• Certificate in Shipping Operations and Practices (Level 4)

International Trade and Finance

Main aims of the Unit

The main aim of this unit is to provide learners a clear understanding of the different type of risks associated with international trade and transport. It will also highlight the main methods of payment and financial options available to trade and transport organisations.

Learning Outcomes for the Unit

Upon successful completion of the course students will be able to:

  • Explain the basic principles and concepts of international trade.
  • Summarise the risks associated with international trade
  • Explain the different methods of payment and risks associated with each option.
  • Describe the importance of the international currency market
  • Understand the key principles associated with trade finance
  • Comment on the terms of payment available to international trade organisations

Learning and teaching methods/strategies used to enable the achievement of learning outcomes:

Learning takes place on a number of levels through lectures, class discussion including problem review and analysis. Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class. The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.

Entry Requirements

  • Three GCSE’s / GCE`O’ levels and one `A’ level or equivalent qualification, or,
  • An approved Foundation Certificate

Relevant experience is taken into consideration for students 21 years of age and over who have not completed any formal qualifications.

Main Topics of Study

  • International trade practices
  • Product risks
  • Commercial risks
  • Business risks
  • Political risks
  • Currency risks
  • Financial risks
  • Bank transfers
  • Cheque payments
  • Documentation collection
  • Letters of credit
  • Counter trade
  • Bonds and guarantees
  • Structure of guarantees
  • Currency risks
  • Currency markets
  • Currency exposure
  • Private sector insurance market
  • Export credit agencies
  • Investment insurance
  • Pre-shipment finance
  • Supplier credits
  • Buyer credits
  • International money market
  • International loans
  • Local currency finance
  • Terms of payment
  • Cash management
  • Contents of terms of payment

Indicative Reading for this Unit

Main Text

Handbook of International Trade and Finance A. Grath (Kogan Page)

Alternative Text and further reading

International Trade Finance P.Cowdell, D’ Hyde (Financial World Press)

Guideline for Teaching and learning time
(10 hours per credit)

50 Hours - Lectures / Seminars / Tutorials / Workshops:

Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.

50 Hours - Directed learning:

Advance reading and preparation / Class preparation / Background reading / Group study / Portfolio / Diary etc

100 Hours - Self managed learning:

Working through the course text and completing assignments as required will take up the bulk of the learning time. In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.

Assessment methods

Final Examination: 70%
Coursework: 30%