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| Course: IBS110 First Term: 1997 Fall
Final Term: Current
Final Term: 2017 Fall
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Lecture 1 Credit(s) 1 Period(s) 1 Load
Credit(s) Period(s)
Load
Subject Type: OccupationalLoad Formula: S |
| MCCCD Official Course Competencies | |||
|---|---|---|---|
| 1. Describe three classifications of international trade risks (commercial risks, political risks, foreign exchange risks) and insurance options available as protection form those risks. (I)
2. Describe and evaluate the primary methods of payment including cash in advance, open account, sight and time drafts, and letters of credit. (I) 3. Evaluate the risks for the buyer and seller, how and when each payment method should be used, how to establish a buyer`s credit rating, and how to determine the amount of credit to offer. (II) 4. Evaluate the various methods of financing export transactions, including their availability and cost. (II) 5. Describe the terms and systems used by SWIFT. (II) 6. Explain the mechanics, terminology, conditions and payment terms of the several types of letters of credit. (III) 7. Describe terms for negotiating an irrevocable letter of credit. (IV) 8. Outline the financial role of foreign freight forwarder. (IV) 9. Outline financial documentation needed for most export shipments. (IV) 10. Outline a typical letter of credit transaction. (V) 11. Describe common errors when using letters of credit. (V) 12. Interpret hazards of dealing in foreign currency. (V) 13. Perform the steps necessary to access the internet and acquire data about international payment and collection regimes. (VI) | |||
| MCCCD Official Course Competencies must be coordinated with the content outline so that each major point in the outline serves one or more competencies. MCCCD faculty retains authority in determining the pedagogical approach, methodology, content sequencing, and assessment metrics for student work. Please see individual course syllabi for additional information, including specific course requirements. | |||
| MCCCD Official Course Outline | |||
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I. Methods of Financing Export Transactions
A. Key considerations 1. Availability 2. Cost B. Sources of export financing 1. Commercial banks 2. Factoring houses 3. Federal government assistance programs 4. State government assistance programs 5. Local government assistance programs 6. Other sources C. Comparison of sources 1. Advantages and disadvantages 2. Other trade-off considerations II. Methods of Payment for Export Transactions A. Review of the primary methods of payment 1. Cash in advance 2. Open account 3. Drafts a. Sight drafts b. Time drafts 4. Letters of credit B. How to use each of the four methods 1. Relative risk for the buyer and seller 2. How and when each should be used 3. How to establish a buyer`s credit rating 4. How to determine the amount of credit to offer III. Letter of Credit Transaction Mechanics 1. Explanation of the mechanics of a typical letter of credit 2. Explanation of the related descriptive terms used 3. Key conditions and payment terms that should be specified 4. Review the several types of letters of credit IV. Legal Rules Affecting Letters of Credit A. Legal rules governing establishment of and amendment of letters of credit B. Legal rules for determining compliance with letters of credit C. Issuer`s rights and obligations to beneficiary D. Issuer`s rights and obligations to customer E. Rights and obligations between beneficiary and customer V. Strategies for Obtaining and Effectively Executing Letters of Credit A. How to obtain letters of credit B. How to work with bank and understand credit decisions 1. Costs 2. Fees C. Where to obtain technical advice VI. Using the internet in international payments and collections | |||
MCCCD Governing Board Approval Date:
10/22/1996 | |||