International Trade and Finance

It is not possible to register for the course U16E0104 if the student is concurrently registered for or has previously completed the course 32BE-P-ITRF-01 (mutually exclusive courses).

The requirement for course U16E0104 can be fulfilled by substitution with the course 32BE-P-ITRF-01.

Garant předmětu:

Lecturer:

Tutor:

Supervisor:

Institute of Management Studies

Synopsis:

Requirements:

Knowledge of English language and basics of management

Syllabus of lectures:

1. Introduction to the course

International trade in globalized world

•Diversity as an essential factor in the global world

•Globalization and its influence on society, trade, finance, and investment

•Theory, history, components, and problems of economic globalization

•Key players of economic globalization

•Global trends in trade, finance, and investment

Corporate internationalization

•Opportunities of the international environment

•International & global business objectives

•International & global markets

•The process of corporate internationalization

•International & global companies (MNC/MNE, SME, SPE)

2. International trade in the European Union

•International economic integration (theory and practice)

•The role and typology of international economic integration

•International integration in Europe

•EU organizations and institutions

•EU organizations and institutions in the Czech Republic

•International integration groupings in the world and their relationships

3. Theory of international trade

•International trade theory

•International trade policy

•Promotion of the international trade and barriers (regulation, liberalization, internationalization, globalization and protectionism in international trade)

•Sanction policy of the UN, EU and CR

Corporate international trade

•Export, import and re-export operations, techniques and strategies (direct & indirect)

•Individual trading transactions – complex distribution and supply chains

•Complex deliveries and deliveries of technological units and infrastructure

•Life cycle contracts and PPP´s

•International online (internet) trade

•Infrastructure of the international trade

•Internal corporate organization of international trade

•Externalization and cooperation in international trade (contracting out, outsourcing, partnering etc.)

4. International marketing and international marketing management

•Principles of international marketing

•Methods of international marketing

•International marketing research (resources & methods)

•International marketing strategies

•4P concept on international markets

•Building international markets

•International marketing plan

•The process and organization of international marketing in the company

5. Structure of international trade transaction

•Process of preparation and realization of international trading transaction

•Inquiry, tender, and offer

•Negotiation and communication techniques

•Packaging, marking, transport and logistics

•Accompanying documentation

•User manual, warranty card, service book

•Guarantee and guarantee repairs

•Service and maintenance

•Financing

•Terms of payment

•Securing business transactions and payments

•Contracting (essential components of the trade contracts)

•Business transaction evaluation and decision making

•Options, extension of delivery, framework contracts, forms of countertrade

•Conflicts in trade relations

6. International transport and logistics

•The essence of international transport and logistics

•Types of consignments

•Conditions of carriage (INCOTERMS, TIR)

•Types of international transport

•Self-transport, contractual transport, contractual carriers, forwarding, and forwarding agents

•Contracts of carriage and liability

•Customs clearance and customs documentation (carnet ATA)

•Packaging and marking of consignments

•Accompanying transport documentation (delivery and waybills)

•International distribution and supply chains, logistics networks

•Transport of intangible products

7. Financing international business transactions and life-cycle contracts

•International financial systems

•Role of international finance institutions

•Trade finance

•Export finance and export finance institutions

•International financial flows and interbank relations

•International payment methods

•Tools of export financing

•Export (trade) crediting

•The issue of foreign loans

•Other international trade and investment financing products

•Hedging instruments of international payments and export financing

•State financial support for international trade

•Financing international life cycle contracts and PPP´s

•Financial models in international business, trade & investment practice

8. Foreign investments

•International & European & Czech investment market

•Opportunities and risks of foreign investment (investor vs. beneficiary)

•International investment strategies

•Direct (FDI), portfolio (FPI) and indirect foreign investment

•Factors of investment decision making on the international investment market

•Feasibility analysis of foreign investment

•Financial models of foreign investments

•Financing of foreign investments

•International investment management

•International investment companies

•Externalization in the practice of international investment (contracting out, outsourcing, partnering, etc.)

