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

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
IB4613	The New Trends and Techniques in International Trade Finance	Spring	3	0	3	6

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Non-Departmental Elective
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:
Course Coordinator :	Assist. Prof. BAHAR KÖSEOĞLU
Course Lecturer(s):	Instructor SELDA EKE
Recommended Optional Program Components:	The Handbook of International Trade and Finance, The Complete Guide for International Sales, Finance, Shipping and Administration by Anders Grath,Dec.28,2013
Course Objectives:	The students will learn the basic trade finance concepts and instruments currently used in international trade activities. They will develop an understanding about the risk management aspect of trade and will be able to assess how trade finance instruments would help to mitigate the risks. They will be aware of the current trends so that they will be able to observe the changing landscape of trade finance markets. They will have knowledge on key players in trade finance area. They will also have a vision about the developments in digital trade finance .

Learning Outcomes

The students who have succeeded in this course;
Students who have succeeded in this course,

1. Understand the main risks in international trade, mainly credit risk and the methods to manage this risk
2. Learn some basic trade finance concepts such as pre shipment and post shipment finance and the role of the banks in trade finance from the perspective of a company's financial needs.
3. Have a general understanding of trade finance markets and learn about the products of different financial institutions
4. Learn how banking products would help to finance the working capital needs of the companies in conducting their trade activities
5. Learn the importance of delivery terms in managing delivery risks in international trade .
6. Understand how different payment methods would impose risks to the parties in international trade and how these risks are managed.
7. Understand how different payment methods would be used to manage the credit risk and that would be used to obtain finance for the parties in international trade .
8. Understand the alternative finance methods in addition to bank finance.
9. Understand the role of insurance in conducting international trade activities, especially how credit risks are managed through insurance and the market for it (i.e export credit insurance).
10.Enhance their understanding to judge the need to move from traditional trade finance to supply chain finance and to learn the main products in supply chain finance.
11. Explore the trade finance solutions and apply learnings to trade activities.

Course Content

Introduction :An overview of the developments in the world trade in the context of risk management
Definition of various risks in international trade and the concept of trade finance : Product risks, manufacturing risks, transport risks, commercial risks, political risks, business risks, financial risks ( market risks, credit risks and liquidty risks)
Preshipment and postshipment risks and financing needs
Working capital finance and trade finance
Terms of delivery and main documents in international trade : Major delivery terms
Main documents used in international trade activities
Policy as a payment instrument
Terms of payment : Open account ( cash against goods) , documentary collection ( cash against documents ) and letter of credit ( types of L/C)
Bonds and guarantees : Common forms of guarantees (contract guarantees, payment and credit guarantees)
Standby letters of credit
Guarantees used in trade activities
Surety
Some cases and applications
Mid -term
Credit insurance :Export credit insurance
The private sector and public sector applications, products
Export credit agencies ( ECAs)
Investment risks ( Political risk insurance)
Application and case study
Trade finance alternatives I :Supplier credits
Refinancing of supplier credits
Invoice discounting
Export factoring
Buyer credits
Trade finance alternatives II :Forfaiting
International leasing, cross border leasing,export leasing"
Supply chain finance :Definition of supply chain and risks in supply chain
Bank Payment Pbligations (BPO)
Structured trade finance :Receivables finance vs traditional payment instruments
Asset backed securitization ( ABS)
Commodity finance
Currency risk management :Spot and forward transactions
Futures markets and transactions
Currency risk management :Futures
Option contracts
Evaluation of the course content :Cases and applications

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Introduction: The syllabus will be explained. ( the course objectives and learning objectives will be explained ) Overview of world trade activities and the parties in international trade.
2)	Trade credit risk and credit risk management Foreign currency risk and FCY risk management Other major risks the companies should manage in international trade activities. Determining the financing needs of the companies through the operating cycle of companies ; S/T bank loans ( pre - post shipment finance)
3)	Main documents in international trade Draft ( B/E ) as a payment instrument. Terms of delivery ( INCOTERMS)
4)	Methods of payment I : Open account (Cash against goods ) cash in advance Documentary Collection (D/A, D/P) Cases
5)	Methods of payment II : The letter of credit (L/C) Types of L/Cs. Case
6)	Bonds and guarantees ( guarantees used in commercial activities) Minicases Standby letters of credit Surety bond
7)	Wrap up
8)	Midterm
9)	Credit insurance : Export and domestic credit insurance The market for credit insurance ; private and public ( export credit agencies , E.C.A.s) Overseas investments and investment risks. Political risk insurance
10)	Factoring Minicase
11)	Forfaiting Minicase
12)	Financial Leasing Minicase
13)	Uluslarası ticaretin finasmanında dijitalleşme, gelecek için bir vizyon Özet
14)	Wrap up mini cases

Sources

Course Notes / Textbooks:

The Handbook of International Trade and Finance, The Complete Guide for International Sales, Finance, Shipping and Administration by Anders Grath,Dec.28,2013

References:

The Handbook of International Trade and Finance, The Complete Guide for International Sales, Finance, Shipping and Administration, Anders Grath ( available in Bahçeşehir University library in hard copy and also online among resources )

-The Fundamentals of Trade Finance , Joseph Greco and Brian Murray ( available in Bahçeşehir library in hard copy )
-Finance of International Trade, Eric Bishop ( available online in Bahçeşehir University library online )
-International Trade Finance, Tarsem Singh Bhopal, Arun Kumar Trivedi ( available online in Bahçeşehir University library online

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Application	1	% 5
Quizzes	1	% 10
Homework Assignments	1	% 20
Midterms	1	% 25
Final	1	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Application	14	3	42
Study Hours Out of Class	1	30	30
Midterms	1	20	20
Final	14	1	14
Total Workload			148

Contribution of Learning Outcomes to Programme Outcomes

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

	Program Outcomes	Level of Contribution
1)	To be able to apply theoretical concepts related to mass communication, consumer behavior, psychology, persuasion,sociology, marketing, and other related fields to understand how advertising and brand communication works in a free-market economy.	2
2)	To be able to critically discuss and interpret theories, concepts, methods, tools and ideas in the field of advertising.	2
3)	To be able to research, create, design, write, and present an advertising campaign and brand strategies of their own creation and compete for an account as they would at an advertising agency.	2
4)	To be able to analyze primary and secondary research data for a variety of products and services.	2
5)	To be able to develop an understanding of the history of advertising as it relates to the emergence of mass media outlets and the importance of advertising in the marketplace.	2
6)	To be able to follow developments, techniques, methods, as well as research in advertising field; and to be able to communicate with international colleagues in a foreign language. (“European Language Portfolio Global Scale”, Level B1)	2
7)	To be able to take responsibility in an individual capacity or as a team in generating solutions to unexpected problems that arise during implementation process in the Advertising field.	3
8)	To be able to understand how advertising works in a global economy, taking into account cultural, societal, political, and economic differences that exist across countries and cultures.	2
9)	To be able to approach the dynamics of the field with an integrated perspective, with creative and critical thinking, develop original and creative strategies.	2
10)	To be able to to create strategic advertisements for print, broadcast, online and other media, as well as how to integrate a campaign idea across several media categories in a culturally diverse marketplace.	2
11)	To be able to use computer software required by the discipline and to possess advanced-level computing and IT skills. (“European Computer Driving Licence”, Advanced Level)	2
12)	To be able to identify and meet the demands of learning requirements.	2
13)	To be able to develop an understanding and appreciation of the core ethical principles of the advertising profession.	2