Study Guide

Objective

Students will be competent in assessing a company's readiness to foreign trade and initiating the entire export/import process step by step. Students will possess knowledge of the practical aspects of the foreign trade process and are able to create necessary documentation for delivery, insurance and payment procedures of the operation. Students will learn how different phases and decisions of the export process will effect on each other and how these decisions will influence on pricing, profit margin, risks, logistics and legal obligations. Students will gain knowledge for choosing suitable payment term and method and managing risks and sanctions for the operation.

Content

Foreign trade practices:
- Controlled foreign business transaction – from offer to delivery and follow-up
- Phases of the export operation process and mutual dependence of them in the process
- How terms of payment and terms of delivery are dependent on each other
- Contract and how it effects on pricing, contribution margin, risks, logistic solutions and legal obligations of authorities.
- EU obligations for the documentation of internal and external trade.
- EU’s demands for different processes in foreign trade.

Contract, delivery, Incoterms and documentation:
- Documentation of foreign trade – what information is needed in documentation
- Documentation requirements and regulations given by authorieties in foreing trade (requirements for custom, statistics and documents of origin)
- Incoterms 2010 – How terms of delivery will effect on transport insurance and documentation

Payments in foreign commerce:
- Choosing the right method and term of payment (documentary collection, documentary credit, standby letter of credit)
- Needed documentation based on term of payment

Financing foreign operations:
- Bank guarantee in foreign trade
- Financing foreign operations
- Managing risks and sanctions

Evaluation scale

1-5

Assessment criteria, satisfactory (1)

Student is able to explain main phases of export/import process. Student is familiar with some aspects of the foreign trade process and is able to create sufficient documentation for a foreign operation. He/She is able to recognize some links between export decisions and pricing, profit margin, risks, logistics and legal obligations. Student is able to choose passable payment term and method for the case.

Assessment criteria, good (3)

Student is able to initiating the entire export/import process in detail. Student is familiar with the practical aspects of the foreign trade process and is able to create some documentation for delivery, insurance and payment procedures for a foreign operation. Student can explain main phases of the export process. He/She is able to explain some links between export decisions and pricing, profit margin, risks, logistics and legal obligations. Student is able to choose passable payment term and method for the case and is able to foresee some risks and sanctions of the case operation.

Assessment criteria, excellent (5)

Student is able to assess a company's readiness to foreign trade and initiating the entire export/import process in detail. Student is familiar with the practical aspects of the foreign trade process and is able to create necessary documentation for delivery, insurance and payment procedures for a foreign operation. Student knows different phases of the export process. He/She is able to explain how decisions related to export operation will influence on pricing, profit margin, risks, logistics and legal obligations. Student is able to choose suitable payment term and method for the case and is able to foresee risks and sanctions of the case operation.

Qualifications

- Basic Studies
- Cross Cultural Business