cumbersome, and some common commodities, such as grains, started to assume the role of money. In early Egypt, for example, barley, an important source of food, became the accepted means of payment for goods and services. By 700 B.C., though, the Egyptians had abandoned barley and adopted gold as their primary instrument of exchange. A rare and beautiful metal, gold had become the universal symbol of wealth and power. And, being portable and durable, it was an ideal form of money. By the 15th century trade and commerce had expanded tremendously. When King Croesus of ancient Lydia (now Western Turkey) had gained control of Asia's richest gold mines for the Persian Empire, he wanted others to recognize his newfound power and ordered the first gold coin to be made. Bearing the image of a lion and a bull, the coin became the standard of exchange for all trade and commerce. A need appeared for a new, less cumbersome system of making payments. The goldsmiths met this need. Their system worked this way: people would deposit their gold coins at their local goldsmith's. In return, the goldsmiths would give them a receipt. Eventually, the receipt began to circulate as money because they could always be redeemed for the gold itself. Gradually, countries came to adopt a form of the goldsmith's system. Their governments printed currency and backed it up with gold they held in official reserves. And so the "gold standard" for currencies was born. One of the first countries to adopt the gold standard was Great Britain in 1916. It made its currency the pound, equal in value to an ounce of gold. Then Coinage Act of 1792 first put the young American nation on a "bimetallic standard", backing the dollar, which was a coin at the time, with both gold and silver. With the world at war, for the first time, people were seeking security, and thus started exchanging their currency for gold. But governments soon saw their reserves run seriously low, as a result. By 1914 most countries, except the United States, abandoned the gold standard to protect their reserves. By the mid 1930's, practically all the major nations had abandoned the gold exchange standard. Governments would accumulate dollars that they

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could redeem for gold at the U.S. Treasury. Of course, gold will always be the metal of choice for the jet-set, who like to adorn their homes with gold-leaf sinks, bathrooms and picture frames. Today, gold can be bought and sold in several different forms: coins, bullion or perhaps just as paper claim to the metal. There are two types of gold coins: bullion coins and numismatic. Countries produce the bullion coins as legal tender, which means they can be spent as money. Prices are based on the local gold price in London (The "London Fix"). Numismatic gold coins no longer circulate as money. Their value derives more from their condition and rarity than their actual gold content. Many investors hold paper claims to gold in the form of future contracts. These contracts are nothing more than a commitment to buy or sell gold at a future time at a pre-agreed price. Typically, the buyer and seller meet at a commodity exchange to work out future contracts. Today gold has assumed the role of a commodity such as wheat or cotton. And like any other commodity, its price is determined in a free market by the forces of supply and demand. What will make money what it is? Partly we will determine it by statutes declaring that certain pieces of paper and metal produced by government will be money. These notes and coins we call will be "legal tender" and you'll have to accept them as payment in full for any transaction. However, part of what we regard as money will be determined by custom. If you think about how much money (as distinct from wealth) you have, you won't consider only your holdings or cash and coin - you'll include deposits you have in your bank. Whether it's cash or bank deposits, money is an asset for you and simultaneously a debt for either the bank or the government. That's why credit cards will be not considered money, but tangible proof that you've been granted a line of credit (a loan up to a predetermined amount which you can decide to activate). Because they represent a debt for, not an asset they will never be money. Since January 1st, 1999 the euro has been operating as a recognized currency on the world markets and has been widely used, especially by commercial banks and other companies, in non-cash payment transactions. On January 2002 the euro banknotes and coin will be put into circulation. Their design and production was, from the outset, planned as a cooperative venture of the European Union. The graphic symbol of the euro was inspired by the Greek letter epsilon and refers to the first letter of the word Europe. The parallel lines represent the stability of the euro. The official abbreviation for the euro has been registered with the International Organization for Standardization ISO. The euro banknotes depict the architectural styles of seven periods in European cultural history Classical, Romanesque, Gothic, Renaissance, Baroque and Rococo, the age of iron and glass architecture, and the modern 20th century architecture and emphasize three main architectural elements windows, gateways, and bridges. The windows and gateways on the front of each banknote symbolize the spirit of openness and cooperation in Europe. The 12 stars of the European Union are also featured, representing the dynamism and harmony of the contemporary Europe. The reverse of each banknote features a bridge typical of the respective age of European cultural development. These bridges range from early constructions to the

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sophisticated suspension bridges on the modern era and are used as a metaphor for communication among the people of Europe as well as between Europe and the rest of the world. The European System of Central Banks became operational and is responsible for framing and implementing the single monetary and exchange rate policy (setting short-term interest rates in euro). The participating national currencies will no longer be listed on the foreign exchange markets. As far as banks and large firms are concerned, the transition to the single currency began chiefly via the single monetary and exchange rate policy, the capital and the associated settlement systems. Banks draw up their customers' account statements in both euro and national currency. They take advantage of the time available in order to inform their customers of the consequences of the switch to the single currency for their financial transactions. They step up their staff training efforts to prepare for the changeover and can also offer certain products in euro, legal and technical constraints permitting. Consumers continue to use chiefly their own national currency because euro banknotes and coins are not yet available. Public demand can, however, swiftly prompt some banks or firms to offer services in euro. The gradual introduction of dual pricing of goods and services enables consumers to get used to the single currency. By developing a "feel" for prices in the single currency and learning to convert national currencies into euro at a fixed rate, they thus realize that they do not stand to lose from the introduction of the single currency. 1. He explains that the balance sheet will be the main document showing the estate of our business. 2. He says that the new service will enable customers to make payments from their accounts by credit transfer. 3. He learns that the process of globalization that enables investment in financial markets will be carried out on an international basis. 4. They are sure that the goodwill of their company will become a saleable asset. 5. He declares that he will calculate again his gross income. 6. The shop assistant assures us that he will bring any items made of gold, silver or platinum, stamped with hallmark. 7 The general manager promises to keep a house journal for all the employees to inform them about the policy of the company. 8. He explained that the wages of the employees would reflect partly a return of the human capital for the future. 9. The wholesaler pretends that he will be allowed goods according to the import license. 10. The politicians pretend that indexation policy will mitigate the effects of inflation. 3.1. FUNCTIONS OF MONEY The use of money as a medium of exchange makes possible a great extension of the principle of specialization. In an advanced society the use of money allows to exchange hours of labor for an amazing variety of goods and services: two weeks' labor for a holiday abroad just as easily as we can exchange it for a piece of furniture or a year's rent on a flat. Such exchanges are taken for granted yet they would be inconceivable without the use of

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money. The first step in the use of money was probably the adoption of some commodity as a unit of account or measure of value. Money, most likely, came into use within the barter system as a means whereby the values of different goods could be compared. The direct exchange of goods for goods raise all sorts of problems regarding valuation: "How many bushels of corn are equal in volume to one sheep, if twenty sheep exchange for three cows and one cow exchanges for ten bushels of corn? This problem of exchange rates is easily solved when all other commodities are valued in terms of a single commodity which then acts as a standard of value. Money now serves as such a standard and when all economic goods are given money values (i.e. prices), we know immediately, the value of one commodity in terms of any other commodity. Once a commodity becomes universally acceptable, in exchange for goods and services, it is possible to store wealth by holding stock of this commodity. It is a great convenience to hold wealth in the form of money. Consider the problems of holding wealth in the form of some other commodity, say wheat. It may deteriorate, it is costly to store, it must be insured, and there will be significant handling costs in accumulating and distributing it. In addition, its money value may fall while it is being stored. The form of money has become very apparent in recent years - during periods of inflation when the exchange value falls. An important function of money in the modern world, where so much business is concluded on the basis of credit, is to serve as a means of deferred payment. When goods are supplied on credit, the buyer has immediate use of the goods, but she does not have to make an immediate payment. He can pay for them, 3, or perhaps 6 months after delivery. In the case of hire purchase contracts, the buyer takes immediate delivery but pays by means of installments spread over 1, 2, or 3 years. A complex trading organization based on a system of credit can only operate in a monetary economy. A seller would be most unlikely to accept any promise to pay in the future that was expressed in terms of a commodity other than money. It will have no idea how much of that commodity it will need in the future and if it does not want it, it will be faced with the trouble and risks involved in selling it. It is prepared to accept promises to pay in terms of money, because, whatever the patterns of the future be, they can be satisfied if it has money. 3.2. BANKING Commercial banks borrow money from the public, crediting them with deposits of money. The deposit is a liability of the bank that is money owned to depositors. In turn, banks lend money to firms, households or governments wishing to borrow. Modern banking has its origin in the finance of foreign trade. In the great medieval trading states of Venice, Genoa and later Florence, a need arose to exchange one currency with another and the early changers also began the practice acceptance of deposits of cash and valuables or safekeeping. They also undertook the financing of commerce at the great medieval trade affairs, and they also were called upon to provide finance of the rulers of the states in which they were established, and they often became involved in financing the running of their own and other countries. Because of the power they were seldom popular. Readily indefinable groups, such as Jews,

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were persecuted and sometimes expelled, and the laws against usury were strict. Since modern banking originated in the cities of northern Italy, it is not surprising that some of its basic vocabulary has Italian roots. The word "bank" itself comes from the Italian word "banco" meaning a bench. The "bankrupt" has the same origin and refers to the practice of breaking the moneychanger's bench to indicate that he was no longer able to honor his obligations and therefore unable to continue his business. When Jews were expelled from England by Edward I in 1290, the Lombards, who were already established in England, took their place. They became the merchants and the important financiers in many European countries. The name of "Lombard Street" in the heart of the city of London is the permanent reminder of the importance of these early times. The accepting of deposits, the making of loans and the transfer of funds evolved during the seventeenth century with the growth of the goldsmithsbankers who had by that time, taken over from the Lombards as major financiers in England. Because of the nature of their trade, their premises had to be secured, and even before the 1640 seizure, there is evidence that they accepted coin on deposit from their customers, issuing receipts for them. The receipts entitled the holder to the return of his actual deposit, but they later became promissory notes, giving the holder the promise that he would be able to withdraw, on demand, an equivalent to that deposited. Gradually, these notes themselves began to circulate among the merchants in the settlement of their debts. Thus, these receipts became the forerunners of the modern banknote. Then, the words "on bearer" were added after the name of the original depositor and they became "bearer instruments", giving them a greater circulation. The practice of placing money with goldsmiths with a given notice of required repayment had emerged, thereby originating what we call today "deposit accounts". The private banknote came into being, but in the following century the Bank of England gradually took over the function of exclusive note issuer, when it appeared as a historical necessity, when the Government of the day was in need for funds to pursue the war against France. In 1773 the London private bankers also established a Clearing House that increased the ease of transfer and allowed the individual banks to keep a smaller total of cash in their tills with which to meet withdrawals and transfers. The fluctuating economic conditions at the beginning of the 19th century were attributed to the relatively unrestricted right to issue banknotes and the problems caused by over-issue, so the Bank Charter Act provided the control of note issue that eventually led to the Bank of England acquiring a monopoly of the note issue. Further developments took place as legislation and other changes brought about a restructuring in the supply of financial services. Increasing overseas competition and the freedom of building societies offered a much wider range of financial services. This is a far cry indeed from the goldsmiths' shops, wooden mills and mercers' premises where it all began three hundred years ago. 3.2.1. ROMANIAN BANKING STRUCTURE The structure of the banking system prior to 1990 in Romania combined the functions of a central bank and some functions of a commercial bank. Together

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with other state institutions it conceived the drafts of the credit and cash plans of the economy and monitored their implementation. It organized the granting of short-term credits on the basis of approved plans and extended credits to enterprises and economic organizations that had accounts with it. The main monetary and credit objectives were to provide enterprises with required credit, so that they could meet their plan targets, to provide sufficient liquidity in the economy, consistent with the planned availability of goods. Now, the functions of the National Bank of Romania changed and they are covered by the Statute Law (Law No 34/1991). Under this status, in order to preserve the political independence of the central bank, the Governor and the Board of Administration are appointed by the Parliament, at the recommendation of the Prime Minister, for an eight-year renewable term. They can only be removed by the Parliament. The Board of Administration (president), the Senior Vice Governor (vice president), two vice Governors and another five members. The first article of the Status defines the role of the National Bank formulates and conducts monetary and credit policy within the framework of the country's economic and financial policy with the goal of preserving the stability of the national currency. In order to accomplish this, The National Bank of Romania determines the money supply in the economy, conducts the foreign exchange policy and supervises the commercial banks. Clearly, all these are done in the context of developing the "right" conditions for encouraging and sustaining economic growth. The National Bank of Romania is also the single institution to issue banknotes and coins, to manage the international reserves of the country, and grant an advance to the Central State Budget to cover temporary deficits, amounting up to 10% of the total approved budget. The Board of Administration of the Bank meets regularly. It determines the broad parameters of the monetary policy and decides on such matters licensing of banks, introduction of new or changes in existing prudential regulations, actions on operating banks (extension of special loans, imposition of penalties, etc) and other policy in internal budgetary matters. District offices play a very active role in payment settlements. 3.3. BANK SERVICES and PRODUCTS There are two main types of accounts offered by all the major retail banks: current accounts and deposit accounts. Other accounts offered include savings, multi-service loans, home mortgage loans, personal loans, budget and revolving credit accounts. A customer may have several different types of account and more than one account of each kind; a company customer, for example, may require several current accounts for various purposes. When the bank account is balanced in the cashbook, this will show how much the business has in the bank assuming this is a debit balance. We say "assuming this is a debit balance" because it is possible to get a credit balance on the bank account. It is not possible to have a credit on cash account since it is not possible to pay out more cash than one has, but it is possible to get a credit balance on the bank account, where the bank gives the business an overdraft facility. This simply means that the bank agrees to allow the business to draw more out of its current account than it has paid in up to some agreed limit. Where the account becomes overdrawn (when more has actually been drawn from the account than paid in) the bank account in the cash book will

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have a credit balance emphasizing that the bank has become a creditor of the business rather than a debtor. Note that this differs from a bank loan, when the bank lends the business a certain sum of money for a certain period of time. When the business has an overdraft it will be charged interest by the bank. Interest and bank charges are a normal business expense account in the same way as other business expense. Usually the bank makes this charge by deducting it from the business's current account balance which holds or adds it to its overdraft. In the business's books it will credit bank account (since it is effectively a payment) and debit bank interest and charges account. At the end of every month the bank sends each customer a statement of his or her account as it stands in the bank's books. It gives a list of all the sums paid in to the account and all the sums paid out from it, together with the final balance. If a business needs making regular monthly payments, instead of writing a cheque out each month for the same amount, it makes a standing order to its bank instructing it to make this payment automatically on the same date each month, until further notice. If the business has a lot of such transactions, some or all of them may not be recorded in the cashbook until the bank statement is received by the business. 3.4. FINANCIAL MARKETS Finance is required for different purposes, by different persons and for varying periods of time. This leads to the variety in the institutions providing loans arrangments. Even in the provision of finance, the principle of division of labor is applied for the purpose of assisting saving and bringing together would-be lenders and borrowers. Specialist parallel markets developed to meet the specific requirements of particular borrowers and lenders, encouraging funds to be lent short-term for they enable lenders to regain liquidity when they desired. The division of labor has divided financial markets according to the needs: the money markets which deal in short term loans, the capital markets where medium and long term capital is raised and the securities markets. None of the money markets or the capital market are formal organizations, in that buyers and sellers meet regularly in a particular building to conduct business. There are merely a collection of institutions connected, in the case of money markets, by dealing in bills of exchange, and short termloans, and more loosely, in the case of the capital markets, in channeling medium and long-term finance to those requiring it. A company must allocate its available funds among various destinations on the basis of financial plans. Such plans assume that the funds spent will produce enough in order to pay the interest on debt capital. Another task of business finance is the management of a companys surplus funds. These are usually invested in commercial paper or in short-term notes or bills that pay interest. Proper analysis and planning are necessary to assure that the funds will be available where they are needed in the business at a future date. Stock markets, or exchanges, are associations of brokers and dealers in securities who transact business together. They facilitate the financing of business and government activity by bringing together the buyers and the sellers of stocks and bonds. A corporation issues shares of stock to represent ownership claims in the corporation. Stockholders know that the value of their stock will fluctuate

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with the value of assets owned by the corporation and with the business prospects of its operations. In virtually all instances, a corporation designs its shares of stock in a way that allows for their real resale and trading. The first time that a specific share of stock is sold is when the corporation issues and sells it. This is called a primary distribution. In contrast, all subsequent trading of the same shares of stock that is, previously issued shares is called a secondary market transaction. This type of transaction transfers ownership from one person to another without involving the corporation that originally issued the stock. The popular image of the stock market is that of secondary market trading. Its transactions take place either through a formally organizes exchange or through an over-the counter (OTC) network of brokers and dealers. The primary sale of stock, on the other hand, is usually done through syndicates of investment banks and retail brokerage houses that directly contact potential buyers of the new stock offering. 3.4.1. MONEY MARKET The money market is an over-the-counter interbank market for shortterm transactions in domestic currency and foreign exchange. Domestic and foreign credit institutions participate regularly in this market in order to manage their liquidity position, while the Central Bank intervenes to achieve its monetary policy objectives. The reference interbank interest rate is calculated on the basis of quotes given by credit institutions on the market. Specialist money markets developed to meet the specific requirements of particular borrowers for short-term investment capital and lenders to regain liquidity when desired. Brokers established the inter-bank deposits market so that those banks having funds surplus to their immediate requirements could lend to those who had immediate outlets for such funds, the rate of interest obtained being higher than in the discount market. Eventually the clearing banks participated in the market. Certificates of deposit enable banks to lend for limited periods. They are similar to a bill of exchange drawn on the bank by itself. They have the advantage over the ordinary time deposit in that a bank feels under an obligation to repay the latter to a customer virtually on demand, which inhibits its medium-term lending. To the lender, certificates of deposits offer a higher rate of interest, while the market that has developed still provides them with liquidity. This market is largely comprised of the discount houses and the banks. 3.4.2. CAPITAL MARKET The unique and complicated machinery of the money markets has developed in order to supply trade and government expenses with the shortterm finance each requires. Certain institutions play an important role in collecting the savings of a number of small depositors and reinvesting them in various capital projects. Such "institutional investors" include: 1) Insurance companies that receive premiums on the various types of risk insured against. Such of these premiums are only held for relatively short periods, having, apart from the profit made, to be out of claims. But with one group of insurance, life, endowments, amenities, etc, premiums are held for a long time before the final payment has to be made. Hence insurance companies have large sums of money to invest in long-term securities. These

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investments are spread over the government and other public stocks, the shares and debentures of various domestic and overseas companies, properties and mortgages. The institutional investors, of which insurance companies are the most important, supply the bulk of savings required for new issues. 2) Investment trusts. Investors usually avoid "putting all their eggs in one basket" by having an interest in the securities of many different types of enterprises. However, such spreading of risk requires some special knowledge of investment possibilities, and, above all, sufficient revenues. Small investor can overcome these two difficulties by buying shares in an investment trust. This invests its capital over a wide range of companies and, after paying management expenses, the net yield from the various investments is distributed as a dividend on its own shares. 3.4.3. EURO-CURRENCY MARKET Euro-currency deposits are simply funds which are deposited with banks outside the country of origin but which continue to be denominated in terms of the original currency. The most important Euro-currency is the dollar. As a result of the USA's continuing adverse balance of payments, branches of European banks build up dollar balances as customers are paid for exports. These balances are offered to customers operating on an international scale to finance foreign trade or investment. While the dollar still dominates the market, other European currencies are now dealt in chiefly the pound sterling, the Deutsch mark and the Swiss franc. The market of foreign exchange is one of the largest businesses in the world, conducted 24 hours a day in most of the financial centers. The major participants are financial institutions, corporations, investment and speculative entities, such as hedge funds. Any financial institutions maintaining due bank balances commonly known as "nostro" accounts, in foreign countries in the local currency can engage in foreign exchange market. Foreign exchange market is divided into spot, forward, swaps and options segments. Buying and selling foreign exchange at market values for immediate delivery represents spot trading. Generally, spot trades in foreign currency have a "value date" of two or five business days. Foreign exchange rates that represent the spot market value for the currency are known as spot rates. The risk of trading results from exchange-rates movements that lies with the financial institutions positions in foreign currency not balanced with regard to the currency they have bought and sold. Such unbalanced positions are referred to as discount open positions. A forward transaction differs from a spot transaction in that the maturity date is more than two to five business days in the future. The maturity of a specific foreign-exchange contract can be a few days, months or even years in some instances. In practice, dates that are two years or more in the future are usually referred to as the long-dated forward market or the Long-Term Foreign Exchange market (LTFx). The exchange rate is fixed at the time the transaction is agreed on. However, nostro accounts are not debited or credited, that is no money actually changes hands, until the maturity date of the payments. There will be a currency exchange rate for each forward maturity, and each of those rates will generally differ from today's spot exchange rate. If the forward rate is below the spot rate, then the currency is traded at a discount. For instance, sterling with a value date of three months,

