INTERNATIONAL METHODS OF PAYMENTS

BUS 163 - 46655 SPRING 2018

Class Time: Thursdays 18:00 to 22:00

Class location: A-203 Santa Ana College campus

Required Text: no text required.

PROF. GABRIEL SHWEIRI

shweiri_gabriel@sac.edu

Office A-107-11 / Ofc: 714-564-6753

Hours:  T & TH 4:30 – 6:00/ W 4 – 6

Ad-hoc hours or by appointment

Course Description:

This is a course in international business finance.  The course presents a set of tools that will enable a company or individual to successfully find funding sources and finance methods. Taking this course will benefit individuals and businesses seeking funding for growth.

Course Objectives:

Upon completion of this course each student will demonstrate a detailed understanding of most practices as they relate to business finance. Students will benefit by acquiring a  knowledge of business finance that will enhance their career or business goals.

SCHEDULE

In-class lecture

In-class activities

Assignments when you leave

May 10

Credit Checks & Risk

Research and analyze credit history and payment capacity of the potential buyers/partners to assess the commercial risk of the buyer and maintain credit management and control procedures.

Lecture

Reading & presentation review on blackboard

May 17

Methods of Payment 

Establish the most appropriate methods and terms of payment and required documentation to ensure timely payment for the sale of goods and/or services and to facilitate external financing.

Lecture

Reading & presentation review on blackboard

May 24

Documentary Credits

Lecture

Reading & presentation review on blackboard

May 31

Review

Test

Task  04/03:         Research and analyze credit history and payment capacity of the potential buyers/partners to assess the commercial risk of the buyer and maintain credit management and control procedures and documentation.

Knowledge of:

04/03/01: sources of credit reports (e.g., credit bureau, D&B, Hoovers, US Department of Commerce, International  

  Company Profile)

04/03/02: costs, usage and value of credit reports

04/03/03: commercial risks of late and/or non-payment from overseas buyer

04/03/04: methods of payment (e.g., letters of credit, documentary collections, cash in advance, sight draft)

04/03/05: mitigating techniques (e.g., credit risk insurance from Overseas Private Investment Corporation (OPIC) and

  U.S. Export-Import (Ex-Im) Bank)

Task 04/04:          Establish the most appropriate methods and terms of payment and required documentation to ensure timely payment for the sale of goods and/or services and to facilitate external financing.

Knowledge of:

04/04/01: methods and costs of payment (e.g., letters of credit, documentary collections, cash in advance, time draft,

  banker’s acceptance)

04/04/02: commercial, economic, and political risks of buyer and buyer’s country

04/04/03: international regulations published by the International Chamber of Commerce (Paris) governing

international transactions and methods of payment (e.g., Incoterms, UCP, arbitration, Uniform Rules for    Collection)

04/04/04: methods of funds remittance (e.g., checks, banker’s draft, SWIFT transfer,)

04/04/05: types of letters of credit (e.g., confirmed/unconfirmed, irrevocable, transferable, standby, with a time draft)

04/04/06: types of payment (e.g., sight, deferred, acceptance)

04/04/07: documentation requirements (e.g., commercial invoices, transport documents and documents relating to

  services, inspection certificate)

04/04/08: related financial and legal costs (e.g., bank charges, insurance premiums, legal fees)

04/04/09: communication of letters of credit, collections, and associated documents electronically via the Internet

  (e.g., eUCP, SWIFT)

Participation & Attendance

Participation in discussions and in-class activities are important to understanding the material covered in the lectures. Each student will be expected to participate to the best of their abilities.

One (1) absences will result in a maximum of a “B”

Two (2) absences will result in a drop if permissible, or a maximum of a “D”

It is the STUDENT’S RESPONSIBILITY to drop the class. If there has been no drop, and the student has missed more than 3 classes, an “F” grade will be assigned. 

Honesty Policy

A student caught cheating on any exam or assignment will receive no credit for that exam or assignment. Additional disciplinary actions may result as per the policies found in the SAC student handbook.

Accommodation for disabilities

Any student with verifiable disabilities who wishes to request accommodations is responsible for notifying the instructor and Disabled Students Programs and Services (DSPS) within the first two weeks of class. To arrange for accommodations, contact DSPS by phone 714.564.6260 or 714.564.6384 TDD. Or visit DSPS in U-103.

Tests & Grading

The course consists of 4 classes.

Grades will be based on the following elements:

Class participation

In class team projects & homework

1 exams

A = 90 to 100

B = 80 to 89

C = 70 to 79

D = 60 to 69

F = 59 or lower

Disclaimer

Please note that the syllabus may be updated at any point through the semester at the instructor’s discretion.