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Kingsland Institute of New Zealand

KINZ
New Zealand Diploma in Business

PAPER OUTLINE

International Trade &


Finance

Paper code: 225


Semester Two, 2007
www.kinz.ac.nz
http://www.esnips.com/web/225ITF
225 International Trade and Finance – Course outline Page i

CONTENTS

1: COURSE DESCRIPTION: ..................................................................................................................... 1


2: OBJECTIVE OF THE COURSE:.......................................................................................................... 1
3: TEACHING IN THIS COURSE: ........................................................................................................... 2
4: LEARNING OUTCOMES:..................................................................................................................... 2
5: LECTURES AND ORGANIZATION: .................................................................................................. 3
6: LECTURERS: .......................................................................................................................................... 3
7: TIMETABLE: .......................................................................................................................................... 4
8: RESOURCES: .......................................................................................................................................... 5
9: KINGSLAND INSTITUTE OF NEW ZEALAND REGULATIONS:................................................ 6
11. PRESENTATION OF ASSIGNMENTS........................................................................................... 7
12. RETURN AND RECONSIDERATION OF ASSESSMENTS........................................................ 7
13. STANDARDS OF STUDY ................................................................................................................. 9
14. IN CLASS EXPECTATIONS...........................................................................................................10
15. REFERENCING—APA STYLE......................................................................................................11

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225 International Trade and Finance – Course outline Page 1

Welcome to International Trade


and Finance
Course Outline
1: Course Description:
This course is designed to introduce students with an overall knowledge of international
trade and finance. In this framework students study the importance and benefits of
international trade; basic theories of international trade; globalisation; relevant documents
and terms frequently used in international trade; and finance knowledge specializing in
foreign exchange regimes, capital markets and swaps. Students make a class presentation
on a chosen case study, and take an in-class test and final exam related to the course.

2: OBJECTIVE of the Course:

The aim of the paper is stated in the prescription published by the New Zealand
Qualifications Authority as follows:

To provide students with a knowledge of appropriate products, strategies and


practices in the conduct and financing of international trade.

The topics in this course are described in the NZQA course prescription. The topics are as
follows:

1. The benefits of international trade


2. Risks of international trade
3. Foreign exchange and foreign exchange markets
4. Documents and terms used in international trade
5. Bills of exchange
6. Documentary letters of credit
7. International trade finance
8. International capital markets and swaps

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225 International Trade and Finance – Course outline Page 2

The details of each topic together with the Learning Outcomes and Assessment Criteria
are given in Appendix 1.

You should refer back to the Learning Outcomes and Assessment Criteria while working
through the course in order to remind yourself of what you should be learning and how
your current task fits with the prescription.

3: TEACHING In This Course:

Theory classes are enhanced with interactive participation required of all students in
lecture classes. Students are expected to participate in case discussions relating to the
topics prescribed.

Case study, Group discussion, and some soft wares might be used as teaching aid.
Students are encouraged to do their own research. Newspapers, Electronic media and
Magazines provide some excellent and topical material. Research from the internet is also
a useful source of information.

4: Learning Outcomes:

• Be able to explain various international trade and financial terms.

• Be able to understand basic theories and terminology in foreign exchange markets

• Be able to understand the advantages of specialisation and exchange, and grasp


various international trade theories, such as comparative advantage.

• Be able to explain and identify the risks of international trade for participators.

• Be able to demonstrate an understanding of the role of the bill of exchange as a


mechanism for obtaining payment and finance for international trade transactions.

• Be able to apply the common rules and standards regarding their use.

• Be able to demonstrate an understanding of the different types of international


trade finance and evaluate the merits of each type in a given situation.

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225 International Trade and Finance – Course outline Page 3

5: LECTURES and Organization:

7.5 weeks with 2 lectures each week, minimum of 60 hours class contact.
You are expected to spend 130 hours on private study for this paper. So, for
every one hour of class contact you are expected to devote 2-3 hours of private
study. This time reflects the need for reading, lesson summaries, assignments,
projects and research. This subject is taught on the basis that you are fulfilling
this requirement.