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is at a discount if the spot rate is $1,75 and the three month forward rate is $1,72. Financial institutions that are active in the foreign-exchange market find the outright forward currency trading inefficient and engage in it infrequently. Instead, for future maturities, financial institutions trade among themselves as well as with some corporate traders on the basis of a transaction known as a foreign-exchange swap. A swap transaction is a simultaneous purchase and sale of a certain amount of foreign currency for two different value dates. The key aspect is that the financial institution arranges the swap as a single transaction with a single trader, either another financial institution or a nonbank customer. This means that, unlike outright spot or forward transactions, a swap does not incur a net open position, since the financial institution contracts both to pay and to receive the same amount of money at specified rates. It is to be noted that a foreign exchange swap is different from a foreign currency swap because the currency swap involves the periodic exchange of interest rates. A foreign-exchange swap allows each party to use a currency for a period of time in exchange for another currency that is not needed during that time. Thus, the swap offers a useful exchange facility for temporary idle currency balances of a corporation or a financial institution. Swaps also provide a mechanism for a financial institution to accommodate the outright forward transactions executed with counterparts or to bridge gaps in the maturity structure of the outstanding spot and forward contracts. 3.4.4. STOCK EXCHANGE The establishment and development of the stock exchanges is a natural evolution and in the same time a proof of the human society's progress in the field of trading and market organization. It is stated that while "the Assyrians established the first banks, the Greeks invented the coins, the Romans imagined the stock exchange". The working of the stock exchanges was settled by special stipulations within the Roman Law, the name of "tradable values" first appeared in the Roman Law the negotiations were held in specially organized dwellings reserved for only this kind of activity. The yielded shares were exchanged in a very short time in a very "sumptuous basilica built especially for this reason". At the end of the 6th century, in Agora (market), in a place called "Emporium" the Greek merchants and the tradesmen used to meet by the "Trapeza" (exchange table - now meaning bank in the Greek language) to make transactions. This kind of meetings had synonymous names such as: market, box, convention, and platform. In the 11th century important areas started to develop: the North of Italy, the state-cities of Genoa Venice, Pisa, Livorno, and also the North of Europe, the cities of Bruges, Amsterdam and Hamburg. In 1408 in the city of Florence the law contained stipulations admitting that the responsibility of the shareholders is within the limits of invested capital and not for their entire patrimony. As regards the name of the institution there are several writings crediting the family Van Der Boerse of Bruges with the paternity rights because of the three purses of money (bourses) engraved in solid rock on the frontward of their inn, a place where there were periodically held negotiations of precious metals and shares later on. The year of 1531 is the date of the establishment of the first stock exchange in Anvers. Short time after this, other stock exchanges are born in Lyon, Toulouse (1549), London (1554), Paris (1563), Bordeaux (1571) and Amsterdam (1778). It is the moment when the first financial markets start to

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form and develop. The history of stock exchanges is closely related to the evolution of the trade agents, who were recorded for the first time in 1141, when they used to operate in special places called "Point du Change" and started to collaborate with bank brokers, thus becoming specialized intermediaries able to facilitate commercial operations between suppliers and demanders in exchange for a commission. The development of the stock exchanges is also connected to that of companies and their ways of financing. to the colonial expansion that led to the settlement of big companies that started to issue shares. On that time the institution was named for the first time "stock exchange" and there were established its activities, its daily program and very severe conditions to be fulfilled by those wanting to have the right to negotiate. This is the way that the stock exchange markets as settled markets were founded. The first list with quotations appeared in Anvers in 1552. After Anvers, the stock exchange of Amsterdam will be the most important financial market for more than one century. Starting with 1810 every day between 12 and 14 o'clock approximately 6000 persons would gather at the stock exchange in Amsterdam to find out the latest quotations for the shares of the companies within the Company of India. This Stock Exchange was the one that fulfilled for the first time the three most essential conditions for big financial market: - the national currency (golden florin) was very strong, practically undoubted, and had a wide range of circulation in the Europe of those times; - the economic prosperity of the country was unequaled, involving a large part of the population; - the Bank of Amsterdam kept accounts for all Europe. In the second half of the 19th century, London became the most important financial market, but the British leadership could not survive to the collapse of the colonial empire and its currency. Although London could not extend its peak in the financial field, it's a model of banking and stock exchange organization due to its "City". Paris had its own moment of glory as a financial market in the end of the 19th century and beginning of the 2oth century. During this period the French economy was the creditor for the entire world. The bankruptcy of foreign debtors, the fall of the franc and the effects of the nationalization of several properties weakened the French economy. After the First World War, the Stock Exchange from Wall Street started to grow and develop in American Style, that is with a bad fame, as it became the "great witch" when the 1929 crisis results became well known all over the world. After the Second War World the American market became more and more trustworthy due to the prestige of the dollar (which practically eliminated the pound from international, markets) the superiority of the young American economy and efforts made up by the financial and professional institutions to inform and protect the shareholders. Few investors would be happy about sinking resources in a company if there was no way of recovering them, short winding-up the entire concern and selling its assets - a process which in any case could hardly be brought about by an individual investor. The Stock Exchange exists in order that existing securities may be disposed of by a sale to someone else. Suppose Mr. X invests 1000 pounds in

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Company A and subsequently wishes to get his 1000 pounds back. He can withdraw his funds from the bonds, or shares, by selling the securities in the Stock Exchange to Mr. Y; X recovers his money and Y becomes, in effect, the person who has invested 1000 pounds in Company A. The ability to recover funds in this way, of course, makes the planning of capital in industry a much less risky affair than it would be otherwise, and accordingly the flow of funds to industry is immensely stimulated. The brokers are the people who transact business with the general public, taking orders and delivering securities or the proceeds of them. The jobbers are the people who actually deal in securities on the floor of the Exchange. They deal only with brokers, having no direct contact with public. When a broker receives an order for the purchase or sale of securities, he goes into the Stock Exchange and seeks out a jobber specializing in the kind of securities involved in the order. The broker will ask the jobber to quote a price for the security concerned, without disclosing whether he is proposing to buy or to sell securities, the jobber, in return, will quote two prices: a lower price at which he is willing to buy. If and when the broker obtains what he considers to be a satisfactory quotation, the deal will be closed. The possibility of changes in the price of securities gives raise to speculation - that is, the purchase of securities in hope of reselling at a profit rather than as a permanent investment. If such speculation is based on considerations of the kind just discussed - genuine assessments of the changing economic values of different types of assets, it is roughly useful and advantageous, since it anticipates future scarcities or surpluses of different types of capital goods and thus guides current capital formation. Sometimes however, speculation is more akin to gambling; dealers may buy or sell securities in anticipation of price movements whether or not they believe such movements to be well founded or justified. Security prices are driven up or down by the spread of what can only be called mob emotion, in which the optimism or pessimism of one person generates similar sentiments in other people in a cumulative fashion. Under such circumstances the prices quoted for securities on the market can lose touch completely with the real value of assets underlying them, and the resulting wild savings of prices can only damage for the economy, as a whole even though more expert (or luckier) speculators succeed in achieving substantial capital gains. Like most human institutions, then, the Stock Exchange can perform services of considerable value to society, but can also be abused by a minority acting in their own interest. In the United States the experience of the great Wall Street crash of 1929 stimulated the monetary authority to acquire powers of control over the extension of bank loans for the purpose of dealing in the Stock Exchange. In Britain the authorities have not attempted to acquire statutory powers of similar kind. Perhaps this is because the banks are satisfied that within the existing framework they could prevent excessive speculation financed with bank credit; perhaps it is because the authorities have confidence in the stability and caution of the modern generation of dealers on the London Stock Exchange. ("The Money and Capital Market" Edward Nevin)

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3.5. STOCKS Shares are products that enable their holders to participate in the company's activities and benefit from its success or failure. The conditions for ownership of shares can differ according to the rights they give the shareholders. The risk involved in buying shares is linked to how the company is expected to behave and, in particular, what its net profits are expected to be. Indicators have been created to relate predictions of the company's behavior - the market price, by which we can assess the market's appraisal of the company. Shares are securities representing a public limited company's share capital. Each share represents a part of the company in the hands of the shareholders. All shares represent equal parts into which the company's capital is divided. All shares have the same par value. Shares are not divisible, though they can be issued in blocks of number of shares (5, 10, 50, 100, etc). When a company is formed, i.e. when the Articles of Association and the Memorandum of Association are drawn up, they define the classes of share that can be issued. The different classes of shares differ with regard to the rights they confer on their holder. The main class in the generic type of share is the one of ordinary shares. Ordinary shares (normally referred to as just "shares") confer the right to call a shareholders' meeting; to vote at the meetings, to elect and to be elected to the company's bodies. The company's Articles of Association may, however, establish the number of preferred shares a shareholder must have to be entitled to vote. He receives new shares in the event of capitalization of reserves and they are preferred in subscribing new shares when they are issued to raise capital or in subscribing convertible bonds. Each shareholder is entitled to subscribe the same number of shares as he already holds. However, the shareholders' meeting that decides on the issue may limit or suppress this right to preference. He is also free to transfer shares or to sell his shares at will. This right is one of the ways of obtaining a return of the investment, i.e. a gain from the favorable difference between the selling and buying price. The dividend is the return on shares. It represents a part of the distributable profit that is paid on each share. This return is variable as it depends on whether there are profits in each financial year and on whether the Annual General Meeting agrees to their distribution (as proposed by the Board of Directors). A company's dividend policy is represented by the percentage of the profits generated by the company in a particular financial year that it decides to distribute to the shareholders. The dividend is important because it represents a source of income for the investor and it is an important indicator to current or potential investors of the company's future profitability. It gives information on the company's projected growth, thus influencing share prices. The validity of ordinary shares is indefinite, i.e. it is not established in advance. The shares exist as long as the company that issues them exists. The secondary market is the only way shareholders have of getting back the

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capital they invested, as they cannot demand a refund of their investment. This is the main reason why shares are quoted on the stock exchange. 3.6. BONDS Historically, bonds are institutionalized borrowings by governments or business, with the date of repayment, and the annual rate of interest to be paid meanwhile, fixed at the time of issue. There are irredeemable government and corporate bonds, where the interest rate is fixed but no date for repayment. There are floating rate bonds, where the interest rate paid is related to the changing rate in the market. There are also zero coupon bonds which pay no interest at all but which are issued at a price very much lower than the repayment due on a particular date, so that income effectively takes the form of capital gains. There are index-linked bonds, which pay a small or no rate of interest but whose repayment, at some fixed date, includes compensation for the interim rise in the cost of living. There are convertible bonds, which carry the right of conversion into corporate equities. The new economy based on the Internet should be called the "nude economy" because the Internet makes it more transparent and exposed. The Internet makes it easier for buyers and sellers to compare prices. It cuts out the middleman between firms and customers and it reduces transactions costs. That's why more than 25% of American share market now take place via Internet. Yet the e-bond market hasn't reached such an extent. The potential for electronic bonds trading seems to be less than in on-line futures and options. A reason for this might be that individual investors aren't as interested in bonds as they are on shares, because unlike some share prices, bond prices rarely double in 12 months. Moreover, bonds are much less liquid than shares. Investors, such as insurance companies that hold them to maturity, often buy them. However, these things can change. There is a serious talk that the bond market may soon become as automated and real as that for equities. This change is possible because of the innovation that will soon activate the 1st "Bond Connect" trading system. This will allow the institutional investors that dominate the bond equity to trade directly with each other through a sophisticated order-matching system operated under the auspices of a Stock Exchange. The institution will be able to put large black trade orders into the system safe in the knowledge that no information about their intention will leak into the market before the order has been executed. This should allow them to get a much better price. Many recent issues of e-bonds allow brokers to trade more efficiently with each other but do not provide access to their customers. Electronic trading has the potential greatly to enhance the efficiency on the bond market. 3.7. INSURANCE As soon as a person goes into business, he is automatically faced with certain risks, which, if handled improperly, could put him out of business. Economical purchasing of materials and supplies, proper pricing of products, proper extension of credits, use of money, development of new products, sound employee-employer relations, protection of property - all these are risks that face every business. Insurance, whether it be a policy purchased from a stock insurance company is intended to provide indemnification for losses that the insured could not otherwise stand individually. It is a sharing of the risk so that in the

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event of unforeseen circumstances, the insured individual will be able to avoid complete financial ruin by having others share the burden of loss with him. For the protection granted he pays a premium and the premiums pay for the losses. In the operation of any large company, certain types of losses are inevitable. You cannot run a large store and have thousands of people coming in every day without having somebody get hurt on your premises, you cannot employ hundreds of people without some workmen being injured on the job. You cannot operate a production line with many different motors without having an occasional motor burnt out. You cannot operate a fleet of vehicles without having accidents and resultant damage to your vehicles. You cannot operate utility with ground transmission and distribution lines without having an occasional storm or other climatic disturbance tear down some of those lines. A business insurance program should be designed to fit its own particular requirements. In order to produce an effective program that does the desired job at the most economical price, it is essential to evaluate your operations carefully and then to determine the ability to absorb loss and pay the premium required. If such a philosophy is adopted and periodically reviewed to reflect changing conditions, an insured will have taken the first step to avoid over insurance or underinsurance. Management cannot abdicate these responsibilities. EXERCISES:

I. Forms of money: Choose the correct word to complete the sentences: 1. The pound, the dollar and the leu are called _________ a) cash; b) monies; c) reserves. 2) The currency that is used in a foreign country is called _______ a) money; b) cash; c) foreign currency. 3) Money that you borrow from a commercial bank is called ________ a) capital; b) loan; c) subsidy. 4. Money in notes and coins is called _________ a) monies; b) capital; c) cash. 5) The whole amount of money received by a company or a person is called _________ a) income; b) wages; c) salary. 6. The money that you have to receive back when the price is lower than the denomination of the banknote you give to the shop assistant is called ___________ a) cash; b) compensation; c) change. 7. Money earned by someone for a month's (professional) work is called _________ a) income; b) wages; c) salary. 8) A manual worker receives __________ a) income; b) wages; c) salary. 9). Retired persons receive ____________

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a) pension; b) aid; c) subsidy. 10) When setting a new company you need ___________ a) loan; b) fund; c) capital. 11) You pay a loan to a bank regularly in _____________ a) a) fee; b) income; c) installment. 12. You pay a ___________ to doctors, lawyers, private schools a) revenue; b) fee; c) capital. 13) Producers are sometimes helped to sell cheaper through ________ a) loans; b) reserves; c) subsidy. 14) A person can have a part of a business called _________ a) deposit; b) budget; c) stake. 15) Money kept in a ____________ for paying pensions is called _______ a) fund; b) deposit; c) budget. II. Find the following words in the dictionary and place them in the blanks of the text: 1) deal; 2) maturity; 3) margin; 4) render; 5) investment; 6) flexible; 7) difference; 8) cater; 9) supermarket Commercial banks, or retail banks a) _________ the service of holding deposits, paying money at customers' instruction, lending money for investment, exchanging foreign currency, and so on. The difference between interest rates paid and their yield to the customers represents its profit and it is named spread or b) _________. But when lending, the commercial banks must always find a balance between the yield and the risk on one hand and liquidity and c) _________ of the loans on the other hand. The recent developments have enabled banks to emphasize and d) _________ for different customers needs, extending from retail financial services, including counseling advice, to business development needs. Merchant banks have proved to be some of the more e) ________ financial institutions. They have no longer the financial muscle of the nineteenth century but they still f) _________ funds for industry on financial markets, finance international trade, issue and underwrite securities and deal with mergers and takeovers. Similar banks are called g) _________ banks in SUA, rendering services in industry, without offering loans. In recent years the h) ________ between commercial or retail banks and merchant or investment banks became lesser and lesser visible. Huge financial institutions appeared which render services of banking, insurance, stock broking, investment advice, making financial i) ________. III. What types of accounts are described in the following fragments? 1. youth deposits; 2. certificates of deposit; 3. cash management account; 4. fixed term accounts; 5. savings account; 6. account statement. a) This is a deposit account, where the bank undertakes to pay checks issued by the depositor against this account, keep the net balance at the disposal of the customer at any time and credit to the account the interest agreed and subtract any related fees and expenses. According to the contract concluded with the issuing bank, the client will avoid carrying out any operations which would make the balance of the account insufficient and use the account according to the agreed terms. Interest is usually higher than for deposit account;

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b) Summary of all checks paid, deposits recorded, and resulting balances during a specific period. c) Deposits that are not payable until a certain period elapses. Due to the fact that they are not payable at any time that the depositor would like, they yield a higher return as compared to savings accounts. For the depositor is having the advantage of a high interest rate for the period that they do not expect to use this amount, and for the bank they are a safe source for middle and long term financing; An important characteristic of that type of deposit is that it can be used as a guarantee for a loan. d) Type of deposit that encourages young people to save money; it bears a higher preferential interest as an incentive and it is mostly used to support school expenses. e) Bank account in which deposits are invested by bank, usually on the money market; it is however, a cheque account and the client is able to obtain loans required. It is usually run in cooperation with mutual funds. f) A negotiable certificate issued by a bank in return for a term deposit of up to five years. IV. Fill in the blanks: 1. account; 2. securities; 3. "bull"; 4. written up; 5. "bear"; 6. Stock Exchange; 7. profit; 8. susceptible; 9. "options"; 10. speculations. There is a widespread view that brokers and jobbers are merely parasites who have created a market in a) ___________ simply to make money by speculating. Such view merely reveals ignorance of the real functions of the b) _______ _________. It is true that it does provide openings for c) "_____________". Anyone who buys securities at the beginning of the d) _________, can sell them at the end of it and take the profit without ever having put up any money. A speculator who buys securities because he thinks the price will rise within the account periods said to be a e) "____________". He sells securities he does not possess at the beginning of the Account period, because he expects the price to fall. If it does, he will make a f) _________ because he can buy them at lower price. Longer term speculations are also possible through g) "_________" market. Both optimism and pessimism are contagious and the market can become extremely h) ____________ both to panic and over-confidence. There have been, as a result, numerous speculative booms and slumps when stocks and shares were i) _________ and down, not with real change in the legitimate expectation of income from them, but with waves of confidence or mistrust which swept over the great financial centers in the world. V. Can you rebuild a brief history of the Central Bank of Romania following the milestones information?

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1861 1880 1880-1890 1901-1914 1914-1918 1917 1929-1933 1933-1944 1946 1965 1971 1991

I. C. Bratianu: "As long as we don't have a Central Bank, financial crisis will not disappear in our country" the foundation of the Central Bank (1/3 state shares; 2/3 public subscription) covered the Independence War discount credits for agriculture state shares sold and the bank become entirely private financed the Romanian war effort transfer of the Romanian treasury to Moscow to be sheltered against the war activity of the bank transferred in Iasi the leu becomes convertible cover the Second World War Romanian expenses the bank becomes a subject of nationalization State Bank of The Popular Republic of Romania The National Bank of The Socialist Republic of Romania The National Bank of Romania

VI. Match the following definitions with the specific words: 1. public flotation; 2. merchant bank; 3. offer for sale; 4. fixed price for share; 5. tender; 6. placing; 7. secondary exchange/unlisted securities market); 8. brokers; 9. jobbers; 10. rights issue. a). members of the Stock Exchange that execute the orders for the clients, private or individual institutions for which they charge a commission; b) when a company raises funds for the first time via Stock Exchange; c) an invitation for the investors to apply for the shares; the issue is normally underwritten by a merchant bank through its order, that the remaining shares unsold to be purchased by a financial institution; d) a bank that manages the flotation of a company working with a stockbroker; e) a price that the investors decide whether and how many shares they wish to purchase for; f) an arrangement of the merchant banks/broker by which shares are sold in block at agreed prices; g) members of the Stock Exchange that sale and buy securities on their own account, that is they are principals; h) the place where shares that are not eligible for a quotation on the main market, are traded, as they are considered to be riskier; it also called OTC market (over the counter market); i) document by which shares are allocated in a descending order of the bid price after the investors have specified the price and the number of shares they are willing to pay for; j) the first issue of shares that are offered to the shareholders at a price that represents a discount to the market price. VII. Use the dictionary and match the following specific professional terms with their definitions: a) offer; b) clearing house; c) pit; d) option; e) callover; f) hedging; g) auction; h) spot goods; i) gamble; j) bid price. 1. A method of sale in which goods are sold in public to the highest bidder. In most auctions the goods to be sold are available for viewing before the sale and it is usual for the seller to put a reserve price on the article offered. 2. The price at which a buyer is willing to close a deal. If the seller has made an offer, which the buyer considers to high, he may make a lower price, or on more advantageous terms. The seller may accept it, or make a counteroffer.

