The International Trade
- The law of comparative costs
- Origins of international trade
- The benefits of international trade
- The structure of international trade
- Economic, commercial and political factors
- Countertrade
- Trading with Eastern Europe
- Multinational companies and direct investment
- International organisations seeking to facilitate world trade
- Regional organisations seeking liberalisation
Country and Buyer Risk
- Country risk
- Balance of payments
- The International Monetary Fund and the World Bank
- Political risk
- Buyer risk
- Credit insurance
The Quotation
- Delivery terms
- Calculation of the quoted export price
- Profit margin, pricing policy and delivery terms
- Credit terms
- Foreign exchange pricing
Foreign Exchange
- Convertibility of currencies
- Quoting in currency, the exchange risk
- Understanding rates of exchange
- Forward exchange contracts
- Forward exchange rates, calculating forward exchange rates
- Closing out forward contracts
- Pure currency options, the wider picture
- Avoiding the spread, euro-currency markets
- Tender to contract cover
Agreeing a Method of Payment
- Risks associated with the country or the buyer
- The role of the credit controller
- Types of methods of payment, methods of remittance
Documentary Collections
- The bill of exchange
- Uniform rules for collection
Documentary Credits – Obtaining the Credit
- The definition of a letter of credit
- Opening a documentary credit
- The main categories of documentary credits, types of documentary credit
Documentary Credits – Securing Payment
- Examination of a credit on receipt, amending letters of credit
- The doctrine of strict compliance
- Discrepancies in presentations, the pre-presentation examination
- Action in the event of discrepancies
Banker’s Guarantees (Bonds) and Indemnities
- Guarantees issued by local banks
- The exporter’s liability to the bank
- Indemnities securing the release of goods
- Bank guarantees in support of loan or overdraft facilities
- Custom clearance guarantees
Finance for International Trade
- Bank finance to establish export markets – overdrafts and loans
- Bank finance from contract to payment – overdrafts and loans
- Credit insurance cover, bills of exchange
- Forfeiting, factoring
- Other sources of finance, finance for imports
Other Trading Methods
- Consignment trading
- Joint ventures overseas
- Pick-a-back schemes and group selling
- Royalty agreements and licensing
Example Candidate Response Booklet
Example Candidate Response (ECR) Booklets are a source of crucial information for Centres and Candidates as they use real candidate responses. We ask Senior Examiners to comment on five or more responses in terms of why the mark was awarded with commentary about how to improve the answer (if necessary).
