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In foreign trade sale of goods through agents is widely practised and is becoming more and more popular from year to year. Agency firms operate finder agency agreements stating, the obligations of the agents and the principals. The range of the parties' services is stipulated in the agreements. In iome countries foreign trade operations can be carried out only through local agency firms. The agents and the principals establish contacts through Various channels.
"■ Trade by tenders has become a universally accepted practice. It is a competitive method of purchasing machinery, equipment and other goods as well as construction of enterprises including "turn-key" construction. Tenders are invited either privately or publicly for a number of prospective suppliers. Tendering involves the observance of a great number of formalities usually put forward by a tender committee. So tenders submitted through agents stand a better chance, as an experienced agent is not only in a position to inform his principal in good time and in every detail of the terms and dates of tender he might be interested in, but he can also provide him with information of the market conditions, prices, competitors, etc. Organizations inviting tenders usually give preference to offers with favourable payment terms often promoted by agents.
B.
Here is an example of an agency firm approaching a potential principal.
September 10, 20... Dear Sirs,
We owe your name and address to your representative at the Russian Embassy in our country and have pleasure in introducing ourselves as one of the leading import-export agency firms in this country. May we bring to your notice that we have the honour to represent as sole agents many world
famous firms which made good «se of our services in various tenders. We therefore assure you that should you wish to1 appoint us your agents our collaboration will be of mutual benefit.2
It has come to our knowledge that your products enjoy a high reputation and several projects all over the world have been constructed with your assistance to the satisfaction of all concerned.
As agents of many years' standing we have a thorough knowledge of the... market and are of the opinion that your goods will have a good sale here 3 provided the prices are put on a competitive basis 4 and a publicity campaign advertising your goods and equipment is arranged properly.
We can undertake to obtain orders for the sale of your products as well as for carrying out design and survey work and distribute your equipment on a consignment basis.
You may be interested to know that we also give assistance in arranging participation in tenders invited in this country.
If such lines of cooperation are of interest to you, please let us know so that5 we can send our representative to Moscow to negotiate an Agency Agreement with you.
Looking forward to your favourable reply,
We remain,
Yours faithfully,
С
DISCUSSING THE AGENCY AGREEMENT
Tradeinvest considered the proposals of the agency firm and invited Mr N.
of... Co. Ltd. to come to Moscow to tackle all the problems.
Principal: Well, we've studied all your proposals, Mr N.. and can resume the discussions. I understand that now you are familiar with our range of activities, aren't you?
Agent: Yes, Mr S., you made it very clear to us during the previous negotiations. Besides, we've been in the business long enough to know how to satisfy our principals.
P. Very good, Mr N. Then there's actually one point we'll have to take up. That's the commission rate. As a matter of fact, the 5 % commission you ask us for strikes us as very high. The maximum we could agree to is3%.
A. I see, Mr S., but you ask us not only to obtain orders, but help you execute turn-key contracts if necessary. So, I think our profit won't be very high, in fact we may even suffer losses in the first year or so.6
P. Well, what exactly will the commission cover?
A. Expenses on obtaining orders, part of the publicity expenses, registration charges, to say nothing of supervision for unloading, transportation and storage of equipment under turn-key contracts. When all these are deducted, the balance won't be high, I assure you.
P. We still think the commission is very high. We are prepared to make our contribution.to the publicity campaign. We shall send you films advertising our equipment and a working model of our project. We can also supply you with complete sets of advertizing literature on our goods. I'm confident that all this will enable you to cut your expenses.
A. That alters matters, Mr Smirnov. I've seen your advertising materials and I'm favourably impressed. Then I believe, 3 % will do.
P. Glad to hear that. I take it, we agree on a sliding scale commission with the maximum rate of 3 %, don't we?
A. Exactly so, the commission rate will depend on the contract volume and we would ask you to remit the commission to our Bank account in hard currency immediately after signing the contracts which we'll obtain for you.
$. I'm sorry to say we don't work on this basis. As a rule we grant our Customers the right to pay by instalments and we pay commission as soon as we receive payments from our Customers in the currency of payment.
A. In other words you suggest rather unfavourable terms, but we would be willing to accept them as cooperation with your company is of great interest to us.
P. Fine. Now, that we've come to terms about everything, we'll be able to sign an Agency Agreement, right?
A. Yes, I think so. I'll phone you when our Draft Agency Agreement is ready.
D.
January 3, 20... Dear Sirs,
We have pleasure in informing you that the Central Tender Committee on behalf of... has invited tenders for design work, supply of complete equipment and construction of an Aluminium Plant.
| VOCABULARY LIST |
| WRITTEN PATTERNS |
If you are interested in the project, will you please send us information about similar projects constructed with your assistance, including costs, date of commencement and completion, and scope of work.
Upon receipt of your favourable reply with all the required documents enclosed we shall register you to participate in this tender and obtain for you a complete set of Tender Documents. The expenses incurred will be charged to your account.
According to the information available the closing date for the submission of tenders is the 1st of April, so the documents to be submitted should reach us at least two days before the closing date to enable us to arrange for their submission to the Central Tender Committee in due time.
Please be advised that an inspection of the construction site for tenderers is fixed for the 1st of March. We can assure you that you can count on our full cooperation.