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3. A meeting of commodity brokers and dealers at fixed times during the day in order to form a market in that commodity. It is usually used for trading in futures, in fixed quantities on a standard contract, payments usually being settled by differences through a clearing house. 4. Play games of chance; risk money by investing in a commodity. 5. A centralised and computerised system for settling indebtness between members. 6. An operation undertaken by a trader or dealer who wishes to protect an open position, especially a sale or a purchase of a commodity, currency, security, etc that is likely to fluctuate in price over the period that the position remains open. For example, a manufacturer may contract to sell all that he can produce of his product for the next six months. If his product depends on a raw material that fluctuates in price, and if he does not have sufficient raw material in stock, he will have an open position. He may decide to hedge his sales by buying the raw material he requires on a futures contract; if he has to pay for it in a foreign currency he may also hedge his currency needs by also buying that foreign currency forward. 7. Commodities that are available for immediate delivery, as opposed to futures in which deliveries are arranged for named months in the future. 8. The price at which a seller makes it known that he is willing to sell something. If there is an "acceptance of the offer", a legally binding contract has been entered into. 9. An area of a stock market or commodity exchange in which a particular stock or commodity is traded, especially one in which dealings in certain commodities takes place by open outcry. 10. The right to buy or sell a fixed quantity of a commodity, currency or security at a particular date, at a particular price (the exercise price). Unlike futures, the purchaser is not obliged to buy or sell at the exercise price and will only do so if it is profitable. VIII. Match the words with the definitions using a dictionary: 1. insured, 2. premium, 3. claim, 4. syndicate, 5. insurance, 6. social ensurance, 7. broker/dealer, 8. underwriter. a) request for compensation from someone who is insured b) a person or company covered by an insurance policy. In some policies that cover death, the alternative word "assured" may be used for the person who receives the payment in the event of the assured's death. c) 1. the consideration payable for a contract of insurance or life insurance 2. an amount in excess of the nominal value of a share or other security 3. an amount in excess of the issue price of a share or other security d) 1. a person who examines a risk, decides whether or not it can be insured and, if it can, works out the premium to be charged, usually on the basis of the frequency of past claims for similar risks 2. a financial institution, usually an issuing house or a merchant bank that guarantees to buy a proportion of any unsold shares when a new issue is offered to the public. e) system whereby individuals and companies that are concerned with potential hazards pay premiums to an insurance company, which reimburses them in the event of loss; f) purchase group of investment: bankers that, operating under the agreement among underwriters purchase a new issue of securities for for resale it to the

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investment public; g). individual or firm acting as a principal in a securities transaction; h) benefit provided under law, financed by social security tax: retirement income benefits, unemployment insurance; medicare, public assistance for aged, Nutritional programs for children and so on. IX. Mind the modal function of obligation using shall or should instead of will for the simple future in direct statements or would in indirect statements: 1. The new political conditions will influence the international economic order in the next ten years. 2. The changes in the economic legislation will be made next year. 3. The wages will increase in the next future. 4. The quantity of the goods ordered will be made available on the spot. 5. The taxes will be changed for this type of commodity. 6. The economists will not agree to these changes in the legislation. X. Re-arrange the following fragments in a logical order: Lloyd's Insurance Business A. In the days of sail and rudimentary navigation, the news was often bad: ships would shipwreck and merchants would be ruined. Although ship and cargo insurance can be traced back to the Phoenicians, it was at Lloyd's coffee house that modern marine insurance was born. A ship owner would write on a slip of paper the particulars of a proposed voyage - the name, route and ports of call of a vessel, the value of its hull and cargo, and the amount he was willing to pay for "Insurance". The other coffee drinkers arrayed in booths and benches around the room, many of them ship owners themselves, would then decide, how much if any, of the risk they were willing to accept in exchange for the premium. An "insurer" would write his name on the ship owner's slip under the shipping information (hence the term underwriter) B. While still insuring much of world shipping Lloyd's by then also offered coverage for property and casualty, fire and theft, and product liability. It was known for accepting large and complex risks that no one else would touch. By granting or withholding insurance, Lloyd's could make or break a risky new business venture. C. Lloyd's earned for the British balance of payments nearly as much as the entire British banking system. It was the largest private investor in the U.S. government, holding billions of dollars in Treasury bonds. It also was a cultural and social force. Lloyd's chairmen were celebrities. People stood up when they entered a room. The art of collection of one Lloyd's officials became the nucleus of the National Gallery in London. Lloyd's name was so potent in America - a household word - that in 1936 it was celebrated in a full-length Hollywood movie starring Tyrone Power. By the middle of the 20th century, having passed its 250th birthday, Lloyd's of London was sui-generis - a singular force, with an aura unmatched by another business enterprise.

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By 1771, although Edward Lloyd was long dead, his name stuck as did the tradition of doing business from wooden benches clustered in rectangular boxes around a large room. E By the 19th century, its runners had become a worldwide network of intelligence agents, utilized not only by Lloyd's for ship monitoring, but by the British government for a range of economic and military intelligence - a phenomenon that fed Lloyd's reputation for mystery and secrecy. F. In 1906, a signal event came to Lloyd's - the San Francisco earthquake. Herbert Evan Heath, a leading broker and underwriter, telegraphed instructions to his California representatives to immediately pay all claims to Lloyd's customers in full, whatever the terms of their policies. Heath's dramatic gesture emblazoned Lloyd's in a pantheon of world finance as an emblem of trust. G. In the late 17th century, seafarers flocked to Edward Lloyd's coffeehouse in Tower Street, near the Thames waterfront in London, to gossip, play cards, and conduct business, and Edward Lloyd serviced their needs. Coffee, valued for its therapeutic powers, was a penny a cup. Pens, ink, and paper were free, as was news, provided by Lloyd's runners who scurried back and forth between the coffeehouse and the docks, gathering the latest information on the comings and goings of ships and their cargos. XII. Translate into English: A. 1. Ghinionul nu se indrjete dect impotriva prostiei. (proverb francez) 2. Primul factor de risc este ignorarea riscului. (Alvin Toffler) 3. Cine nu-i pzete bine avutul este prieten cu houl. (Proverbe si cugetri armeneti) 4. Norocul ni-l facem noi i-l numim destin. (Benjamin Disraeli) 5. Perspectiva pe termen scurt alung perspectiva pe termen lung. (John Naisbitt, Megatendine, Edit Pol, Buc. 1989) B Perioada de nflorire a negoului cu orientul, respectiv secolele XIV-lea i al XV-lea marcheaz apogeul centrelor comerciale italiene ale afaceritilor din peninsul. Deoarece n trguri stteau n spatele unei tejghele pe care o numeau banc, mnuitorii de bani poart tot mai mult apelativul de bancheri. Asocierea pentru sporirea forei financiare i mprirea riscurilor lua forma de societate care i trimitea ageni pentru lrgirea afacerilor la sucursale din ar i din strintate. In cele doua republici intrate n acerb concuren nc din secolul al XII-lea, Genova i Veneia, se preacticau dobnzi ruintoare, fiind n slujba crmuitorilor, contribuind totui la stimularea actrivittii comerciale i metesugreti. C. Cel mai puternic, ntins i influent angrenaj bancar de la dispariia Ordinului Templierilor, a fost casa Fugger din Augsburg, iar perioada sa de apogeu a fost n secolul al XVI-lea. Faima i influena i-au fost aduse, pentru mai multe generaii, de afacerile bneti, n care au reuit s ajung pe primul loc n continent. Datorit resurselor acumulate i a prestigiului dobndit, un

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numr imens de clieni capete ncoronate, nobili, comerciani, meteugari, navigatori apelau la serviciile sale, depuneau capitaluri spre pstrare, luau mprumuturi, efectuau transferuri de fonduri Intreaga sa evoluie a fost legata i influenat de evenimentele politice ale vremii care treceau prin curile regale. Reeaua de sucursale i agenii i crease un adevrat serviciu de informaii confideniale care urmrea atent micrile pe scena politic i anticipa schimbrile de palat sau operaiunile militare, existnd o permanent preocupare i pentru urmrirea pulsului economic internaional. D Prin denumiri diferite sunt marcate deosebirile existente ntre modalitile n care opereaz intermediarii de pe piee: "brokeri" in englez, "courtier" n francez, "makler" n german semnific un agent care ncheie tranzaciin numele clienilor, n conformitate cu dispoziiile primite de la acetia. In sarcina unui asemenea intermediar erau informaiile asupra pieei, consultaii de specialitate, precum i contracte i faciliti pentru a putea fi convenite afaceri comerciale, bursiere, valutare, financiare. Termenii compui precizeaz i tipul de operatiuni mijlocite. Spre exemplu, "bill-brokeri" nseamn profilarea pe negocieri de efecte comerciale, "share-broker" ori "stock-broker" ("agent de change" in francez) semnific agent de burs care lucreaz cu aciuni, prin "outside broker" este desemnat un agent care opereaz n afara centrelor bursiere autorizate, "ship-broker" se ocup de curtaj maritim. Firmele de brokeri sunt constituite sub form de societi anonime i pot fi trase la rspundere, moral i material, pentru modul n care i ndeplinesc rolul. Principiul este ca fiecare agent n parte angajeaz prin activitatea sa nsi firma n ce privete probitatea profesional. Intre principalele obligaii ale broker-ilor se nscriu: pstrarea secretului profesional, livrarea i plata exact a ceea ce au cumprat sau au vndut, acordarea unei asistene de specialitate corecte, neprtinitoare sau duntoare clienilor, evitarea oricrei influene asupra cursului afacerilor cu intenia realizrii de avantaje personale. Pentru serviciile asigurate clientelei, brokerii sunt remunerai pe baza de comision. Spre deosebire de brokeri, un "dealer" nu acioneaz ca intermediar pentru clieni, ci efectueaz diverse afaceri pe pia pe cont propriu, numai n numele su. Ca atare, negociaz direct, se angajeaz personal i i asum toate riscurile. Veniturile unui "dealer" rezult din diferenele ntre cursurile de vnzare i cumprare ale titlurilor ori ntre preuri, tarife, raporturi de schimb i orice alte mrimi n cadrul tranzaciilor. Mai exist i categorii de intermediari specifice anumitor centre de afaceri. La bursa din New York opereaz, pe lng "brokeri" i "dealeri" un grup distinct de "specialiti" profilai pe tipuri de valori i angajai de obicei n tranzacii numai cu ali profesioniti. Si la bursa din Londra funcioneaza aa-numitul "jobber", care negociaz titluri exclusiv n nume propriu i nu este autorizat s lucreze cu publicul, ci doar cu intermediari profesionsti, deci cu "brokeri" ori cu alti "jobbers". Uneori, ntre client i agentul de burs autorizat s negocieze titlurile se interpuneinca un intermediar, care administreaz portofoliul de titluri ai unei persoane fizice sau juridice, acionand ca un mandatar al deintorului hrtiilor de valoare. Denumirea acestui intermediar este "customer's man" n englea i "remisier" n francez, de multe ori aprand n aceasta calitate chiar bncile comerciale.

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E)

Puternica dezvoltare a pieei internaionale de capital a permis investitorilor s deruleze tranzacii de cumprare a datoriei externe a rilor n curs de dezvoltare n scopul de a dobndi capital sub forma de aciuni sau fonduri n monedele naionale ale rilor respective. Drept urmare, piaa swapurilor datorie extern (debt-equity swap) a nregistrat o cretere rapid. Esena lor este de-a dreptul simpl. Pe parcursul mai multor ani, bncile comerciale regionale europene i americane au tranzacionat creditele acordate celor mai ndatorate ri n curs de dezvoltare, pe piaa secundara -o reea neformal, format din mai multe bnci de investiii care tranzacioneaza datoriile celor mai mari debitori prin telefon, telex, sau Internet. Imprumuturile sunt comercializate la un pre situat cu mult sub valoarea lor nominal, reflectnd astfel opinia pieei cum c ele nu ar fi niciodat rambursate. Cotaiile pieei scontului erau date sub forma preurilor cerute i oferite, nu a prerilor de lichidare a tranzaciei. Acest instrument continu s reprezinte cel mai important tip de conversie a datoriilor externe ale rilor n curs de dezvoltare. F. Mecanismul ce ofer posibilitatea transferului de risc la care sunt supui productorii i angrositii se numete n termeni bursieri hedging. Activitatea de hedging implic decizii importante care necesit participarea la tranzacii prin intermediul unui broker. Pentru nceput, se depune o sum care reprezint o garanie pentru o execuie corespunztoare i pentru eventualele pierderi pe piaa futures. Dac acionai short (vnzare) poziia dumneavoastr se mbuntete cnd preurile scad sub preul dumneavoastr de vnzare i se nrutete atunci cnd preul crete peste preul de vnzare. Dac acionai long (cumprare) pe piaa futures, poziia dumneavoastr se mbuntete cnd preurile cresc peste preurile dumneavoastr de cumprare i invers. Short hedge are loc atunci cnd planifici s cumperi o marf i doreti s te protejezi mpotriva scderii preurilor. Atunci vinzi contracte futures i cnd vei fi gata s tranzacionezi marfa, vei cumpra contractele futures i vei vinde simultan, de exemplu, cereale. Short hedge protejeaz vnztorul mpotriva scderii preurilor. Vnznd contracte futures putei fixa un pre pentru marfa dumneavoastr i vei completa operaiunea prin rscumprarea contractelor futures i vnzarea simultan a mrfii pe piaa cash.

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UNIT 4 ADVERTISING
Because oral skills developed before reading and writing did, it is only natural that the earliest advertising medium was the spoken word. There is evidence that criers and hawkers were shouting their wares as far back as the days of the early Greeks, Romans and Phoenicians. This primitive advertising refined over centuries, has carried down to the present day. Although hawkers do not often roam the streets with their cries, they have entered the home to make their pleas on radio and television. Before long, competition and the need for identification necessitated signs. Signs used identifying shops, with such appropriate illustrations as a goat (for a diary) or a mule driving a mill (for a baker), were unearthed in the ruins of Pompeii. (At the door of a schoolmaster there was a sign depicting a boy receiving a whipping!). There is also evidence of announcements painted on walls during this period. These included notices for theatrical performances, sports and gladiatorial exhibitions, advertisements of houses for rent, and appeals to tourists to visit the local taverns. Perhaps the first written advertisement, however, was this three-thousand-year-old one inscribed on papyrus and found by an archeologist in the ruins of Thebes: The slave, Shem, having run away from his good master, Hapu the Weaver, all good citizens of Thebes are asked to help return him. He is Hittite, 52 tall, of ruddy complexion and brown eyes. For news of his whereabouts, half a gold coin is offered. For his return to the shop of Hapu the Weaver, where the best cloth is woven to your desire, a whole gold coin is offered. There is no doubt that advertising flourished in this period, but with the fall of the Roman Empire and the onset of the Dark Ages, advertising temporarily declined in importance to Western civilization. Perhaps the oldest relic of advertising among English-speaking people is family names referring to the various specialized crafts. The earliest of these designations was Smith. Names like Miller, Weaver, Wright, Tailor and Carpenter were the earliest means of product identification- the forerunner of the brand name so essential to modern advertising. One of the most significant events in the development of advertising was the invention of a system of casting movable type by the German, Jonathan Gutenberg, in 1438. Paper had been invented more than a thousand years earlier by the Chinese and was introduced to Europe by the Turks in the twelfth century. Now all the necessary components were available for mass printing. At the same time, literacy was increasing. William Caxton, an early English printer, made advertising history in 1478 when he printed a handbill now regarded as the first known printed English advertisement. It advertised a book he had printed, the Salisburi Pye, rules for the clergy at Easter. The advertisement read:

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If it please ony man spirituel or temporel to bye ony pyes of two and thre comemoracios of Salisburi use enpryntid after the forme of this present letter whiche ben wel and truly correct, late hym come to Westmonester in the almonstrye at the reed pale and he shal have them good chepe. The Latin phrase at the end translates Let this notice stand. Advertising, 4th edition, Mandell (Prentice Hall) 3.1. ADVERTISING IS COMMUNICATION Advertisement goals are measurable and limited to a certain length of time, usually one year. Sales are usually the only measurement of advertising effectiveness. But sales depend on a lot of other factors. Advertising, communication is directed to a target audience through information about the company and the product. The information creates the readiness to buy the product. The final goal of all advertising is to have consumers use the goods or services advertised. In order to reach the advertising goals, there are stages that precede action of buying. The consumer must become aware that the product or service exists, and then he understands what the product is and its benefits. The last step is to make him decide to buy and to use the product or the service. The buyer behavior model uses the language of computers to summarise the decision process. The consumer admits the need he wants to meet. The need motivates action, the search for ways to satisfy it. The search narrows to a specific product. Then the consumer becomes aware of it, but it lacks information about it. The information and risk of purchasing come under his consideration. The consumer decides whether to buy the product. If satisfied, he or she may decide to use it regularly. If not, he begins to search again. 3.2. ADVERTSING MEDIA Print media deals with the use of space in newspapers, magazines, reviews, etc. It has four elements: illustration, headline, copy block (body copy or text) and logotype. Its main function is to provide news and information. Space in printed ads is 60-70% dominated by illustrations, usually with a single focus. Effective illustrations vary in form and content but they have several common characteristics meant to catch the attention of a target audience. Good illustrations should convey the basic relevant idea of advertisement more directly and dramatically than words. Photographs are considered more effective by far as they bring realism, immediacy, they are less expensive to complete and more adaptable. Colour is usually used to better motivate. Stimulating and warm colours are red, yellow and orange, while green and blue are cool and relaxing. Some of them have symbolic meanings according to each nation culture: dark brown is masculine, pastels are feminine, purple, deep red and gold are royal and express quality, etc Illustrations may represent the product itself, the package or the product in use to demonstrate its benefit. It may also dramatize a situation, or it may have no content but create a relevant impression. Headlines are meant to draw the attention of the reader and are usually printed in larger type letters than the body of the advertisement itself, or Capital letters. Headlines can also draw the readers attention by the use of

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small letters, italics or punctuation marks, such as quotations, question or exclamatory marks. It is advisable they be short, using only one to six words in a single line so that the reader can easily grasp the idea at one glance. Its message should apply to a specific characteristic of the product or service advertised, not to others in the same category. It is highly recommended that it should be closely related to the text and photograph, being active in both form and content. Specialized research recommend that the Body copy uses less than 20% of the total add space. Its major function is to satisfy curiosity and stress instructions in a clear, concise and personal way. In the end it suggests action: where to find the product or the service advertised its price. Logo represents the name and the symbol of a company, store, and brand. It is meant to be recognizable in print advertisements. It uses little space. The arrangement of elements on the page is the concern of the person who makes the design of the print advertisement. They must work together in content in a logical and aesthetical form. A good design will focus usually on the illustration or on the headline, giving the reader a starting point and leading him into the very message of the advertisement. The elements of the design should follow a natural flow. 3.3. BROADCAST MEDIA differs substantially from print media because its message is intangible, it exists in time only. Its major function is to provide entertainment. A radio or TV stations number of potential listeners or viewers is its coverage. Radio provides ready-made target markets, for local and spot advertising. A spot is one unit of air time. Radio time is classified by day parts: two drive times, housewife time, weekend time, and evening time. On radio advertising interrupts, that is both strength and weakness at the same time, an attention-getting device but also as a source of irritation. Sound effects and music are attention-getters too. Radio gave birth to the jingle once, a rhyme set to music, which is still a common type of radio commercial. The narrative commercial is usually in the form of a humorous dialogue, under the form of celebrity testimonials about the value of a specific brand. The celebrity claims personal use of the product and satisfaction with it. The interview commercial, either with a legitimate customer, or humorously, with a pretend one, usually involves listeners imagination and support the product concept. Effective radio advertising must comply with the listeners expectations. The commercial has the function of informing the consumers about the product or service and its benefits but also it entertains him through music, sound effects and humour. Repetition of the brand name makes the listener remember it, and natural, conversational language work best in helping him to visualize the product and package. Television combines sight and sound showing real action, being true to life. One way to buy time is through spot announcements that appear between programs, not within them; they can run consecutively forming advertising clutters. Another way to buy time is through sponsorship or participation. They are extremely expensive but they give the opportunity of controlling over a certain type of program.

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The TV advertisers use several tools for making their advertisements efficient. One of them is the time of the day (time for reach men is Saturday and Sunday afternoons, children Saturday mornings, teenagers the late fringe period on Friday and Saturday nights, etc). Another tool is the selection of certain programs offering opportunities to advertisers (sports championship, multiepisode dramas, etc). The TV advertisement guidelines are similar to the Radio ones: they focus on an idea that is reinforced audioly and visually. The advantage of showing action, keeps the viewers attention alive, and they feel that they are watching a story: how to do something, or how something works. The demonstration is a solution which is solved by the use of the product advertised, involving the consumer in a real life attitude. EXERCISES: I. Fill in the blanks the missing words: 1. strategy; 2. similar; 3. feature; 4. persuasive; 5. reason; 6. potential; 7. brand; 8. form; 9. objectives, 10. value; 11. consumers; 12. motivation. The advertising plan leads to adopting an advertising a)__________. Its b)__________ will highlight the steps to be taken and the strategy will show the ways to reach them. The advertising strategy is the main idea of the message that goes to c)__________. Products in the same category are likely to be very d)________. It is important to underline a difference or a benefit, that is to capitalize on a e)_________ that will sell the product. Research should reveal why people like a particular f)________, or what they look for in that product category. Then advertising can be built on that idea that it should be strong and g)_________. Other advertisings use h)___________ as a strategy. They look for the real i) __________ that consumers buy certain products. Other stress image. still other believe it is the j)________ of the advertisement itself that provides the best strategy. Some specialists pretend that advertising doesnt just inform and persuade, but adds k)_________ to the product or service. It supports the advertising objective of turning l)__________ consumers into actual purchasers. II Make the following statements True or False after reading the text: Promotion is one of the four components of any marketing strategy, the other three being product, place and price. Promotion itself is also considered to comprise four elements: advertising, personal selling, sales promotion and public relations. Industries and organizations vary greatly with respect to the relative instance they place on the different elements in the promotion mix. For instance, in the cosmetics world Avon Products Inc. emphasizes personal selling while Revlon Inc. emphasizes advertising. In declining whether to buy or make regular use of a product, a prospective buyer moves through five stages: awareness, interest, evaluation, trial, and adoption. Promotion seeks to move prospective buyers through this process by informing, reminding, and persuading customers about an organization and its products.

