International Trade (English)
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:

Compulsory

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):

Assoc. Prof. BÜLENT GÜNCELER

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 foreign trade, the different kinds of foreign trade product , how to approach to the best appropriate choice, as well as assessing various risks to bank, buyer and sellers at international trade transactions.

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.

Through chapters, readings, and case analyses, we will discuss issues related to comparison of environmental framework between theories and reality.

Course Content:

• To recognize and identify the meaning and basics of International Trade Financing tools.
• To underline the critical importance of choosing the best among the various financing alternatives
• To explain and discuss the opportunities, benefits and structure of many different financing methods for developing international business.
• To explain and discuss the various risks in terms of finance techniques in international business life

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
1) - Basics of Foreign Trade Regulations
2) - The Law for Protection of Turkish Currency
3) - Decree Nr. 32 for Foreign Transactions
4) - Invisible Transactions
5) - Regulatory environment of banks and other related parties
6) - Free Trade Zones
7) - Transit Trade
8) - Boarder Trade
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
2)	• Finance • Financial System • Banking System	Homework: Assigned reading for next class session ( Chapter II )
3)	• Describe International Trade Methodologies • Identify the governing rules • Explain International Payment Systems • Explain how international relations affect international business activities	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	Homework: assigned reading for next class session ( Chapter IV )
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 ( Chapter V )
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 ( Chapter VI )
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	Study for the mid-term exam
8)	MID-TERM EXAM	Homework: assigned reading for next class session ( Chapter VII )
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 ( Chapter VIII )
10)	CHAPTER IX. Export Financing • Rules of Exporting in terms of financing • Pre-export Financing • Turkish Eximbank Financing Export Tools • Country risk issues and how to cover these risks	Homework: assigned reading for next class session ( XI )
11)	CHAPTER X. Financing through Factoring – Forfaiting & Leasing • Factoring • Forfaiting • Leasing • Calculation of Average Maturities when discounting receivables	Homework: assigned reading for next class session ( XI )
12)	CHAPTER XI. Other Special Types of Conventional Trade Financing • Country Export Agency Financing • Project Financing • Using the goods in the warehouse as collateral • Asset Securitization • Syndications • Counter Trade	Editing of first draft of the project
13)	Chapter XII • Asset Securitization • Syndications • Counter Trade	Editing of first draft of the project.
14)	PREPARATIONS FOR PRESENTATIONS FOR FINAL PROJECTS
15)	PRESENTATIONS FOR FINAL PROJECTS ( IV )

Sources

Course Notes / Textbooks:	1) Trade Finance Guide, A Quick Reference for U.S. Exporters, by US Department of Commerce, Int’l Trade Administration. 2) Günceler, Bülent , Basics of Financing Foreign Trade Transactions ( 2014 )
References:	1) Course Supp. Doc. 1 Madura, Financing Int’l Trade, Section – Int’l Financial Management (2010). 2) Course Supp. Doc. 2 Tools of Export Financing at Turk Eximbank (Aug 2015). 3) Course Supp. Doc. 3 CGFS Papers – Trade Finance Developments & Issues – by BIS Jan 2014.

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	3	4	5	6	7	8
Program Outcomes
1) To have theoretical and practical knowledge at the basic level supported by textbooks, application tools and other resources with current knowledge in the field based on the qualifications gained at the secondary level.
2) - To gain the ability to use the theoretical and practical knowledge at the basic level at an advanced level or at the same level in the same field. - To be able to interpret and evaluate the data by using the basic knowledge and skills acquired in the field, to identify and analyze the problems, to develop solutions based on evidence.
3) - To be able to convey his / her thoughts on basic knowledge and skills at the level of written and verbal communication. - To share his / her thoughts and solutions to the problems related to his / her field with experts and non-experts. - To be able to follow information in the field and communicate with colleagues by using a foreign language at least at a level of European Language Portfolio A2 General Level. - To be able to use information and communication technologies together with computer software at the basic level of European Computer Driving License required by the field.
4) - To be able to evaluate the basic knowledge and skills acquired in the field with a critical approach, to determine and meet the learning needs. - To be able to direct his / her education to an advanced level of education in the same field or to a profession at the same level. - Not to have gained awareness of lifelong learning.
5) - To have social, scientific, cultural and ethical values in the stages of collecting, applying and announcing the data related to the field. - To have sufficient awareness of the universality of social rights, social justice, quality and cultural values, environmental protection, occupational health and safety.
6) - To be able to conduct a basic level study independently. - To be able to take responsibility as a team member to solve unforeseen complex problems encountered in the applications related to the field. - To be able to carry out activities for the development of employees working under their responsibility within the framework of a project.
7) - To have advanced theoretical and practical knowledge supported by textbooks containing current information in the field, application tools and other resources.
8) To be able to use the advanced theoretical and practical knowledge acquired in the field. - Interpret and evaluate data using the advanced knowledge and skills acquired in the field, identify problems, analyze, develop solutions based on research and evidence.
9) - To be able to inform the relevant persons and institutions about the related subjects; transfer ideas and solutions to problems in written and orally. - To share his / her thoughts and solutions to the problems related to the field with the experts and non-experts by supporting them with quantitative and qualitative data. -To be able to organize and implement projects and activities for the social environment in which he / she lives with a sense of social responsibility. - To follow the information in his / her field and to communicate with his / her colleagues by using a foreign language at least at the European Language Portfolio B1 General Level. - To be able to use information and communication technologies together with computer software at the Advanced Level of European Computer Driving License required by the field. - To act in accordance with social, scientific, cultural and ethical values in the stages of collecting, interpreting, applying and announcing the data related to the field. - To have sufficient awareness about the universality of social rights, social justice, quality culture and protection of cultural values, environmental protection, occupational health and safety.
10) - To be able to critically evaluate the advanced knowledge and skills acquired in the field, - Identify learning needs and direct learning. - To develop positive attitudes about lifelong learning.
11) To act in accordance with social, scientific, cultural and ethical values in the stages of collecting, interpreting, applying and announcing the data related to the field. - To have sufficient awareness about the universality of social rights, social justice, quality culture and protection of cultural values, environmental protection, occupational health and safety
12) - To be able to conduct an advanced study independently. - To be able to take responsibility as an individual and as a team member to solve unforeseen complex problems encountered in the applications related to the field. - To be able to plan and manage activities for the development of employees working under their responsibility.

