| CODE | BKF3061 | ||||||||||||
| TITLE | Finance of International Trade | ||||||||||||
| UM LEVEL | 03 - Years 2, 3, 4 in Modular Undergraduate Course | ||||||||||||
| MQF LEVEL | 6 | ||||||||||||
| ECTS CREDITS | 4 | ||||||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||||||
| DESCRIPTION | Objectives: This study-unit teaches students about the financing of international trade. This study-unit is of particular relevance for companies who are involved in international business and for students aiming at working in the international trade department of a bank. It provides knowledge on the various instruments that can be used by practitioners in order to hedge risks involved in international trade. Study-Unit Aims: This study-unit aims at exploring the economic rationale behind international trade, giving an insight to international trade practices, and providing an overview of the services offered by financial institutions to international traders. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: 1. Explain how the spot and forward exchange rates are computed 2. Name the various types of instruments that are used for payments in international trade 3. Explain companies can manage their foreign currency exposure 4. List the risks associated with international trade 5. Describe how documentary collections, payment terms, and documentary letters of credit can help copanies to reduce foreign exchange risk 6. Identify the main issues that banks managers face on a day-to-day basis 2. Skills: By the end of the study-unit the student will be able to: 1. Compute Spot and Forward Exchange Rates 2. Use different hedging instruments when doing international trade 3. Compare forward and option contracts 4. Evaluate international trade documents to determine the most appropriate given a trade transaction 5. Distinguish between documentary collections and documentary letters of credit 6. Assess the foreign currency exposure of a firm Main Text/s and any supplementary readings: - Alastair Watson, Paul Cowdell and Derek Hyde Finance of International Trade, (7th Edition) The Inst. of Financial Services / The Chartered Institute of Bankers, 2000 |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Silvio John Camilleri |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years. |
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