WM9PY-15 Corporate and International Trade Finance
Introductory description
The module assumes the student has no prior academic knowledge of finance. It is therefore, divided into two broad sections. The first section is devised to enhance your understanding of the basic aspects of international trade finance from a business’ perspective. The rest is designed to help you; improve problem solving skills and, think creatively, improve independent analytical skills as well as to apply the acquired knowledge in decision making. The module involves some basic calculations, however, the ability to read, interpret and critically analyze financial information is more integral. The later stage of the module also develops into more complex topics of concern to an international environment; where payment can take much longer, and there are exposures to specific financial risk.
Module aims
To equip students with sufficient trade finance knowledge to be able to effectively communicate with the finance function, and interpret data given to them.
To allow students to be able to perform specific accounting and finance calculations, and to interpret and error-check any calculations supplied to them.
To allow students to select and justify specific financial tools applicable in an international environment.
It will equip students to evaluate and justify financial strategies including:
- Strategies on payment terms
- Use of finance to gain competitive advantage, Buyer Credit, Supplier Credit, Bonding facilities etc
- Financial Risk Management – currency risk, payment and country risk
- Credit Referencing
- Credit Insurance
- Trade Finance
- Credit control
- Financial statement analysis
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
This course covers:
-Financial Statements-Pre-Module
-Operational aspects of international trade finance in businesses
-Counterparties to international trade finance deals and the settlement of funds
-Export Credit and Commercial Risk and Management
-Financial Analysis and Cash Flow Management
-Long term Sources of Finance for International Trade
-Foreign Exchange Risk Management
-International Interest Rate Risk Management
-The role of governments in supporting trade finance
Learning outcomes
By the end of the module, students should be able to:
- Demonstrate knowledge and an understanding of the technical aspects of international trade finance.
- Critically analyse finance related theories, frameworks and concepts and apply them in solving international trade challenges.
- Evaluate the different risks that are associated with international trade finance and discuss possible hedging solutions.
- Critically appraise international trade financing options that are available to businesses.
Indicative reading list
Tarsem Bhogal , Arun Trivedi (2019). International Trade Finance: A Pragmatic Approach, 2nd Edition.
Jeff Madura and Roland Fox (2023) International Financial Management, 6th Edition
International finance : theory and policy / Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz.
Subject specific skills
Analysis of complex data sets
Presentation of analytical findings
Ability to manipulate data concerning costing, budgeting, decision making and business financial performance.
Transferable skills
Critical thinking – ability to select and justify selection from a range of complex choices
Problem solving – novel situations and datasets presented for analysis and critical comment
Communication – presentations/exams
Teamwork – team exercises
Organisational awareness – business background and impact of financial choices.
Numeracy
Commerciality
Study time
| Type | Required |
|---|---|
| Lectures | 10 sessions of 1 hour (7%) |
| Seminars | 20 sessions of 1 hour (13%) |
| Online learning (independent) | 20 sessions of 1 hour (13%) |
| Private study | 40 hours (27%) |
| Assessment | 60 hours (40%) |
| Total | 150 hours |
Private study description
Working through online resources, directed learning via reading and specific working on problems for tutorials.
Costs
No further costs have been identified for this module.
You must pass all assessment components to pass the module.
Assessment group A
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
| Assessment 1 | 30% | 18 hours | No |
|
MCQ-Time Constrained Test (Open Book)
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| Assessment 2 | 70% | 42 hours | Yes (extension) |
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Individual Report |
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Feedback on assessment
Feedback on the in-class test will be given in class during a revision exercise.
Feedback on the report will be given weekly during seminars and after marking.
There is currently no information about the courses for which this module is core or optional.