i would have come to see you but___i had somethingtop urgentt to do then.

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Lesson12appointmentandvi;Backgroundbriefing;HuangMeicomestotheLotusH;1.visitingthepatientagai;B:goodafternoon,MissHuan;H:howareyoufeelingnow,Mr;B:muchbetterthaninthemor;H:I’mverygl
Lesson 12 appointment and visiting
Background briefing
Huang Mei comes to the Lotus Hotel to see Mr. Brown, and tells him that Mr. Zhang Dawei, the general manager of the Changsha Foreign Trade Import & Export Company, will come to visit him next day. They make an appointment. Situational conversation
1. visiting the patient again H: good afternoon, Mr. Brown
B: good afternoon, Miss Huang. Come in and sit down, please
H: how are you feeling now, Mr. Brown? Our manager, Mr. Zhang, has asked me to look after you. These are flowers he sent to you.
B: much better than in the morning. I can take good care of myself. Thank you and thank for Mr. Zhang’s kindness.
H: I’m very glad to hear that you are better, and I hope you have a recovery soon. B: I’m well, now, and I’d like to make an appointment with Mr. Zhang. H: he will come to see you tomorrow morning 2. making an appointment
H: Mr. Brown, our manager would like to see you at ten tomorrow morning. Would that time suit you?
B: yes, that’ll suit me fine
H: then, let the time fixed at ten o’clock tomorrow morning.
B: good. Ten o’clock tomorrow morning. I’ll be waiting in my room. H: just let me know if you need any help
B: no, don’t bother, I can look after myself well
H: then, if you need anything, just give me a call. I must take my leave now. good-bye. See you tomorrow B: see you tomorrow
3. the general manager’s visiting
H: is Mr. Brown in? our manager Mr. Zhang is here to see you. B: oh, hello, Mr. Zhang. Do come in, please
Z: how are you, Mr. Brown? I am very glad to see you in Changsha B: I’m fine, thank you. It’s good to see you again
Z: I’m very sorry to hear that you have been ill. I should have come to see you, but something urgent has come up. I must apologize for the delay.
B: you are being too modest, Mr. Zhang. Thank you for sending Xiao Huang to look after me, and sending me those lovely flowers. I have discovered that Xiao Huang is not only a very good interpreter and secretary, but also a very considerate friend. H: it’s very kind of you to say so, Mr. Brown. I’m glad to be of help. Z: how do you feel now, Mr. Brown? B: after a day’s rest, I feel far better now.
Z: I’m very glad to hear that you are well now 4. inviting Mr. Brown to a dinner B: shall we make a time for a talk?
Z: you are a man of action, Mr. Brown. But you have just made a recovery from influenza and should still have a good rest. We can talk our business later. I’d like to invite you to a dinner party at the restaurant of the Lotus Hotel. I hope you’ll come. B: it’s very kind of you. Thank you for your invitation. When will the dinner begin? H: tomorrow evening, at 5 o’clock. This is your invitation card.
B: thank you. I’ll be delighted to arrive on time. But when shall we fix a time for a talk?
Z: we can fix a time at the dinner. B: good. I will be all right at that time
Z & H: we must be going home now. let us say good-bye.
B: thank you for your kindness. Good-bye and see you tomorrow evening. Z & H: see you tomorrow evening.
Lesson 13 giving a banquet
Background briefing
Mr. Zhang, the general manager of Changsha Foreign Trade Import & Export Company, is entertaining Mr. Brown at the restaurant of the Lotus Hotel. At the dinner table, Mr. Brown meets some Chinese friends, and fixes the time for business talks with them?
Situational conversation
1. inviting the guest to a dinner again
H: good afternoon, Mr. Brown. Did you have a good rest last night?
B: yes, I did. Thank you, Miss Huang. I had a very good rest last night and I’m getting on nicely
H: you seem to radiate energy. How do you find your room in the hotel? Is it comfortable?
B: very comfortable and quiet, too. The attendants are sincere, warm and friendly. They make a good impression on me.
H: I’m glad you find all things satisfactory. Now, our manager, Mr. Zhang sent me over to say that he wishes the pleasure of your company at the dinner. After the dinner, we’ll have a dance party.
B: how nice of him! I’ll be delighted to go.
H: he thought that as this is your first visit to China, you would no doubt be interested in Chinese cooking.
B: I really do not deserve your kindness.
H: there will be some other friends whom you will be delighted to meet, I think. B: I’m sure I’ll enjoy their company.
H: now, everything is ready. Mr. Zhang is waiting for you. Let’s go. B: well, let’s go
2. Amenities before dinner
Z: Mr. Brown, it’s a pleasure to have you here B: it’s very kind of you to have invited me.
Z: now. I’d like you to meet my friends. Allow me to introduce them to you. This is Mr. Yu, the assistant manager of our corporation. He is in charge of the sales department. This is Mr. Peng. He is the finance department manager, and you know, this is Ms. Wang, the secretary of our office. They are with us this evening. B: oh, how nice. I’m glad to meet you Mr. Yu and Mr. Peng.
Y & P: glad to meet you, too.
