Course Title: Review the financial structures and processes in international trade
Part B: Course Detail
Teaching Period: Term1 2020
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
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 |
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Element: |
1. Analyse aspects of international trade transactions |
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Performance Criteria: |
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Element: |
2. Analyse rate movement and exposure in international trade transactions |
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Performance Criteria: |
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Element: |
3. Review credit risk management strategies for international trade |
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Performance Criteria: |
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Element: |
4. Investigate the application of payment |
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Performance Criteria: |
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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 this course. This may include not only scheduled classes but 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 | 8 July 2019 | Introduction | |
| 2 | 15 July 2019 | Topic 1 Pricing Methods | |
| 3 | 22 July 2019 | Pricing methods and policies | |
| 4 | 29 July 2019 | Topic 2 Exchange rate calculations | |
| 5 | 5 Aug 2019 | Reasons for exchange rate changes | |
| 6 | 12 Aug 2019 | Role of central banks in exchange rates | |
| 7 | 19 Aug 2019 | Managing exchange rate risks: internal hedging | |
| 8 | 26 Aug 2019 | Managing exchange rate risks: money market hedging | Assessment Task 1 |
| 2 Sept 2019 | MID SEMESTER BREAK ( 2/9 - 6/9 ) | ||
| 9 | 9 Sept 2019 | Managing exchange rate risks: money market hedging | |
| 10 | 16 Sept 2019 | Topic 3 Methods of payment: credit risk | |
| 11 | 23 Sept 2019 | Options for international payments | |
| 12 | 30 Sept 2019 | Bargaining for methods of payment | |
| 13 | 7 Oct 2019 | Topic 4 Getting faster payment if suffering cash shortages | Assessment Task 2 |
| 14 | 14 Oct 2019 | Revision and review | |
| 15 | 21 Oct 2019 | Supervised in-class assessment | Assessment Task 3 |
| 16 | 28 Oct 2019 | Interviews/feedback and Re-submissions | |
| 17 | 4 Nov 2019 | Final feedback and re-submissions |
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 must successfully complete all three tasks to be deemed competent in this course.
Task 1 - Part A Major assignment - International Trade Risks and their Mitigation
Date due: Week 8
Group or Individual: This is an individual assessment
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- Part B Major Assignment - International Trade Risks and their Mitigation
Date due: Week 13
Group or Individual: This is an individual assessment
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 due: Week 15
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.
Assessments Conditions:
Assessment of performance requirements in this unit should be undertaken within the context of the international business framework. Competency is demonstrated by performance of all stated criteria, including the Range Statements applicable to the workplace environment.
Participants may gain relevant experiential learning and assessment opportunities in formal, distance or workplace facilities, under supervision or mentoring. All participants may take advantage of electronic media to generate and submit reports or presentations to support each performance criterion either individually or holistically.Assessors should consider the assessment of salient knowledge, skills and content understanding through specific or combined electronic media, workplace contact or mentoring.
The responsibility for valid workplace assessment lies with the training provider through its designated supervisor/mentor. Resources required for assessment include:
• Access to a relevant workplace or closely simulated international business environment • Accessibility to suitable computer hardware, software and/or other appropriate technology necessary to address the elements and satisfy the performance criteria of this unit
Assessments Conditions
Assessment of performance requirements in this unit should be undertaken within the context of the international business framework. Competency is demonstrated by performance of all stated criteria, including the Range Statements applicable to the workplace environment. Participants may gain relevant experiential learning and assessment opportunities in formal, distance or workplace facilities, under supervision or mentoring. All participants may take advantage of electronic media to generate and submit reports or presentations to support each performance criterion either individually or holistically. Assessors should consider the assessment of salient knowledge, skills and content understanding through specific or combined electronic media, workplace contact or mentoring. The responsibility for valid workplace assessment lies with the training provider through its designated supervisor/mentor. Resources required for assessment include: • Access to a relevant workplace or closely simulated international business environment • Accessibility to suitable computer hardware, software and/or other appropriate technology necessary to address the elements and satisfy the performance criteria of this unit.
Assessment Matrix
The competency assessment map that maps all the assessment tasks is available on CANVAS Mapping document
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 a 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. You must submit your application within five working days after your assessment date or due date.
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 (Not satisfactory/Unsatisfactory) in a Course Assessment Task you will be allowed one re-submission. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the re-submission.
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.
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:
Final Results
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.
The following grades are available for this course:
CA |
Competency Achieved |
NYC |
Not Yet Competent |
DNS |
Did Not Submit for Assessment |
Course Overview: Access Course Overview