Chapitre 13 - International Trade
Import-export, Incoterms et marchés mondiaux.
Reading Comprehension
Based on the trade.gov article from Découvrir. Answer in English.
Know Your Incoterms
Incoterms are a set of internationally recognized rules which define the responsibilities of sellers and buyers in the export transaction. Incoterms specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.
The Incoterms® are a set of 11 individual rules issued by the International Chamber of Commerce (ICC) which define the responsibilities of sellers and buyers for the sale of goods in international transactions. Familiarizing yourself with Incoterms will help improve smoother transactions by clearly defining who is responsible for what and each step of the transaction.
The seven Incoterms® 2020 rules for any mode(s) of transport:
- EXW - Ex Works
- FCA - Free Carrier
- CPT - Carriage Paid to
- CIP - Carriage and Insurance Paid To
- DAP - Delivered at Place
- DPU - Delivered at Place Unloaded
- DDP - Delivered Duty Paid
The four Incoterms® 2020 rules for Sea and Inland Waterway Transport:
- FAS - Free Alongside Ship
- FOB - Free on Board
- CFR - Cost and Freight
- CIF - Cost Insurance and Freight
Source : trade.gov/know-your-incoterms - International Trade Administration · Level: B1/B2
1 What do Incoterms specify about the export transaction?
2 True or False - then justify in one sentence.
"Incoterms determine the final selling price and the currency used in an international transaction."
3 Who publishes the Incoterms rules, and how many rules make up Incoterms® 2020?
4 Give the full name of two Incoterms rules from the list (e.g. FOB, DDP…).
5 Why is it useful for a business to "know your Incoterms" before signing an export contract?
Grammar Spotlight - Conditionals (1st & 2nd)
Observe → Comprends → Applique.
Observe
Real US small business owners talked to the media about the impact of tariffs on international trade.
The Rule
| Form | Used for | Example |
|---|---|---|
| 1st conditional | real, likely future situations | If tariffs increase, prices will rise. |
| 2nd conditional | hypothetical, unlikely, or imaginary situations | If we had a bigger budget, we would import more. |
Structure:
Exercice A - Complete with the correct conditional
Base: It's very likely tariffs will rise next year, and that will make our costs increase. (rise / increase)
Base: Imagine an unlikely scenario: the company has more capital and opens a new market. (have / open)
Base: This is a real possibility: if profits keep falling, the owner will have to close the shop. (fall / close)
Exercice B - Gap-fill
If the government _______ (lower) tariffs tomorrow, small businesses _______ (survive) more easily.
If we _______ (not order) new stock soon, we _______ (run) out of products by December.
Lexis in Action
Match, classify, and use the key vocabulary from this chapter.
A Matching - Term → Definition
B Gap-fill - Complete the sentences
1. The goods can't leave the port until they __________.
2. Every shipment needs a __________, an official document listing the goods being transported.
3. Because of longer __________, we now order stock three months in advance.
4. We need to __________ before the tariffs increase next month.
Guided Writing Task
Mobilise everything you've learnt about conditionals and international trade.
Write 80-100 words in English about the risks and opportunities of importing goods from abroad. Use at least one 1st conditional (a real/likely situation) and one 2nd conditional (a hypothetical situation).
Sentence Starters
Word Bank
Your Writing
Self-evaluation Checklist
Importing goods from abroad brings both risks and opportunities. If we choose the wrong Incoterm, we could end up paying unexpected customs fees or freight costs. If tariffs increase next year, our final prices will almost certainly rise too. On the other hand, if our supply chain were more diversified, we would depend less on a single country and reduce our risk. Before signing any contract, a business should always check the export license requirements and agree clearly on who handles customs clearance.