B: it’s nice to see you again, Ms. Wang and Miss Huang. W & H: nice to see you again, Mr. Brown
Z: now, let’s be seated. Have a cup of tea, please B: it’s good to start with a cup of Chinese tea, please.
Z: I’m glad to hear that. By the way, Mr. Brown, do you intend to have a long stay here?
B: about two months. This is meant to be both a business and pleasure trip Z: that’s a good idea. We hope you’ll stay here for a long time H: dinner is ready. Please go to the table 3. wine before the meal
Z: this is your seat, Mr. Brown. Sit down, please
B: thank you. Mr. Zhang, I’m really a bit nervous now. I know nothing of your table manners. It would be in bad taste for a guest to make blunders.
Z: don’t worry, Mr. Brown. As for table manners, there is only one rule you must observe. That is to make yourself at home
B: no wonder people say the Chinese are hospitable. Now, I have seen it with my own eyes.
Y: Mr. Brown, which do you like best, brandy, Mao Tai or wine?
B: brandy and Mao Tai are too strong for me. Just a glass of red wine, please Y: but Shaoyang spirit doesn’t go to the head. Would you like to try it? B: well, I’ll try a little
H: would you like to use chopsticks or a knife and fork, Mr. Brown? B: I think I’ll try chopsticks and see if I can manage.
H: let me show you. Look, at first place both sticks between the thumb and the forefinger, then, keep one still and move the other, so as to make them work like pincers.
B: let me try… Well, how is that?
Z: fine, you are learning fast, Mr. Brown. Well, to your health and success in business. Cheers.
B: and to yours. Cheers. 4. servicing dishes
Z: this food is a Hunan specialty. Help yourself, please
H: make yourself at home and eat it while it is hot, Mr. Brown.
B: thank you. These dishes are all delicious, especially the chicken in chili sauce and red-cooked beef.
H: I’m glad you like it. May I help you to some more? B: thank you, just a small helping
Z: may I help you to some of the roast duck? It tastes best while it is hot. B: very delicious! Tender and crisp. I’ve never tasted anything like that. Z: have some more, please.
B: no, thank you. It’s delicious, but I must leave room for my other favourites. Z: may I fill your glass again?
B: thank you. Mr. Zhang, what do we say in Chinese for “Bottoms up”
Z: we say “ Ganbei”. I wish to propose a toast to our friendship and cooperation. Ganbei!
All: to our friendship and cooperation. Ganbei! 5. fixing a time for business talks
Z: shall I help you to some pieces of sweet and sour fish?
B: no more, thank you, I’m really full up. I see your cook takes good care of colour, favour and taste all at the same time. I have had enough.
Z: well, in this case, shall we go to the lounge for tea, Mr. Brown? How would you like your tea, with or without sugar and cream?
B: I’ll like it in the Chinese way, plain. Plain tea is the very thing after a ri9ch oily food.
Z: I think you are right. Would you like to try some fruits? How about an apple? B: thanks… Mmm. This apple is sweet and juicy. It tastes best. I must say it is a rich and lovely meal. Thank you for your entertainment. The next step for us is to fix a time for business talks.
Z: certainly. What time would be convenient for you? B: any time would suit me. I’m always free.
Z: the Export Commodities Fair held by the Changsha Foreign Trade Company this year is to open tomorrow. I suggest you should go there for a visit. Then, we can begin our business talks at nine o’clock in the morning, the day after tomorrow in our meeting room. Is that right? B: that’s right. I’d like to go
Z: well, I’ll arrange a car to pick you up to go there at 8:30 tomorrow morning.
Please wait for me in front of the hotel gate on time. H: everything is ready. Let’s go to the dance hall.
Lesson 14 having a ball
Background briefing
After dinner, Mr. Zhang, the general manager of Changsha Foreign Trade Import & Export Company invites Mr. Brown and all present to dance. They enjoy themselves that evening.
Situational conversation 1. what kind of dance
Z: Ladies and gentlemen, a dance party for welcoming Mr. Brown is now beginning. I wish everybody would enjoy yourself.
B: thank you for giving the dance party, Mr. Zhang. I think I’ll have good time with all the friends here
H: what kind of dance would you like, Mr. Brown? B: I’d like the disco
H: it’s very good. Disco is a good exercise for health B: then, let’s do the disco, shall we? H: but, I’d like social dance.
B: can you oblige me with a social dance?
H: yes. Let’s, but I’m a poor dance. I don’t care for the foxtrot. B: may I have the pleasure of engaging you for a waltz or a tango? H: well, let’s try the waltz
2. how to spend a weekend
B: now the music is going on. Will you accept my arm? H: with pleasure. I think you dance much
B: oh, no, to tell the truth, I have not danced for a long time. H: because of busyness, I have not danced for a long time, either. B: still you dance wonderfully well
H: thanks, I’m glad you say so. How do you spend your weekend when you are in your country?
B: we have many recreational activities. Sometimes we go to the movies. Sometimes we go to concerts. The young people enjoy music and dancing, and they spend much time at the nightclub. Elderly people usually settle for the game of bridge.
H: what recreational activities do you like?
