Key words
Risk Hedging in Foreign Trade
Objectives
Knowledge
In foreign trade every exporting and importing firm faces commercial, political and currency risks. These risks have an important impact on the competitive position and the results of the firm. Students learn to detect these risks and they are made familiar with the standard techniques to hedge or limit these risks.
Skills- Accuracy in dealing with documents
- Detecting problems and finding appropriate solutions
- Acquiring a critical attitude towards situations
- Sense for permanent learning
- Being able to find and interpret the relevant financial information
Topics
Risk exposure and risk profile of an internationally operating firm:
overview of the risksCommercial and political risks- Documentary collection
- Documentary credits
- Credit insuranceCurrency risks
- Spot operations
- Forward contracts
- Currency option (exchange traded and OTC)
Extensive case studies and exercises in dealing with these products in practice.
Prerequisites
Bachelor's degree or equivalent.
Final Objectives
Materials used
KBC. Financiële Praktijk van de Buitenlandse Handel. Brussel, maart 2001.
Course material prepared by the lecturer
Practical documents
Financial newspaper (FET)
Financial websites for market prices and foreign trade information
Study costs
Photocopies at the standard rate.
Study guidance
Students can consult the lecturer in case of difficulties either after the lecture or by e-mail.
Teaching Methods
Ex cathedra
Discussion of cases
Assessment
Assessment of how a student can analyse a problem in a practical situation and how he can propose a relevant solution.
First exam session: written exam 100%
Second exam session: written exam 100 %
Lecturer(s)
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