Global Trade Finance

Faculty
Commerce & Business Administration
Department
Business
Course Code
BUSN 3200
Credits
3.00
Semester Length
15 weeks
Max Class Size
35
Method Of Instruction
Lecture
Lab
Seminar
Typically Offered
To be determined
Campus
Online

Overview

Course Description
This course presents the basic elements of international trade finance and payments. It discusses various ways to assess the risk for international trade transactions and strategies to minimize such risk. The course focuses on cash management techniques used in conjunction with international trade transactions and requires students to prepare a trade project. The course also examines methods used to estimate cash flows and formulate scenario and sensitivity analyses for a trade project. Finally, the course aims to equip students with the tools necessary to analyze and understand financial statements according to different accounting standards and to construct financing proposals based on different time horizons ranging from short to long term.
Course Content

1. Trade risks and risk assessment

  • International trade practices
  • Product risks
  • Commercial risks (purchaser risks)
  • Adverse business risks
  • Political risks
  • Currency risks
  • Financial risks

2. Methods of payment

3. Bonds, guarantees and standby letters of credit

4. Currency risk management

  • Currency risk
  • The currency markets
  • The spot trade
  • Currency exposure
  • Hedging currency risks
  • Practical currency management

5. Export credit insurance

6. Trade finance

  • Finance alternatives
  • Pre-shipment finance
  • Supplier credits
  • Refinancing of supplier credits
  • Buyer credits
  • The international money market

7. Structured trade finance

  • International leasing
  • Lines of credit and local currency finance
  • Project finance and joint venture

8. Terms of payment

9. Capital budgeting

  • Cash flows estimation and management
  • Other factors to consider: exchange rate fluctuations, inflation, financing arrangements, etc.
  • Adjusting project assessment for risk (sensitivity analysis)

10. Collections and Disputes

  • Collection procedures for international debts
  • Commercial disputes and dispute resolution options
Methods Of Instruction

Lectures, discussions, case study analysis, class presentations, and guest lectures on industry-specific subjects.

Means of Assessment

1. Term Exam(s) (1+)*            

15%-45%

2. Final Exam                       

20%-30%

3. Assignments (4-8)

15%-30%

4. Project

15%-30%

5. Participation/Attendance

0%-10%

Total:

100%

 

 

* no one examination may be worth more than 40%

50% of non-exam assessments must be for individual work

Note: students must achieve a grade of at least 50% on the combined exam components to pass the course.

Learning Outcomes

At the end of the course, the successful student should be able to:

  • demonstrate understanding of the foundations of international trade and finance (transaction facilitation, risk management, financing, information sharing);
  • evaluate the purchaser-related and the country-related risks (e.g. political and economic risks), and find possible ways to minimize or avoid them;
  • evaluate the foreign-exchange risks;
  • search for alternatives to finance international trades in the proper timeframe (short-, medium- and long-terms);
  • prepare a trade project, identify its positive and negative cash flows, project the cash flow statements and evaluate the feasibility of the project from the financial perspective; and
  • analyze financial statements, prepared using different accounting standards in accordance with the regulatory body for a specific country.
Textbook Materials

International Trade Finance, FITT, latest edition (Free eBook download for students registered with FITT)

Grath, Anders, The Handbook of International Trade and Finance, Kogan Page, latest edition.

Madura, Jeff.,  International Corporate Finance, Cengage Learning, latest edition.

Moffett, M. H.; Stonehill, A. I.; Fiteman, D. K., Fundamentals of Multinational Finance, Pearson, latest edition.

Or any alternative textbook that has been approved by the Business-Finance department.

Requisites

Prerequisites

ACCT 1210 or ACCT 1235, and FINC 1231 (minimum of C for all courses) OR currently active in the:
PDD International Business Management AND a minimum of C Grade in CSIS 1190 or FINC 1231, or
PBD International Supply Chain Management AND a minimum of C grade in CSIS 1190 or FINC 1231.

Corequisites

Nil

Equivalencies

Nil

Requisite for

Nil

Course Guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester / year of the course, consider the previous version as the applicable version.

Course Transfers

Institution Transfer Details Effective Dates
Athabasca University (AU) AU FNCE 3XX (3) 2015/09/01 to -
Capilano University (CAPU) CAPU BFIN 3XX (3) 2015/09/01 to -
Coast Mountain College (CMTN) CMTN INTB 206 (3) 2015/09/01 to 2018/04/30
College of the Rockies (COTR) COTR ACCT 3XX (3) 2015/09/01 to -
Coquitlam College (COQU) No credit 2015/09/01 to -
Kwantlen Polytechnic University (KPU) KPU SOBU 2XXX (3) 2015/09/01 to -
Northern Lights College (NLC) No credit 2015/09/01 to -
Thompson Rivers University (TRU) TRU IBUS 2XXX (3), Not for credit in School of Business and Economics. 2015/09/01 to -
University Canada West (UCW) UCW BUSI 2XX (3) 2015/09/01 to -
University of British Columbia - Vancouver (UBCV) UBCV COMM 3rd (3), Not for credit in Commerce. 2015/09/01 to -
University of Northern BC (UNBC) UNBC COMM 3XX (3) 2015/09/01 to -
University of the Fraser Valley (UFV) UFV BUS 2XX (3) 2015/09/01 to -
University of Victoria (UVIC) UVIC COM 3XX (1.5) 2015/09/01 to -

Course Offerings

Winter 2021

CRN
Days
Dates
Start Date
End Date
Instructor
Status
Location
15776
Mon
04-Jan-2021
- 12-Apr-2021
04-Jan-2021
12-Apr-2021
Parker
Simon
Open
Online
BUSN 3200 001 - This section is restricted to Business Management Diploma, BBA Management, PDD International Business, and PBD International Supply Chain Management until Friday, December 11, 2020 at 9 am.

This course will include some synchronous on-line activities. Students should plan to be available on-line at scheduled course times. Synchronous on-line activities may include lecture, or they may not. In some courses, synchronous class time may be used instead for active learning components (e.g. discussions, labs).
Max
Enrolled
Remaining
Waitlist
35
0
35
0
Days
Building
Room
Time
Mon
11:30 - 14:20
CRN
Days
Dates
Start Date
End Date
Instructor
Status
Location
16171
Tue
04-Jan-2021
- 12-Apr-2021
04-Jan-2021
12-Apr-2021
Parker
Simon
Open
Online
BUSN 3200 002 - This section is restricted to Business Management Diploma, BBA Management, PDD International Business, and PBD International Supply Chain Management until Friday, December 11, 2020 at 9 am.

This course will include some synchronous on-line activities. Students should plan to be available on-line at scheduled course times. Synchronous on-line activities may include lecture, or they may not. In some courses, synchronous class time may be used instead for active learning components (e.g. discussions, labs).
Max
Enrolled
Remaining
Waitlist
35
0
35
0
Days
Building
Room
Time
Tue
8:30 - 11:20