International Trade and Finance

Relations:

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.

Course guarantor:

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:

Lectures and seminars are held in English

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)