1. Background of the Discipline

1. Background of the Discipline

Adopted by a decision issued bythe Faculty Councilof
„International Economics and Politics” / Approved by:
Protocol № / / Dean
Prof. A. Vassileva, PhD

CURRICULUM

Academic subject: / INTERNATIONAL FINANCE –
PartІІ
Subject code: / В63830
O0875
Degree of Education and Qualification: / Bachelor of Arts
Status of the course: / Optional
Field of Higher Education: / 3. / Social Sciences, Economics and Law
Academic Area: / 3.8. / Bachelor of Economics
Specialty: / 3.8.30. / International Economic Relations
Faculty: / International Economics and Politics
Department: / International Economic Relations and Business
Total student academic load (average classes per course): / 30/ 30
Non-contact student academic load: / 65
Credits: / 5
Lecturer of the course: / Associate Professor Vessela Todorova, PhD

ANNOTATION

1. Background of the discipline.

Theacademicsubject”International Finance – Part II” has been taught at the International Economic Relations Department since 1985 and at the Finance Departmentsince 2000.

“International Finance – Part II” is a fundamental subject which helps students in their understanding the methods of payment, Export and Import Finance and risk mitigation in international trade.

2. Description of the course content:

The scope of the discipline covers the practical issues in:

  • Means, forms and techniques in international trade payments.
  • Types of International trade finance (short, medium and long-term finance) by private and public institutions.
  • The role of banks in international trade payments.
  • Currency operations.
  • Currency and interest risk management by firms in international trade.

The issues in the discipline are divided into five sections:

The first section “Introduction of International Trade Bank Services” discusses bank services and bank correspondent relations in International trade.

The second section “International Payment Means and Forms” presents the techniques in international trade payments –the characteristics of bills of exchange and promissory notes; key points, applicability, advantages and disadvantages of documentary collection and documentary credits; cash-in-advance and remittances.

The issues of short, medium and long-term finances and export credit insurance are discussed in the third section. Peculiarities of factoring, forfaiting and financial leasing are in greater details.

The fourth section covers the practical issues in currency operation in international trade – currency operation at the forward market, operations at the futures and option market and swaps.

Risks in international trade transactions and hedge operations are discussed in the fifth section “Monetary Risks and Means of Prevention”.

3. Language of instruction: English.

CONTENT OF THE CURRICULUM

А. LECTURES

№ / TOPICS / Number of classes
Section 1: Introduction of International Trade Bank Services
1. / International Trade Banks and Bank Services / 1
2. / BankCorrespondentRelations / 1
Section 2: International Payment Means and Forms
3. / International Payment Means / 2
4. / Trade Documents in International Trade Payments / 1
5. / Currency Documentary Collections / 2
6. / Documentary Letter of Credit / 4
Section 3:InternationalTradeFinancing
7. / ForeignTradeCrediting / 2
8. / Short-TermFinancingofInternationalTrade / 2
9. / Mid-Term and Long-Term Financing of International Trade / 2
10. / Export Credit Insurance and Guarantee / 2
Section 4: Currency Operations
11. / Major Currency Operations / 1
12. / Currency Operations at the Forward Market / 1
13. / Operations at the Futures Market / 1
14. / Swaps / 1
15. / Operations with Options / 1
Section 5: Monetary Risks and Means of Prevention
16. / Currency Risk Management / 2
17. / Interest Risk Management / 2
18. / InternationalTradeBankGuarantees / 2

B. SEMINARS

№ / TOPICS / Student Contact Academic Load
(number of classes) / Student
Non-contact Academic Load (number of classes)
1. / International Payment Means / 2 / 4
2. / Currency Documentary Collections / 2 / 2
3. / Documentary Letter of Credit / 4 / 4
4. / ForeignTradeCrediting / 2 / 4
5. / Short-TermFinancingofInternationalTrade / 2 / 4
6. / Mid-Term and Long-Term Financing of International Trade / 2 / 4
7. / Export Credit Insurance and Guarantee / 2 / 4
8. / Currency Operations at the Forward and Futures Market / 2 / 4
9. / Swaps / 2 / 4
10. / Operations with Options / 2 / 4
11. / Currency Risk Management / 4 / 4
12. / Interest Risk Management / 2 / 4
13. / InternationalTradeBankGuarantees / 2 / 4

method / teaching strategy:

  • Teaching relies on the combination of lectures and seminars. Case studies are made use of.
  • The required technical facility is multi media.

EValuation METHOd

The evaluation method is based on a complex mark from:

  • The mark from the exam during the exam session.
  • The mark from participation and discussions (case studies).
  • Attendance of the course is required for admission to final exam.
  • Evaluation scale:

Excellent /6/ / Very good /5/ / Good /4/ / Fair /3/ / Poor /2/
A / B / C / D / E / FX / F
80% 75% 70% 60%
Credits are awarded as provided for in the plan / No credits awarded
50%

- 60-70% - Fair (3);

- 71-80% - Good (4);

- 81-90% - Very good (5);

- 91% and higher – Excellent (6).

EXPECTED RESULTS from the Course

The course provides students with practical skills and knowledge about:

  • Methods of payment in international trade.
  • Export and Import finance.
  • Mitigation of exchange and interest risk.

THE COURSE is also taught in:

  1. FachhochschuleBrandenburgUniversity of Applied Science, Germany.
  2. University of Goteborg, Swiss.
  3. Universidad Autonoma de Madrid, Spain.

TOTALSTUDENTACADEMICLOAD

Type of classes/academic load / Overall student academic load / Student academic load,
average classes per week / Student non-contact academic load / Total
Lectures / 30 / 2 / 15 / 45
Seminars / 30 / 2 / 50 / 80
Laboratory training
Practical training
Term paper
Final thesis
Individual assignment
Interim exam/test
On-going assessment
Exam / written
Total / 60 / 4 / 65 / 125

LITERATURE

А. BASIC

  1. Cowdell, Paul, Derek Hyde, International Trade Finance, 8th edition, School of Finance, 2008.
  2. The Handbook of International Trade and Finance, Anders Grath, 2008.
  3. Trade Finance Guide, A Quick Reference for U.S. Exporters, U.S.Department of Commerce, 2007.
  4. How to Access Trade Finance, A Guide for Exporting SMEs, InternationalTradeCenter, Geneva, 2009.
  5. Стоименов, Милчо, Весела Тодорова. Финансиране на международната търговия, изд. „Тракия М”, София, 2009.
  6. Масларов Светослав, Десислава Тошева – Георгиева. Финансиране на Външнотърговските сделки, изд. „Нов български университет”, София, 2007

B. ADDITIONAL

  1. The Geneva Convention 1930, Uniform Law on Bills of Exchange, Promissory Notes and Cheques.
  2. ICC Uniform Customs and Practice for Documentary Credits, UCP 500.
  3. ICC Uniform Rules for Collections, URC 522.
  4. ICC Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits, URR 525.
  5. ICC, Uniform Rules for Demand Guarantees.
  6. Unidroit Convention on International Factoring, 1988, Unidroit.

PREPARED BY:

( Assoc. Professor Vessela Todorova, PhD )

HEAD OF DEPARTMENT:

(Assoc.ProfessorIvan Stoychev, PhD)

DEAN OF THE FACULTY:

(Professor Antoaneta Vassileva, PhD)

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Идентификация на статуса: ОДНК_7.1.3-3/ Версия 01/Изменение ____/______; стр. __/__

Ниво на достъп: □ общодостъпен □ за служебно ползване □поверителен □секретен

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