Course - Learning Outcome Relationship

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

	Program Outcomes	Level of Contribution
1)	To have theoretical and practical knowledge at the basic level supported by textbooks, application tools and other resources with current knowledge in the field based on the qualifications gained at the secondary level.	4
2)	- To gain the ability to use the theoretical and practical knowledge at the basic level at an advanced level or at the same level in the same field. - To be able to interpret and evaluate the data by using the basic knowledge and skills acquired in the field, to identify and analyze the problems, to develop solutions based on evidence.	5
3)	- To be able to convey his / her thoughts on basic knowledge and skills at the level of written and verbal communication. - To share his / her thoughts and solutions to the problems related to his / her field with experts and non-experts. - To be able to follow information in the field and communicate with colleagues by using a foreign language at least at a level of European Language Portfolio A2 General Level. - To be able to use information and communication technologies together with computer software at the basic level of European Computer Driving License required by the field.	4
4)	- To be able to evaluate the basic knowledge and skills acquired in the field with a critical approach, to determine and meet the learning needs. - To be able to direct his / her education to an advanced level of education in the same field or to a profession at the same level. - Not to have gained awareness of lifelong learning.	2
5)	- To have social, scientific, cultural and ethical values in the stages of collecting, applying and announcing the data related to the field. - To have sufficient awareness of the universality of social rights, social justice, quality and cultural values, environmental protection, occupational health and safety.	2
6)	- To be able to conduct a basic level study independently. - To be able to take responsibility as a team member to solve unforeseen complex problems encountered in the applications related to the field. - To be able to carry out activities for the development of employees working under their responsibility within the framework of a project.	5
7)	- To have advanced theoretical and practical knowledge supported by textbooks containing current information in the field, application tools and other resources.	4
8)	To be able to use the advanced theoretical and practical knowledge acquired in the field. - Interpret and evaluate data using the advanced knowledge and skills acquired in the field, identify problems, analyze, develop solutions based on research and evidence.	3
9)	- To be able to inform the relevant persons and institutions about the related subjects; transfer ideas and solutions to problems in written and orally. - To share his / her thoughts and solutions to the problems related to the field with the experts and non-experts by supporting them with quantitative and qualitative data. -To be able to organize and implement projects and activities for the social environment in which he / she lives with a sense of social responsibility. - To follow the information in his / her field and to communicate with his / her colleagues by using a foreign language at least at the European Language Portfolio B1 General Level. - To be able to use information and communication technologies together with computer software at the Advanced Level of European Computer Driving License required by the field. - To act in accordance with social, scientific, cultural and ethical values in the stages of collecting, interpreting, applying and announcing the data related to the field. - To have sufficient awareness about the universality of social rights, social justice, quality culture and protection of cultural values, environmental protection, occupational health and safety.	3
10)	- To be able to critically evaluate the advanced knowledge and skills acquired in the field, - Identify learning needs and direct learning. - To develop positive attitudes about lifelong learning.	4
11)	To act in accordance with social, scientific, cultural and ethical values in the stages of collecting, interpreting, applying and announcing the data related to the field. - To have sufficient awareness about the universality of social rights, social justice, quality culture and protection of cultural values, environmental protection, occupational health and safety	3
12)	- To be able to conduct an advanced study independently. - To be able to take responsibility as an individual and as a team member to solve unforeseen complex problems encountered in the applications related to the field. - To be able to plan and manage activities for the development of employees working under their responsibility.	5

Learning Activity and Teaching Methods

Expression
Brainstorming/ Six tihnking hats
Individual study and homework
Lesson
Reading
Homework
Q&A / Discussion
Case Study

Assessment & Grading Methods and Criteria

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

Assessment & Grading

Semester Requirements	Number of Activities	Level of Contribution
Attendance	1	% 20
Project	1	% 30
Final	1	% 50
total		% 100
PERCENTAGE OF SEMESTER WORK		% 50
PERCENTAGE OF FINAL WORK		% 50
total		% 100

Workload and ECTS Credit Grading

Activities	Number of Activities	Workload
Course Hours	15	45
Study Hours Out of Class	15	45
Presentations / Seminar	15	45
Project	15	45
Final	1	3
Total Workload		183