Attendance at all scheduled classes at KINZ is compulsory and repeated failure


to attend class without a reasonable excuse or medical certificate may result in
disciplinary action being taken including expulsion and cancellation of your
student visa.

Class Timetable
This timetable is only valid for the first FOUR weeks
Day Time
Wednesday 9:00 am to 12:00 pm (3
hours)
Thursday 12:00 pm– 15:00 pm (3
hours)
Total 6 hours / week

davidganglin@gmail.com

Please wait for the further notice for the rest three and a half week’s lecture.

You are required to attend at least 80% of lectures. It will be extremely difficult for you
to make up for lost time if you do not attend the lectures. If you are unable to attend any
lectures for any reasons, you should advise the lecturer or the office secretary in advance.

6: LECTURERS:

David LIN
Email: davidganglin@gmail.com
Email is the best contact method for making appointment and asking questions.

You are encouraged to talk to lecturers about any matters relating to the course, and
arrange an appointment if necessary.

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225 International Trade and Finance – Course outline Page 4

7: Timetable:

Note:

1. Some variations may occur to this timetable due to class availability etc.
2. The venue for the final exam will be advised by notice prior to exam week

Week Date
Topic Lecture Topics Assignment
/Lecture
17/10
The benefits of international trade
W1/L1 1
Comparative Advantage

W1/L2 18/10 2 Risks of international trade


24/10 Foreign Exchange and Foreign Exchange
W2/L1 3
Markets
25/10 Foreign Exchange and Foreign Exchange
W2/L2 3
Markets
31/10
W3/L1 4 Documents and terms used in international trade
01/11
Documents and terms used in international trade
W3/L2 4 &5 In-Class Tests
Bill of Exchange
07/11 Bill of Exchange
W4/L1 5&6
Documentary Collections
08/11 Documentary Collections
W4/L2 6&7 In-Class Tests
Documentary Letters of Credit

W5/L1 7 Documentary letters of credits


Subject to be changed

W5/L2 8 International trade finance

W6/L1 8 International trade finance

W6/L2 9 International capital markets and swaps

W7/L1 Final examination revision


Final
W7/L2
Examination

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How to pass
¾ To pass this course you must attain at least 50% when adding all the assessments
marks together

¾ To pass this course you must attend at least 80% of lectures. Less than 80%
attendance will be considered ‘failed’ in this course. Good performances in the
lectures will be considered in the overall assessments.

¾ At least 40% of available marks in the final examination

¾ You must sit all assessments

8: RESOURCES:
Prescribed textbooks
Burridge, K. & Hart, P. Principles of banking. Longman Paul. Latest edition

Suggested student references

Uniform customs and practice for documentary credits. (Booklet published by the
International Chambers of Commerce.) Latest edition.

Uniform rules for collections. (Booklet published by the International Chambers of


Commerce.) Latest edition.

New Zealand year book. (Annual publication Statistics NZ.)

Edwards, R. & Weston, R. International trade and finance - a guide to the instruments
and techniques of Australian exports. The Law Book Co., Sydney. Latest edition.

New Zealand exporter and importer handbook. Braynart Group. Latest edition.

International Standard Banking Practices – ICC Banking Commission October 2002

Uniform Rules for Demand Guarantees – ICC Publication Page 2 of 8

International Standby Practices – ICC Publication 1998

New Zealand Bills of Exchange Act

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9: Kingsland Institute of New Zealand Regulations:


Students are referred to the regulations and policies published by the New Zealand
Qualification Authority and Kingsland Institute of New Zealand. Your first point is of
call is to call reception or the school counsellor on 09 379 6868, for any enquiries and
clarification when the Lecturers are unavailable.

9.1: Conduct in Assessments, test and exam writing

Most tests will be closed or open book based, depending on the content and type of test.

9.2: Kingsland Institute of New Zealand policy on plagiarism

Please take note of the Kingsland Institute of New Zealand’s policy on plagiarism.
Plagiarism means using someone else’s work without proper acknowledgment of that
work, or passing off someone else’s work as yours. The Institute views plagiarism with
much concern and significant penalties are imposed such as an automatic failing grade
for the paper in question. Also, please note that you can find numerous places both in
texts as well as WebCT for guidelines on how to reference other writers.

