Learning unit: Finance of international trade. Syllabus:
- International trade finance.
- Finance of export and import transactions.
- Pre and Pre-shipment finance.
- International risk: payment, foreign exchange, counterparty, delivery,...
- Country risk.
- Sovereign risk.
- Credit ratings.
- Country risk evaluation and classification.
- Corruption perceptions index.
- Case study.
- The case of Thailand and South Africa.
- Islamic Banking
- To familiarize the student with various methods of finance both for exports
- To analyze the fundamentals of foreign exchange markets, understand their
functioning and examine some of the agents operating in these markets.
- To learn about different types of international bonds and guarantees and how they operate.
- We will also look at different methods of managing exchange risk. Forward
exchange contracts and currency options will be examined in greater detail.
- To gain a good understanding of Forfeiting, Factoring and Invoice Discounting.
Learning unit summary (International Finance):
There are two basic forms of finance of
International trade transactions:
finance and export finance. Both can be performed in the currency of the exporter (for example, Euros) or in any other fully convertible currency agreed
by both parties. In the second case the company assumes certain risks as to the difference in exchange rates, however, it can also profit from trading in another currency if there is a rise in the value of the foreign currency.
Financial transactions in foreign trade can be performed in the currency
of the exporter, in the currency of the importer or in
a third currency.
In many cases export companies must facilitate finance for their clients mainly
due to the requirements of the market. In a foreign exchange market dealers Trade in currencies. Exports of products and services, Foreign direct investment, foreign loans, etc. form currency supply whereas currency demand is formed by imports,
Foreign direct investment abroad and other factors.
Sample of the learning unit International Finance:
Learning materials Financement