This course is designed to provide the participant with a complete understanding of the techniques involved in successfully carrying out cross-border trading operations.
And success is measured here just as it is in the measurement of organizations in general. To quote Peter Drucker, “to avoid a loss”. The procedures, documentation and financing of international trading operations will be explored in depth. Also some of the legal constraints and what have become known as “Disincentives to Exporting”.
Lest one feel that actual export and import operations will be slighted along the way, a significant thrust of the program is to follow the path of a typical transaction through all of its stages from inception to successful completion.
Some of the specific topics covered are:
- The Export Organization and Process — distributors, sales representatives, direct and indirect exporting. Representation contracts. Who does what – who sells to whom – who makes payment to whom.
- Barriers to Free Trade – Tariff Barriers, Non-Tariff Barriers (NTBs), Licensing.
- Sales, Trade and Payment Terms – The need for a common language and definitions; the important INCO terms – what they cover; the importance of the payment terms.
- “Ocean Marine Insurance” – The insurance that keeps world trade afloat – completely different from well-known, more common types.
- Freight Forwarders/Custom House Brokers – Valuable aides to the International Business person. An industry in which many of our alum have make successful careers.
- Pricing of International Transactions – which of the trading partners pays for what.
- International Payments, Collections and Financing – Structured Trade Finance, Documentary Collections, Letters of Credit, Trade Financing, EXIM Bank, Insuring Accounts Receivable.
- Domestic and International Transportation– Water, air, yes, and even rail and parcel post.
- Documentation – You’re selling and don’t handle this aspect properly, you don’t get paid. You’re buying and you don’t get your merchandise.
- Importing — custom clearance, customs house brokers, learning the way around the 14,400 customs items and the hundreds of pages of regulations. Foreign Trade Zones.
- Counter trade – It is estimated that 20% of the world’s inter-country trade involves some degree of reciprocity. More than a few of our graduates have followed careers in this aspect of International business.
- Legislation Affecting International Trade — The Foreign Corrupt Practices Act; Anti-Boycott; Export Trading Corp.; Foreign International Sales Corporation; Anti-Trust.
- Alternatives – Licensing, Joint Ventures, Foreign Subsidiaries, Contract Manufacture
- Electronic Commerce – A look at the world of trade related material that is available on the Internet.
To be certified as CITP student should take up a 4 hour exam at the designated examination centers. Each exam would consist of 80 multiple choice questions.
Module 1: Export Marketing
Module 2: Export Documentation / Correspondence
Module 3: Transportation & Packaging
Module 4: Export Finance