All international trade transactions have its financial side. It’s not enough just selling. The exporter must collect, transfer the money to his country, change it to his own currency and, if necessary, finance the transaction. And all this in complience with the regulations that may exist both in the buyer's country and in the seller's country to transfer money from one country to another. In this process, the exporter must face, at least, two main potential risks: non-payment risk and exchange risk.
In this Course the student will have the opportunity to address the most relevant of these issues. We will start the journey with the Methods of Payment in international trade and we will continue through the International Guarantees, the Export Credit Insurance, the Foreign Exchange Markets and finally we will focus in the Exchange Risk Management.
The course focuses on the learning of the different long term financing tools, schemes and official organizations available for export and investment projects of international expanding companies.
This module provides a review of the most important aspects related to investment analysis. In the first part, using the main tools of financial mathematics, investments are analysed by calculating financial income, addressing the main analytical techniques when making decisions in the selection of investments, necessary to successfully approach the review of business investments. In the second part it is studied how to make a business plan. Finally, the third part delves into the elaboration of the financial statement, that must accompany the business plan.
Identify the organisation of the foreign exchange markets, as well as the financial instruments that make them up.
Identify business opportunities through the combined analysis of price levels and exchange rates.
Make decisions regarding the coverage of the contractual exchange risk using the appropriate financial instruments.
Analyse how Export Credit Insurance works and its compatibility with means of payment.
To identify the common elements in all medium and long-term financing.
To differentiate the financing structures applicable depending on whether the operation is carried out in an emerging country or in a developed country.
To interpret how the terms and conditions of the commercial contract affect the financing of medium- and long-term operations.
Diagnose the different variables that may affect an investment project in order to generate the Business Plan.
Diagnose the different variables that can affect a project to generate the Business Plan.
To know the necessary steps for the execution of a Business Plan and to obtain the necessary data for the preparation of the Feasibility Plan.
To analyse the interrelations between the different parts of the project and the Feasibility Plan to be projected.
Duration: The course lasts 60 teaching hours.
Course days: from March 30 until May 3th.
Modality: The course is taught 100% online, combining live classes, where you can interact with the teacher and your classmates, and videoconferences. You will also have the recordings at your disposal on CANVAS, our virtual campus.
Course subsidized by FUNDAE.
Headquarters: ENAE. University Campus of Espinardo 30100, Espinardo, Murcia.
Especializado en comercio internacional e inversiones (IED), es Director del Departamento de Inversiones y Suelo Industrial del Instituto de Fomento de la Región de Murcia, donde ayuda a las empresas en sus proyectos de expansión internacional y en proyectos de inversión extranjera directa (IED).
Underlying structure for the international payments.
Introduction to International Methods of payment.
International Payment Order. EU regulation. SEPA.
Checking Account Check.
Documentary Collection against payment.
Documentary Collection against acceptance.
Direct Debit in the European Union.
Documentary credit (Letter of credit).
Standby Letter of Credit.
Foreign currency: concept
Currency: convertibility and quotation
Currency markets (forex). Location and dimension
The exchange rate: main concepts
Introduction to long term finances, and objectives to be covered.
Economic and financial feasibility, previous to internationalization.
Classification of foreign trade operations attending to its financing.
Case study: Jonas Family Business and Co.
Case study: Invoice Factoring Case Study – Business Consulting, Inc.
How forfaiting works.
Buyer’s credit note.
The OECD Consensus or Arrangement.
The Fund for Internationalization – FIEM.
Compañía Española de Seguro de Crédito a la Exportación – CESCE
Instituto de Crédito Oficial – ICO.
Compañía Española de Financiación del Desarrollo – COFIDES.
Further reading and technical documents:
The OECD Consensus.
OECD Country risk classification.
OECD Multilateral and Regional Institutions Risk Classifications.
OECD Export Credits work.
The Arrangement on Export Credits.
OECD Export Credits Sector Understandings.
FIEM presentation and success stories.
ICO Institutional presentation.
COFIDES Success Stories.
The value of money in the time
Annuities applied to investments.
Types of viabilities: investment selection
Investment concept. Variables in projects.
Net Present Value (NPV)
Internal Rate of Return (IRR)
Investment project evaluation under uncertain and risk
Products and services
Operations and logistics
Costs and pricing strategy
Sales and costs forecast
Personal survival budget
The Balance Sheet
The Income Statement
The Cash Flow Statement