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

Part B: Course Detail

Teaching Period: Term1 2015

Course Code: MKTG6981

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

School: 650T Vocational Business Education

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:

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.

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:

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:

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.
4.5 Invoice discounting techniques are investigated.


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   Starting    TopicAssessment         
19 FebInduction
Introduction and operating environment including non-bank finance.
 
216 FebRole and operations of international and central banks 
323 FebCurrency exchange rate history: Fixed ERs 
42 MarchCurrency exchange rate history: Floating ERsTask 1 Phase 1 due,
feedback by 16 Mch
510 MchFloating/variable exchange rates and calculations 
616 MchFactors affecting floating exchange rates 
723 MchRisk Identification and Management 
8a30 Mch -
1 Apr
Internal Hedging techniquesTask 1 Phase 2 due, feedback by 14 April
 2 - 8 AprilMID SEMESTER BREAK 
8b9 - 10 AprSelf directed learning 
913 AprMoney market hedging techniques 
1020 AprMajor risks related to payments for trade 
1127 AprMethods of payment for imports and exports 
124 MayTrade Finance and Countertrade 
1311 MayRevision and reviewTask 1 Phase 3 due, feedback by 25 May
1418 MaySupervised in-class assessmentTask 2, feedback by 25 May
1525 MayFeedback 
161 JuneFinal resubmissions if necessary 

Week 1 will consist of an induction to the course which will include completion of a pre training review and familiarisation with:
• Your teacher(s) and other students.
• Services and facilities
• Student responsibilities
• Where to get support
• Course requirements, key learning outcomes, assessment, feedback and grading.
• Submission requirements and the resubmission policy
• Plagiarism
• Appeals
• Extensions and Special Consideration
• Privacy

Please note that the above schedule is a guide and may be altered as deemed necessary by your teacher.


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 6th ed Brown, A, et al, International Banking and Finance, Serendip Publications


Other Resources

Bank websites advising customers how payments are made for imports and exports e.g. cba.com.au

Reserve Bank of Australia rba.gov.au

other websites as appropriate


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

This course has 2 assessments.  Students must successfully complete all tasks to be deemed competent.

Assessment Task 1 – Export Plan - International Trade Risks and their Mitigation
Date handed out: Week 2
Date and time due: Three phased submissions, due Weeks 4, 8 and 13
Group or Individual: Group, maximum two students

Purpose:
This assignment requires you to demonstrate whether you can identify, avoid or manage the risks of trading internationally. Completing it will also require you to use some skills you acquired in other courses in your program.

Requirements:
The total maximum word limit for the full assignment is 1500 words (excluding citation and referencing). It will require you to choose a particular product (possibly one that has won an export award) that you propose to export, and stating the target country for export. Each partner must state their contribution to part of each phase of the submission.

The assessment will be due progressively with the following deadlines:
Phase 1: Risk Assessment. Items 1 & 2 submission by COB 6 March.
Phase 2: Cost estimates and financial assistance. Items 3 & 4 submission by COB 1 April.
Phase 3: Payment implementation. Items 5-6 submission by COB 15 May.

Each group member contributing to the assignment is expected to know and understand the total assignment they have signed for. To ensure each student meets competency standards, some students may be interviewed to demonstrate and confirm their competency in any of the issues covered by the assignment. Even if presenting an ostensibly good report, if unable to appropriately answer questions about the assignment, the student may get an NYC.

Task 2 – Supervised in-class assessment
Date handed out: Week 15
Date and time due: Week 15
Group or Individual: Individual

Purpose:
This assessment will enable you to demonstrate underlying knowledge and competence for Element 1 and parts of other elements not covered by the assignment. It will also be used to confirm individual understanding and competence in areas covered in the assignment.

Requirements:
The assessment will be closed book, may include multiple choice questions, but will certainly include calculation and short answer questions, of maximum 2 hours duration including reading time.

Submission requirements:
Assessment tasks must be submitted online through blackboard.

You must:
• Retain a copy of your assessment tasks.
• 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.
• For group assignments - all group members must complete and sign the cover sheet.
• Each page of your assessment you should include footer with your name(s), student number(s), 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.

Resubmissions:
If you are found to be Not Yet Competent in a Course Assessment Task you will be allowed one resubmission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

Final Date for All Assessments.
Unless the Late Submission Procedures (see above) are applied, No assessment tasks or resubmissions will be accepted after 5pm Friday, Week 16.
 


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.

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.

You will be provided with an assessment matrix in the assessments area of the unit blackboard shell. Generally, your grading will be assessed against how well you:
• Perform the activities as required by the learning elements of this unit of competency.
• Demonstrate the required knowledge for this unit of competency.
• Execute the required skills for this unit of competency.
• Demonstrate your employability skills through contribution to learning activities related to this assessment, timeliness, use of technology and teamwork.

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

Other Information

Late submissions
If circumstances outside your control are likely to prevent you from submitting an assessment item on time, you may apply to your teacher for an extension of up to seven calendar days.
You must apply for an extension at least one working day prior to the submission deadline.
More Information: http://www.rmit.edu.au/students/assessment/extension
Form to use: http://mams.rmit.edu.au/seca86tti4g4z.pdf

Special Consideration
Extensions of greater than seven days will only be granted to eligible students through the special consideration process. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.
More Information: http://www.rmit.edu.au/browse;ID=g43abm17hc9w
Form to use: http://mams.rmit.edu.au/8a5dgcaqvaes1.pdf

Adjustments to Assessment
In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website:
More Information: http://rmit.edu.au/browse;ID=7usdbki1fjf31
 

Course Overview: Access Course Overview