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It is important to keep in mind that elements in the promotion mix must be coordinated and linked together in such a way that they will complement and reinforce each others impact on a potential customer. Each of the elements can play a particular role in achieving the promotion objective. For example, advertising may be the best way to create awareness of a new product, while sales promotions such as free samples may be effective and encouraging trial of the product. Answering prospective buyers queries, however, requires personal selling. The relative importance of the promotion mix elements can vary over and certain forms of advertising or sales promotion may come in and out of vogue. 1. Marketing strategy comprises promotion, product, place and price. T/F 2. Advertising, personal selling, sales promotion, public relations are comprised in promotion activity......................... ..T/F 3. Awareness, interest, evaluation, trial, adoption are the four stages of prospective buyer evaluation when declining whether to buy or not....T/F 4. Informing, reminding and persuading customers about products they are aware of, represent an important strategy of advertisement....T/F 5. Promotion mix will complement and reinforce each others impact on personal selling.......................... ...T/F 6. Sales promotion may be effective and encouraging to create awareness of a product..............................T/F 7. Personal selling is required for answering prospective buyers queriesT/F 8. Forms of advertising and promotion may come in and out of vogue.T/F III. Look into the dictionary for the specific terminology; make sentences of your own: A: price-cuts; free gifts; coupons; samples; cash rebates (money-refund offers) premiums; Consumer contests; consumer sweepstakes, additional product deals; trading stamps; consumer exhibitions B. sales meetings; sales contests; point-of-purchase display; trade shows; store demonstrations; special services; dealer contests and premiums; dealer salespeople incentives IV. Choose the best alternative to complete the sentences: 1. The task of the public relations department is to project the right___________for the company. a) painting b) image c) picture d) drawing 2. When the product was launched they issued a press _________to all the news agencies. a) escape b) issue c) release d) promotion 3.According to the code of practice, a public relations officer should not knowingly______________false information. a) disseminate b) dissociate c) dispose d) dissolve 4. Some companies entertain journalists more __________than others. a) lasciviously b) largely c) leniently d) lively 5. The use of such things as logos and colour__________helps to maintain a corporate identity. a) schemes b) systems c) styles d) fashions 6. We need to liaise more with politicians and___________ servants if we want the government to agree to our plans.

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a) official b) polite c) civil d) civilian 7. $2000,000 was _____________for the official opening of the new store. a) set aside b) brought about c) set off d) laid up 8. Sponsorship can be an effective way of promoting____________towards an organization. a) will b) goodwill c) willingness d) goodness 9. At a press reception dont _____________guests with irrelevant material. a) overload b) override c) overtake d) overcompensate 10. The reception must be held at a convenient______________with good transport and parking facilities. a) revue b) venue c) view d) venture 11. When making a presentation to a relatively small ____________an overhead projector can be invaluable. a) asistance b) spectator c) audience d) congregation 12. Within a large organisation a well-designed___________-journal is an effective method of communication. a) in-house b) home c) household d) plant 13. Participating in local events, such as carnivals, is a good way of developing __________relations. a) common b) commonplace c) communal d) community 14. We used every __________of communication to get our message across. ) flow b) stream c) channel d) canal 15. We have to highlight our strengths and __________any weaknesses. a) play up b) think through c) play down d) talk back VI. Match the type of advertising with their description: a) informative; b) persuasive; c) collective /generic 1. - it involves publicising a type of product rather than a brand. This is often undertaken by trade associations. The use of collective advertising often indicates a product for which demand has been falling; 2. it is concerned with giving information, e.g. about timetables, changes in prices or new Government legislation 3. it aims to get people to buy a product in order to increase sales. Advertising of goods such as petrol is often included in this category because the competing products are virtually identical. It is often used to establish and maintain brand names. The term competitive is sometimes used to describe advertising, which aims to increase a particular firms market share. VII. Match the specialized terminology with their definitions: 1. full service advertising agency; 2. communication research; 3. creative department; 4. copywriter; 5. layout; 6. storyboard; 7. setting; 8. closing date; 9. coverage; 10 spot; 11. avail, 12. commercial; 13. fringe; 14. slogan; 15. brand; 16. trademark; 17. market segmentation. a) evaluation of advertising effectiveness before and after a campaign b) the form showing planned placement of elements in a finished advertisement; c) layout for TV. It sketches the sequences of events in a commercial d) the number of potential radio listeners or TV viewers e) a time slot or availability purchased by a radio advertiser. f) An agency that handles a wide range of advertising and merchandising

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services, often all but personal selling g) Period before (early fringe) and after (late fringe) prime time h) a unique phrase identified with a company or brand i) Any word or symbol that identifies the maker of a product. It I protected by law. j) A name, a sign, symbol, design, term or combination of these that differentiate on companys products from anothers., one manufacturers product, so distinguished from others in the category. k) The advertising agency department that oversees all work on copy and illustrations l) Where a television commercial takes place m) A person who writes the words for print advertising and broadcast commercials n) Dividing the market into homogenous subgroups for the purpose of o) making marketing more efficient by focusing on appropriate target markets. The deadline for submitting finished advertising to the media q) A broadcast advertisement r) one unit of air time VIII. Translate into English: Dou noi branduri de cafea vor fi promovate printr-o campanie de comunicare integrat care creaz atmosfera unic a rii de origine a cafelei: o Brazilie autentic, tradiional. Campania de lansare a lui Amigo Especial i Amigo Tradicional a fost conceput i dezvoltat de agenia Tempo Advertizing. Aceast decizie a fost luat ca urmare a studiilor de pe piaa cafelei. Cafeaua mcinat i ambalat are o pondere de 49% din aceast pia i de aceea s-a hotrt extinderea investiiei pe acest segment.

p)

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PART IV POLITCAL and LEGAL ISSUES

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UNIT 1 EUROPEAN UNION

The two World Wars convinced statesmen that some form of political unity was desirable, and in 1949 the Council of Europe was created - the basis, it was hoped, of a European Parliament. But organizations with definite functions - the Organization for European Economic Co-operation, The North Atlantic Treaty Organization (1949) and the Western European Union (1954) proved more fruitful than did the Council of Europe with its broad aim. Although these organizations involved co-operation, they were merely voluntary associations, not federal bodies exercising supra-national powers in the interest of members as a whole. While federation was the ultimate aim of European statesmen they realized that it could only proceed piecemeal and on a functional basis. The first supra-national organization, the European Coal and Steel Community (ECSC) was formed in 1951 to control the whole of the iron, steel and coal resources of the six member countries - France, West Germany, Italy, Holland, Belgium and Luxembourg. The old divisions created by inward-looking national interests were thus broken down. The success of the ECSC led to the setting up in 1957 of the Atomic Energy Community (EURATOM), a similar organization for the peaceful use of atomic energy, and the European Economic Community (EU), an organization to develop a "common market" between the six member countries. The 1957 Treaty of Rome set up a "community" whose government and institutions were developed from those of the old ECSC. Maastricht Treaty on European Union came into force on 1 November 1993 stating the aim of creating a European Union founded on the previous Communities. The Treaty of Amsterdam in 1997 had improved policies and forms of cooperation among the Member states. The Union is served by a single institutional framework to "ensure the consistency and the continuity of the activities carried out in order to attain certain objectives while respecting and building upon the acquis communautaire" The union autonomous institutions were created by the Community Treaties in order to make them able issue legislation binding as law throughout every Member State. A Court was also created to exercise judicial control over relationship between the community institutions and the Member States ready to be invoked not only by the states and Community institutions but also by private individuals against their own governments and national legislation. The Member States and the candidates to accede to the European Union have to be European and their system of government be founded on principles of democracy, liberty, respect of human rights and fundamental freedom and the rule of law. The founder members are France, Germany, Italy, the Netherlands, Belgium and Luxembourg. In 1973 they were joined by the United Kingdom, Ireland and Denmark (though Greenland are of Denmark left the Community in 1985), in 1981 by Greece and in 1986 by Spain and Portugal. In 1995, Austria, Sweden and Finland acceded to the European Union. As a result of 1994 referendum, Norway decided not to join the Union, but it remained a member, together with Iceland and Liechtenstein, of the European Economic Area. (EEA). These countries participates effectively in the single market of the European Community concerning the free movement of goods, persons, services and

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capital and apply the bulk of EC's economic and social legislation, but they do not participate directly in the EC's institutional structure as the Maastricht Treaty introduced the concept of a "two-speed" or "variable geometry" Community. The Commission is the most important body of the EU as it is now called. Its thirteen members act as an independent body in the interests of the Community as a whole, and not as representatives of the individual governments that have nominated them. The Commission is responsible for formulating policy proposals, promoting the Community interest, trying to reconcile national viewpoints and implementing Community decisions. Each member country sends a cabinet minister (usually the Foreign Secretary) to the Council of Ministers. This is the supreme decision-making body. Its task is to harmonize the policy of the Commission and the wishes of the member governments. Thus while the Commission drafts community policies; they have to be approved by the Council before they can be implemented. On matters of major importance, which affect vital national interests, the rule in practice is usually that decisions shall be unanimous. If the Council becomes deadlocked, the Commission reconsiders the proposal in order to meet some or all of the demands of the opposing countries. It consists of ten judges appointed for a six-year term by agreement among member governments. Its task is to interpret the Rome Treaty and adjudicate on complaints, whether from the member states, private enterprises or the institutions themselves. Its rulings are binding on member countries, community institutions and individuals. This is a body of 410 elected members that sit according to party affiliation, not nationality. The Assembly debates Union policies and also examines its budget. The over-riding aim of the EU is to integrate the policies of its member countries. Its economic policy is based on two main principles: 1. Customs union 2. Common market There is a crucial difference between a free-trade area and a customs union. The former simply removes tariff barriers between member countries but allows individual members to impose their own rates of duty against outsiders. A customs union goes further. While it too has internal free trade, it also imposes common external tariffs. The EU has a customs union since this is essential for an integrated common market. Otherwise goods would enter the market through low-duty countries and be resold in those imposing high rates. The common market of the EU envisages moving goods and factors of production completely freely within the Union through the operation of the price system. Member countries had already developed their own individual taxes, welfare benefits, monopoly policies, methods of removing balance of payments, full employment policies and so on. If such differences were allowed to persist they would tend to disrupt the working of the pricing system because they would give some members of the Union an advantage over others. Furthermore, it is the Commission which is entrusted with the negotiation of international agreements on behalf of the Union, even if they are ultimately concluded by the Council. But one of the major duties of the Commission is to ensure that the provisions of the European Community Treaty and the measures taken are

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applied. In its unique position of proposer and enforcer of the Community legislation, the Commission has the opportunity to fulfill this duty in the legislative process and subsequently in ensuring the observance of the legislation itself. The members of the Commission must neither seek nor take any instructions from any government or from any other body. The bulk of the legislation of the European Community is not enacted under the provisions of the Treaties themselves, but under powers delegated to the Commission or to the Council itself. If the Commission considers that a Member State has failed to fulfill an obligation under the Treaty, it shall deliver a reasoned opinion on the matter after giving the State concerned the opportunity to submit its observations, and the state concerned does not comply with the opinion within the period laid down by the Commission, it may bring the matter before the Court of Justice. Under the E. C. Treaty, it is the Court which determines whether it is a breach. The interests of the Member States at the Community level are represented also in the Council of European Union. It consists of a team of the responsible regional ministries of each Member State. The participants may be also accompanied by other officials on events. Each delegation may have up to 9 members. There are relatively few provisions allowing the Council to act by a qualified majority, so the co-decision procedure was added. Qualified majorities involve a system of weighted voting, approximately related to the size of the Member State. The European Parliament is the only directly elected international institution in the world. The Community legislation does not emanate from the Parliament, but the co decision procedure, introduced by the Maastricht Treaty means that legislation is adopted jointly by the Council and the Parliament. The role of the Parliament appears to have been quite effective: some 6o per cent of the European Parliament's amendments to proposed legislation are accepted in the final version. Since 1979 the European Parliament has been elected directly by the citizens of the Community. The seats are nevertheless allocated to each Member State. Lately, after the Germany reunification, the relative representation of the Big Member States has increased as compared to the smaller ones. The members of the Parliament group themselves according to political ideology rather than national origin. The current groups are; - Party of European Socialists - European People's Party (Christian Democrats and Conservatives) - Group Union for Europe - European Liberal Democratic and Reformist Party - Confederal Group of the European United Left - Green Group - Group of the European Radical Alliance - Europe of Nations Group - Non-attached

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1.1. ENLARGEMENT of the EUROPEAN UNION When considering the background of the enlargement of the European Union to the countries of Central and Eastern Europe (CEE) it is important to remember the historical ties which bind Europe together. In a period when Western Europe enjoyed peace and growing prosperity, Central and Eastern Europe was locked up behind the "iron curtain". The integration of Europe East and West before the WWII was not only political and administrative; Europe was also integrated economically, that can be demonstrated through economic statistics as well as through the records of individual companies. But the history of Europe since the Second World War was marked by a forced division of the continent decided by the Allied leaders meeting in Yalta in 1944, certainly against the will of their peoples who suffered the consequences of this division for the next 45 years. In the 1980's as reforms in the communist centrally-planned systems became more general (without reforming the basis political one-party system or giving democratic rights to citizens), it became commonplace in intellectual circles to argue that the reforming communist system was an acceptable alternative to the capitalist market economy system. This was the opposite feeling of that developing to the east where citizens are becoming more and more aware that the criminal, corrupt and inefficient system of one-party rule and central-planning, held together by the power of the Soviet army, must be swept away. Until 1989, questions of geopolitics had gone completely out of fashion in Europe. The European architecture was clear and constant: Western Europe, defended by NATO alliance and gradually integrating economically in the European Community stood opposite and stretching from the Elbe to the Barents Sea and from Murmansk to the Black Sea. The scope for the expansion of either bloc was extremely limited in the shadow as of the nuclear deterrent. The changes which have taken place since 1989 have led, in the first stage at least, to the break-up of the Soviet empire and the freeing of the states of Central and Eastern Europe from the Soviet occupation. The result has been, of course, that that the former satellite countries of Central Europe, having regained their freedom, had looked for their places in the European Union. "The ten associated countries which have Agreements with the European Union and all of which have applied for membership do not however, form the Eastern limits of Europe. Russia, the Ukraine, Belarus and Moldavia are also clearly European and must be considered in any new geographical map of Europe." (Emerson, 1996) The countries of Central Europe freed themselves from Communism through their own efforts and with only the moral support of the Member States of the European Community. As it became clearer and clearer that integration into the structures of the European Union became the objective of these countries, more and more problems raised: the course of the reform and its costs, security and migration, etc. Overall, however, the policy of the EU has been supportive to the challenges of the economic and social reform. The Unpreparedness of the Western countries in the year of the revolution can be evaluated by considering officials and unofficial documents at the time. At the European

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Council in Rhodes in December 1988, the heads of the Member States and governments produced a declaration of the role of the division of our Continent by some general steps: develop the Conference on Security and Cooperation in Europe (CSCE), promote disarmament in Europe and promote the respect of human rights. At the Madrid Summit six months later, the Central and Eastern Europe does not figure amongst the main points of the agenda. There is only a summarily treated chapter entitled "Political Cooperation" The Summit came after the Polish elections and after Gyula Horn, the Hungarian Foreign Minister, had ordered the removal of the border controls between Hungary and Austria. The first coordinated western response came in the G7 Summit meeting in Paris in July 1989, which was convened in the follow-up to both the developments in Poland and Hungary and the human rights violation in China. The G7 leaders stated that "we offer the countries of the east the opportunity to develop balanced economic cooperation on a sound commercial basis consistent with the security interests of each of our countries and with the general principles of international trade" (G7 Declaration, Summit of the Arch, Paris July 1989) The opening of the inner-German border and the fall of the Berlin Wall were clearly indicating a major look of further measures to support reforms, including the creation of the European Bank for Reconstruction and Development (EBRD) designed to play a significant role in the transition in Central and Eastern Europe, and the opening up of Community programmes in education, training and technology. At the Summit in Strasbourg in December the European Council enforced commitment to the coordination of assistance for the newly come nations in Europe. It followed the creation of PHARE programmes which was meant to implement economic and aid measures to support the process of reform in Poland and Hungary, in particular by "financing or participating in the financing of projects aimed at economic restructuring" (Council Regulation 3906/89). Assistance was extended to the more eastern countries that were added. Romania had to wait another year before being admitted, owing to the unclear situation following the 1990 elections and miners movement. The decision to offer Association Agreements to Romania and Bulgaria underlined clearly the policy of the Community towards the countries of Central Europe which set out on the course of the reform. The question of future enlargement of the Community was extensively dealt with at the Lisbon European Council in June 1992 and a joining calendar was proposed. The Association Agreements became the basic legal instruments of the relationship between the European Union and the associated countries of Eastern Europe. They state the responsibilities of the Community and of the Member States that were ratified by the European Parliament and by the European Council. All the Association Agreements with CEE states have the same structure. The Preamble states the reasons why the parties are making the agreement, lists past agreements which are taken into consideration and makes references of general nature. It underlines the common values of the two parties and the common commitment to strengthening political and economic freedoms. In the Preamble and the "General principles" are also brought some conditionality of the full association that is linked with progress

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of free trade and complying with the rules of GATT, some references to the world Trade Organization, to the Partnership for Peace agreement. The objectives of the agreements cover the most important elements of any strategy towards the full integration of the countries into the European Union and provide certain markers against which to measure performance. The Preamble Objectives of the agreement Title I general principles of the agreement Title II: political dialogue Title III free movement of goods - Chapter 1: industrial products - Chapter 2: agriculture - Chapter 3: fisheries - Chapter 4: common provisions (trade protection instruments) Title IV: movement of workers, establishment, supply of services - Chapter 1. movement of workers - Chapter 2: establishment - Chapter 3: supply of services - Chapter 4: general provisions Title V: payments, capital, competition and other economic provisions, approximation of laws - Chapter 1: current payments and movement of capital - Chapter 2:competition and other economic provisions - Chapter 3: approximation of laws Title VI: economic cooperation Title VII: cooperation in the prevention of illegal activities Title VIII: cultural cooperation Title IX: financial cooperation Title X: institutional, general and final provisions (Alan Mathew, Recreating Europe The European Union's Policy towards Central and Eastern Europe; Cambridge University Press, 1998) They establish that respect for democratic principles and human rights and of the market economy, lay down economic reform. The transition has the purpose of legal adaptation in areas where immediate change is not possible or not desired. Historic arguments are worth considering when about the enlargement. Most of the countries of Central Europe have suffered throughout history by being sandwiched between expansionist powers and Russia and Prussia or Germany. Today, the situation has changed. All governments in the region feel the need to be bound in to NATO and the European Union for security reasons as well as the more obvious economic and political reasons. Enlargement is a win-win process, as it is necessary to complete the reintegration of the European Continent and to ensure peace and stability on it. But it will also bring economic benefit for the new Member States. Integration is a process which is to transform CEE countries into normal middle-income European countries after more than 45 years of central planning and separation. The internationalization of the associated countries must go well beyond their integration into the European structures. The

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associated countries have to decide their own political and economic policies and achievement is done only by accession. Enlargement to include the CEE countries, is meant to lead to a stronger European Union, with stronger political influence in the world and a stronger economy. The flexibility beyond the core policies of the Union is also meant to determine the development of new policies. The centralization of power to Brussels will be effectively controlled by the growing influence of the regions and an increase in their own power. The future of the Continent depends on the success of enlargement and for this reason it must be the central objective of European policy in the coming decade. 1.2. ACCESSION PROBLEMS and STRATEGIES The most important objective of accession strategy is the transforming the economies from centrally-planned dictatorship to market economy democracies. The achievements in the area of the democratic process proved to be somewhat less difficult and less controversial than economic and social reforms. In all the associated countries free and fair elections led to normal changes of the governments. The one-party system is evolving as different parties gain and lose their support, leading to shift in alliances and government crises. In economic area, the progress has been also remarkable. Much of the dynamism that the economies have shown has been due to the expansion of an entrepreneurial private sector. The associated countries have all introduced measures to ensure that legislation is progressively adopted, but legal problems are considerable, partly because of the shortage of legal experts in the associated countries and partly because of the relatively restricted assistance which the Member States of the Community and the Community institutions can make available. The objectives of the associated countries to join the Union under certain conditions became clear with the European Council at Copenhagen. Although these conditions could be realistically fulfilled, they rather limited the enthusiasm of the associated countries. The Union aimed at helping the associated countries meet their requirements namely the existence of a functional market economy, the ability to understand the competitive pressures inside the Union and the stability to take on obligations of membership (the acquis communautaire). The Council at Luxembourg in 1997 decided the countries to start negotiations for joining the EU and the "Agenda 2000" a complete and rapid time table. But while the timetable for the opening negotiations is more or less confirmed, there was no real indication of a date of accession. Clear political changes in policy in the associated countries could mean delay, if they prove to be incapable with membership of the Union. Specific strategies to prepare for accession were set by the applying countries. Systems have been developed to make sure that new legislation conforms to EU law, and timetables were drawn up for the adoption of the key pieces of legislation. But the adoption of the acquis communautaire is likely to be a complex process, as it is not simply a legal approximation of legislation. It is changing both the legal framework in which society and economy operates and revolutionizes the institutions of the state. Each piece of legislation involves a transition until citizens or economic operations adapt completely to it. Associated countries need to review their strategies periodically, decoding more resources to them and tightening up timetables. They are also supposed