B: I like playing golf. My wife is an avid movie-fan. Sometimes we both go to dance. We also go in for amateur photography.
H: the music has stopped. Let’s go to the buffet and get something to drink. 3. at ten-minute interval
H: sit here, please. Mr. Brown. Let’s have a rest and get some thing to drink B: thank you
H: what would you like to drink, lemonade, orangeade or port? B: lemonade, please. Thank you H: I’d like to drink orangeade
B: what sort of entertainments are there in China, Miss Huang?
H: sometimes we go to the movies, sometimes we see Beijing operas, and sometimes we watch acrobatic shows. I like listening to comic dialogues. B: how do you spend your holidays?
H: on holidays we often go to visit some scenic sports. Sometimes we go to Zhangjiajie, sometimes we go to Mt. Lushan. And sometimes we go to Guilin. It is well known that the landscape in Guilin is the best under heaven. 4. what about next dance?
B: the music has started again, what about another dance, Miss Huang? H: no, thanks. I think I’ll sit out the next dance. I’m a bit tired. B: will you give me the honour to dance, Ms. Wang? W: I’m sorry I’m a poor dancer.
B: you are being too modest. What about the polonaise?
W: well, let’s try. I think it’s a good chance for me to learn from you. B: oh, I would think that you dance often, Ms. Wang?
W: sometimes. But I have no brain for this thing, so I can’t improve it at all. B: good heavens! There is no room for improvement. W: thank you for your compliment.
Lesson 15 at the export commodities fair
Background briefing
The export commodities fair held by the government of Changsha City this year is now opening. Mr. Brown is invited to the Fair accompanied by Miss Huang Mei. Mr. Brown has the opportunity to feast his eyes on the goods displayed, especially paying attention to the textiles. The establishment of a joint venture will be discussed the next day. Situational conversation 1. telephone invitation
H: hello, central, could you put me through to Lotus Hotel, please? O: which extension, please? H: extension 308.
O: just a moment. I’ll get the number for you soon…Your line is through now. please go ahead
H: is that Lotus Hotel? May I speak to Mr. Brown? B: yes. Thomas Brown speaking H: hello, Mr. Brown. This is Huang Mei, the secretary of Changsha Foreign Trade Company. Do you remember you said you would go to the Changsha Export Commodities Fair for a visit? B: yes. When shall we start off?
H: our car will come to the hotel to pick you up at once. Are you ready? B: yes, I’m ready. I’ll wait for you in front of the hotel gate. 2. at the ECF S Reception Desk
H: here we are. This is the Export Commodities Fair. Let’s go to the reception desk L: hi, Xiao Huang
H: hi, Xiao Li. Mr. Brown, may I introduce Miss Li to you? This is Miss Li, the interpreter and receptionist of the Fair. And this is Mr. Brown, an American friend of ours.
B: I’m Thomas Brown. This is my card
L: thank you, Mr. Brown. Welcome to our Fair. My name is Li Hua. We hope you have a good time here and also hope to conclude some substantial business with you.
B: thank you. I’d like to, Miss Li. Would you please tell me something about the Fair?
L: yes, follow me, please, Mr. Brown. I’ll brief you on the Export Commodities Fair. It consists of eight halls, including halls for metallurgical, electrical and mechanical, petroleum, chemical, coal mining and light industry products. Its exhibits are mainly new products which have been produced by the various factories of our province. Now let’s go upstairs to the hall of light industry 3. visiting the ECF (1)
B: how crowded with the people!
L: the fair has been held once a year since 1988. many visitors come to the Fair every year. Last year we had more than 10,000 visitors. This year, the number of visitors is expected to increase.
B: you call them visitors, but they are really sellers and buyers.
L: yes. The Fair has become very important in our foreign trade. There are about 20,000 new products on display. Visitors can trade on samples.
H: you can sit down to have a business talk with the seller in his booth and buy something you like
L: many Chinese foreign trade companies come here and do both import and export business here.
B: what if I just want to lodge a claim with the seller?
L: you can meet suppliers all over China to discuss the problem like this. B: oh, it’s very convenient.
L: here is the hall for light industry products. They mainly include textiles, handicrafts, bikes, wrist watches, sewing machines, photographic materials, transistor radios, electronic computers, TV sets, paper, food, leather and so on. In recent years, the output of light industrial products in our province has gone up rapidly, and the quality has greatly improved. 4. visiting the ECF (2)
B: what a beautiful display of textiles!
L: the textile industry in this province has developed rapidly. The annual production of cotton, wool, silk, knitted goods and synthetic fibres has increased by a big margin since we began to practice our new policy of reform and opening up in 1980. B: I was told that the silk industry in this province has a long history, and Hunan embroidery is well-known all over the world.
L: Hunan embroidery is a well-known specialty of our province. In recent years the workers and technicians in the embroidery industry have been trying hard to produce many new products with various colors and patterns in order to meet the growing demand at home and abroad. B: you export a lot of silk, I suppose.
L: yes, especially the Hunan embroidery. It sells very well abroad.
B: I’ll make a large order of the silk and the products of Hunan embroidery L: what else do you want, Mr. Brown?
