Course Title: Review the financial structures and processes in international trade
Part B: Course Detail
Teaching Period: Term1 2019
Course Code: MKTG7896
Course Title: Review the financial structures and processes in international trade
School: 650T Vocational Business Education
Campus: City Campus
Program: C6144 - Advanced Diploma of International Business
Course Contact: Suzanne Maugeri
Course Contact Phone: +61 3 9925 1466
Course Contact Email: suzanne.maugeri@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
Wayne Beasy
Email: wayne.beasy@rmit.edu.au
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.
Pre-requisites and Co-requisites
None
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.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
VU21669 Review the financial structures and processes in international trade |
Element: |
1. Analyse aspects of international trade transactions |
Performance Criteria: |
1.1 Analyse pricing methods and their application in international trade transactions 1.2 Analyse invoicing options and their impact on total landed cost in international trade transactions 1.3 Calculate gross margin, net margin, markup and break even point in international trade transactions 1.4 Review options for methods of payment.
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Element: |
2. Analyse rate movement and exposure in international trade transactions |
Performance Criteria: |
2.1 Analyse purchasing power parity (PPP) in relation to foreign exchange rates 2.2 Analyse benchmarking values of trade-weighted baskets and balances of trade between different countries. 2.3 Examine and evaluate predominant exchange rate movements for various trading nations in relation to the politico-economic trends. 2.4 Establish measurement significance of interest rate differentials to international banks. 2.5 Review application of bank published exchange rate schedules on buying and selling rates for foreign countries. 2.6 Compare and evaluate functions and operations of the Reserve Bank of Australia against other central banks. 2.7 Identify and review foreign exchange rate risk management strategies.
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Element: |
3. Review credit risk management strategies for international trade |
Performance Criteria: |
3.1 Assess risk for non-payment. 3.2 Evaluate relative bargaining positions and credit risk ratings of parties in international trade transactions. 3.3 Establish options for a payment mechanism.
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Element: |
4. Investigate the application of payment |
Performance Criteria: |
4.1 Investigate invoice discounting techniques. 4.2 Investigate the application of “factoring” and “forfeiting” to the payment procedure 4.3 Investigate penalty arrangements for late payment 4.4 Investigate options for non-payment transactions
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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.
Details of Learning Activities
Learning will be class based. Theory and practical examples will be provided on PowerPoint slides with additional material on the RMIT Learning and Management System (Canvas). Students' learning will be reinforced through theory, case study and practical exercise questions supplied for each topic.
Teaching Schedule
The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes bit also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
| Week | Week Starting | Topic | Assessment |
| 1 | 11 Feb 2019 | Introduction | |
| 2 | 18 Feb 2019 | Topic 1 Pricing Methods | |
| 3 | 25 Feb 2019 | Pricing methods and policies | |
| 4 | 4 March 2019 | Topic 2 Exchange rate calculations | |
| 5 | 11 March 2019 | Reasons for exchange rate changes (Mon 11th Public Holiday) | |
| 6 | 18 March 2019 | Role of central banks in exchange rates | |
| 7 | 25 March 2019 | Managing exchange rate risks: internal hedging | |
| 8 | 1 April 2019 | Managing exchange rate risks: money market hedging | Assessment Task 1 |
| 9 | 8 April 2019 | Managing exchange rate risks: money market hedging | |
| 10 | 15 April 2019 | Topic 3 Methods of payment: credit risk | |
| 22 April 2019 | MID SEMESTER BREAK (19/4 - 26/4 inclusive) | ||
| 11 | 29 April 2019 | Options for international payments | |
| 12 | 6 May 2019 | Bargaining for methods of payment | |
| 13 | 13 May 2019 | Topic 4 Getting faster payment if suffering cash shortages | Assessment Task 2 |
| 14 | 20 May 2019 | Revision and review | |
| 15 | 27 May 2019 | Supervised in-class assessment | Assessment Task 3 |
| 16 | 3 June 2019 | Feedback | |
| 17 | 10 June 2019 | Resubmissions ( Mon 10th Public Holiday ) |
Learning Resources
Prescribed Texts
References
Other Resources
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.