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to discuss their negotiating position between themselves to make sure that there is some common position on the macro politics of transition period, even though different countries need to be considerable lobbying of the Member States in order to get this positions accepted by the Union. The associated countries are to develop plans to inform the public of the needs and implications of accessing to the Union. Certain social groups need particular attention. The business community in each country needs to be helped to understand and plan for the changes which will come before and at accession. Much of this work falls to the government, due to the weakness of chambers of commerce and other business organizations. The first sort of criteria is set in the world of macroeconomic policy. They concern for objectives of inflation, government deficit, reduction on the stock of government debts and in certain circumstance, the balance on current account. Further criteria, of a more macroeconomic type are set relating to privatization, the degree of state or private monopoly, and the level of state subsidies. Interim targets are set jointly by the Commission and the country concerned and the programmes are checked annually. If targets are missed, joint discussion seek to analyze the causes and the interim targets for the following year are adjusted correspondingly. The second sort of criteria is even more complicated to set and to monitor. Each year agreed areas of approximation is tackled and the associated countries themselves are in the control of the agenda, as they decide the sequencing of priorities, specific for their own. Every piece of legislation the associated countries take over from the Union is a far-reaching impact on the reform process, and on economic growth. Giving priority to economic growth and reform is not only important for the associated countries. It will be easier for the Union to integrate countries which are developing quickly and which are rapidly becoming more like the older Member States in terms of market economy than if the countries are very poor and reform is beginning to buckle under the weight of poverty and deprivation. However, the needs of the transformation process in the associated countries in specific sectors will mean that the transition periods should be as limited as possible, but most include those policy areas where rapid alignment would curb investment and economic growth. 1.3. THE ACQUIS COMMUNAUTAIRE The body of European Community Laws is known as the "acquis communautaire" (the term acquis comes from the French acqurir (acquire) it includes the treaties, regulations, and directives passed by the European institutions and the judgments of the European Court of Justice. The term is mostly used referring to the preparations of the candidate countries to join the European Union, as they must adapt, implement and enforce it. It is constantly evolving and consists of: - content, principles and political objectives of the treaties - applied legislation of the treaties and the case law of the Court of Justice - declarations and resolutions adopted by the Union - common foreign and security policy items - justice and common affairs legislation

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international agreements of the Community and of the member states in the field of the Union's activity "The acquis communautaire" must be adopted entirely before joi8ning the European Union, any derogation is granted only in exceptional conditions. The chapters of the acquis are: free movement of goods taxation free movement of persons economic and monetary union freedom to grant services statistics free movement of capitals social politics and employment company law energy competition policy industrial policy agriculture small and medium sized enterprises fisheries consumers and health protection science and research cooperation in the field of justice education and training and home affairs telecommunication and information customs union technology external relations culture and audio-visual policy common foreign and security policy regional policy and coordination financial control structural instruments financial and budgetary provisions environment transport policy The fundamental requirement for the candidate states to EU is that they adapt their legislation to the acquis communautaire in force. For our country, the European Institute of Romania is assigned to ensure the legal, technical and linguistic revision of the translated texts that are supposed to meet the stylistic, content accuracy. Taking into account that a wide range of neologisms appeared in the Romanian language in economic and legislation domain, the specialized professional texts a terminological and stylistic level out is needed. The term of acquis communautaire, used by all the candidate and member states in Europe, is borrowed from French language. The Community Law consists of the primary and the secondary legislation, the Reports of Cases of the Court of Justice and other community documents. The primary legislation includes all the treaties of the Community, with all their subsequent revisions and represents the constitutional framework of the European Union. Example: Treaty establishing the European Coal and Steel Community (Treaty of Paris) The secondary legislation includes all the community legal documents passed by the Community institutions such as: Example: Directives, Decisions, Regulations, Recommendation, Opinions, Resolutions, Conclusions, Agreement, Rules of Procedure, Decree, Statements, Declarations Other types of Community Documents are: Examples: Acts, Acts of Accession, Action programmes, Agreed minute, Association agreement, Communication, Notice, Convention, Cooperation agreement, Europe Agreement, Final report, Framework agreement, Framework decision, General Paper, Green Paper, Guideline, , Individual/separate directive, Initiative, Interim agreement, Interinstitutional agreement, Interpretative communication, Pact, Priority programme, Protocol,

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Report, Reports of cases before the Court of Justice and the Court of First Instance, Treaty, White paper, etc 1.4. INTERNATIONAL MONETARY FUND Despite its increased visibility, the International Monetary Fund remains a mysterious presence on the international scene. Considerable confusion reigns about why it exists and what it does. Some observers, confusing it with the World Bank, are under the impression that IMF exists to subsidize economic development in the poor nations. Others imagine it as an international central bank controlling the creation of money on a world scale. Still others regard the IMF as a powerful and disapproving political institution, imbued with missionary zeal for fiscal rectitude that somehow compels its members to tread a path of economic austerity. The IMF is in fact none of these. It is neither a development bank, nor a world central bank, not an agency that can or wishes to coerce its members to certain things. It is rather a cooperative institution that 182 countries have voluntarily joined because they see the advantage of consulting with one another in this forum to maintain a more stable system of buying and selling their currencies so that payments in foreign money can take place between countries smoothly and without delay. The IMF is the enemy of surprise. Members of the IMF believe that keeping other countries informed of their intentions regarding policies that influence payments by the governments and residents of one country to those of another, rather than making a secret of such policies, is to everyone's advantage. They also believe that occasionally modifying those policies (by reducing export taxes, for instance), when fellow members agree that this is in the common interest, will help international trade to grow and will create more and higher-paying jobs in an expanding world economy. The IMF lends money to members having trouble meeting financial obligations to other members, but only on condition that they undertake economic reforms to eliminate these difficulties for their own good and that of the entire membership. Contrary to the widespread perception, the IMF has no effective authority over domestic economic policies of its members. It can, and often does urge members to make the best use of scarce resources by refraining from unproductive military expenditures or by spending more money on health and education. There is no question of forcing a member to adopt any policy. Whatever authority the IMF may possess is confined to requiring the member to disclose information on its monetary and fiscal policy and to avoid, as far as possible, putting restrictions on exchanging domestic for foreign currency and on making payments to other members. Its members have given the IMF some authority over their payments policies because these policies are of paramount importance to the flow of money between nations and because experience has confirmed that without a global monitoring agency, the modern system of payment in foreign currency simply does not work. Changing money is the central point of financial contracts between nations and the indispensable vehicle of the world trade. Each currency, be it the dollar, franc or the Gambian dalasi or Haitian gourde, has a value in terms of other currencies. The relative exchanging values of the world's major currencies now fluctuate continuously and are reported daily in the financial columns of the newspapers. Although the operations of the exchange market, where money (much the same as such commodities as wheat or apples) is bought or sold, may seem remote from daily life, these

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operations deeply affect us all. Most commonly, we experience the reality of exchange values abruptly when we travel abroad as tourists and find we must first buy local money before we can buy anything else. Purchasing foreign currency is a fact of life not only for tourists, but also for importers, bankers, governments and other institutions that must acquire foreign currency, often on a very large scale, before they can do business abroad. No country restricts the exchange of its national currency into another nations money, and this greatly facilitates international trade. The current confident expectations that one currency will be converted into another on demand makes it difficult to imagine circumstances in which this was not the case. And yet it was largely in reaction to circumstances of widespread inconvertibility and related exchange problems that the international community decided over 50 years ago to work out these problems in a common form that was to become the International Monetary Fund. (External Relations Department, Publications Services International Monetary Fund, Washington DC, USA). 1.5. PHARE PROGRAMME Originally, PHARE Programme was set in 1989 to assist Poland and Hungary, but extended for the applicant countries of Central and Eastern Europe as a pre-accession instrument financed by the European Union. Now it covers currently the needs ten countries of the recently joining 8 countries the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia and the two countries that are to join the European Union in 2007: Romania and Bulgaria. The programme is meant to assist the massive restructuring their former centrally planned economies and political change. Phare support was reoriented to the aim of Eastern European countries' membership of European Union, for their market economy expansion and infrastructure investment. The pre-accession priorities lighted by the accession Partnership Agreements represent the National Programmes for the adoption of the Acquis in the candidate's country time table. The timing and the costs are evaluated and the steps implications and financial resources needed are planned. The Phare objectives set originally in 1989 were further refined in the coming years: 1. strengthening public administration and institutions function effectively inside the Union 2. adoption of Acquis Communautaire and shorten transition period 3. promotion of economic and social cohesion New programmes were created: SAPARD and ISPA undertook rural and agricultural development and transportation. This way it became possible that PHARE programme focus on its key priorities only. 2003 was the final programming year for the new 8 Member States although projects have covered 2005 too, although they have undertaken full responsibility for the management of PHARE projects through a process of extended decentralization. The key requirements for enlargement for the applying countries are to implement and comply with the Community legislation so far reaching improvements that are needed for their administration and judiciary based on professionalism and mentality.

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Democratic institution building activities focus on the weaknesses identified at central, regional and local level, and on the transfer of the knowhow and investment. The process of transferring "know-how" to develop structures, strategies, human resources and management skills is needed to strengthen the applicant countries' economic, social, regulatory and administrative capacities. 30% of PHARE financing sources are allocated for this purpose and are mainly deployed and implemented with member states through Twinning projects. The instrument of Twinning is based on the priority areas identified by monitoring and regular reports prepared for enlargement. Twinning projects provide technical and administrative assistance to newly joining countries and candidate countries and also help in building wider contacts with practices inside addresses to improvement cover long and medium term assignments. The projects provide civil servant expertise from member states for assignment of up to eight months, with possible but limited extensions. Around 35% PHARE resources are also allocated for institution building involving physical investment. Support money is invested in key regulatory institutions whose equipment or infrastructure needs to be upgraded in order to monitor and enforce the acquis communautaire. But this sort of investment is only made on the basis of a clear-cut government strategy and commitment on public administration reform, modernization and governance supported as necessary by Institution Building involving transfer of know-how. Nation al programmes of the applying countries account for the most of the PHARE budget as it indicates the priorities and the time table needed to adopt the acquis or fulfill the accession criteria. This process continues with Bulgaria and Romania until their accession. Cross-border assistance of PHARE in the applicant countries is meant to overcome specific economic and social developments in the countries of Central and Eastern Europe and within their own national economies. The programme has been extended to cover Bulgaria with Turkey and the Bulgarian and Romanian borders with their adjacent countries Ukraine, Moldova, Serbia, Montenegro and the former Yugoslav Republic of Macedonia. PHARE Multi-country Programmes have increasingly been integrated into national programmes too. The largest of these have been developed in co-operation with International Financial Institutions and deal with the promotion of small and medium-sized enterprises and intermediary banks are encouraged to provide finance for the partner countries in the field of Monitoring and Evaluation, Statistics, Environment and Institution Building in fraud fighting. Phare Programmes are planned centrally, but implemented in a decentralized way, i.e. by candidate countries. Decentralization involves responsibility transfer from the Commission to the Contracting Authority in the recipient country, which becomes responsible for tendering the contracting as well as the financial and administrative management of the projects. Erasmus Programme is a studentship, exchanger and training programme based on a wide student organization. Its goal is to support and develop student exchange knowledge and experience for its member states. Its local sections and over 2500 members in 27 countries work in Higher Education Institutes (Universities, Polytechnics, and University Colleges). Erasmus Student Network (ESN) members mainly act and support social and

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practical integration of Exchange students, and provides relevant information about academic exchange programmes and ESN resources. It also makes its contribution to the celebration of different exchange programmes. 2. STANDARD PHRASE SAMPLES of PRIMARY and SECONDARY EUROPEAN UNION LEGISLATION English Romanian Fredom, democracy and respect for Libertate,m democraie, respectarea human rights drepturilor omului i libertilor National laws/legislation and practice Legislaie i practic naional Common positions, joint actions and Poziii comune, aciuni comune, common strategies strategii The weel established case-law of the Jurisprudena constant a Curii Court The costs incurred by the Cheltuielile pretinse de ctre governemtns ... and the Commission of guvernele ..., precum i de ctre the European Communities, which have Comisia Comunitilor Europene, submitted observations to the Court, care au prezentat observaii Curii, are not recoverable. Since these nu pot face obiectul unei rambursri. proceedings are, in so far as the parties Intruct procedura are, n ceea ce to the main proceedings are concerned, privete prile n aciunea in the nature of a step in the principal, caracterul unui incident proceedings pending before the ridicat naintea Instanei naionale, national tribuna, the decision on costs este de competena acesteia s se is a matter for that tribunal. pronune cu privire la cheltuielile de judecat. Initiation of proceedings before the Sesizarea Curii Court Cause lists: Lista cauzelor rolul cauzelor Substance of the cause Cu privire la fond Costs Cu privire la cheltuielile de judecat Legal remedy Cale de atac To come within the exception A cdea sub incidena excepiei The Commissiona shall be assisted by Comisia este asistat de Comitetul X the X Committee esteblished by infiinat prin decizia Y Decision Y The Commission shall be assisted by a Comisdia este asistat de un comitet (advisory) (implementation) (consultative) (de aplicare) (management) (regulatory) committee (gestionare) (de reglementare) (of an advisory nature) composed of format din reprezentaii statelor the representatives of the Member membre i prezidat de un States and chaired by the reprezentant al Comisiei. representatives of the Commission A Commiittee X, hereinafter referred to Se constituie Comitetul ,X, denumit as the Committee shall be set up, n continuare Comitet format din consisting of representatives of the reprezentaii statelor membre i Member States and chaired by a prezidat de un reprezentat al representative of the Commission Comisiei It shall consist of representatives of the Este format din reprezentanii Member States with a representative of statelor membre i este prezidat de the Commission of a Cahirman un reprezentat al Comisiei The Committee shall adopt its rules of

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procedure Where the procedure laid down in thei Article is to be followed, matters shall be referred by the Chairman, either on his own initiative or at the request of the representative of a Member Stzate, to the Committee X (herteinafter called the Committee) The reprezentative of the Commission shall submit (to the committee) a draft of measures to be adopted The Committee shall deliver its opinion on such measures (on the draft9 within a time limit which the chairman maz lay down (within the limit set by the Cahairman) according to the urgency of the matter, (if necessarz by taking a vote) (within a period of two months) Opinions shall be adopted by a majority of X votes The opinion shall be delivered by the majority laid down in Article ... () of the Treaty in the case of decision which the Council is required to adopt on a proposal from the Commission. The Chairman shall not vote. The opinion shall be recorded in the minutes; in addition,each Member Stete shall have the right to ask its position recorded in the minutes.

Dac trebuie urmat procedura dprevzut n prezentul articol, comitetul X denumit n continuare comitet, este sesizat de preedinte, fie la iniiativa acestuia, fie la cererea reprezentatului unui stat membru Reprezentatul prezint Comisiei (comitetului) un proiect cu msurile ce urmeaz s fie adoptate Comitetul i d avizul cu privire la aceste msuri (acest proiect) n termenul pe care preedintele l popate stabili n funcie de urgena subiectului n cauz, (dac este necesar prin votare) (n termen de dou luni) Avizele se adopt cu o majoritate de X voturi. Avizul este admis cu majoritate a prevzut n art .... alin.()...din tratat penttru deciziile pe care Consiliul trebuie s le adopte la propunerea Comisiei Preedintele nu particip la vot. Avizul este consemnat n proicesul verbal; n afar de aceasta, fiecare stat membru are dreptul s solicite ca popziia s fie consemnat n procesul verbal. The Commission shall take the utmost Comisia ine seama n cea mai mare account of the opinion delivered by the msur de avizul emis de comitet. committee. It shall inform the committee of the Aceasta informeaz comitetul despre manner in which its opinio has been modul n care avizul este luat n taken into account. considerare. The Commision shall adopt measures Comisia adopt masuri care se aplic which shall apply immediately. imediat (cu aplicare imediat) However if these measures are not in Cu toate acestea, dac nu sunt accordance with the opinion of the conforme cu avizul comitetului, Committee, they forthwith be aceste msuri sunt de ndat communicated by the Commision to the comunicate Consiului de ctre Council. Comisie. The Commission shall adopt the Comisia adopt msurile preconizate measures envisaged (and shall (i le pune imediat n aplicare) dac implement them immediately) if thea acestea sunt conmforme cu aviyul are in accordance with the opinion of comitetului. the committee. In that event of the Commission may In acest caz Comisia poate s amne defer application of the measures which aplicarea msurilor adoptate cu cel

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it has been adopted for no more than one month from the date of such communication. The Council,a cting by a qualified majority, may take a different decision within the time limit (referred to in the previous paragraph.(within one month) The Commission shall (may) defer application of the measures which it has decided for the a period to be laid down in each act adopted by the Council, but which may in no case exceed three months from the date of ccommunication. If, on the expiry of the period to be laid down in each act to be adopted ba the Council under this paraghraph but which in no case exceed three months from the date of the referrasl to the Council, the Council has not actewd, the proposal measures shall be adopted by trhe Commission, (save where the Council has decided against the said measures by a simple majority) If the council has not adopted any measures within X of the date on which the matter is referred to, the Commission shall adopt the proposed measures and shall implement them immediately unless the Council has voted against the measures by simple majority. If the measure emvisaged are enot in accordance with the opinion of the committee, or no opinion is delivered, the Commission shall, without delay, submit to the Council a proposal relating to the measures top be takenm and shall inform the European Parliament If the European Parliament considers that a proposal submitted by the Commission pursuant to a basic instrument adopted in accordance with the procedure laid down in art.... of ther Treaty exceeds the implementing powers provided for in that basic instrument, it shall inform the Council of its position. The Council may, whre appropriate in

mult o lun de la data comunicrii acestora. Consiliul, hotrnd cu majoritate absolut de voturi, poate s ia o decizie diferit n termenul prevzut n paragraful anterior (termen de o lun) Comisia amn (poate amna) aplicarea msurilor pe care le adopt pn la un termen ce va fi stabilit n fiecare act ce urmeaz s fie adoptat de Consiliu, dar care nu poate s depeasc n nici un caz trei luni de la data comunicrii. Dac, la expirarea unui termn care va fi stabilit n fiecare act ce urmeaz s fie adoptat de Consiliu n conformnitate cu prezentul alineat, dar care nu poate s depeasc trei luni de la data prezentrii la Consiliu, acesta nu hotrte, msurile propuse fiind adoptate de Comisie, (cu excepia cazului n care Consiliul s-a pronunat mpotriva acestor msuri, cu majoritate simpl) Dac, n temrn de X de la data la care i-a fost prezentat propunerea, Consiliul nu adopt nici o msur, Comisia adopt msurile propuse i le pune n aplicare de ndat, cu excepia cazului n care Consiliul s-a pronunat cu majoritate simpl mpotriva msurilor n cauz. Dac msurile preconizate nu sunt conforme cu avizul comitetului sau n absena avizului, Comisia prezint Consiliului, de ndat, o propunere cu privire la msurile ce trebuie luate i informeazp Parlementul European cu privire la aceasta. Dac Parlementul European consider c o propunere prezentat de Comisie n temeiul unui act de baz adoptat n conformitate cu procedura prevzut la art. ... din tratat depete competenele de punere n aplicare prevzute de actul de baz, acesta informeaz Consiluil cu privire la poziia sa. Consiliul, poate, dac este cazul, n

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view of anz such posiition, act ba qualified majority on the proposal, within a period to be laid down in each basic instrument but which shall in no case exceed three months from the date of referral to the Council. If within that period the Council nhas indicated by qualifiued majority that it opposes the proposal, the Commision shall re-examine it. It may submit an amendment proposal to the Council, re-submit its presentation as a legislative proposal on the basis of the treaty. If on the expiry of that period the Council has neither adopted the proposed implementing act nor indicated its oposition to the proposal for the impelemnting measures, the proposed implemenbting act shall be adopted by the Commission. The Commission shall notify the Council and the Member States of any decision regarding safeguard measures. (It may be stipulated ) that before adopting this decision the Commission shall consult the Member States in accordance with procedures to be determined in each case.I

conformitate cu o astfel de poziie, s hotrasc cu majoritate absolut cu privire la propunere, ntr-un termen care va fi stabilit n fiecare act de baz, dar care nu trebuie s depeasc n nici un caz trei luni de la dat prezentrii la Consiliu. Dac n acest termen Consiliul a Indicat, cu majoritate absolut, c se opune propunerii, Comisia o va reexamina. Comisia poate s reprezinte Consiliului o propunere legislativ pe baza tratatului. Dac, la expirarea acestui termen, Consiliul nu a adoptat msurile de aplicare propuse i nici nu i-a exprimat opoziia fa de propunerea de aplicare, acestea sunt adoptate de ctre Comisie.