B: you know, we are in the business of producing various types of clothes. I’d like to run a clothing factory to produce the finest clothes for you.
Lesson 16 preliminary talk
Background briefing
Mr. Zhang Dawei, the general manager of Changsha Foreign Trade Import & Export Company, is holding business negotiations with Mr. Brown. Miss Huang Mei, as the secretary and interpreter of the company, is also at the meeting. They are talking about the foreign trade policy, the new practices in the foreign trade, the current investment environment in China and so on. Situational conversation
1. an exchange of amenities before talks
B: hello. Miss Huang. Will the negotiation start at nine o’clock?
H: yes, Mr. Brown. Welcome to our corporation, Mr. Zhang is waiting for you in the meeting room, on the second floor, the third room on the right. B: thank you. Let’s go.
Z: good morning, Mr. Brown. It’s nice to see you again. B: it’s nice to see you, too. Mr. Zhang.
Z: how do you feel our Export Commodities Fair, Mr. Brown?
B: I feel that no doubt you’ve made great progress in your light industry and you do business more actively and more flexibly.
Z: yes. It is just in this way that we have achieved a total turnover of 80 million U.S. dollars a year.
B: I think you will make more profits if you have close cooperation with us in the future.
Z: I hope so, too. All this is possible, of course, due to the correct policy of our government in opening our doors to the outside world, favoring the expansion of foreign trade, introducing of advanced equipments and foreign investment. 2. on China’s New Foreign Trade Policy
Z: well, to come to the point, how would you like to proceed with the negotiations? B: this is for you to decide. I’m here at your disposal. You know, this is my first time to visit China, so I’d like to know something about your foreign trade policy. It is said that a new policy is being put into practice in your foreign trade. Is that true? Z: yes. Our foreign trade policy has always been based on equality and mutual benefit and exchange of needed goods. We still insist on this principle, but we have adopted much more flexible methods in our dealings nowadays
B: would you please give us a brief account about the new practices you have adopted?
Z: we have mainly adopted some usual international practices, such as payment by installments, process with client’s materials, compensation trade, assembling trade, joint venture and so on.
B: that’s very nice. You have indeed adopted a more flexible policy in your work than before. You have made some readjustments in your import and export business, haven’t you?
Z: one of the principles we are keeping to is that our imports must be based on our ability to pay. That is, if we increase our imports, then we must increase our exports first.
B: by the way, we’d like to know some information about the current investment environment in your country, especially in Changsha?
Z: China is a vast country and a big market with a large population. The municipal government of Changsha has issued a series of regulations and adopted effective measures to favor foreign investors. We have set up several economic development zones and warmly welcome foreign friends to invest in Changsha. 3. promoting business in China
B: the main purpose we come here is to promote trade and economic and technological cooperation between the U.S. A. and China. What would you like to import, then?
Z: we’ll mainly introduce advanced technology, scientific management, complete plant and so on, of course, that is in a planned and selective way. B: I wonder whether you need a loan?
Z: we are rich in natural resources and labor and short of money, we may take it into consideration to accept government-to government or non-government loans if the conditions permit. We also welcome you to invest in our city.
B: if you need, we’d like to supply you with a loan at the most favorable rate, and we’d also like to invest in your city in my own good time. Z: I’m very glad to hear that.
B: if you hope to introduce some advanced technology and complete plants, we’d like to offer you our help.
Z: thank you. But we suggest that our payment should be made through barter or by exporting textiles, arts and crafts, farm and sideline products and so on.
B: yes, that’s all right. Zhang, you know, we are one of the largest import & export companies in America, and do both import and export business. We are very interested in your textiles, especially the Hunan embroidery and cotton piece goods. If your conditions are favorable, we are going to place a large order. Z: your order is welcome. We’ll see what we can do.
B: I have brought with me a series of catalogs for our latest models of the textile machines. It is our hope that you could push the sales of our products.
Z: Mr. Brown, we shall, first of all, study your catalogs and get in touch with our customers. If they are interested, we’ll arrange for further discussions. 4. hoping to establish long-term trade relations
B: Mr. Zhang, another purpose of my coming here is to inquire about possibilities of establishing long-term trade relations with your company.
Z: your desire to establish long-term business relations with us coincides with ours, but…
B: concerning our financial position, credit standing and trade reputation, you may refer to San Francisco Branch, the Bank of China, or to our local chamber of commerce.
Z: thank you for your information. I think that establishing business relations between us will be of benefit to both of us, and will bring about closer ties between us.
B: this is my first visit to your company. I’d appreciate your kind consideration in the coming negotiations.
Z: we are very happy to be of help. I can assure you of our close cooperation.
B: one can always expect a fair deal when trading with Chinese. Everyone speaks highly of your commercial integrity.
Z: one of our principles is to see to it that contracts are honoured and commercial integrity maintained.
B: if your prices are reasonable, I’ll give you a special inquiry. L
Z: then, we’ll try to make an offer as soon as possible. I hope a lot of business will
be out through between us.
