COURSE UNIT TITLE

: INTERNATIONAL TRADE FINANCE

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
DIŞ 7019 INTERNATIONAL TRADE FINANCE ELECTIVE 3 0 0 5

Offered By

Foreign Trade (English) Non-Thesis (Evening)

Level of Course Unit

Second Cycle Programmes (Master's Degree)

Course Coordinator

PROFESSOR GÜLÜZAR KURT GÜMÜŞ

Offered to

Foreign Trade (English) Non-Thesis (Evening)

Course Objective

The primary focus of this course is on the export and import methods of payment. This course aims to demonstrate the channels between credit managers and trade finance managers in a practical manner. Topics include letters of credit and their variants, back to back issues, the essential differences between guarantees and standby L/Cs, forfaiting and factoring, warehouse financing, structured pre-export finance. This course will lead the learner through a deep understanding of the risks and solutions involved and help to do business in a safe and prudent manner.

Learning Outcomes of the Course Unit

1   recognize trade finance terminology using documentary credit process
2   understand the key elements and process of trade finance with the main types, mechanics and risks
3   maximize an interactive training experience incorporating a variety of real-life case studies
4   learn the structures, products, developments and risk management in commodity trade finance

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Why trade finance
2 The Evolution of Letters of Credit (L/Cs) in the Trade Cycle
3 International documentation, Payment, acceptance and negotiation modes of funding in L/Cs
4 Deferred payment L/Cs; red clause L/Cs their mechanics and risks
5 The mechanics of back to back L/Cs, securities and pitfalls, long horn back to backs, counter L/Cs, back to back variations
6 Guarantees in trade finance
7 Forfaiting market
8 Midterö
9 Comparing forfaiting and factoring
10 Contemporary warehouse financing techniques
11 pre-export finance structures
12 Presentations
13 Presentations
14 Presentations

Recomended or Required Reading

Paul Cowdell, Derek Hyde, (2003), International Trade Finance, 8 th E., IFS
Tarsem Singh Bhogal, Arun Kumar Trivedi, 2007, International Trade Finance

Planned Learning Activities and Teaching Methods

Lecture, discussions & case studies, group studies

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 STT TERM WORK (SEMESTER)
3 FIN FINAL EXAM
4 FCG FINAL COURSE GRADE MTE * 0.30 + STT * 0.30 + FIN* 0.40
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.30 + STT * 0.30 + RST* 0.40


Further Notes About Assessment Methods

None

Assessment Criteria

1. The learner will clearly describe the letters of credit and their variants, guarantees in trade finance
2. The learner will compare forfaiting and factoring
3. The learner will understand all contractual obligations in trade finance
4. The learner will present how to sell trade finance products
5. The learner will highlight the risk areas in trade finance for the bank

Language of Instruction

English

Course Policies and Rules

1. Plagiarism of any type will result in disciplinary action.
2. Attending at least 70 percent of lectures is mandatory.
3. All assignments should be submitted on time. Otherwise will not be accepted.

Contact Details for the Lecturer(s)

mustafa.tanyeri@deu.edu.tr, banu.durukan@deu.edu.tr

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 13 3 39
Preparing presentations 1 6 6
Preparation for midterm exam 1 10 10
Preparation for final exam 1 15 15
Preparing assignments 3 10 30
Preparations before/after weekly lectures 13 2 26
Final 1 2 2
Midterm 1 2 2
TOTAL WORKLOAD (hours) 130

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10
LO.15333
LO.253
LO.353444
LO.454

CONTACT INFORMATION
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Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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