Comisia comunic statelor membre i Consiliului orice decizie cu privire la msurile de salgavdare. (Se poate stipula) c nainte de adoptarea deeciziei, Comisia consult statele membre n conformitate cu procedurile care urmeaz s fie stabilite n fiecare caz. Any Mamber State may refer the Orice stat membru poate prezenta Commission s decision to the Council Consiliului decizia Comisiei ntr-un within a time limit to be determined in termen care urmeaz s fie stabilit n the act (within the basic instrument in actul (de baz) respectiv. question. The Council, acting by a qualified Consiliul, hotrnd cu majoritate majority, may confirm, amend or absolut, poate s confirme, s revoke the decision adopted by the modifice sau s revoce decizia Commission. adoptat de Comisie. If the Council has not taken a decision within a time limit to be determined in the act in question, the decision of the Commission is deemed to be revoked. Alternatively, it may be stipulated in the basic instrument that the Council, acting by quaylified majority, may confirm, amend or revoke the decision adopted by the Commission and that, if the Council has not taken a decision within the above mentioned time-limit, Dac, n termenul stabilit n actul respectiv, Consiliul nu ia o decizie, hotrrea Comisiei se consider revocat. De asemenea, n actul de baz se poate stipula c, hotrnd cu majoritate absolut, Consiliul poate s confirme, s modifice ori s revoce decizia adoptat de Comisie i, n cazul n care Consiliul nu a adoptat o decizie n termenul

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the decision of the Commission deemed too be revoked. EXERCISES:

is menionat anterior, decizia Comisiei se consider revocat.

I. Fill in the blanks the following missing words: 1. prices; 2. priority; 3. suppliers; 4. subsidizing; 5. fair; 6. fins; 7. choice; 8. artificially; 9. competition; 10. braches Competition means more customer a)________. It also means lower b)_______. The consumers best guarantee for obtaining quality goods and services at competitive prices is to have a number of c) __________ competing for his business. Free and open d)_________ is a cornerstone of European Union market-based economic system. This is why it has consistently made competition policy a high e)_________ since its creation. The Union has put in place a set of rules to make sure that throughout the EU firms are operating on a f)________ basis and that customers get the benefits to which they are entitled, for competition and price-cutting do not always come naturally to firms, whose first duty to shareholders is to maximize profits. They may seek to form anti-competitive cartels to share markets between them or to keep prices g)___________ high or again to block newcomers from breaking into their markets. Governments also sometimes distort competition by h)________ some firms so that they gain an unfair competitive advantage over the rivals. Every year, The European Commission investigates well over 1000 alleged I)________ of the Union rules. It has the power to order illegal practices to cease and to impose j)_________ on the most serious corporate offenders. II. Re-arrange the following fragments to make a whole text: A. The other countries of the region opted for democracy and the free market. Each market of them sought closer ties with the Union, often declaring their ultimate goal as full Union membership. But the radical changes of 1989, surprising when they came in the suddenness and in their scope, had been preceded by signs of change. B. Since then, the agreements between the Union on the one side and Hungary, Czechoslovakia, Poland, Bulgaria and Romania on the other side have been upgraded. The Union has devised for these countries a new type of association C. The dramatic events in one country of Eastern and Central Europe after another in 1989 changed the political and economic map of Europe. Germany was united, presenting the Union with the need to create a crash programme to incorporate the territory of what had been the German Democratic Republic. D. The first signs of a more open and flexible attitude towards the European Union on the part of members of the COMECON ( (the acronym for the Council for Mutual Economic Assistance CMEA/ which comprised the Soviet Union and the former State-trading countries of Eastern Europe plus Mongolia, Vietnam and Cuba) came several years earlier when Hungary and Czechoslovakia approached the Union with requests for wider trade links

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beyond the scope of very limited sectorial agreements that had hitherto been negotiated. E. Agreements between all the East European countries and the Soviet Union were negotiated between 1988 and l990. These negotiations were already in train when the virtually bloodless revolution took place in Eastern Europe. IV. Translate into English: Proiectul de nfrire instituional finanat de Uniunea European i coordonat de Ministrul Industriei a fost ncheiat cu succes. Nivelul de convergen a legislaiei romneti cu piaa intern a Uniunii Europene, care include peste 370 milioane de consumatori, va crete ca urmare a acestui proiect derulat pe parcursul a 15 luni. Acesta a avut n vedere transpunerea i implementarea directivelor UE n acest domeniu, referitoare la securitatea tehnic a produselor, n vederea asigurrii unui grad nalt de protecie a consumatorilor, a consolidrii competitivitii industriei romneti, prin mbuntirea calitii i securitii produselor. Rezultatul tangibil cel mai important al proiectului este un document care reunete legislaia, structurile instituionale i procedurile referitoare la evaluarea conformitii i supravegherea pieei. Certificarea produselor la nivel naional va fi recunoscut automat de UE i, prin urmare, vor avea acces liber pe piaa intern a Uniunii.

UNIT 2 POLITICAL and ECONOMIC BODIES

The evolution of modern-nation societies and international order inevitably gave rise to questions of international cooperation. Diplomatic representation became more widespread as the system expanded and political and economic relationships multiplied. But it became evident that only diplomatic contacts in themselves were unable to cope completely with the complexity of the international system, so the concept of international conference appeared and developed as a form of extended diplomacy. Conferences dealt with problems that at least two or three countries were interested in and an international treaty or formal peace resulted. The Peace of West Westphalia was the first major instance of this in 1648 that ended the thirty-year-old. The wars of Louis XIV and the Napoleonic wars, a century later were terminated similarly by international agreements of interested powers. The Congress of Vienna in 1815 is considered as a significant turning point as it marked the first systematic attempt to regulate international affairs by means of regular international conferences. (El Eriam, Legal Organizations, p 58) The Congress system lasted and institutionalized not only the balance of power approach to politics, but also a semi-formal international order. Then, world affairs were influenced to a large extent by periodic conferences held in Europe until the outbreak of the II WW. The conferences of this period (The Paris conference of 1856, and the Berlin gathering of 1871 dealt with Balkan problems) led to the establishment of international institutions. The 19th century witnessed a considerable growth in international non-governmental associations such as the International Committee of the

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Red Cross founded in 1863 and the International Law Association (1873). They represented a wide-range committee of interests on specific topics and an awareness that international corporation must be effective, as they created the machinery for regular meetings and established permanent bodies. These organizations work to influencing governmental activities and stimulating action, and they fulfilled an increasingly felt need for more complex methods of international co-operation and regulation in an inter-dependent world. In 1865 the International Telegraphic Union was set up and nine years later the Universal Postal Union was also created. They combined the activity of permanent bureaus with periodic conferences with decisions being taken by majority vote that marked a step forward since unanimity process was needed. The nineteenth century was marked by the proliferation of such public international unions covering transportation, communication, health and economic co-operation which laid the basis for contemporary international institutions. But the innovation of the past century has been, of course, the creation of the global, comprehensive organizations of the League of Nations, and the United Nations which was the culmination of the pioneering work of the private and public international unions that required some form of central co-ordination. The development of the United Nations into a real world authority has been beneficial in the long run by the gradual increase in its influence and responsibility in all fields of international peace and security. The League of Nations created in 1919 sought to promote international co-operation, peace and security upon the basis of disarmament, the peaceful resolution of disputes, a guarantee of the sovereignty and independence of member states and sanctions. But although an international organization, it never became universal. It stayed to all intends and purposes a European-centered institution and it was formally dissolved in 1946. 2.1. UNITED NATIONS It arose as an attempt to remedy the defects of the League organization. The series of war-time declarations and conferences culminated in the San Francisco conference in 1945 which finally adopted the United Nations Charter. The newly established international organization has proved to be one of the major innovations of the 29th century in international relations, not only in the use of force, but also with regard to wide-ranging economic and social co-operation among states. The General Agreement for Tariffs and Trade (GATT) arose out of an international conference held at Havana in 1947-8 at which was established the International Trade organization. The arrangements operated on the basis of bilateral approach to trade negotiations coupled with unconditional acceptance of the most favored nation principle (the most favorable benefit obtained by one state are passed on to other states). A series of tariffs and trade negotiations rounds were held under its auspices that offered a package approach to trade negotiation, and a wide variety of tariff reductions was achieved. The eight rounds, termed the Uruguay round in 1986, concluded with the signature at Marrakech on 15 April 1994 of a long and complex agreement covering a range of economic issues, such as agriculture, textiles and clothing, rules of origin, import licensing procedures, subsidies, intellectual property rights, and procedures on dispute settlement. The GATT continued until the end of 1995, when it was effectively subsumed with changes as GATT within the World Trade Organization.

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2.2. REGIONAL BODIES The proliferation of regional institutions, linking together geographically and ideologically related states since the end of the Second World War, has been impressive. The outset of the Cold War stimulated the growth of regional defense alliances and block politics. NATO and its various linking organizations covering the Middle and Far East, confronted the Warsaw Pact. Regional organizations developed to reflect common interests in a superpower Organization of American States and the Organization of African Unity. But it was in Europe that regionalism became most constructive and political. The establishment of the European Economic Community, in particular, was intended to lay the basis for a resurgent Western Europe with meaningful economic and political integration. The North Atlantic Treaty Organization was created in 1949 to counter possible threats from the East. It associated the United States and Canada with 14 European powers for the protection, in essence, of Western Europe (although Greece and Turkey are involved). By the Treaty the parties agreed to consult where the territorial integrity, political independence or security of any of them has been threatened and accepted that an armed attack against one or more of them in Europe or North America should be considered an attack against all. The alliance consists of a Council which is the supreme organ and on which all members are represented and a series of civil and military committees covering all aspects of security work. The ending of the Cold War brought about a variety of changes in the organization. A North Atlantic Co-operation Council (NACC) was established in 1991 with the membership consisting of NATO states and former members of the Warsaw Pact countries, including the successor states to the USSR. In 1994 a partnership for Peace Programme was inaugurated within the framework of NACC. Countries participating in the Partnership for Peace signed Framework Document, affirming their commitment to the preservation of democratic societies and the maintenance of the principles of international law, to fulfill in good faith the obligations of the UN Charter and the principles contained in the Universal Declaration of Human Rights and to respect the existing borders. NATO has, in in-cooperation with the Western European Union, helped in implementing UN sanctions in the former Yugoslavia and currently leads the multinational implementation force (IFOR) in Bosnia in enforcement of the Dayton Peace Agreement of 1995. The Organization for Security and Co-operation in Europe (OSCE) was originally created in 1975 following the Helsinki Conference of European Powers (plus US and Canada) that established some basic principles of behaviour among the participating states: sovereign equality, prohibition of threat or use of force, inviolability of frontiers, territorial integrity of states, peaceful settlement of disputes, non intervention in internal affairs and respect for human rights. The Final Act is not a binding treaty but a political document, concerned with three area of "baskets" being security questions in Europe; co-operation in the fields of economics, science and technology, and co-operation in humanitarian fields. The diplomatic conference in Helsinki had regular follow-up meetings, but it was only in the late 1980s that it began to assume a coherent structure.

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The Charter of Paris for a New Europe signed in 1990 provided for the first standing institutions: the Conflict Prevention Centre in Vienna, the Office for Free Elections in Warsaw (now renamed the Office for Democratic Institutions and Human Rights) and the Secretariat based in Prague. Further institutional steps were taken at the Budapest Summit in 1994 when the organization was renamed the Organization for Security and Co-operation in Europe as from January 1995. The organization has established Missions to assist in dispute settlements. In March 1995 the Conference on the Pact on Stability in Europe adopted a Final Declaration, which, together with some 100 bilateral and regional cooperation agreements, represents an attempt to mitigate tensions. The Declaration contains a commitment to act against intolerance and discrimination which the agreements include dealings with cross-border co-operation, economic, environmental and minority protection issues. The pact is supplemented by measures to be taken by the European Union and is integrated within OSCE system. In the event of difficulties over observance of the agreements, the states participating in the Pact would rely on existing OSCE institutions and procedures for settling disputes peacefully, including the Court of Conciliation and Arbitration. The Commonwealth of Independent States (CIS) was established by Russia, Belarus and Ukraine in 1991 to which eight other former Republics of USSR adhered so the organization now comprises all the former Soviet Republics apart from the three Baltic States. The organization is set on respect of the territorial integrity of member states and upon co-operation particularly in safeguarding international peace and security and implementing effective measures for the reduction of armaments. A large number of agreements have been signed by the member states on a variety of subjects, including prevention of drug smuggling and terrorism, but many of these agreements have not been ratified. After the II WW the Organization of American States emerged and built on the 1947 Inter-American Treaty of Reciprocal Assistance signed at Rio de Janeiro, and the 1948 Pact of Bogot which is the original Charter of OAS which was amended in 1967 by Buenos Aires Protocol in 1985 by the Cartagena de Indias Protocol and by the 1992 Washington Protocol and the 1993 Managua Protocol. The organization comprises currently 35 member states and it is the most developed of the regional organizations outside Europe, but without any of the supranational powers possessed by the European Union. The Arab League was created in 1944. It encourages regional cooperation in economic, cultural and social issues. Its headquarters is based in Tunisia. The Organization of African Unity was established in 1963 in Ethiopia dealing with economic, health, defense, educational and scientific matters amongst others. Its liberation committee is based in Dar es Salaam to assist the various liberation organizations. The OUA has faced considerable problems in reconciliation member states' policies that led to Morocco's withdrawal or to the noticeable unsuccessful mediation attempts in the Chad civil war. The Eastern European former communist countries had their own organization such as Warsaw Pact, which mirrored the NATO organization and Comecon (the Council for Mutual Economic Aid). Both of them have disintegrated with the collapse of the Soviet system.

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The Association of South East Asian Nations (ASEAN) was created in 1967 on both political and economic aims. Its members: Indonesia, Thailand, Malaysia, Singapore, the Philippines, Brunei and later Vietnam affirmed their commitment to peace and peaceful settlement of disputes. 2.3. NORMS and LEGAL PRACTICE of INTERNATIONAL ORGANIZATIONS The different types of international organizations have brought their contribution to the norms and practice of international law. This is particularly true as for the United Nations with the universality of membership and extensive field of activity and interest. It is worth noting the importance of international legal norms with the operations of these organizations. The constituent instruments in dealing with international affairs are the treaties that are particularly relevant. An important aspect of the role of international organization in the world order is the possession of international legal personality. Once established, the organization becomes subject of international law and thus capable of enforcing laws, rights and duties as distinct from operating merely within the confines of separate jurisdiction. Legal personality of the organization may be inferred from the powers or purposes of the organization and its practice. The attribution of international legal personality to an international organization is important in establishing that organization as an entity operating directly upon the international stage rather than obliging the organization to function internationally through its member states. Many constituent instruments of international organizations provide that the organization in question shall have personality in domestic law so as to enable it, for example, to contract or acquire or dispose of property or to institute legal proceedings in the local courts or to have the legal capacity necessary to exercise its functions. This issue also arises as to whether states that are not parties to the treaty in question and thus not member states of the particular international organization are obliged to recognize the personality of such organization. This can be achieved either directly by entering into an agreement with the organization and a headquarters agreement permitting the establishment of the organization within the jurisdiction, or indirectly, by virtue of the rules of private international law. By virtue of this approach, adopted in most legal systems, a domestic court will determine the legal status and capacity of a legal person by reference to the applicable or proper laws, which will be in the case of international organizations, international law. Thus, if the organization had personality under international law, this would suffice to establish personality under domestic law. The very nature status and autonomy of international organizations will depend primarily upon the terms of their constituent instruments or constitution under which they are established. These are the multilateral treaties, since they are binding agreements entered into by member states. They have a special character since they are also methods of creation of new subjects of international law. However, far-reaching powers are not ascribed to the international organizations so as not to lead to conflicts with member states and third parties, as well as not to undermine the internationally recognized nature and scope of the organization. The international Institutions are governed by the principle of speciality and they are invested by the states which created them with powers the limits of which are a function of the common interests whose promotion those states

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entrust to them. Such powers may be expressly laid down in the constituent instruments or may rise subsidiary as implied powers, being those deemed necessary for fulfillment of the functions of the particular organization. An important question is the capacity of international organizations to conclude treaties which is usually governed by the rules of each international organization. Responsibility is also a necessary consequence of international legal personality of the organization, and the resulting possession of international rights and duties. Such rights and duties may flow from treaties or from principles of customary international laws. The precise nature of responsibility will depend upon the circumstances of the case but also analogies drawn from the laws of state responsibility with regard to the conditions under which responsibility will be imposed. International organizations relate to their own legal requirements. They can be held responsible, inquiry arising out of a breach by the organization of an international obligation deriving from a treaty provision or principle of customary international law. Analogies can be also drawn from the general rules relating to state responsibility with regard to the condition under which responsibility is imposed. 2.4. INTERNATIONAL LAW Societies have created for themselves a framework of principles within which to develop. The rights and obligations have all been spelt out within the consciousness of the communities. Law is that element which binds the members of the societies together in their adherence to recognized values and standards. It attempts to create a framework which can act as a shock-absorber clarifying and moderating claims and endeavoring to balance interests. Just as any domestic community must have a background of ideas and hopes to aim, so the international community must bear in mind its ultimate values. It is both permissive, in allowing individuals to establish their own legal relation with rights and duties, and coercitive as it punishes those who infringe its regulations. Law consists of a series of rules regulating behaviour, and reflecting the ideas and preoccupations of the society within which it operates. The subject of International laws is nation-states, not individual citizens. There are many contrasts between the law between states, international organizations and, in certain cases, individuals. International law is divided into private international law and public international law. The former deals with the cases within particular legal systems in which foreign elements raise questions as to the application of foreign law or the role of foreign courts. If an Italian business man concludes a contract in France, to sell goods, any Italian court would apply French law as regards the terms of the contract. By contrast, public international law is but a separate system altogether. The mistake is to confuse courtesy laws, specific for different nations, or morality which is a branch of ethics. International law is generally considered an emanation of a recognized body to legislate or create laws and implemented by a hierarchy of courts with compulsory jurisdiction to settle disputes over such laws and an accepted system of enforcing those laws. International law has no legislature. The resolutions of United Nations are not legally binding on anybody save for certain of the organs of the United Nations for certain purposes. There is no system of international courts, except the International Court of justice at the Hague, but it can only decide

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cases when both sides agree and it cannot ensure that its decisions are complied with. It is important, but only peripheral to the international community. Above all, there is no executive or governing entity. The Security Council of the United Nations, which was intended to have such a role, has at times been effectively constrained by the veto power of the five permanent members: USA, now the Russian Federation, China, France, and the United Kingdom. International law does not state a unified system of sanctions, but there are circumstances in which the use of force is regarded as justified and legal. Within the United Nations system, sanctions may be imposed by the Security Council upon the determination of a threat to the peace, breach of the peace or act of aggression. Such sanctions may be economic or even military and the states themselves decide whether to take action on the extent of their measures as there is no supreme body to rule on their legality, although international law does lay down relevant rules. Neither must it be forgotten that the current trend in international law is to restrict the use of force as far as possible, thus holding to the absurd result that the more force is controlled in international society, the less legal international law becomes. While the legal structure within all but the most primitive societies is hierarchical and authority is vertical rather like a pyramid with the sovereign person or unit in a position of supremacy on top, the international law system is horizontal consisting of over 180 independent states, all equal in legal theory, and reorganizing no one in authority over them. International law is primarily formulated by international agreements, which issue rules binding upon the signatories, and customary rules which are basically state practices recognized by the community at large as laying down patterns of conduct that have to be complied with. International law can only constitute a neutrally understandable specific vocabulary and suggest possible solutions which follow to a study of its principles. The principle of auto-limitation, on self-limitation, states that states could only be obliged to comply with international rules of they first agreed to be so obliged. In abroad sense, states accept laws, as without that, no such a system could possibly operate. But the inextricable bonds linking law and politics must be reorganized. The formulation of policy and the method of enforcement are distinctive within developed societies in order to prevent a concentration of too much power within the same branch which makes laws and creates the legal systems. A number of factors also operate to conceal and lessen the impact of politics upon the legal process. Foremost amongst these is the psychological element of tradition and the development of the so called law-habit. The arbiters of the world order are, in the last resort, the states and they make the rules, interpret and enforce them. In the second half of the 2oth century the complexity of life has multiplied so international law has developed in many directions. International law is a result of its environment, as human community has developed certain specific sets of values, social, economic and political. There are many instances of how modern developments demand a constant reappraisal of the structure of international law and its rules. The regulation of space expeditions, the divisions of ocean floor, protection of human rights, management of international financial system, preservation of peace embrace all interests and aims of contemporary international life and

