Course Title: Review the financial structures and processes in international trade

Part A: Course Overview

Program: C6166 Advanced Diploma of International Business

Course Title: Review the financial structures and processes in international trade

Portfolio: BUS Portfolio Office

Nominal Hours: 60

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Course Contact: Sam Menai

Course Contact Phone: +61 3 9925 8805

Course Contact Email: sam.menai@rmit.edu.au



Course Description

This unit describes the skills and knowledge required to analyse international trade finance variables within Australia and in a global context. It includes examining the structures and processes of financing international import and export transactions in the banking system, including optional finance models and practices that are available to international businesses.

Pre-requisite Courses and Assumed Knowledge and Capabilities

None



National Competency Codes and Titles

National Element Code & Title:

VU22794 Review the financial structures and processes in international trade

Elements:

1. Analyse aspects of international trade transactions

2. Analyse rate movement and exposure in international trade transactions

3. Review credit risk management strategies for international trade

4. Investigate the application of payment


Learning Outcomes

This course is structured to provide students with the optimum learning experience in order to demonstrate the skills and knowledge required to analyse international trade finance variables within Australia and in a global context. It includes examining the structures and processes of financing international import and export transactions in the banking system, including optional finance models and practices that are available to international businesses.


Overview of Assessment

Assessment Methods

Assessment methods have been designed to measure achievement of the requirements in a flexible manner over a range of assessment tasks, for example:

  • direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
  • review of final printed documents
  • demonstration of techniques
  • observation of presentations
  • oral or written questioning to assess knowledge of software applications

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.

Required Skills

You must demonstrate competency in this unit by providing evidence of the following:

  • analytical and information gathering skills to:
    • research and analyse banking services
    • conduct comparative analysis on issues such as PPP, foreign exchange rate, interest rate differentials and credit risk ratings 
    • evaluate the role of agents and stakeholders
    • investigate payment options and non - payment transactions
  • risk management skills to:
    • identify
    • assess
    • monitor
    • mitigate the impact of risk to international business
  • numeracy skills to conduct calculations

Required Knowledge

Further, you must provide evidence of knowledge for the following:

  • core banking services including:
    • financial
    • loans and credit facilities
    • cheque/savings accounts functions
  • basic economic concepts including:
    • supply/demand
    • market/planned/mixed economy
    • how the market works
    • market forces
    • Porters 5 Forces
  • the functions of the Reserve Bank of Australia
  • international banking processes
  • clearinghouse functions, such as:
    • International Air Transport Association (IATA)
    • commodity exchanges
  • current exchange rates
  • purchasing power parity
  • bank published 
  • trade weighted index/ baskets
  • politico-economic trends in international finance
  • sources of finance
  • credit risk and insurance
  • countertrade and variations
  • methods of payment
  • cargo insurance

Evidence Guide

Critical aspects for assessment and evidence you are required to demonstrate competency in this unit are as follows:

  • analysis of the banking and non - banking finance system, its stakeholders and its operating environment within Australia and in a global context
  • analysis of purchasing power parity in relation to exchange rates 
  • review of credit risk management strategies for international trade 
  • knowledge of international trade finance systems within Australia and in a global context

Feedback

Feedback will be provided throughout the semester in class and/or online discussions. You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.