International Trade & Payments II

Pre-requisites: International Trade & Payments I

Main Topics of Study:

The Rules of the Game

  • The Law of Comparative Costs
  • How Did International Trade Begin?
  • The Benefits of International Trade
  • The Structure of International Trade
  • Economic, Commercial & Political Factors
  • Countertrade
  • Trading With Eastern Europe
  • Multinational Companies & Direct Investment
  • International Organisations Seeking to Facilitate World Trade
  • Regional Organisations Seeking Liberalisation

Country & Buyer Risk

  • Country Risk
  • Balance of Payments
  • The International Monetary Fund & the World Bank
  • Political Risk
  • Buyer Risk
  • Credit Insurance

The Quotation

  • Delivery Terms
  • Calculation of the Quoted Export Price
  • Profit Margin, Pricing Policy & Delivery Terms
  • Credit Terms
  • Foreign Exchange Pricing

Foreign Exchange

  • Convertibility of Currencies
  • Quoting in Currency
  • The Exchange Risk
  • Understanding Rates of Exchange
  • Forward Exchange Contracts
  • Forward Exchange Rates
  • Calculating Forward Exchange Rates
  • Closing Out Forward Contracts
  • Pure Currency Options
  • The Wider Picture
  • Avoiding the Spread
  • Euro-Currency Markets
  • Tender to Contract Cover

Agreeing a Method of Payment

  • Risks Associated with the Country or the Buyer
  • The Role of the Credit Controller
  • Types of Methods of Payment
  • Methods of Remittance

Documentary Collections

  • The Bill of Exchange
  • Uniform Rules for Collection

Documentary Credits – Obtaining the Credit

  • The Definition of a Letter of Credit
  • Opening a Documentary Credit
  • The Main Categories of Documentary Credits
  • Types of Documentary Credit
  • Documentary Credits as the Exporter Sees Them

Documentary Credits – Securing Payment

  • Examination of a Credit on Receipt
  • Amending Letters of Credit
  • The Doctrine of Strict Compliance
  • Discrepancies in Presentations
  • The Pre-Presentation Examination
  • Action in the Event of Discrepancies

Banker’s Guarantees (Bonds) & Indemnities

  • Guarantees Issued by Local Banks
  • The Exporter’s Liability to the Bank
  • Indemnities Securing the Release of Goods
  • Bank Guarantees in Support of Loan or Overdraft Facilities
  • Custom Clearance Guarantees

Finance for International Trade

  • Bank Finance to Establish Export Markets – Overdrafts & Loans
  • Bank Finance from Contract to Payment – Overdrafts & Loans
  • Credit Insurance Cover
  • Bills of Exchange
  • Forfaiting
  • Factoring
  • Other Sources of Finance
  • Finance for Imports

Other Trading Methods

  • Consignment Trading
  • Joint Ventures Overseas
  • Pick-A-Back Schemes & Group Selling
  • Royalty Agreements & Licensing