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international law. Its determining factor is the characteristic of the international political system that needs the acknowledgement of the rights of other: which leads inevitably to a system of their regulation. International law faced with radical changes in the world structure of power and had to come to terms with new ideas that could no longer be ignored. The Eurocentric character of international law has been weakened in the late 50 years and the needs of other cultures and civilizations have begun to play an increasing role in the evolution of world juridical thought. The basic state-oriented character of the world politics and international law is reflected by the principles of non intervention in internal affairs, territorial integrity, non-use of force and equality of voting in the United Nations General Assembly. But there are also many cut-cross state borders factors that generate tensions such as economic relationships, human rights, new technological forces. The growth of positivism in the 19th century focussed concern of the international law upon sovereign states. But the new approaches of the 20th century regarding international relations extended the role played by nonstate entities, such as individuals, multinational firms and international institutions. The developing concern with human rights is recognition of individual responsibility under international law without the interposition of the state. The Universal Declaration of Human Rights adopted by the United Nations in 1948 lists a series of political and social rights, although it is only a guide line and not legally binding as such, prior to perestroika that denied that individuals may have rights as distinct from duties against the state they belong to. Thus, while states remain the primary subject of international law, they are now joining by other non-state entities, whose importance is likely to grow in the future, such as regional organization. They develop a regional international law sub-system within the original universal framework. The range of topics covered by international law has expanded with the upsurge in difficulties faced and the proliferation in the member participants within the system. The specialized problems of contemporary society have begun to represent concerns of the International law: economic development covering financial matters, environmental despoliation, space exploration, exploitation of ocean resources and deep sea-bed, bureaucracy of international institutions, international labor standards, health regulations, communications controls, etc

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EXERCISES

I. Match the words with the gaps in the text: 1. assistance; 2. promote; 3. projects; 4. finance; 5. instrument; 6. funds; 7. granted; 8. support; 9.debt; 10. backing. One of the most important banks in the world is the World Bank, its official name being the International Bank for Reconstruction and Development. The bank was projected to a) ____ economic development and reconstruction. It was formed in order to b) __________ the European countries whose economies were affected by the World War II. The bank was created on July 1944 and began operations in 1946 and first granted credits to post World War II economic c) __________. It has as its main goal to lend assistance to governments or private enterprises with government d) _________. Many of the loans e) __________ were given so as to assure the fulfillment of specific projects as: introduction of electric power, water supply and transportation. But by the late 20th century agricultural development became its focus of lending and as a result, Poland's agriculture got credits so as the state to f) ___________________ agriculture in order to help to the country's economic expansion. It lent g) ___________ also to Romania whose government received financial support for the growth of the economy. Many of the loans received helped Romania build modern roads and ensure the development of some specific h) _________. A series of institutions were created to make loans easier to obtain by nations heavily in i) __________. The World Bank is an j) _________ designed to help the world to have a united economy and to create the spirit of community between all countries. II. Match the words with the definitions: a) indicator; b) budget; c) investment; d) liability; e) assets; f) equity capital. 1. claim on the assets of a company or individual excluding ownership Equity. It represents a transfer of assets or services at a specified or determinable date. 2. technical measurement securities market analysis use to forecast the markets direction such as investment advisory sentiment, volume of stock trading direction of interest rate, and buying or selling by corporate insiders. 3. The part of the share capital of a company owned by ordinary shareholders. 4. The purchase of capital goods, such as plant and machinery in a factory in order to produce goods for future consumption 5. financial plan setting targets for the revenues, expenditures of an organization for a specified period. 6. any tangible or intangible object, that is of value to its owner. It is either cash or it can be turned into cash. III. Translate into English: Nevoia pentru o organizaie ca Fondul Monetar Internaional a devenit evident n timpul Marii Crize care a distrus economia mondial n anii 1930 i care a avut un impact foarte puternic asupra tuturor formelor vieii economice. Bncile au dat faliment cu miile, preurile din agricultur au czut sub preurile

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de productie, fermele abandonate s-au transformat n locuri slbatice, fabricile i-au nchis porile, flotele ateptau n porturi ncrctura care nu avea s vin, i zeci de milioane de muncitori umblau pe strzi n cutarea unei slujbe. Criza a fost la fel de distrugtoare pentru lumea nevzut a finanelor i a schimbului monetar. Lipsa de ncredere generalizat n banii scripturali (fiduciary money) a dus la o cerere pentru aur ce nu a putut fi acoperit de trezoreriile naionale. Un numr de naiuni au renunat la etalonul aur, acest lucru conducnd la complicarea schimburilor comerciale, cundu-se chiar modalitai de plata gen barter (o locomotiv pentru 100 tone cafea), ceea ce elimina folosirea banilor n totalitate. Cooperarea internaional se impunea, prin stabilirea unui sistem monetar inovativ i a unei instituii internaionale care s-l monitorizeze. Harry Dexter White din SUA si John Maynard Keynes din Regatul Unit, propun un asemenea sistem la inceputul anilor '40, sistemul urmnd s ncurajeze convertirea nerestricionat (unrestricted conversion) a unei valute n alta, s stabileasc o valoare clar i fr echivoc pentru fiecare valut i s elimine restriciile i practicile gen devalorizare competitiv (competitive devaluation). Dup o perioad lung de negocieri n condiii dificile impuse de rzboi, comunitatea internaional a acceptat sistemul i organizatia care s-l urmreasc: 44 de ri i-au trimis delegaii reunii la Bretton Woods, New Hampshire, SUA, n iulie 1944. FMI i-a nceput activitatea la Washington DC n mai 1946, avnd 39 de membri.

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PART V OFFICE and INFORMATIC TECHNOLOGY

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UNIT 1. INFORMATICS TECHNOLOGY

From ancient times, people have always needed to count, measure things of their life. They also have needed tools and techniques to help them keep records accurately: tapes, slides, rules, sextants, weighting scales, clocks, etc. The computer is the latest calculating and recording device in the mankind history. The amount of work they do is quick and reliable, as the speed of its work is measured in millions of operations per second. Computer is becoming smaller faster, cheaper, more reliable and easier to use. Nowadays it covers the human needs in business, education, health care, art, design, government and entertainment, being a general purpose machine, as it can operate over a few hours as a typewriter, desktop publishing studio, sound and video editor, accounts tracker, e-mail sender, internet browser. Computer responds to programs that are conceived to make it meet the needs of human by means of processing the input to obtain the output. Any information going into a computer is converted into numbers that are added together in various ways and combinations under the set of rules that is called software, one of the main components of the computer system; the other one is the hardware that includes all the physical units that make the computer work. Computers fall into a number of different categories. One of the ends of the spectrum is the mainframe that matches the needs of big corporations as they run with no interruption, performing extremely complex calculations. The most well known are the personal computers (PC) that come into various shapes and sizes. The desktop is the most commonly used. It includes a system unit, a screen and a keyboard, as separate components. Business people can use now a laptop or a notebook computer. They have been provided lately with liquid crystal displays (LDC) or touch screen. Medium size enterprises can use nowadays minicomputers that offer greater processing power, storage capacity and reliability. Network computers or (servers) are the big computers meant to administer, support and protect the security the computer network. The system unit is the essential component of the computer. It houses the processor, various memories, a fan which is designed to keep the whole unit cool. Nowadays the system unit is designed to stand vertically, on the floor tower, or it is built underneath the keyboard in a laptop. The two main types of memory are the Random Access Memory (RAM) used to carry out given tasks, often called working storage. The main memory holds the list of instructions currently working on, the input information on which it is working and the interim output. The measure units for its capacity are the byte. One byte consists of eight bits. Additional memory can improve the performance of the computer. The other type of the memory is the ReadOnly-Memory (ROM) where the PC stores its low level programs, particularly the instructions necessary to start the computer. The main device for storing information is the hard disc that records it magnetically and keeps it until it is changed or deleted. It uses a read/write head that detects the polarization of particles on the disc revolving at a constant high speed, getting or retrieving information onto it.

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Documents can be transferred from one computer to another by using a diskette, the so-called floppy-disk. But nowadays, software is most often supplied on CD-ROM (Compact Disk Read-Only Memory) that provide more storage capacity, as programs have added functionality because they may include graphic and other multimedia elements. A newer type of CD-ROM is the CD-Rewritable disk, or CD-RW that can be used for writing data to them more than once. But CD-ROMs are now being overtaken by DVDs (Digital Versatile Disk) which look similar, but have a great more storage capacity. The information is encoded on the CDs by using a CD Writer and detected by a laser beam. The zip-drive is another kind of high capacity removable disk that uses either magnetic technology or laser technology. All of them are often referred to as "backing storage" or "secondary storage". Most of the computer systems use three essential peripherals: the key board and the mouse (used for input) and the screen (used for output). The keyboard makes the information and instruction enter the computer. The programs give continuous feed-back on their progress and display their output on the screen or the monitor that is the visual display unit (VDU). The programs are also represented on the screen as Graphical User Interface (GUI) gooey that includes files, functions as pictures and also a pointer indicating the intention of the user and making the program responding accordingly. The mouse represents it as an external device, converting its moves into the moves of the pointer. The one click or double click moves make the operation of the computer easy. But besides the mouse, there are also other, like:

trackball that is an upside-down mouse used for limited desk space joystick and games controller are also similar to the external mouse, but used only for games and simulations touch pads built in device to the keyboard of laptops for moving the pointer either as a miniature joystick or a pressure-sensitive touch pad that transmits the finger movement graphic tablets are used for design applications and feel the movement of a plastic pen across them

Other essential peripheral devices are also normal parts of the computer system: printers, modems, loud speakers, scanners, digital cameras, microphones are increasingly used by the new technology. Laser printers, inkjet printers, impact printers use slightly different techniques for printing or making marks on the paper. They are characterized by the speed of output, colour and cost of consumables. The modem is a device used to connect computers to the telephone network for using the internet or for sending faxes. Any kind of data that can be converted into numbers can be processed by computer: music, pictures, animated drawings, video, speech. The multimedia applications have grown up due to this ability, often called multimedia computer. These applications need also specialized peripherals:

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scanner used to copy photos, drawings, texts into a computer through a specialized program digital camera records images digitally in a memory, not a photographic film. The images are transferred to a computer and printed out using graphic software to edit, archive or email them. Loud speakers are standard peripheral equipment used to play music and any sounds Sound cards are used to control audio output and to upgrade its quality Microphones used for the control of application by speech commands

Software is the generic sets of instructions gathered in system software and application software. The former refers to the control and management of the devices, files and storage; the latter is concerned with various professional areas, entertainment, and education. The programs depend on the operating system (OS) that controls the hardware, the timing of sequences and manages the access data to ensure security and integrity. When adding a new piece of hardware to the system, a driver has also to be loaded to make the OS control the hardware, i.e. recognize input from the keyboard and mouse, send output to the screen, communicate with printers and other peripherals, and keep track of files. The operating system is usually presented through a graphical user interface (GUI) that represents the hardware of the computer: disks, printers, application programs, data files represented by symbols of icons that can be made operational by moving the pointer through a mouse click The application programs enable different programs work: word processing, spreadsheets, data base management system, electronic mail or even pre-loaded applications: Netscape Navigator, Microsoft Explorer. There are also highly specialized and sophisticated applications used according to particular needs. Licensed software gives the holder the right to run it and make copies of the software only for backup purposes. The illegal piracy deprives the individual developers, companies of their rightful income. Only freeware can be distributed without charge on disks given away with magazines or downloaded from internet. Shareware is also widely distributed in much the same way as freeware, but if you decide to use it, you are supposed to send a licence fee to the developer, otherwise it will not function but only a typical period of time of 30 days. When the software produces incorrect or unexpected results, it has a bug that can range from minor to major ones. When the computer "freezes" it ceases to function, i.e. refuses any input and won't produce any output, it "hangs". A bug can make a whole system crash, so the computer should be turned off the power for a minute, or to press the Reset button on the system unit, as a last resort, in order not to lose any work done since the last saved application.

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Data are hold in files that can be organized into directories or folders. They are given names in order to be recognized and operated when needed. Data can be lost, corrupted, damaged or abused accidentally or deliberately. The users can protect them by using a system of password or keeping backup copies of data files, on diskettes or other removable mediums. The operated data should also be saved at regular intervals on the volatile working storage RAM. Viruses are poisonous programs that vary from minor irritation (messages displayed on the screen), inconveniences (files can be damaged), or to total disaster (damage of the hardware rendered unusable). Virus spreading can be avoided by not opening the e-mail attachments, checking diskettes, hard drives or CDs and by using virus-scanning software that should be the very latest. 1.2. NETWORK Computers can operate on their own (stand-alone computers) or they can be connected in networks: sharing hardware: two or more computers are connected through hardware resources: printers, modems, scanners, platters file sharing: information needed by several users is stored on a single, powerful, permanently switched-on computer called a file server, and then shared on specific computers. E-mail: Computer networks make possible e-communication, i.e. electronic mail; messages can be exchanged between users of the computers that are connected to a common network. Data-exchange network: makes possible co-operative work in a work group

LAN (Local Area Network) connects computers located in a small area, such as an office, a building, or a group of adjoining buildings

WAN (Wide Area Network connects computers over a large area, usually across international boundaries. They can be restricted to a private access, operated by a transnational company or government agency or it can have public access such as the internet. The wide area network uses all technologies of the telephone network: satellites, microwaves, optic fibers converting the "analogue" voice signal into the "digital" computer signal through a "modem". The modem is a device which is usually built-in the computer communication. . An alternative to using modems is ISDN (Integrated Service Digital Network) that is cable which is designed to carry digital signals. It is used more and more for frequent high-volume

Computer users connected to the Internet can exchange messages by e-mail. They need e-mail software, a unique address and a password to prove entitlement to collect the message. E-mail has largely taken over from the telephone technology used to send and receive written messages. The fax machine scans printed information and encodes it so that it could be sent

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down the telephone line and decoded by the fax machine of the recipient that provides a print out. Internet is a wide-world network of interconnected networks. It is used to e-mailing and to provide access to the information stored on computers all around the world. The users governments, officials, universities, companies, voluntary organizations, and private individuals can use this huge resource-opportunity for research, news, entertainment, education, information, current affairs, shopping, arts, etc The term world wide web is used to describe documents made available over the Internet which are in a particular graphic format. The documents can be linked together, irrespective of where they are physically located in the world. Their links, named hyperlinks, enable users to pursue a research topic from the general to the specific, from detail to "big picture", from graphic to text, from text to sound. The documents built using the hyperlinks are called "hypertext" or "hypermedia" if sound, graphic or video are involved. The documents published on the internet can be contacted through a browser, i.e. a program that displays the web pages following links from one web page to another. The search engine is also a program that trawls the internet looking for documents that contain information of interest to the users. EXERCISES: I. Find the appropriate words in the text gaps: suppliers; markets; advantages; orders E-Commerce International business a) .................. have been developing lately using largely the advantages of Internet. Advertisement, placing b) .................., delivery of products ordered, rendering services, ticketing have become cheaper and cheaper due to the Internet service. Comparing prices from different c) ...................., buying directly from the manufacturer or the supplier anywhere in the world, pricing different offers and opportunities, searching maps, checking event listings, hiring cars, booking meals in a favourite restaurant, are the d) ........................... of using the Internet shopping nowadays. II. Match the words with the definitions: 1. system configuration; 2. mainframes; 3. microcomputer; 4. shared logic; 5. minicomputer; 6. shared resource; 7. laptop a) small scale computer system serving fewer users and offering few applications; b) the smallest scale computer system in terms of processing capacity c) configuration of an installation of a word processor or of general computer terminals;

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d) The combination of equipment using a common database. Each terminal VDU and keyboard shares the logic or intelligence of one computer (either mainframe or microcomputer). The disadvantage is that malfunction of the central computer will stop work on all terminals. e) Large corporate installations used for processing round-the-clock workload and that hosts centralised information systems. f) An intelligent workstation linked to another piece of equipment (hard-disk storage, high speed draft printer, etc g) computer that fits into a brief-case. They have flat screens and they can be battery operated.

TOP MANAGEMENT LANGUAGE TEST No.

1. Find the answer to these mathematical operations: Five add three divide by four, add square root of one hundred forty four, take away four multiply by three 2. Describe the following graph representing the evolution of work redundancy in the last ten years, using appropriate vocabulary. 3. Fill in the blanks the missing words: addressee's position; department; inside; information; courtesy title The a).............. or the receivers address is positioned on the left hand side, also, under the letterhead. It will contain either the surname of the addressee if the writer knows it, on the first line of the address, preceded by a b)............ ............ or the persons initial(s) or his or her first given name. The writer should know or be able to assume the c)............ .............. in the company (Sales Manager, The Finance Director, etc). The letter can be also addressed to a particular d).................. of the company. If the sender does not have any e).................... about the person or department the letter should go to, he can simply address it to the company itself. 4. Translate the following business letter giving it a professional format and use business-like vocabulary: Stimai domni, Am primit o comand n valoare de ..... pentru roii, castravei i ardei gras de ser de la clienii dvs Messrs X & Sons pentru care intenionm s tragem o trat la 3 luni. Avnd n vedere c nu cunoatem situaia financiar a acestei societi, v-am rmne ndatorai dac ne-ai sftui n aceast privin. Informaiile pe care ni le vei furniza vor rmne confideniale i contai pe servicii similare din partea noastr la nevoie. V mulumim pentru nelegere i colaborare. 5. Name the common clauses of business contracts and their characteristics for short 6. Explain the characteristics of a public limited company. 7. Make sentences of your own using the following specialized words: free gifts, cash rebates, salespeople incentives, consumer contest

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8. Mention some of the international programs and their object 9. Find the missing words in the text: 1. too much power; 2. law habit; 3. inextricable bounds; 4. legal process; 5. enforce But the a)................. .................. linking law and politics must be reorganized. The formulation of policy and the method of enforcement are distinctive within developed societies in order to prevent a concentration of b)......... ........ .............. within the same branch which makes laws and creates the legal systems. A number of factors also operate to conceal and lessen the impact of politics upon the c).............. ................ Foremost amongst these is the psychological element of tradition and the development of the so called d)............... ............... The arbiters of the world order are, in the last resort, the states and they make the rules, interpret and e)..................them. 10. Mention some peripherals used when operating computers, and make their description. 11. Translate into English the following text:
Debit, credit. Bani electronici. Acas, pe strad, n magazine. 24 de ore pe zi prin telefon, calculator, sau chiocuri multimedia. Controlat printr-un singur card de plastic. O viziune de viitor? Smart card-ul este deja folosit n toat lumea ca o combinaie ntre debit, credit i portofel electronic. Aceasta tehnologie se constituie dintr-un card de plastic n care este nserat un chip cu un microprocesor, intrri-ieiri i un sistem de operare pentru securizare. Cipul este astfel modelat nct s reprezinte interfaa dintre sistemul su de operare i mediul exterior. Card-ul are de asemenea capacitatea de a memora zeci de kilobytes, n timp ce card-ul cu pista magnetic poate memora cel mult 200 bytes de date, echivalnd cu 200 de caractere.

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TOP MANAGEMENT LANGUAGE TEST

No. 2.

1. Find the answer to these mathematical operations: eight add six divide by seven, add eleven, square, divide by three take away ten 2. Describe the following graph representing the evolution of the interest rate in the late ten years, using the most appropriate and professional vocabulary

3. Match the missing words in the text: grants, easy-to-read; courteous; stand-out; belittle To make figures a)............. ............. clearly, you may find headings to be useful. Give your reader examples with appropriate b).............. .. .............. characteristics or other visual aids. The c)............... communicator is sincerely tactful and appreciative: he omits expressions that irritate, d).................., or have questionable humor. He also e)................ and apologizes and answers mail as soon as possible. 4. Translate the following business letter giving it a professional format and use business like vocabulary: Stimai domni, Ca rspuns la scrisoarea dvs prin care ne solicitai informaii n privina societii X, ne face plcere s v confirmm c aceast firm este bine cotat pe piaa noastr i are reputaia de soliditate i solvabilitate financiar. In ceea ce privete creditul comercial pe care intenionai s-l acordai acestei firme, considerm c i va putea achita la termen obligaiile pe care le va angaja fa de societatea dvs. Cu convingerea c vei trata informaiile noastre drept confideniale, rmnem ai dvs, 5. Name the most used types of contracts used in business 6. Explain the characterisitics of a holding 7. Make sentences of your own using the following specialized words: price-cuts, coupon; sales contest; 8. Mention some European Community bodies and their object of activity: 9. Match the missing words in the text: 1. international law; 2. sanctions; 3. threat to peace; 4. the more force International law does not state a unified system of a)..................., but there are circumstances in which the use of force is regarded as justified and legal. Within the United Nations system, sanctions may be imposed by the Security Council upon the determination of a b).............. .. ............., breach of the peace or act of aggression. Such sanctions may be economic or even military and the states themselves decide whether to take action on the extent of their measures as there is no supreme body to rule on their legality, although c).................... ................. does lay down relevant rules. Neither must it be forgotten that the current trend in international law is to restrict the use of force as far as possible, thus holding to the absurd result that d).... ............. ............... is controlled in international society, the less legal international law becomes. 10. Explain the advantages and disadvantages of e-commerce. 11. Translate into English:
Livrarea n cont deschis (open account settlement) reprezint o modalitate de plat folosit numai atunci cnd ntre partenerii comerciali se statornicesc relaii bazate pe total ncredere, aa nct nu mai apare necesar nici o form de garanie cu privire la respectarea obligaiilor ce rervin prilor. In aplicarea prevederilor contractului comercial, exportatorul trimite marfa i documentele de nsoire direct la adresa importatorului, care poate implicit s le preia i s dispun de ntreaga partid, fr a mai ndeplini alte condiii verificate de o banc. Dup primirea marfii, importatorul pltete contravaloarea la un termen

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dinainte convenit, folosind instrumente operative de decontare - cecul, ordinul de plat, trata - trase asupra unei bnci.