The following extract on plagiarism is taken from the Kingsland Institute of New
Zealand Calendar.

9.3: Misconduct

Any candidate who is found guilt of any dishonest practice in connection with and
examination or any breach of the rules dealing with the conduct of examinations shall
be liable to the penalties hereinafter provided. If the Academic Board finds a charge
proved it may disqualify the candidate from sitting examinations for such periods as it
thinks fit, if the candidate has been credited with a pass in the examination in respect of
which the charge arose, cancel such credit.

Advice
Do not give your works to another colleague in the class to read. If that
person copies parts of your text into his or her assignment, both will receive
‘0’

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10: How to Study This Course


Establish a regular and consistent study habit. You should set aside and stick to the
required number of hours each week.

Attend every class if at all possible. There is little scope if any to make up for lost time.

Be there at the scheduled start time of the class. The most important part of every class
is the beginning. Lateness interrupts the class and reduces your learning opportunity.

Make sure you fully understand the course and assessment timetable. That timetable
will be closely followed. You must be able to use the time to understand what topics are
being studied at what stage and when you need to undertake or complete assessments.

Make sure you are fully prepared for each class. Prior to each class you are expected to
have completed the learning exercises from the previous week, and to have read the
relevant parts of the textbooks.

Prepare for the tests and assessments well in advance of the specified date.

11. Presentation of Assignments


General standards apply to assignments submitted by students for assessment.
Work that does not reach these standards may be returned to students
unmarked.

All your work must be appropriately referenced so as to indicate to the reader


the sources of your ideas and material. The programmes follow the American
Psychological Association (APA 5th) referencing format.

All assignments must be submitted in hard copy at the hand in dates and times
advised. See also section on ‘Individual Work – Plagiarism.’
Information on referencing is attached at the end of this outline.

12. Return and Reconsideration of Assessments


Students shall not be entitled to the return of all work submitted for formal
assessment.
Students will be notified of the date/time when assessment scripts can be
viewed and reconsidered. This will take place under exam conditions. If you
have any queries about your assessments, the procedure is as follows.

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225 International Trade and Finance – Course outline Page 8

You will have 20 minutes to review your assessment. During that time if you
have any queries or want your grade to be reconsidered, then you need to write
your reasons down, being as specific as possible. Your lecturer will then
reconsider the grade and return your assessment. A grade may be unchanged,
raised or lowered during reconsideration.
Once a student removes his/her script from the reconsideration process, he/she
loses any right of reconsideration/appeal.
Non-attendance at any of these “return of script” sessions excludes any rights
of reconsideration.
If attendance at “return of script” sessions is not possible, it is the student’s
responsibility to advise the lecturer concerned ahead of the specified session in
order to make alternative arrangements. It is the student’s responsibility to
collect their own course assessment work. Requests made after the “return of
script” session will not be considered.

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13. Standards of Study


The following are guidelines as to what constitutes acceptable standards of
work and classroom behaviour. These will be equivalent to what is expected in
an effective and socially responsible organisation.

Time Management
Every effort is made by lecturers to arrange assessments to ensure students
have a fair workload. However, because a specific amount of learning must
take place before each assessment, there are times when assignments /
assessments are due / sat on closely grouped dates.
It is the student’s responsibility to plan ahead so that assessments can be
submitted on time.

Preparing Your Work


We expect students to be competent in both written and oral English. Marks will
be deducted from any assessment for poor presentation, grammar and/or
spelling. Students are expected to be able to undertake simple calculations and
may use calculators for that purpose in exams. Students are requested to keep
copies of all work submitted in case of unforeseen circumstances necessitating
the resubmission of assessment items.

Assessment
Students who work are urged to inform their employers in writing of the
examination dates as soon as they are made available. It is the student’s
responsibility to check these. Examinations not attended will score zero, unless
on the grounds of illness or exceptional circumstances. A medical certificate will
be required.

