Architecture
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

General course introduction information

Course Code:

ITRD302

Course Name:

Financing International Trade

Course Semester:

Spring

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	6

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

University Elective

Course Level:

Bachelor

TR-NQF-HE:6. Master`s Degree

QF-EHEA:First Cycle

EQF-LLL:6. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Assoc. Prof. BÜLENT GÜNCELER

Course Lecturer(s):

Course Assistants:

Course Objective and Content

Course Objectives:

The purpose of this course is to prepare students to learn how to identify the need of international trade financing, the different kinds of foreign trade products , how to approach to the best appropriate choice, as well as assessing various risks to bank, buyer and sellers at international trade transactions.

Course Content:

Students will also gain the ability to understand and identify ways of analyzing the underlying risks associated with trade finance transactions. They will be trained to find-out how to carry out the processes involved international payment terms especially in open accounts, documentary collections, letters of credit and international contract guarantees.

In addition to all, these students will be provided information about other types of international trade financing techniques such as buyers credit, government incentives, export credit agency facilities, project financing and also various financing alternatives through Turkish Eximbank products.
Furthermore, the students will see some other financing products like factoring, leasing and acceptance credits.

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
1) • To recognize and identify the meaning and basics of International Trade Financing tools.
2) • To underline the critical importance of choosing the best among the various financing alternatives
3) • To explain and discuss the opportunities, benefits and structure of many different financing methods for developing international business.
4) • To explain and discuss the various risks in terms of finance techniques in international business life
2 - Skills
Cognitive - Practical
3 - Competences
Communication and Social Competence
Learning Competence
Field Specific Competence
Competence to Work Independently and Take Responsibility

Lesson Plan

Week	Subject	Related Preparation
1)	• Syllabus • Discuss Course Outline, • Verifying full schedule.	Review the Syllabus Homework: assigned reading for next class session ( Presentation I )
2)	• Financial System • Banking System • Basic Calculations for banking transactions (Pres. 2 & 3 )	Homework: Assigned reading for next class session ( Chapter II )
3)	• Chapter II. Structure of International Trade and their methodology • International Payment Terms • ICC Brochures • Interbank Payment Systems	Homework: assigned reading for next class session ( Chapter III )
4)	• Chapter III. Export/Import Documentary Collections • Relationship between Exporter and Remitting Banker • Relationship between Correspondent Banks (agency arrangements) • The duties of the remitting bank • Liability of the banks and other parties involved • The rules for release of documents • Conditions for transfer of funds • Risk Areas in Documentary Collection : • Partial payments • Avalizing • Consignment of goods to banks • Release of goods on trust • Procedures for non-payment cases and underlying risks • Basics of the Uniform Rules for Collection ICC 522	assigned reading for next class session
5)	• CHAPTER IV. Documentary Letters of Credit – • 4.a Letter of Credit as a financing product • Banker/Customer Relationship and the structure of Letter of Credit • Risk factors when issuing letters of credit. The risk points. • Why Letter of Credit is a Financing Tool ? • Case Study: Full cycle of Letter of Credit transactions. • 4.b Types of Letters of Credit • Revocable – Irrevocable • Confirmed • Standby Letters of Credit • Transferable • Back-to-Back • Deferred • Red Clause Letter of Credits • Revolving Letter Credits	Homework: assigned reading for next class session
6)	• Chapter V. .Contract Bonds and Guarantees • Types of guarantees: • Tender/bid bonds • Performance bonds • Retention money guarantees • Advance payment guarantees • Maintenance guarantees • Counter Guarantees • Risks of Guarantee Letter • Wording of Guarantees • International Banking Practices • Uniform Rules for Demand Guarantees 758 • Expiry and Cancellation • Case Study: Analysis of samples of Guaranty Letters • Discussion and reviewing the text of guarantees • Possibilities of cases which may cause a loss to the bank • Examining the wording of a range of guarantees issued by banks abroad.	Homework: assigned reading for next class session
7)	• CHAPTER VI. . The impacts of International Trade Financing at Balance Sheet • Trade Finance versus ‘balance sheet lending’ • Understanding and controlling the cash flow • Typical users of Trade Finance products and services	Homework: assigned reading for next class session
8)	MIDTERM EXAM	-
9)	CHAPTER VII. Risk – The Critical Issues • Understanding, identifying and managing risk • Sovereign, Political / Country risk • Institutional risk / Bank risk • Corporate and other critical risks • Importer and Exporter’s risk • Risk mitigation, management and transfer	Homework: assigned reading for next class session
10)	CHAPTER VIII. Review and Analysis of Key Products • How does the customer analyze his risk? • Which products does he use and why? • Cash in Advance • Open Account • Collections – Outward & Inward / Clean & Documentary • Letters of Credit • Risks and opportunities	Ödev: Bir sonraki ders oturumu için belirlenen okumaları tamamlayınız.
11)	CHAPTER X. Financing through Factoring – Forfaiting & Leasing • Factoring • Forfaiting • Leasing • Calculation of Average Maturities when discounting receivables	Ödev: Bir sonraki ders oturumu için belirlenen okumaları tamamlayınız.
12)	Chapter XII • Asset Securitization • Syndications • Counter Trade	Ödev: Bir sonraki ders oturumu için belirlenen okumaları tamamlayınız.
13)	WRAP-UP FOR FINAL EXAM	-
14)	FINAL EXAM	-

