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

Part B: Course Detail

Teaching Period: Term2 2013

Course Code: MKTG6981

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

School: 650T TAFE Business

Campus: City Campus

Program: C6101 - Advanced Diploma of International Business

Course Contact : Tim Wallis

Course Contact Phone: +61 3 9925 5423

Course Contact Email:timothy.wallis@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Arie Herrnstadt

03 9925 5897

arie.herrnstadt@rmit.edu.au

Nominal Hours: 80

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.

Pre-requisites and Co-requisites

None

Course Description

This course generally applies to those with responsibility for international business management and provide leadership in the review of the operating environments of the international banking and non banking finance system.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

VU20068 Review the financial structures and processes in international trade

Element:

1. Analyse the operating environments of the international banking and nonbanking finance systems.

Performance Criteria:

1.1 Structures, processes and functions of core banking
services are analysed.
1.2 Clearinghouse processes of domestic, international banks
and non-banking institutions are investigated.
1.3 Role of international trade facilitation bodies in the
government and private sectors is analysed.
1.4 Analysis is conducted to differentiate between conventional
“western’ banking systems and the systems prevailing in
Islamic countries
1.5 Functions and operations of the Reserve Bank of Australia
are compared and evaluated against those of the United
States Federal Reserve, the Bank of England and the
German Bundesbank.

Element:

2. Analyse “purchasing power parity” in relation to foreign exchange rates.

Performance Criteria:

2.1 Benchmarking values of trade weighted baskets and
balances of trade between different countries are
analysed.
2.2 Predominant exchange rate movements for various trading
nations are examined and evaluated in relation to the
politico-economic trends.
2.3 Measurement significance of interest rate differentials to
international banks is established.
2.4 Application of bank published exchange rate schedules on
buying and selling rates for foreign countries is reviewed.
2.5 Foreign exchange rate risk management strategies are
identified and reviewed.
2.6 Banking is investigated and evaluated against other forms
of international trade finance.

Element:

3. Review credit risk management strategies for international trade.

Performance Criteria:

3.1 Options for methods of payment are reviewed.
3.2 Risk on non-payment is assessed.
3.3 Options for payment mechanism are established.

Element:

4. Investigate the application of “confirmation”, “factoring” and forfeiting” to the payment procedures.

Performance Criteria:

4.1 Circumstances in which the exporter seeks confirmation are
analysed.
4.2 Benefits of confirmation are evaluated against credit risk
insurance.
4.3 Functions of the Export Finance Insurance Corporation and
Trade Indemnity Pty Ltd. are reviewed
4.4 Key functions of the Berne convention for credit insurance
are analysed

Element:

5. Review “non-cash” international trade transactions.

Performance Criteria:

5.1 Analysis is conducted to identify why “non-cash”
international trade transactions are undertaken.
5.2 Viability of identified “non-cash” transactions for an
import or export business is investigated and presented to
stakeholders.


Learning Outcomes


This course covers the knowledge and skills 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.


Details of Learning Activities

A range of learning activities are planned for this course including self-paced and collaborative class room based activities.

The self-based activities will be delivered through various technology platforms and will include quizzes, scenario case studies and interactive sessions.

The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice skills in a simulated workplace environment.


Teaching Schedule

Week   Date    Topic
18 JulyIntroduction and operating environment including non-bank finance.
215 JulyRole and operations of international and central banks
322 JulyCurrency exchange rate history
429 JulyFixed to floating exchange rates Task 1 Phase 1
55 AugFree Floating/Variable/Flexible Exchange Rates
612 AugFactors that influence exchange rate movements
719 AugRisk Identification and Management
826 AugInternal Hedging techniques Task 1 Phase 2
 2 – 6 Sep 
923 SepMoney market hedging techniques
1016 SepMethods of payment for Imports and Exports
1123 SepMajor risks associated with Payment of Trade
1230 SepTrade Finace and Countertrade
137 OctFeedback on assignment Task 1 Phase 3
1414 OctTest revision
1521 OctClosed Book Test
1628 OctFinal resubmissions


Learning Resources

Prescribed Texts

There is no prescribed text but students are encouraged to download the book entitled "Finance of International Trade" published by the National Bank and available from the following website: http://www.nab.com.au/downld/int_trade_pub


References

Recommended readings Viney,C,McGrath's Financial Institutions, Instruments and Markets, Irwin McGraw Hill 3rd ed Brown, A, et al, International Banking and Finance, Serendip Publications


Other Resources


Overview of Assessment

Students must demonstrate an understanding of all elements of a particular competency to be deemed competent. Assessment methods have been designed to measure achievement of each competency in a flexible manner over a range of assessment tasks.

Assessment will incorporate a variety of methods including assignments, journals, presentation and written or test. Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met.


Assessment Tasks

The assessment will consist of:

Task 1. A three phase assignment where students assess the risks of exporting to a particular country, and how to mitigate or avoid these risks.

Task 2. Closed book 1-1.5 hour Examination - will comprise multiple choice, case studies and/or short answer questions. It will assess underpinning knowledge and skills covered in the course and the performance criteria. This will be used to give students a final grade if their assignment has been assessed as CAG or higher.

Students must successfully complete all tasks to be deemed competent.

Submission Requirements

Assessment tasks must be submitted via Turnitin on Blackboard.

You should:

• Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.
. Submit your assignment via Turnitin on Gradebook

• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.


 


Assessment Matrix

Marking Guide (competency):
Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.

Please refer to the Final Grades table below.

Marking Guide (Grading)
After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.


The grading is according to the following criteria:


1. LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK

We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to the task

2. DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING

We are looking for depth of understanding of the key concepts and knowledge required in the assessments system. You should be able to demonstrate a thorough understanding of all requirements in all the assessment tasks.

3. TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING

We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. You also need to show an understanding of the kinds of problems that can arise in managing pertinent issues and how these might be addressed.

4. WORK ORGANISATION, PLANNING AND SELF MANAGEMENT

If required by the teacher we would expect to see ongoing uploading of information into Pebble Pad that is relevant to the unit, full utilisation of Pebble Pad and Blackboard as per course requirements and timely submission of all required assessment tasks.


5. COMMUNICATION, PEOPLE NETWORKING, LANGUAGE AND INTERPERSONAL SKILLS AND TEAMWORK

We expect to see contributions to relevant discussions and scheduled Collaborate sessions. In addition your tasks should demonstrate a very good understanding of strategies for a collaborative approach to management issues in the workplace.

Final Grades table:

DNS - Did not submit for assessment
NYC - Not yet competent
CAG - Competency achieved – graded
CC - Competent with credit
CDI - Competent with distinction
CHD - Competent with high distinction
 

Course Overview: Access Course Overview