Lesson 17 inquiry and offer
Background briefing
The purpose of inquiry is that the buyer wants to seek a supply, service or information. On the second day of negotiations, the meeting lasts longer than expected, because the negotiations begin to get down to the brass tacks. Situational conversation 1. sales promotion
Z: good morning, Mr. Brown. I want to open this morning’s talk by asking if you are interested in our textiles.
B: yes, Mr. Zhang. We are thinking of placing an order. We hope to conclude substantial business with you if your prices are reasonable
Z: Mr. Brown, it’s a great pleasure to hear the information you offered. You have seen the exhibits at the Fair. May I know what particular items you are interested in? B: besides silk, I’m interested in nearly all of the cotton piece goods, such as T-shirts, men’s shirts, blouses, sport shirts, lounge suits, women’s suits, even bras, bathrobe, pajamas and so on. We are ready to negotiate business on these things with you Z: do you feel that they will find a ready market in America?
B: I think they will find a ready market in America, and we won’t have any difficulties in the sale of these items. As you know, people in the Europe and America have been tired of wearing synthetic fabrics. There is a tendency that more and more people like to buy cotton piece goods and silks.
Z: as many people say, time proves that natural things are better than man-made ones. Wearing silks and cotton piece goods makes you comfortable.
B: now, here is a list of my requirements. If the quality of your goods exported is as good as that of the samples displayed, and the prices are reasonable, we expect to place regular orders for fairly large numbers.
Z: Mr. Brown, I can assure you of our fine quality and reasonable prices. Here is our latest quotation sheets, and you will see that our prices are most competitive. 2. inquiring offering
B: Mr. Zhang. Can you give us an indication of your prices about these goods? Z: thank you for your inquiry. But on what basis are we to offer, FOB or CIF? B: I’d like to have your lowest quotation on CIF San Francisco.
Z: would you please tell us the quantity you require so as to enable us to work out the offers?
B: if you can quote us your lowest prices, we’d like to order 20,000 dozen on each item.
Z: the lowest prices of T-shirts, blouses, sport shirts, lounge suites and women’s suites are $80 per dozen CIF. San Francisco. The lowest prices of bras, bathrobes and pajamas are $30 per dozen. Other cotton piece goods and silks are listed in latest catalogues and price sheets in details. 3. catalogues and price lists
B: Mr. Zhang, I’d like to buy Hunan embroidery. Have you got the latest catalogues and price lists for this line?
Z: of course, we have. Here you are. These are our catalogues and price lists for Hunan embroidery and other silks. I wonder what colors and patterns you like?
B: let me see. I think these patterns are quite good. The lowest CIF. San Francisco Quotation is… Oh, all your prices are on FOB. We’d rather have you quote us CIF prices.
Z: that is easy. I can ask our shipping department to work out CIF prices. B: when can I have your CIF firm offer?
Z: we can work out the offer this afternoon, and give it to you tomorrow morning. 4. CIF Quotation
B: have you worked out the offers, Mr. Zhang?
Z: yes, we have. Here is our CIF quotation sheet. Please have a careful look. B: are the prices on the list firm offers?
Z: during the term of validity, all the quotations on the list are subject to our final confirmation.
B: I wonder whether there are any change in your prices?
Z: all these products are our best selling lines, because the patterns of these products are relatively popular in the international market. So the prices of our products will change according to those of the international market. B: that means your prices will increase possibly. Z: yes, there is such a tendency.
B: how long does your current offer remain valid? Z: our offer remains open for three days.
B: if your prices are favorable, we can book an order right way. Z: we may reconsider our price if your order is big enough.
Lesson 18 counter-offer & counter-counter-offer
Background briefing
The disputes on prices are going on between Changsha Foreign Trade Import & Export Corporation and the Far-East Trade Company of America. Mr. Brown, the buyer wants to get the most favourable offer, and Mr. Zhang, the seller thinks that the quality of his products is higher than that of others, and insists on his own prices. The negotiations have reached an impasse. Finally both sides meet each other halfway, and the business is concluded successfully. Situational conversation 1. driving a bargain
Z: have you gone over the quotation sheet, Mr. Brown?
B: take your time. I’ll go over the sheet right now…. Oh, Mr. Zhang, you can’t be serious. I can tell you at a glance that your prices are much too high. Taking the silks, your prices are almost 25% higher than those of Japan. So it would be difficult for us to push any sales if we buy the goods at such prices.
Z: Mr. Brown, I’m not joking, of course, you may notice that the prices for these commodities have gone up a lot in the international market since last month because the cost of production has risen a great deal recently and we also have to adjust our selling price accordingly. The prices we offer are fairly reasonable and competitive as compared with those in the international market.
B: I’m afraid I don’t agree with you on this point. Your prices are higher than those we have got from elsewhere, for example, the Japanese quotation is lower.
Z: But, you should take quality into consideration. You know, the Chinese silks are famous all over the world, and so are the Chinese cotton piece goods. Our products are of high quality. Taking the quality into consideration, I think our prices are reasonable and favorable.
