UGİ351

School of Economics and Administrative Sciences \ International Entrepreneurship

3

6

Elective

Turkish

-

All Departments

International trade is critically important for both national economies and businesses. Since international trade activities involve multiple companies from different countries, it is a long, somewhat complex process that carries various risks. Therefore, it is crucial for international trade to rely on internationally standardized documents and for the terms of delivery to be determined within the framework of mutual agreements between the parties.
In this context, the course content consists of three main pillars: documents used in international trade, delivery types, and financing techniques.
First, documents will be examined under the main categories of commercial, official, transport, insurance, and financial documents.
Second, delivery types will be analyzed within the framework of "International Commercial Terms" (Incoterms) as defined by the ICC (International Chamber of Commerce) and adopted by Turkey. This will emphasize how cost, risk, and insurance elements are allocated between the parties in the agreed Incoterms framework.
The third main topic, types of international trade financing, will cover export and import credits as well as alternative financing techniques. Alternative financing techniques such as factoring, forfaiting, and leasing will be detailed under separate subheadings.
Additionally, possible risks arising during international trade activities, such as exchange rate risk, will be identified and evaluated. More importantly, how exporters and importers protect themselves from these risks will be examined through hedging techniques in derivative markets.

Paul Cowdell (2009) International Trade Finance, McGrowHill, NY
Öztin Akgüç (2012) , Dış Ticaret Finansmanı, Arayış yayıncılık, İstanbul
International Chamber of Commerce. Incoterms Book 2020

This course aims to provide an understanding of the financing processes of international trade, the documents used, delivery types, and financing techniques.
Students will gain fundamental knowledge and analytical skills regarding commercial and official documents, transportation and insurance processes, delivery terms determined by the ICC (Incoterms), and international trade financing methods.
Additionally, exchange rate risks and other financial risks encountered in international trade will be examined, along with an in-depth analysis of the derivative instruments and alternative financing methods that companies use to mitigate these risks.

1. Learns and analyzes the fundamental documents, delivery terms, and financing methods used in international trade.
2. Evaluates potential financial risks that may arise in the international trade process and explains risk mitigation methods.
3. Understands alternative financing techniques used in international trade finance and international practices, and conducts comparative analysis.

Week 1: Overview of the Concept of International Trade
Week 2: Importance of International Trade in Terms of the Economy, Global Markets, Types, and Entry Strategies
Week 3: Importance of International Trade in Terms of the Economy, Global Markets, Types, and Entry Strategies
Week 4: Documents Used in International Trade
Week 5: Documents Used in International Trade
Week 6: Types of Delivery in International Trade
Week 7: Types of Delivery in International Trade; Payment Methods in International Trade
Week 8: Trade Finance - Export Credits
Week 9: Export Credits - Import Credits
Week 10: Export Credits - Import Credits
Week 11: Alternative Financing Techniques
Week 12: Risk Mitigation Methods

Midterm 40%
Final 45%
Participation 15%