Performance Evidence
You must demonstrates competency in this unit by providing evidence of the following:
- analysis of the banking and non-banking finance system 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; evaluation of the role of confirming houses, freight forwarders, banks, customs agents.
- analytical and information gathering skills to:
- research and analyse banking services
- conduct comparative analysis - communication skills to:
- relate to people from difference cultures
- question information
- clarify issues
- report on findings and processes - risk management skills to:
- identify
- assess
- monitor - mitigate the impact of risk to international business
Performance Knowledge
Further, you must provide evidence of knowledge of 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 - history of banking and international banking
- clearinghouse functions, such as:
- IATA
- commodity exchanges - Reserve Bank of Australia
- “Spread” (bank profit margin in currency exchanges)
- exchange rates
- purchasing power parity
- bank published schedules and forward margins
- trade weighted baskets
- politico-economic trends in international finance
- sources of finance
- exchange rate contracts
- hedging
- credit risk and insurance
- countertrade and variations
- methods of payment
- bills of exchange
- documentary levels of credit
- factoring, forfeiting and confirming
- cargo insurance
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.
Assessment Tasks
You are required to complete three tasks. You must successfully complete all three tasks to be deemed competent in this course.
This course has 3 assessments tasks, which includes 2 reports and one in-class supervised test.
The 2 reports are structured as 1 major report delivered in 2 parts.
Task 1 - Major assignment International Trade Risks and their Mitigation
Date handed out: Week 2
Date due: Week 8
Group or Individual: Group with maximum of two students
Purpose:
This assignment requires you to demonstrate that you can identify, avoid and manage the risks of trading internationally. This assignment will also require you to integrate the various topics covered in this course into one consistent whole.
This assignment is intended to reinforce course requirements covered in class. It requires you to demonstrate that you can effectively communicate in a short business report format.
It also requires you to show you can identify, avoid or manage the risks of trading internationally and that you can integrate the various topics covered in this course into one consistent whole.
Task 2- (Task 1 Part B Major Assignment) International Trade Risks and their Mitigation
Date handed out: Week 8
Date due: Week 13
Group or Individual: Group with maximum of two students
Purpose:
This assignment requires you to demonstrate that you can identify, avoid and manage the risks of trading internationally. This assignment will also require you to integrate the various topics covered in this course into one consistent whole.
This assignment is intended to reinforce course requirements covered in class. It requires you to demonstrate that you can effectively communicate in a short business report format.
It also requires you to show you can identify, avoid or manage the risks of trading internationally and that you can integrate the various topics covered in this course into one consistent whole.
Task 3: Supervised in class Assessment
Date handed out: Week 14
Date due: Week 14
Group or Individual: Individual
Purpose:
The test will confirm the students understanding and competency in the range of elements and skills listed in the course accreditation document.
Assessment Matrix
The assessment matrix that maps all the assessment is available on CANVAS . Review the financial Structures and Processes in International Trade
Submission Requirements
You should:
- Ensure that you submit assessments on or before the due date.
- 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 the Assessment task document that includes a declaration and statement of authorship.
- 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.
Late Submission Procedures
You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days.
More Information: https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/extensions-of-time-for-submission-of-assessable-work
Where an extension of greater than seven days is needed, you must apply for Special Consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.
More Information:https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/special-consideration
Resubmissions (VE Programs):
If you are found to be unsuccessful in a particular Course Assessment Task (or you do not submit/attend) you will be allowed one resubmission. Your teacher will provide feedback regarding what you meed to do to improve and will set a new deadline for the resubmission.
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.
Grading & re-submissions
Successful re-submissions will contribute a CAG only (Competency Achieved Grading) result to your overall grade for the course.
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:
Marking Guide (Competency):
You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.
You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.
Marking Guide (Grading)
After achieving competency we then grade your performance in the unit and you will achieve one of the following grades:
CHD |
Competent with High Distinction |
CDI |
Competent with Distinction |
CC |
Competent with Credit |
CAG |
Competency Achieved – Graded |
CA |
Competency Achieved – Not Graded |
NYC |
Not Yet Competent |
DNS |
Did Not Submit for assessment |
Further information regarding the application of the grading criteria will be provided by your teacher
Course Overview: Access Course Overview