B: yes, I know your quality is good. That is why we import your products. But the price can’t be so high. We also import the same kind of products from other countries. The quality is almost the same as yours, and the prices are usually 15-20% lower than yours. So I don’t think the customers would accept your prices. We are not playing in the same ball park at this price. We only ask that your prices be comparable with others. That is reasonable, I think. 2. driving a bargain
Z: can you make a counter-offer and give me an idea of appropriate prices for these commodities?
B: I hope that you can reduce your prices by 15 percent because it is difficult for us to persuade our end users to buy your goods at such prices.
Z: I’m afraid it’s difficult for us to accept your counter-offer. I’m sure that you know the market prices for these commodities very well. These commodities are our best selling lines. At present the demand of our products still exceeds the supply even if some countries are selling their same kinds of goods at lower prices in big quantities. So we can’t make more reduction of the prices.
B: if that’s the case, there is hardly any need for further discussion. We might as well call the whole deal off. Our negotiation will give up halfway.
Z: what I mean is that we’ll never be able to come down to the price you name. the gap is too great. Well, I think it is unwise for either of us to insist on his own price. In order to get the business, we are quite willing to make some concessions. Would you give me an idea how much you wish to order from us, so that we may adjust our prices accordingly?
B: the size of our order depends greatly on the price. Let’s settle that matte first. 3. the buyer hoping to reduce price
Z: as you wish, well, if your order is large enough, we are ready to reduce our price by 2%
B: when I say your prices are much too high, I don’t mean they are higher merely by 2 or 3 percent. 2% is nothing compared with 15%.
Z: then how much do you mean? Can you give me a rough idea. You mean you want me to reduce 15%, right?
B: your unit price of your garments is 40 dollars higher on the average than we can accept. The price of silks is 20 dollars higher a yard. I suggest we meet each other halfway.
Z: do you mean that we’ll have to make a reduction of 20 dollars in our unit price of garments, and 10 dollars a yard for the silks? That’s impossible. How can you expect me to make a reduction to that extent?
B: to be frank with you, I can get an offer from another supplier. The prices are much lower than yours. If you insist on your present prices, I have to accept the other offer. If each of us makes a further concession, business can be concluded 4. meeting each other halfway
Z: Mr. Brown, according to what you said, I really don’t know how I can pull this business through. If we sell our goods at such prices you named, we shall lose our capital. Let’s meet each other halfway. Mutual efforts would carry us a step forward. B: what’s your suggestion, then?
Z: the best we can do will reduce 10 dollars in our unit price of garments, and 5 dollars a yard for the silks. This is our rock bottom price. We can’t do more reduction.
B: well, in order to get the business, I can accept the price of your silks, but that still leaves a gap of 10 dollars about the unit price of your garments. Let’s meet each other halfway once more, then the gap will be closed and business will be done. Z: Mr. Brown, you certainly have a way to talk me into agreeing with your prices. Well, for the sake of friendship, we may make another reduction of 5 dollars per piece.
B: I’m glad we’ve come to an agreement on prices. Business is closed at such prices. 5. talking about discount
B: Mr. Zhang, this time I intend to place a large order, but business is almost impossible unless you give me a discount.
Z: in principle, we usually won’t allow any discount, because we have made a big concession in price
B: we usually get a considerable discount, when we place such a large order from other suppliers. Z: but I don’t think you can get such favorable prices from anywhere else.
B: we have ordered such a large quantity that a discount, no matter how little, should be allowed.
Z: considering the long-standing business relations between us, we shall grant you a special discount of 3%
B: a 3% discount? It’s too little. We usually get a 10% discount from the European exporters.
Z: I’m afraid I could not agree with you for such a big discount. In this way, it won’t leave us anything. Well, Mr. Brown, considering this is a new production, we may offer you allowance on a sliding scale. B: could you say it more exactly?
Z: well, suppose your order comes to $100,000, we’ll give you a 3% discount. And it goes up to 5% for your purchase exceeding $300,000 and 7% for $400,000 and prorate.
B: your proposal seems to be reasonable. All right. In order to get the business, I accept it.
Lesson 19 acceptance and order
Background briefing
It is the fourth time of negotiations. Mr. Brown, the general manager of the Far-East Industry Corporation of America, accepts the prices of the garments and Hunan Embroidery and wants to place a trial order. But the minimum quantity of the garments he grants is too low because of the higher prices. Finally, Mr. Zhang, the general manager of Changsha Foreign Trade Import & Export Corporation, adjusts the prices to attract Mr. Brown to place larger order so as to make a quick turnover by reducing prices.
Situational conversation 1. accepting the price
Z: Mr. Brown, we are old business partners and friends. In order to encourage future business and as a gesture of friendship, we cut our prices again and again. Are you satisfied with the prices we talked about last time?
B: yes, generally speaking, I am satisfied with the prices because the quality of the product is good. Thank you for making this concession, I accept it
Z: now, I’d like to repeat the price we have agreed on. The unit price of these garments is US $85 per piece CIF. San Francisco on the average. The unit price of the Hunan Embroidery is US $ 45 per yard CIF. San Francisco. Is that right?
B: what about the specifications? Don’t you fix the prices according to the specification of the commodity?
Z: we fix our prices on average about this commodity. Specifications are as shown in our catalogue. Would you accept such prices and confirm the above-mentioned terms?
