VOCABULARY

1. Balance of payment is a record of a country’s ……………………..(transactions)

2. Some transactions are visible; others are ………………………(invisible) An

example of the latter is ……………………..(insurance)

3. A country with consistent deficits will see its …………………….. in relation to

other countries.

4. A devaluation can have a favorable effect on the trade balance because it can

help increase ……………………..(export)

5. In cases where foreign currency is earned, a …………………….. is registered

on the balance of payments.

6. Trade balance plus invisible transactions make up the

……………………..(balance of payment)

7. The long term and short term loans and borrowings at home and abroad are the

…………………….. accounts

8. If you want to borrow money to buy ........ (surplus)

9. Government controll economy by their .... (policies)

10. The amount stored smart card or your bank's account called....(deposit)

11. A documnet stating detail of the goods and ..... ( invoice)

ANSWER THE FOLLOWING QUESTIONS

1.How does a defferred payment LC differ from a usuance LC ? ( L/C trả trậm và

L/C trả sau )

2.How does a revocable LC differ from a standby LC?

3.What is the difference between a revocable and an irrevocable letter of credit ?

4.Why would an importer ask for a confirmed letter of credit ?

5.why does letter of credit protect both buyer and seller?

COMPOSITION ( 300 words):

Shoud there be limits to international trade ?