Individual Work - Plagiarism


Unless otherwise stated, all assessment work is expected to be the result of
individual effort. If we suspect that submitted material has been written in
collusion with another person or has been plagiarised (copying another
persons work), no marks will be given and disciplinary action may follow.
Research for assessments should be original and not that which has been
presented in other papers. All material must be clearly referenced to avoid
plagiarism.

Late Work
Late work presented for assessment will have marks deducted.
All assignments must be handed to your lecturer within the first 10
minutes of the start of the class of which they are due. After this deadline

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10% will be deducted for each day or part there of when an assignment is
late.
For example, if the assignment is worth 25 marks and it is handed in a day late
and the assignment scored 15 marks out of 25, then 2.5 marks will be deducted
and the student will receive 12.5 out of 25.
Check when the assignment is due in and have before the due
date.

14. In Class Expectations


Participation
Students who benefit most from this course are those that participate in class
discussions and group exercises.

Mobile Phones
These should be turned off or diverted when you are in class. Phone calls and
text-messaging will not be tolerated. You may be asked to leave the room if
these standards are ignored.

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15. Referencing—APA Style

The following section is extracted from pages 82-91:


Emerson, L. (Ed.). (2000). Writing Guidelines for Business Students. (2nd ed.).
Palmerston North, New Zealand: Dunmore Press.
(It is strongly recommended you purchase the book.)
Referencing is an important part of all academic work. Sources of information should
be acknowledged for the following reasons:
• to distinguish between your ideas and someone else's.
• to show readers the range and quality of your reading.
• to direct readers to the sources used, if they want further information.

Failure to acknowledge a source of information, or using other people's ideas as your


own, is called plagiarism, and is a serious form of academic dishonesty.

Most business or commerce departments use the formatting conventions of the


American Psychological Association for setting out references. Some of these
conventions are listed below. For more detail on APA referencing you should refer to
the Publication manual of the American Psychological Association (4th ed.).

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Acknowledging Sources

The APA style of referencing uses in-line acknowledgement of sources rather than
footnotes or endnotes. This means that sources need to be acknowledged in the ways
listed below.

1. How to acknowledge an idea which you have expressed in your own words

Sometimes someone else's ideas, concepts or figures, but not that person's exact words
may be included in your work. This is called citing (as opposed to quoting, when you
use someone's exact words). In this situation, the source must be acknowledged by
putting the author's last name and the date when the work was published in brackets at
the end of the sentence.
Management consultants usually see the formulation of a strategic plan as an essential
step for all organisations (McKendrey, 1992).

Many entrepreneurs see educational qualifications as irrelevant (Fergusson, 1991;


McKendrey, l992).
Note that in the second example above, where two sources are cited, each one is
separated with a semicolon.
Note also that a page number in a citation may be included, but this is optional.

2. How to include a short quotation in your work

If the author's own words are being used, put the quotation in quotation marks and
include a page number at the end of the reference.
For many New Zealanders, this country is no longer an agricultural nation. New
Zealand has grown, diversified and bounced back again, determined never again to be
reliant on a single industry and market. "We have come of age, internationally"
(Anderson, 1992, p. 64).
NB When the quotation ends a sentence, the full stop comes after the information in
brackets.

3. How to include a longer quotation in your work

If a direct quotation which is longer than two sentences is being used, the quote should
be indented five spaces and quotation marks omitted. The reference should be
acknowledged in the same way as the shorter quotation above.

Within management theory there have been many changes and developments. One
researcher - Sharryn Williams - has identified a key factor for management sources:
communication.

Communication is a vital factor in determining managerial success. A successful manager


establishes links
throughout her organisation, formal and informal, upwards, downwards and horizontally. Two
vital measures of
success are these: a respect for formal procedures and a recognition of the value of the informal
network (1993, p. 6).

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225 International Trade and Finance – Course outline Page 13

Such a perspective has support from many other theorists in the area...

4. How to reference an author who is quoted in a book/journal you are reading

If you wish to use a quotation or cite an idea which is quoted or cited by another author,
then both sources should be acknowledged in the text as follows:

Although much has been written about the negative Impact of stress, "nevertheless,
stress can contribute to performance" (Ward, 1968, p. 33 cited in Bowling, 1991, p. 16).

