This wonderful online course is about Trade Finance. You will learn in detail about Trade Activities, Risk involved under Trading, Procedures of Trade Finance, Shipment Agreements etc.
Course Description :-
The course on the "Trade Finance" starts with existence of trade from time immemorial, its trajectory of growth from its nascent stage to its current level due to various innovations and technological progress it has made over a period of time. Trade and trade finance go hand in hand, as they are inter-related.
The different types of Economic and Political risks along with other inherent risks associated with trade are explained in detail by giving certain examples from history of trade, for easy understanding and capturing of the subject, by the new comers in the field as also, it helps to refresh the subject for the veterans in the field. Risks of buyers and sellers in trade finance are shown by way of suitable diagrams. The hints about interests of both sellers and buyers in trade are also narrated. The various methods of mitigating risks by banks like, taking insurance, obtaining credit reports of the new buyers to know their net worth, past history about payment settlement for transactions, need of mentioning all relevant details of the sales / purchases, terms of payment and delivery, before concluding a contract, advising to book a forward contract to hedge against any adverse currency fluctuation, seeking legal opinion from experts, for more clarity, which are important aspects of a trade finance, are narrated in detail.
Lecture1: Basic of Trade and Trade Finance
What is Trade and Trade Finance how they are different from one another. Transformation of Trade from the "Barter System" to the present stage. Establishment of Stock Exchanges and their benefits to the common man.
Lecture 2: Definition of Trade and Trade Finance
How Trade and Trade finance is defined. How a bank mitigates the risk of exporter by use of trade finance.
Lecture 3: Objectives of Trade
Why a country exports goods and imports quality material from other geographical location of the world.? The need for a healthy competition to manufacture good quality products meant for exports. How the productivity and efficiency will increase trade finance ? Why the certification of the Six Sigma is needed ? Use and effect of bank guarantees in the international trade.
Lecture 4: Objectives of Buyer and Seller
Who are the parties involved in a trade transaction? Various objectives of Buyer and Seller in a trade transaction. Duties of a bank while handling transactions with its customers.
Lecture 5: Continuation of Objectives of Buyer and Seller
Advice of banks to both exporters and importers for a smooth trade. The need of Insurance for the goods shipped.
Lecture 6: Risks involved in Trade
Global happenings in trade. What are Economic and Political Risks involved in trade and how they can be mitigated by banks?
Lecture 7: Continuation of Risks Involved in Trade
The types of risks involved are basically classified into Economic and Political Risks. The various factors which affects both exporters and importers like Exchange risk, settlement risk, liquidity risk, interest rate risk, operational risk, legal risk etc. have to mitigated by various means, though completely all risks cannot be controlled.