Yours faithfully,
Tradeinvest completed the Tender Documents and forwarded them to the Tender Committee through the Agency firm. The Tender Committee compared the offers submitted by different firms and came to the conclusion that Tradeinvest offered most favourable terms and competitive prices, so the Contract was awarded to the company.
NOTES
1. should you wish to... если вы захотите...
2. will be of mutual benefit будет полезно для обеих сторон
3. Your goods will have a good Ваш товар будет здесь пользо-sale here ваться большим спросом
4. provided the prices are put при условии, что цены будут on a competitive basis конкурентоспособными
5. so that с тем чтобы; для того чтобы
6. in the first year or so год или около того (после подпи-
сания агентского соглашения)
agent п
participation п
tender(s) п
agency п
agency agreement
agency firm
prospective a
owe v
sole a
collaboration n
collaborate v
to be of the opinion
sale n
on (for) sale
provided conj
publicity n
campaign n
to arrange a publicity campaign
obtain v
distribute v
on (a) consignment basis
to invite (a) tender(s)
line of cooperation
tackle v
to be familiar with
range of activities
principal n
commission n
commission rate
maximum n
turn-key contract
to suffer losses
registration n
charges n
supervision (for) n
We owe your name and address to We have the honour to represent...
unloading n
deduct v
balance n
to make a contribution (to)
working model
advertising literature
cut v
alter v
sliding scale commission
remit v
hard currency
to grant the right
instalment n
to come to terms (about)
tender committee
commencement n
scope of work
upon receipt
register v
participate v
tender documents
to incur expenses
to charge to smb's account
available a
closing date
submission n
submit v
reach v
in due time
inspection n
tenderer n
fix о
to count on
forward v
award и
Мы получили наименование Вашей фирмы и адрес от... Имеем честь представлять...
| It hascome to our knowledge that Мы узнали, что... |
| SPEECH PATTERNS |
| VOCABULARY NOTES |
| агент, посредник |
to the satisfaction of all concerned
(both parties) Will you please send... Please be advised... You may be interested to know...
May we bring to your notice...
We can let you have any information on...
do not hesitate to contact us...
Meanwhile we hope you will see in our offer a worthwhile opportunity.
We've been in the business long
enough, as a matter of fact in fact
to say nothing of... That alters matters. 3% will do. I take it... in other words exactly so I'm sorry to say...
agent ['eicfcant) n
A number of Russian foreign trade companies sell their goods through agents, publicity agent
к удовлетворению всех заинтересованных (обеих сторон)
Пришлите, пожалуйста,...
Доводим до Вашего сведения...
Возможно, Вам будет интересно узнать, что...
Разрешите довести до Вашего сведения...
Мы можем предоставить Вам любую информацию о...
обязательно свяжитесь с нами...
Надеемся, что Вы найдете наше предложение заслуживающим внимания.
У нас достаточно большой опыт
| агент по рекламе |
в этом деле. собственно говоря фактически не говоря уже о... Это меняет дело. 3 % нас устраивают, насколько я понимаю... другими словами совершенно верно К сожалению, я должен сказать
to act as smb's agent
The firm has been acting as our agent(s) for five years. agency n
As a rule well-established firms have their agencies all over the world.
travel agency shipping agency
agency firm
agency agreement participation n
Participation in this business is
limited. tender(s) n
Tenders are very common in
world trade nowadays. prospective [pras'pektiv] a Syn. future
The prospective advantages of
this trade agreement are great. owe [эо] v
He owes his success to hard
work.
The firm still owes us a lot of money. sole [ssul] a
sole agency
sole agent sole right
We want to represent your firm as sole agents in our country.
collaboration [ka.lsebs'reifn) n
Syn. cooperation
Our collaboration with the firm has brought good results.
collaborate [ka'lacbsreitj v
выступать в качестве представителя (агента), быть чьим-л. представителем, представлять кого-л.
агентство, агентская организация
бюро путешествий агентство по погрузке и отправке грузов, экспедиторы агентская фирма агентское соглашение участие
тендер, торги
будущий, предполагаемый
1. быть обязанным (чему-л., кому-л.)
2. быть должным, задолжать (кому-л.)
единственный, исключительный, монопольный
единственное (монопольное) агентство
единственный (монопольный) агент исключительное, монопольное право
сотрудничество
сотрудничать
The agency firm wanted to
collaborate with us on mutually
favourable terms. to be of the opinion Syn. to believe
They were of the opinion that the
talks would bring positive results. sale n
The goods have been on sale for
several weeks.
The machine is not for sale.
sale on credit
credit sale
There was no credit sale for that
equipment in the country.
on (for) sale
provided conj
Syn. if
We shall sign an agency
agreement provided the parties
agree about the commission rate. publicity [pab'lisiti] n
publicity expenses
to give publicity
Syn. to advertise
The new model of car was given a
wide publicity.
to enjoy publicity
The equipment manufactured at the plant enjoys publicity all over our country. campaign Ikam'peinJ n
election
propaganda
a(n) political campaign
military
publicity
nation-wide Nation-wide campaigns against terrorism have started in many European countries. to arrange a publicity campaign
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