B: taking the quality into consideration, I accept your prices though on a slightly high side.
Z: in respect to quality, I don’t think the goods of other brands can compare with ours. These patterns are relatively popular in the world market. We strongly recommend you to accept it as our stocks are running low.
B: since this is the case, we are willing to conclude this transaction. 2. placing a trial order
B: Mr. Zhang, we should discuss the problem of placing an order next step, I think Z: well, let’s discuss the problem of placing an order. How many do you want to order?
B: what is the minimum quantity of an order for this cotton-piece good? I’d like to order 100,000 yards.
Z: the minimum quantity of an order for this product is 150,000 yards. Can you order more? Such a new product is of high quality.
B: I’m afraid this can’t be done. Unless you propose something definite together with some improvement on your price, we are not inclined to place a large order. Z: if your order is large enough, we are prepared to make a 2% reduction
B: well, let me place a trial order of 150,000 yards about this new product. If the sales volume is large enough, we will give you larger orders in the future. 3. accepting the counter-offer
Z: what else do you want to buy? How many do you intend to order about the garment?
B: we want to order 400,000 pieces
Z: I hope you can order more. Such garments are high in quality and our best selling lines.
B: the quantity of our order depends greatly on your prices. Although you have made some concession, generally speaking, your prices are still on the high side. Z: would you give an idea how many you wish to order from us? If your order is large enough, we can adjust our prices accordingly once again. To say, we may reduce our price by 2% further if you order is more than 500,000 pieces. B: if you reduce your price by 5%, we’ll order 50,000 pieces.
Z: all right, in order to get the business, we accept the price you required. The transaction is stricken at this price 4. confirming the order
Z: how much of the Hunan embroidery do you want to order?
B: we’d like to order 600,000 yards. Can you meet our requirements?
Z: I’m afraid we are not able to supply as much as you required. I suggest that you
cut down the quantity of your order by half.
B: would you try to supply us with 400,000 yards?
Z: it’s very difficult for us to get the goods in large quantity as well as to make prompt shipment. Please look at the catalogue. I suggest that you buy this product. The supply of this product is better.
B: how about the quality of this product?
Z: in respect to quality, I think that our product can stand competition in world market.
B: well, then, we’ll order 150,000 yards of cotton-piece goods. 500,000 pieces garment and 300,000 yards of Hunan embroidery, and increase the order for this product of silks by 200,000 yards. Z: we can confirm your order.
Lesson 20 payment and delivery
Background briefing
After settling the problem of placing an order, Mr. Zhang Da-Wei, the general manager of Changsha Foreign Trade Import & Export Corporation, is going to discuss the terms of payment and the date of delivery with Mr. Brown. Finally, Mr. Brown accepts the terms of payment by the irrevocable L/C, and Mr. Zhang agrees to deliver the goods in the middle of June or earlier. Situation conversation 1. Mr. Brown’s disposal
B: Mr. Zhang. It’s the fifth time of negotiations. What are we going to talk about today?
Z: Mr. Brown, let’s have a cup of tea first. We have agreed on prices and orders. Now what about the terms of payment and the date of delivery?
B: good. The two problems are very important. Let’s settle them. What do you think of the terms of payment?
Z: well, I’m here at your disposal.
B: My disposal? My disposal is to ask for easier payment terms and make a timely delivery. That’s OK?
Z: of course, we are very happy to be of help and we can assure you of our cooperation.
2. demanding payment by irrevocable L/C (1)
B: may I know what is your regular practice about the terms of payment?
Z: when we deal with foreign customers, we usually accept payment by confirmed irrevocable L/C payable against shipping document.
B: payment by L/C is the safest method, but rather complicated. Could you make an exception and accept D/A or D/P?
Z: I’m afraid it’s out of the question. We have never made any exception so far because payment by L/C is our method of financing trade in such commodities, what is more, letter of credit is the normal terms of payment universally adopted in international business. We must adhere to this customary practice.
B: I have heard China had adopted the open policy and wants to enlarge its foreign business, of course, you would certainly accept different kinds of payments, is that true? I hope you would leave us some leeway in terms of payment.
Z: right you are. But that depends on the specific circumstance. Otherwise, there would be a lot of trouble to us. So we always require L/C for our exports. And the other way round, we pay by L/C for our imports. 3. demanding payment by irrevocable L/C (2)
B: Mr. Zhang, to meet you half-way, how about 50% by L/C, and the rest by D/A? Z: I’m sorry, Mr. Brown. I can’t promise you even that. To tell you the truth, D/A is impossible, because our company would take a considerable risk. Perhaps after more business together, we could agree to D/P terms. But now we only accept payment by confirmed irrevocable letter of credit payable against shipping documents.
B: to tell you frankly, a letter of credit would increase the cost of our import. To open a letter of credit for such a large order as US $8,000,000 with a bank, we have to pay a good sum of deposit, which will tie up our money and bring us a great deal of difficulty
Z: I see. It may be. But for large orders, we must insist on payment by L/C. you know that a confirmed irrevocable L/C gives the exporter the additional protection of the banker’s guarantee. And what’s more, you may reduce your order by half to get around your difficulty, and send in an additional order later, or you may consult your bank and see if they will reduce the required deposit to a minimum
B: but still we have to pay bank charge in connection with the letter of credit. If you would accept D/A or D/P, it would help me greatly. You can draw on me just as if there were a letter of credit. It makes no great difference to you, but it does to me. As for cutting down the order, we don’t consider it.