Sources

Course Notes / Textbooks:

The Textbook :
Course book. 1 Trade Finance Guide, A Quick Reference for U.S. Exporters,
by US Department of Commerce, Int’l Trade Administration

Günceler, Bülent , Basics of Financing Foreign Trade Transactions

Supportive Materials ( will be provided through O-learn System )
Course book. 2 Basic Trade Finance Tools:Payment Methods in International Trade
Daniele Giovannucci
Course Supp. Doc. 2 Tools of Export Financing at Turk Eximbank.
Course Supp. Doc. 3 Various Source Documents from internet

References:

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	3	4
Program Outcomes
1) - Gaining discursive, theoretical and factual information from various environments, in local, national and global context for related field, architectural design/ planning/ design activities and researches, she has required ability and comprehension to reflect the information on academic environment.
2) - Has intellectual, discursive, scientific, technologic, esthetic, artistic, historic and cultural information and comprehension about related field.
3) - Has knowledge and understanding on human and community oriented and sensitive to environment (natural and built) architectural design/ planning/ design/ research methods on the related field.
4) - Has multidimensional knowledge and understanding on economics, topics related to disasters and environmental and societal sustainability principles and standards.
5) - They have knowledge about the principles, laws, regulations and standards related to their field.
6) - Has knowledge and understanding about institutional and ethical values related to the concerned field.
7) - Has knowledge and understanding about the place / importance of the related field in its historical, geographical, social and cultural context.
8) - Has ability to develop concepts in architectural design/ planning/ design fields.
9) - Has ability to provide integrity between discourse, theory and practise for architectural design / planning / design activities and researches.
10) - Has ability to identify facts, potential, problems and required researches for these in architectural design/ planning/ design issues.

Course - Learning Outcome Relationship

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	- Gaining discursive, theoretical and factual information from various environments, in local, national and global context for related field, architectural design/ planning/ design activities and researches, she has required ability and comprehension to reflect the information on academic environment.
2)	- Has intellectual, discursive, scientific, technologic, esthetic, artistic, historic and cultural information and comprehension about related field.
3)	- Has knowledge and understanding on human and community oriented and sensitive to environment (natural and built) architectural design/ planning/ design/ research methods on the related field.
4)	- Has multidimensional knowledge and understanding on economics, topics related to disasters and environmental and societal sustainability principles and standards.
5)	- They have knowledge about the principles, laws, regulations and standards related to their field.
6)	- Has knowledge and understanding about institutional and ethical values related to the concerned field.
7)	- Has knowledge and understanding about the place / importance of the related field in its historical, geographical, social and cultural context.
8)	- Has ability to develop concepts in architectural design/ planning/ design fields.
9)	- Has ability to provide integrity between discourse, theory and practise for architectural design / planning / design activities and researches.
10)	- Has ability to identify facts, potential, problems and required researches for these in architectural design/ planning/ design issues.

Learning Activity and Teaching Methods

Expression
Brainstorming/ Six tihnking hats
Lesson
Reading

Assessment & Grading Methods and Criteria

Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing)

Assessment & Grading

Semester Requirements	Number of Activities	Level of Contribution
Attendance	1	% 20
Quizzes	1	% 10
Midterms	1	% 20
Final	1	% 50
total		% 100
PERCENTAGE OF SEMESTER WORK		% 50
PERCENTAGE OF FINAL WORK		% 50
total		% 100