9. Legal aspects of international trade and finance

•Legal systems in the world & Europe

•European corporate and commercial law

•International agreements of the European Union

•Statutes of international companies in the Czech Republic, the EU and the world

•Contracting international trade

•Key legal issues of trade contracts

•Hedging instruments of international treaties

•International trade transaction legal risk matrix

•Legal disputes in the practice of international trade

•International arbitration courts

10. Organization of the international trade, business and finance

•Business model of the company's international trading operations

•Organizational models of international companies

•Problem of centralization / decentralization of the international trade

•Gradual construction of the corporate international trading infrastructure

•Personnel of headquarter (international trade) and foreign branches

•Communication strategy and IT technology of the network of foreign branches

•Marketing and sales plans of foreign branches

•Economics of foreign branches

11. Human resources in international trade

•Requirements concerning staff of foreign branches

•Foreign recruitment

•Foreign branch personnel development programs

12. Contemporary aspects of international markets

•Regional markets (Europe, North America, post-Soviet region, Southeast Asia, Arab markets, South American markets, African markets)

•Commodity markets

•Contemporary trends on world markets

13. Final summary of the course

14. Written test

Syllabus of tutorials:

1. Creating corporate international strategies

•Company, business & trade internationalization strategy

•International strategy of trading company

•Evaluation of corporate internationalization opportunities (SWOT, TOWS, SOAR analysis etc.)

•Choice of the corporate internationalization strategy

•Evaluation of international markets and their choice (segmentation of international markets, PEST/PESTLE analysis etc.)

•Business model of corporate internationalization

•Creating strategic plan for corporate internationalization (content and process)

Case study & homework

•Creating international business & trade strategy of the trading SME

2. European promotion of business and international trade

•EU corporate and commercial legislation

•Legal regulation of European companies

•International trade agreements of the EU

•European programs and funds

•EU support for trade and entrepreneurship, finance and investments

•Development of trading activities within the EU

Case study & homework

•Creating European business & trade strategy of the trading SME

3. Creating trading infrastructure and organization of the company

•Organizational structure of international trade

•Personnel

•Sales representatives & business partners

•Branches, stores, distribution, storage, service centers (own or contracted)

•Logistics infrastructure

•Communication and IT systems (planning, business transactions, transportation and logistics, communication, control)

•Foreign investment into trading infrastructure

•Outsourcing of trading infrastructure and investment partnering

•Costs and budget of trading infrastructure

Case study & homework

•Creating infrastructure and organization of the trading SME

4. Creating international marketing plan

•Overall concept of international marketing plan

•Marketing mix model

•Products for international markets

•Pricing policy in international markets

•Place and distribution marketing policy

•Promotion on international markets

•Action plan

Case study & homework

•Creating marketing plan for SME

5. Negotiating and communication strategies and techniques in international trade

•Negotiation strategies and techniques

•Communication strategies and techniques

•Pre-trial settlement negotiations

Case study & homework

•Preparation of trade transaction according to assignment

•Preparation of business offer

6. Choice of transport method and preparation of international shipment

•The overall process of preparing an international shipment

•Choice of transport method

•Carrier selection and transport order

•Completing delivery and waybills

•Completing ATA Carnets

Case study & homework

•Preparation of international shipment according to assignment, choice of transport method

7. Administration of export financing

•Documentation of export financing during preparation, realization and after completion of business transaction

•Documentation of application for export credit

•Documentation of application for state export support

•EIB /EBRD loan application documentation

•Process administration

•Export finance institution requirements

Case study & homework

•Preparing a loan application for financing an international business transaction according to assignment

•Preparation of application for state support of international business transaction, according to assignment

8. Foreign investment preparation process

•Investment opportunity and preliminary feasibility study

•Documentation, time schedule and budget

•Preparation and approval of a full feasibility study

•Land purchase options

•Ensuring the financing of foreign investment

•Complete project documentation and local building approval

•Selection of general contractor (subcontractors, supervisors)

