Course Modules

Module 1: Fundamentals of Export Finance

• Overview of international trade payment methods (advance payment, open account, letters of credit).
• The role of banks, export credit agencies, and development finance institutions.
• Key principles of managing export working capital needs.
• Case Study: How a small exporter leveraged letters of credit to enter new markets.
• Workshop: Identify optimal financing options for different export scenarios.

Module 2: Trade Finance Instruments and Their Applications

• Documentary collections, standby letters of credit, and factoring.
• Forfaiting, supply chain finance, and structured trade finance.
• Pros and cons of each instrument based on buyer risk levels.
• Exercise: Match trade finance tools to risk profiles in various markets.
• Case Study: The use of export credit insurance to secure a large overseas contract.

Module 3: Risk Assessment and Political Risk Management

• Identifying credit, commercial, and political risks.
• Tools for assessing country risk and buyer reliability.
• Hedging against policy changes, sanctions, and trade barriers.
• Workshop: Develop a risk profile for an exporter entering a high-risk market.
• Case Study: A company’s experience with buyer default due to political instability.

Module 4: Currency Risk and Payment Security

• Understanding foreign exchange exposure.
• Hedging strategies: forward contracts, options, and swaps.
• Negotiating secure payment terms with buyers.
• Exercise: Create a currency risk mitigation plan for a multi-currency export contract.
• Case Study: A firm’s successful use of hedging tools to protect profits.

Module 5: Integrating Finance and Risk Mitigation into Export Strategy

• Aligning financing decisions with marketing and operational plans.
• Establishing internal policies for credit management.
• Building long-term relationships with financial institutions.
• Simulation: Develop a full export finance and risk management plan for a fictional company.
• Peer Review: Groups present their plans and receive structured critiques.