Although many authors have emphasised the way in which stress can impact negatively
on performance, Ward (1968, cited in Bowling, 1991) emphasises its positive aspects.
The Reference list, at the end of the assignment, would list only Bowling, not Ward.

5. How to reference a source if you have already used the author's name in the
sentence

Sometimes an author may be directly referred to within the assignment.

• Magnall (1984) was the first to maintain that ...

• Planning is the first essential step according to Magnall (1984).

• Researchers in the field (Magnall, 1984; Crews, 1992) indicate that ...

• He stated that "the management cycle has four key elements" (Magnall, 1984, p. 16)
but did not rank those four factors.

6. How to reference two works by the same author

If referring to two or more works by the same author, both published in the same year,
the first has an "a" after the date, the second has a "b" and so on:

In her next study of the problem (Lenart, 1991b), she considered other factors.
The author's name would then appear twice (or more often) in the references section at
the end of the paper, with the appropriate small letter beside the date.

7. How to reference a work with many authors

If a work has three or more authors, all names should be listed in the first citation, but
et al. (meaning "and others") may be used in subsequent citations:

First citation Coles, Emerson & Ormsby (1992) found that ...
Subsequent citations Coles et al. (1992) also found ...

What is a Reference List?

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A reference list is a list of the full bibliographical details of all the material quoted or
cited in your assignment. Every assignment written must have a reference list. It should
be stated on a new page and be headed "References".
In listing the references at the end of the document, one style guide should be followed
consistently. We recommend that you use the following format, taken from the
Publication manual of the American Psychological Association (APA) (4th ed.).

All items must be listed in alphabetical order, according to the surname of the first
author.

1. How to list a book according to APA style'

Put the author's surname first, spelled out in full, with initials only for first and second
names. Give the date of publication in brackets. Next comes the title, city of publication
and publisher. Note that on the reference page only the first letter of the first word of
the title and subtitle is capitalised. Title and subtitle should be underlined or italicised.
Either is acceptable. The title is followed by a full stop. A colon (:) separates the place
of publication from the publisher's name.

The following list gives examples of the most commonly used types of referencing
using this referencing style.

' The 4th edition of the APA Publication Manual distinguishes between copy manuscripts (i.e. those
prepared for publication) and final manuscripts which will not be typeset, and the referencing
conventions for the two types of manuscripts differ. Student assignments and theses are produced in
final copy form. The conventions presented in this chapter therefore relate to final manuscripts. If
you are preparing manuscripts for publication in an APA journal, you will need to consult the APA
Manual. See pp. 331-33 of the APA Manual (1995). For a copy manuscript, the first line of each
entry is indented and subsequent lines are placed flush against the margin.

a. Single author
Sligo, F. (1991). Organisational behaviour: Case studies and commentaries.
Palmerston North: Dunmore Press.

b. Single author, later edition


May, C. (1992). Effective writing: A handbook for accountants (3rd ed.).
Englewood Cliffs, New Jersey: Prentice-Hall, Inc.

c. Two authors
Strunk, W., Jr., & White, E.B. (1979). The elements of style (3rd ed.). New York:
Macmillan.

d. Corporate author
American Psychological Association. ( 1983). Publication manual of the American
Psychological Association. (3rd ed.). Washington, DC: Author.

e. Edited book (Book without an author but with an editor)


Jackson, R., & Buckland, T. (Eds.). (1992). Summer schools: A unique grouping.
London: Oxford University Press.

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2. How to reference a periodical

Periodicals are anything that is published on a regular basis - magazines, journals and
newspapers. Sometimes it is difficult to distinguish between journals and magazines,
but here is a general rule of thumb: if the articles in the periodical have a reference
section (i.e. if they list their sources in some academically conventional way) then it
can be regarded as a journal; if they do not have a reference section, then treat it as a
magazine.