•Investor´s supervision

•Taking over, operating, renting or selling foreign investments

Case study & homework

•Preliminary assessment of the effectiveness and feasibility of foreign investment

9. Risk analysis of business transactions

•Risk analysis process

•Categories of risks of international trade, international finance and international investment

•Specific risks of international markets

•Risks of international trade in the EU

•Risk identification and matrix

•Risk assessment

•Calculation of risk costs

•Risk analysis tools

•Risk analysis of foreign investments

•Risk analyses during decision-making processes

•Simplified risk analysis

Case study & homework

•Preliminary risk analysis of foreign trade transaction

10. External cooperation in the field of international trade and its financing

•Opportunities, causes and risks of external cooperation in the field of international trade, international investment and international financing

•Areas of external cooperation

•External cooperation partners and their selection

•Models of strategic cooperation in the international environment

•Building organizational structures of international trade through business partners

•MNE / MNC Strategic Partners

Case study & homework

•Organizational model of SME foreign trade operations

11. Students' presentations and discussions

12. Your possible job in the field of international trade, international finance and international investment

•Working at MNE, in the Czech SME, and abroad

•Sectors of your future work

•Personality test of your readiness to work in an international environment

•What to improve, what to focus on

13. Examination if necessary

Study Objective:

The course is focused on students who will work in Czech companies with export ambitions, in Czech branches of international and multinational companies or abroad, and at the same time on foreign students who want to be familiar with the issues of international trade and international finance as part of a wider portfolio of economic and management disciplines

The aim of the course is to complete basic education in the field of economic and managerial fields with knowledge of international cooperation, international management, marketing, business, finance, investment and logistics and to teach them to prepare internationalization and marketing strategies of companies including their financing and logistic support, respectively to understand international investment issues

Study materials:

Compulsory literature:

•Alan Sitkin, Nick Bowen, International Business: Challenges and Choices, Oxford University Press, Oxford, 2010

•Jim Sherlock, Jonathan Reuvid: International trade: An essential guide to the principles and practice of export, Koganpage, London, 2015

•Ephraim Clark: International Finance, Cengage Learning EMEA, 2002

Recommended literature:

•John D. Daniels, Lee H. Radebaugh, Dabiel P. Sullivan: International Business: Environments and Operation, 15th Edition, Pearson Prentice Halls, New Jersey, 2015

•Ilan Alon, Eugene Jaffe: Global Marketing: Contemporary Theory, Practice and Cases, McGraw-Hill Global Education Holdings, , 2013

•Warren J. Keegan, Mark C. Green: Global Marketing, Eighth Edition, Pearson Education Limited, Harlow, 2015

•Steve Suranovic: International Trade: Theory and Policy, Saylor Foundation, Washington DC, USA, 2010

•Jim Sherlock, Jonathan Reuvid: The Handbook of International Trade: A Guide to the Principles & Practice of Export, GMB Publishing Ltd, London, UK, 2008

•Edited by Lynn Sha and Kent H. Hughes: New Thinking in International Trade: Global Competition and Comparative Advantage, Woodrow Wilson International Centre for Scholars, Washington D.C., USA, 2009

•Alan E. Branch: Global Supply Chain Management and International Logistics, Routledge, New York, 2009

•Maurice D. Levy: International Finance, Routledge, Taylor & Francis Group, London, 2005

•Steve Suranovic: International Finance: Theory and Policy, Saylor Foundation, Washington DC, USA, 2010

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans:

• B-EK-prez.forma od 17/18 (compulsory elective course)
• B-EM-P prezenční studium od 18/19 (compulsory elective course)
• B-EM-P prezenční studium od 19/20 (compulsory elective course)
• B-EM-P prezenční studium od 20/21 (compulsory elective course)
• B-EM-P prezenční studium od 21/22 (compulsory elective course)
• B-EM-P prezenční studium od 22/23 (compulsory elective course)