Z: the bank charge is very little as compared with our favorable supply. That means nothing. As I have told you, we require payment by L/C. 4. opening the L/C
B: if that’s the case, I’ll have no choice, but to accept the terms of payment by the confirmed irrevocable L/C. now, when must we open the relevant L/C?
Z: the L/C should be opened by the buyer 15 to 30 days before delivery so that we can make the necessary arrangement. B: how long should our L/C be valid?
Z: the L/C should be valid for 15 days after the date of shipment.
B: could you tell me what documents you’ll provide?
Z: together with the draft, we’ll also send you a complete set of bills of lading, an invoice, an export license, an insurance policy, a certificate of origin and a certificate of inspection. I suppose that’s all.
B: could we adopt the terms of payment by installments for our present transaction? Z: with an eye to future business, we’ll adopt payment by equal installments within 3 months. But the first installment should reach us before 15 days of delivery. B: well, can I pay for my import in RMB?
Z: we would prefer you to pay for your imports in US dollars. B: can you tell me how to make payment in RMB if we do?
Z: many banks in Europe and America now carry accounts in RMB with the Bank of China, Beijing. They are in a position to open letters of credit and effect payment in RMB. Consult your banks and you will see that they are ready to offer you this service.
5. asking the time of delivery
B: may I ask how long it take you to make delivery?
Z: as a rule, we deliver our goods within two months after receipt of the covering L/C. sometimes we can get the goods early from our manufacturers, and we can also make a prompt delivery.
B: what is the time of delivery about our orders? Z: I’m afraid it would be by the end of June.
B: is it possible for you to make delivery more promptly, at least to deliver 50% at present? Delivery by the end of June will be too late. If that, the goods will reach us at least in the middle of July. Mr. Zhang, you may know July is the season for this commodity in our market. The time of delivery is a matter of great importance to us. If we place our goods on the market at a time when all other importers have already sold their goods at profitable prices, we shall lose out.
Z: I see your point, but we’ve done more business this year than ever before. It’s difficult for us to get the goods from our manufacturers in large quantity as well as to make prompt delivery.
6. setting the date of delivery
B: but can’t you find some way to get round your manufacturers for an earlier delivery? I hope you can give our request your special consideration. A timely delivery means a lot to us.
Z: you may take it from me that the last thing we want to do is to disappoint a customer, especially an old customer like you. But the fact remains that our manufacturers have a heavy backlog on hand. We’ll get in touch with our manufacturers and try our best to advance delivery to the middle of June and ship them in one lot.
B: when will the goods reach us, then?
Z: if there is no accident during transportation, I think the goods will reach you by the end of June. In no case would it be later than July 2nd.
B: good. We certainly appreciate your close cooperation. May I suggest that you put down in the contract “shipment on June 15 or earlier”? And our letter of credit will be opened in the middle of May.
Z: good. Let’s call it a deal. We’ll do our best to dispatch the goods as soon as possible after getting the L/C. please indicate that the L/C is negotiable in our country.
B: that’s all right. I’m very glad we’ve come to an agreement on terms of payment and date of delivery. Thanks to your close cooperation.
Z: very good. Our discussion has been very pleasant and fruitful. I sincerely hope that the volume of trade between us will be even greater in future.
Lesson 21 packing and shipment
Background briefing
Packing and shipment are very important in foreign trade because attractive packing would help to sell the goods and the ultimate purpose of packing and shipment is to keep the transported goods in perfect condition with nothing missing on arrival. After settling the terms of payment and the date of delivery, Mr. Zhang is going to discuss the way of packing and shipment, with Mr. Brown. Situational conversation 1. on way of packing
B: Mr. Zhang, the negotiation is going on well. We have already agreed on prices, quantity, the terms of payment and the date of delivery. What shall we talk about this time?
Z: the next problem I’d like to bring up for discussion is the way of packing.
B: well, let’s change to another topic-packing. Packing is a part of products. It’s very important. I’d like to hear what you say concerning the matter of packing.
Z: oh, don’t worry about it. Every box is lined with the waterproof material. This is protective outer packing.
2. persuading Sb. To accept a packing (1)
B: but will cardboard boxes be strong enough for the long-distance ocean transportation?
Z: of cause, they will. I would think corrugated cardboard boxes good enough for such lightweight articles as textiles. The boxes are comparatively light, and therefore easy to handle. They’ll not be stowed away with the heavy cargo. Besides, in order to make them strong enough to stand rough handling, we’ll reinforce the boxes with metal straps, and place the metal angles at each corner.
B: well, Mr. Zhang, I’d rather play safe. The cardboard boxes are easier to be cut open, and there is the risk of pilferage to be taken into account.
Z: on the other hand, tampering with the cardboard boxes can be easier detected.
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