Periodicals are referenced as follows:

Titles of periodicals should be quoted in full and italicised (or underlined) and followed
by volume numbers, italicised, and page numbers, not italicised. Titles of articles
should not be italicised, underlined or placed in inverted commas.

a. Journal article, one author


Ferguson, I. S. (1973). Forecasting the future for timber. The Australian Journal of
Agricultural Economics, 18, 562-578.

b. Journal article, two authors, journal paginated by issue


Becker, L.J., & Seligman, C. (1981). Welcome to the energy crisis. Journal of Social
Issues, 37, 2, 1-7.

c. Magazine Article
Emerson, A-M. (1991, December 10~17). Bald is beautiful. The Listener, p. 16.

d. Newspaper article, no author


Students attack Todd report. (1994, June 16). The Dominion, p. 3.

e. Newspaper article, author known


Robinson, L. (1994, July 19). The new orthodoxy. The Dominion, p. 9.

f. Newsletter article, corporate author


Staff. (1992, September 3). Why students should pay more. National Business Review,
p. 7.

Sections 3, 4 and 5 not shown here.

6. How to reference study guide material

If you cite articles or excerpts from books which are reprinted in Study Guides, refer to
the article or book directly (your Study Guide should contain full bibliographical
information!).
If the material being cited is not part of a reprinted article or book, it should be
referenced as follows:

• Where the study guide has an identified author:


Emerson, J. M. (1994). Teaching the gifted child: Study guide 2. Palmerston North:
Education Faculty, Massey University.

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225 International Trade and Finance – Course outline Page 16

• Where the study guide has no identified author:


Department of Management Systems, Faculty of Business Studies. (1994). 26.120
Introduction to organisation and management. Palmerston North: Author.

Sections 7, 8 and 9 not shown here.

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225 International Trade and Finance – Course outline Page 17

10. How to cite a personal communication

Sometimes you will need to acknowledge personal communication as a source of


information. This includes lecture notes, memos, e-mail messages, interviews and the
like. Personal communication is NOT included in a reference list or bibliography - you
should only cite personal communications in the text of your assignment:

(A. Wright, personal communication, 19 October, 1994)

11. How to cite material from the internet

Emerston, L. (2000). On-line writing and learning laboratory. Retrieved January 20,
2000 from the World Wide Web: http://owll.massey.ac.nz

Note: If you cannot find an author, use the corporate author if one is available.

Jacobsen, J. W., Mulick, J. A., & Schwartz, A. A. (1995). A history of communication:


Science, pseudoscience, and antiscience. American Psychologist, 50, 750-765.
Retrieved January 28, 1996 from the World Wide Web: http://www.apa.org/
journals/jacobson. html

For full information on internet referencing go to http://www.apa.org/journals/


webref.html#website

12. Where to find information about referencing materials not mentioned here?

For details on how to format other, more unusual material, (e.g. proceedings of
meetings and symposia, films, TV programmes, individual interviews) refer to the
Publication manual of the American Psychological Association, Edition 4, also referred
to as the APA Style Manual

13. What is a Bibliography?

As mentioned above, a reference list should contain only the material you have cited in
your text. If other material as background reading has been used it may be included in a
new list called the Bibliography. Format material in exactly the same way as in the
reference section.

Here are examples from this book:

13 (a) References

Ary, D., Jacobs, L. C., & Razavieh, A. (Eds.). (1979). Introduction to research in
education. New York: Holt, Rinehart and Winston.

Brennan, M. C. (1993). Style handbook: Department of Marketing. Palmerston North:


Business Studies Faculty, Massey University.

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225 International Trade and Finance – Course outline Page 18

Flower, L. (1985). Problem solving strategies for writing (2nd ed.). New York:
Harcourt Brace Jovanovich Inc.

Sligo, F. X. (1994). Effective communication in business. (2nd ed.). Palmerston North:


Software Technology.

13 (b) Bibliography

Bate, D., & Sharpe, P. (1990). Student writer's handbook. London: Harem & Brace
Jovanovich Inc.

Clancy, J., & Ballard, B. (1981). Essay writing for students. Melbourne: Longman.

Crystal, D. (1988). Rediscover grammar. Essex: Longmans.

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