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EXERCISES KEYS

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BUSINESS and LEGAL VOCABULARY and ABBREVIATIONS

A a: at a.a. : always afloat a.a.r.: against all risks abd. : abandoned abt. : about abv.: above academic record: record of education results of a graduate acceptance: the act of placing the word "accepted" across the face of a draft, followed by the date and signature of the acceptor acceptance draft: - A timer draft which has been accepted, thereby bearing the unconditional obligation of the party upon which it is drawn to pay the draft at maturity accepting bank: - the bank upon which the draft is drawn and which "accepts" the draft (see acceptance) a/c: account acc.: according to acceding country: stat aderent accessing country: stat n curs de aderare act: a hot: hotrre action: aciune action brought under Article X: aciune introdus n tmeiul art. X Act of accession: act de aderare Action for declaration of failure to act: aciune pentru pronuarea unei hotrri preliminare action for compensation: aciune n despgubiri action for annulment: aciune n anulare a/d; a.d. : after date ad.: 1. alongside; 2. advertisement addendum: completare a unui document nainte de a fi adoptat advising bank: a bank, usually in the Beneficiary's country which informs the beneficiary that another bank has issued a Letter of Credit in its favour add.: addition ad. lib.: ad libidum: la liber alegere

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ad. val.: ad valorem: n raport cu alegerea A.E.: American English a.f. advance freight agenda: ordine de zi agreed minute: proces verbal convenit, minut Agy: agency Agt: agenty Agt.: against Air Waybill: a non negotiable contract of carriage for air transportation between an air carrier and a shipper, or an air carrier and an air freight forwarder a.m. ante meridiem a/m: above mentioned amendment: amendament amt: amount A.M.T. : Air Mail Transfer (virament potal) amendment: any change to the terms and conditions of a Letter of Credit anxious: preocupai A/O: account of a/or: and/or a.p. : advice of payment a.p. : average payable applicant: 1. the party that arranges for a Letter of Credit to be issued, typically the buyer in a commercial transaction or the borrower in a financial transaction; 2. an individual applying for a job applicant country: ar solicitant application fee: a fee paid when registering the application form with a college application form: a form to fill in for enrolling A.P.: authority to pay Appx: appendix (anex) A/R: all risks argument supported in substance: argumentaie susinut n fond article: articol assistantship (graduate assistantship; teaching assistantship; research assistantship): financial assistance awarded to the student represented by his or her work to pay studies

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associate degree: diploma awarded after 2 years of university: junior college; community college associated country: ar asociat: assn: association; ats: all time saved Attn: attention at sight: it indicates that an instrument is to be paid upon the bank's determination that the documents comply with the terms and conditions of a payment document attend (a course, school): to participate to... av.: average AVE: ad valorem equivalent A.W. actual weight : greutate real award: 1. to grant (a diploma, a degree) B B: bag; bale B.A.: (Bachelor of Arts): a university degree awarded after 3 years (GB) or 4 years (SUA) in humanistic domain bailiff: executor judectoresc bal.: balance b.b.b: breaking before bulk b.c.; b/c: bulk cargo beneficiary: the person in whose favour a Letter of Credit is issued, typically the seller in a commercial transaction, or the creditor in a financial transaction B/D: banker's draft b.d.i.: both days included B.E.: bill of exchange/draft B. Eng.: (GB) Bachelor of Engineering bends: both ends (porturile de ncrcare i descrcare) B/G: bonded goods (mrfuri netaxate n vam) bk: bank bl; rl: barrel B/L; Bs/L: bill of lading (conosament) B/P: bill payable Bros.: brothers bring an action for annulment against: introduce o aciune n anulare B.S.: (SUA) Bachelor of Science

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B.Sc.: (GB): Bachelor of Science bursary: (GB) financial help for attending university courses Bus. : bushel (36 l) business school: courses in business management Bill of Lading: - a document, generally issued by a carrier to a shipper that serves a threefold purpose: 1 receipt for the goods delivered to the carrier for shipment; 2. a contract of carriage of the goods from the place of receipt to the place of delivery listed in the bill of lading; and 3. evidence of title to the goods business plan: a detailed plan setting out the objectives of a business over a stated period (see corporate plan) B.W.: bonded warehouse bx: box C C: cubic; current; city; central Ca: current account cancel: cancellation (reziliere) capacity o pursue the proceedings: calitate procesual carr pd: carriage paid franco transport case: cauz cause list: rolul cauzelor c.c.: custom charges - taxe vamale c/d: consular declaration C/D: collected and delivered c/f: carried forward reportat ch: - chapter C.H. Custom House chapter: capitol C.I.: cost insurance cost i asigurare c.i.: consular invoice c.i.f.: cost, insurance, freight (cost, asigurare i navlu) c.i.f.c.i.: cost, insurance, freight, commission and interest C. Eng. (chartered engineer): (GB) professional status after graduating university courses and professional practice Charter party: the person chartering a vessel or part of its freight space for a particular trip or period of time class average: average graduation mark

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class quartile: (top 25%; top 50%): the placement of the candidate according to his or her graduation results class rank/standing (10 out of 100): graduate position claim: a invoca claim barred (by apse of time): caducitate cld.: cleared (vmuit) C/N: credit note (not de creditare) considering: avnd n vedere collection: a method of payment for goods. The act of handling documents on instructions received, by banks, in order to obtain acceptance or, as the case may be, payment from drawee college: 1. higher education institution but lower than university 2. Junior college/community college: local university adapted to the professional local environment commercial invoice: a bill provided by the seller, addressed to the buyer, giving a description of the goods or services, price, charges, etc commercial Letter of Credit: - a letter of credit by which payment is made available to the beneficiary against presentation of a draft and stipulated shipping documents Co.: company c/o: in the care of C/O: cash order (ordin de plat) C.O.: certificate of origin C.O.C.: Chamber of Commerce C.O.D.: cash on delivery conclusive evidence: prob irefutabil contested measure: act atacat continuing education: post graduation studies consignment: - a method of payment for goods where the title to goods remain with the supplier/manufacturer until they are sold by an agent or third party C.P.A. : certified public account (expert contabil) C.P.: Charter Party (contract de navlosire) C.Q. : commercial quality c.q.d.: customary quick dispatchs (cu celeritate obinuit) come within the exception: a cdea sub incidena excepiei core curriculum: the main subjects to study in a college corrigendum: correction of a document before being adopted (rectificare) correlation table: tabel de coresponden

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corporate plan: (SUA) name of a business plan costs incurred: cheltuieli pretinse course: lecture delivered by a teacher course load: amount of work attached to a course C.R.: carrier's risk; current rate C.R.; c.r.: credit credit-bearing course: a course which provides academic credit cs; c/s: cases ct: cent (SUA) customized programme (GB): strictly targeted courses C.W.O.: cash with order (plat la ordin) cwt: hundredweight (43,36 kg) D d.: dianeter; day damages: daune d.a.: days after acceptance; deposit account D.A. : documents on acceptance ( documente predate la primirea cambiei) D.B.: documentary bill (cambie documentar) dbk; (drawback ): inconvenient D.D. : documentary draft; damage done (cambie documentar) d/d: days after date dep.: departure deadline: last day to hand in a work defendant: prt d.f.: dead freight navlu mort demurrage: a charge for exceeding the free time allowed for loading or unloading at a pier or freight terminal determined: hotri s diploma: the document awarded at graduation direct applicability: aplicabilitate direct/imediat dishonor: refusal on the part of the drawee to accept a draft or to pay it when due dissertation: a written report presented as a research graduation work doctorate: post university title

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Documents against Acceptance (D/A): instructions given by a seller to its bank that the documents attached to a draft for collection are deliverable to the drawee only against the drawee's payment of the draft Documents Against Payment (D/P): instructions given by a seller ti its bank that the documents attached to a draft for collection are deliverable to the drawee only against the drawee's payment of the draft D.N.: debit note (not de debitare) D.O.: delivery order doz.: dozen (duzin) D/P: document against payment (documente predate la onorarea cambiei) dr: debtor draft: a signed order or Bill of Exchange by one party, the drawer addressed to another, the drawee, directing the drawee to pay a specified sum of money to the order of a third person, the payee drawee: The party on whom a draft is drawn, and from which payment is expected drawer: one who signs or "draws" a draft (usually the seller, or Beneficiary of a Letter of credit) d/s: days after sight dw: deadweight (capacitate total de ncrcare) D/W: dock warrant (recipis de antrepozitare) E ea: each education history:: chronological presentation of studies in a CV E.E.: errors excepted E.&O.E.: errors and omissions excepted electives: courses that are not compulsory to attend eligible (to be eligible to apply for...): to meet all the requirements to be admitted to apply for... employment history: chronological presentation of work places in a CV or a rsum emb.: embargo Enc.; Encl.; Enclos.: enclosure endorsement: a signature on the back of a negotiable instrument made primarily for the purpose of transferring the rights of the holder to another person E.P.D.: excess profit duty (tax de profit suplimentar) enforce: a scoate n eviden: a intra n vigoare enrollment with a college: register a student with courses

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entry into force: intrare n vigoare equality: egalitate Esp.: especially Esq.: esquire (domnului, onorabilului) E.T.: estimated time E.T.A.: estimated time of arrival E.T.D.: expected time of departure evergreen clause: a provision of a letter of Credit which allows the expiration date to automatically extend for an additional period of time without requiring an amendment (also known as an Automated Extension Clause) exc.: expenses expedited procedure: procedur de urgen F f.a.a.: free of all average faculty: teaching body of a college fialure to fulfill: nendeplinirea ... F.A.Q.: fair average quality F.A.S.; f.a.s.: free alongside ship F&D: freight and demurrage (navlu i contrastalii) f.d.: free discharge (liber la descrcare) fee (US) (service fee; lab fee; gym fee; parking fee, etc): fee paid for using the service of... fellow: a researcher being granted a fellowship (funds) for his or her work fellowship: funds granted for a research program (doctoral fellowship; postdoctoral research fellowship) f.i.a.: full interest admitted field of activity: domain in which an applicant for a job wants to work file an application: register an application to join... file in: write the information requested in a form fin.: financial financial penalty: daune cominatorii final provisions: dispoziii finale final decision: hotrre definitiv Fine: finance f.i.o.: free in and out (fr cheltuieli la ncrcare i descrcare) fixed financial penalty: sum forfetar

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f.o.b.: free on board f.o.c.: free of charges f.o.d.: free of damages f.o.q.: free on quay f.o.r.: free on rail for the purpose of: n sensul, cu scopul de a f.o.s.: free on steamer foreign exchange risk: the risk resulting from purchasing or selling goods at a price denominated in a currency other than that of the purchaser or seller F.O.T.: free on truck F.P.: floating policy (poli de asigurare flotant) f.p.a.: free of particular average frt: freight (navlu) frt fwd: freight forward (navlu ramburs) frt ppd: freight prepaid (navlu pltit) Framework agreement: acord cadru Framework decision: decizie cadru fresher: student in the first year ft: foot; feet (0,30 cm) F.T.W.: free trade wharf (dan de come liber) full-time (worker, student, etc): attending evening courses or working only occasionally, or certain days or times fundamental freedoms: liberti fundamentale G g.a.; g.av. : genral average gal: gallon (4,54 l(G.B.; 4,40l/3,78l (S.U.A.) GMT: Greenwich Mean Time GMAT Graduate Management Aptitude Test: admission test in mathematics and communication for M.B.A. G.P.A. (Grade Point Average): average of study results grade school: elementary school graduate (from a school, university): being awarded a diploma at the end of studies graduation: ceremony of awarding diplomas when graduating a school GRE (Graduate Record Examination): general test needed for admission in North American Universities grs.t: (gross ton): ton registru gtd.: guaranteed

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Guideline: orientare Guidelines: linii directorare H h: harbour having regard: avnd n vedere hl: hectolitre high school: general education school before university H.O.: head office honours/an honours degree: award for special merits H.P.: horse power h.p. hire purchase h.r.: hour I I.B.: in bond (n depozit vamal) I.C.&C. : invoice cost and charges: valoarea facturii i a spezelor implemented by: pus n aplicare de implementing measures: dispoziii de aplicare Inc.: Incorporated (anonim) Incl.: inclusive initiation of proceedings before the Court: sesizarea Curii indent: liniu Inst.: instant; this month interim agreement: acord interimar i/v: invoice value (Incoterms 1990: set of definitions published by the ICC from time to time for the interpretation of commonly used trade terms which define the obligations of the parties and when the risk of loss passes from one party to another industrial placement: practice after graduation in a professional environment inquiry: 1. cerere de ofert; 2. solicitare de informaii despre o persoan fizic sau juridic: 3. anchet I.O.U. ... : I owe you (valoarea facturii) internship: (SUA) a period of professional practice after graduation or before graduation Insurance certificate: written evidence that insurance coverage is in force

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Insurance policy: a contract of indemnity by which an insurance company, in return for payment of a premium, guarantees compensation of the amount of any loss arising from an insured casualty International Chamber of Commerce: the body which published the Uniform Customs and Practice for Documentary Credits, the Uniform Rules for Collections, the Uniform Rules for Reimbursements, Incoterms 1990 and other works commonly used in international trade in witness thereof: drept care irrevocable: a term placed on an instrument to indicate that it cannot be cancelled or amended or terminated prior to its expiration date without the consent of each party I/V: increased value J judgement: hotrre judicial: jurisdicie K Kg: kilogramme Kos: kilograms L language of case: limba de procedur language of consultation: limba de deliberare L: liner (transatlantic) Lb: pound L/C: letter of credit (acreditiv) Ldg.: loading legal aid: asisten judiciar legal person: perosan juridic legal expert: jurist legal remedy: cale de atac Letter of application: formal letter placed by the applicant with a company, organization, or state entity Letter of Credit: an instrument issued by a bank in favor of a Beneficiary by which the bank substitutes its own creditworthiness for that of the Applicant by promising to honor (pay if the documents specified in the Letter of Credit are timely presented L.O.A.: length over all (lungime maxim) lodge a defence: a depune o ntmpinare l.s.: lump sum (sum achitat odat, integral) l.t.: local time

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Ltd.: limited (cu rspundere limitat) M major in (a subject): professional specialization in a field Master's degree: diploma after bachelor's degree M.A.: Master of Arts; M.S. (US); M.Sc. (GB): various master degrees matters of law: elemente de drept maturity date: the date upon which a draft or acceptance becomes due for payment measures of inquiry: administrarea probelor M.D. /memorandum of deposit: borderou de depozit military school/academy: school/academy for military education minor (field of study): professional secondary specialization miscelaneous provisions: dispoziii diverse M.O. money order: mandat potal M.T. /money transfer; virament potal multimodal transport: transportation of gods by more than one mode, for instance, truck, steamship and rail N national law: sistem juridic naional, legislaie intern national provisions: dispoziii de drept intern natural person: persoan fizic negotiable: a term placed on an instrument (draft or other document) which allows title to be transferred from owner to owner by endorsement, usually evidenced by the use of the words "order of" or "to order" negotiation: trying to obtaining the best terms for an understanding with partners non-resident rate: fee to enroll in A USA university for non-residential student n/a: no advice; fr ntiinare N.F. no funds; fr fonduri disponibile No.: number NPV (no par value): fr valoare echivalent N/t: new terms notification: notificare notwithstanding: fr a duce atingere, sub rezerva O o/a: on account of

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o.a. overall: n total, n general o/c : over charge, supratax o/d: on demand : la cerere O.P: open policy, poli deschis open account: a method of payment for goods and services; a seller ships operative part: dispozitiv opinion of the Advocate General: avizul avocatului O.R. owner risk: ord. Ordinary order: 1. comand; 2. ordonan oz: ounce P P.A.- power of attorney: procur Paragraph: alineat; paragraf part-time student: student attending evening or week-end university courses payee: the party to whom a draft or other negotiable instrument is made payable PAYE: pay as you earn; plata dup ctig part: parte Pc.: piece; bucat P.D.: port duties Pkg : package Pg.D./Pg.Dip./Ph.D. (Doctor in Philosophy): (EUR): post graduate diplomas after university studies P/L: profit and loss account; cont de profit i pierderi Plaintif; applicant: reclamant P.D.: port duties; taxe portuare point: punct ; liter pp. : pages p.p.: per pro/per procurationem (Lat.): prin procur ppt: prompt protocol: protocol prox: proximo, next month pt: payment P.T.O. please turn over; vezi verso ppd.; pre-paid: paid in advance

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port of discharge: the port at which merchandise is offloaded from the vessel port of entry: the port at which goods are admitted into the receiving country port of loading: the port at which merchandise is loaded aboard a vessel presentation: the delivery of one or more documents to the issuing Bank or Nominated bank for payment, acceptance or negotiation under a Letter of credit promissory note: a written promise committing the signer to pay a sum to another art a future date, usually with interest public hearing: edin public public prosecuror: procuror Q Qlt: quality Qnty: quantity QR: quantitative restriction quash a decision: a clasa o decizie question referred to a preliminary ruling: ntrebare preliminar qv: quad vide; which see qr. quarter trimestru R re. : with reference to reasoned opinion: aviz motivat recast: reformulare reclaim: a solicita o recuperare recourse: a term used on a negotiable instrument to indicate that the drawer or endorser is liable to subsequent holders for payment at maturity Red Clause: a provision in a Letter of Credit that provides for the advance of funds to the Beneficiary prior to the presentation of the shipping documents red. :received refer to: a face referire/trimitere la registrar: grefier repealed by: abrogat de rept.: receipt required subject: compulsory subject resolved: decii s revd.: returned (returnat) rev.: revenue

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reverse chronological order: the most important item is mentioned the first revocable: - a term permitting modification or cancellation of a Letter of Credit without the Beneficiary's prior agreement r.o.b.: remaining on board for reexportation rule of Community law: principiul supremaiei dreptului comunitar S saving clause: clauz de salvgardare s/a: safe arrival S.B.: safe berth S.B.S.: surveyed before shipment (expertizat nainte de expediere) schedule: program S/D: sea damage searching: percheziie S&F.A.: shipping and forwarding agent S/D: 1. sea damage; 2. short delivery (livrare cu lips) sentence: tez SHEX: Sundays, holidays excepted SHINC: Sundays, holidays included shpt: shipment (ncrctur) shpt: sue and labour clause (clauz de diminuare a pagubelor) substance of the cause: cu privire la fond surname/family name/last name: family name of a person stk: stock status: marital, social, professional situation T table of correlation: table de concordan T.B.L. : through bill of lading (conosament direct) technical adjustment: adaptri tehnice tenor: 1. the length of time a draft (bill of exchange) is drawn to run before presentation for payment; 2. coninut ( al unor document juridice) terms of payment: the terms under which a seller and a buyer agree that the exchange of goods for payment shall take place. Open account cash in advance, Letter of Credit, consignment and documentary collection are examples of common payment terms terms, shipping: stating in abbreviation form where the seller's responsibility for the merchandise ends and where the buyer's begins. Some examples of common shipping terms are F.O.B., F.A.S., C.I.F. C&F., and Exship.

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testimonials: documents proving something timetable: calendar title: title t.l.: total loss t/q: tale quale (conform mostrei) trade school: specialized professional trade school trainee: (GB) stagiar traineeship: period of time for professional training treaty: tratat transitional provisions: dispoziii tranzitorii transposition: transpunere T/S: tanker ship (vas cistern) tuition: (US) a teacher supervising a number of students U U.c.b. : unless caused by U.C.E. unforeseen circumstances excepted Ult.: ultimo, last month unsuccessful party: partea care cade n pretenii U/W: underwriter (asigurator) V V; vs.: against Var.: various V.A.T.: Value Added Tax V.C.: valuation clause Viz.: videlicet; namely Vol.: volume W w.a.: with average w.a.r.: with all risks w/b: waybill w.e.f.: with effect from without prejudice to: fr a aduce prejudicii/atingere wks.: works (uzin) w.p.: weather permitting wt.: weight

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whereas: ntruct wwd: weather working days with recourse: a term used on an instrument or endorsement to indicate that the drawer or endorser is liable to subsequent holders form payment at maturity without recourse: a term use on an instrument or endorsement to indicate that the drawer or endorser is not liable to subsequent holders for payment at maturity "x days date": a term used on a draft, bill of exchange, or note. If an exporter draws a draft and stipulates payment '60days date", the draft is due 60 days after the date on which it was drawn.There fore, the maturitz is fixed and is not dependent on the date of acceptance by the drawee "x days sight": a term used on a draft, bill of exchange, or note to indicate that payment is due on a stipulated number of days after the draft has been sighted (accepted) by the drawee

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BIBLIOGRAPHY 1. Mayhew, Alan: Recreating Europe. The European Union's Policy towards Central and Eastern Europe Cambridge University Press, 1998 2. Shaw, Malcolm: International Law, Cambridge University Press, 2001 3. Turcu, Fulvia: Engleza pentru afaceri, Percomex, 1997 4. Murphy, Herta, Hildebrandt, Herbert: Effective Business Communications, Business Management Series, McGraw-Hill, INC. , New York, 1991

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