Course code: 176842 | Subject title: INTERNATIONAL TRADE MANAGEMENT | ||||
Credits: 6 | Type of subject: Optative | Year: | Period: 1º S | ||
Department: | |||||
Lecturers: | |||||
MARTIN MARTIN, OSCAR [Mentoring ] |
"International Trade Management" is an elective course belonging to the fourth year of the Bachelor of Business Administration and Management. It allows students to understand the decisions and the basic operations managers carry out when exporting their products to foreign markets. "International Trade Management" focuses on current and relevant issues in export management. Topics include the initiation of internationalization, export readiness, export market selection, export modes, cross cultural sales negotiations, export orders, Incoterms, international physical distribution and methods of payment.
The main objective is that students understand international trade decisions and operations.
At the completion of this course, students should be able to:
- Understand key concepts and tools related to export decisions and operations.
- Identify managerial problems of export operations, isolate their key components, analyze and assess the salient issues, set appropriate criteria for decision making, and draw appropriate conclusions and implications for proposed solutions.
- Identify sources of international information and use quantitative and qualitative data in the analysis and decision process.
- Formulate and design export strategies and implementation plans applying the main concepts to specific markets and products of exporting firms.
- Develop skills in oral and written communication in business settings. Students should be able to prepare and present reports on business issues using appropriate supportive technologies.
- Develop team and interpersonal skills and competencies needed to work effectively in business settings involving cultural diversity.
- Students will consider ethical and social implications of export management decisions.
The six ECTS describe the student workload required to complete the course. They reflect 150 hours of student work and include lectures, team work, individual work, seminars and examinations. Out of the 150 hours, 60 will be in class. The remaining 90 hours of student work will used for reading and studying the materials to be discussed in class, assignments, the course project and the preparation of the exam.
Among the activities constituting the course are, therefore, lectures, practical assignments, seminars by experts, and a course project (Export Project):
- In the lectures, the lecturer presents the critical concepts of the subject and proposes practical assignments to apply the concepts.
- In practical sessions, six case studies will be discussed in small groups of students.
- Each team will complete and present a course project. The course project is designed to advance students' understanding of challenges faced by export managers. The teams will be in charge of export operations of a product in a foreign market. The details of the project will be specified in the file "Export Project" (to be posted on MiAulario). Your team should start the project in the third week of the course.
- During the semester, one expert will be invited to present a seminar on a topic related to the syllabus content.
Activity | Hours |
In Class | 60 |
Large Group | 44 |
Small Group | 16 |
Outside of the Classroom | 90 |
Independent and Private Study | 30 |
Individual Assignments | 6 |
Group Assignments | 34 |
Examinations Preparation | 20 |
1. Initiation of internationalization. Learning objectives:
- Discuss the reason (motives) why firms go international.
- Explain the difference between proactive and reactive motives.
- Analyze the triggers of export initiation.
- Explain the difference between internal and external triggers of export initiation.
- Describe different factors hindering export initiation.
- Discuss the critical barriers in the process of exporting
2. Export readiness and support. Learning objectives:
- Assess a company's export readiness.
- Identify key institutions and export support policies and programs.
3. The export market selection process. Learning objectives:
- Choose among alternative expansion strategies.
- Distinguish between concentration and diversification in market expansion.
- Explore how international marketers screen potential markets/countries using secondary and primary data (criteria).
- Distinguish between preliminary and fine-grained screening.
4. Export modes. Learning objectives:
- Distinguish between indirect, direct and cooperative export modes.
- Describe and understand the five main entry modes of indirect exporting (export buying agent, broker, etc.).
- Describe the two main entry modes of direct exporting (distributor and agent).
- Discuss the advantages and disadvantages of the main export modes.
5. Cross-cultural sales negotiations: Learning objectives:
- Discuss why intercultural selling through negotiation is one of the greatest challenges in global marketing.
- Explain major phases in a cross-cultural negotiation process.
- Discuss the implications of Hofstede's research for the firm's cross-cultural negotiation.
- Explain some important aspects of intercultural preparation.
6. Export operations management. Learning objectives:
- Identify the key actors participating in the export operation and understand the importance of the correct handling of export procedures.
- Understand the use of the Incoterms in the definition of the terms of delivery.
- Describe the basic structure of international physical distribution
- Explain the main methods of payment in international trade.
Competence | Activity |
Understand international trade decisions and operations, and key concepts | Lectures |
Identify managerial problems of export operations; use of data in the analysis and decisions; develop communication, team and interpersonal skills; ethical and social implications | Practical sessions and seminars |
Identify sources of international information; design export strategies; develop communication, team and interpersonal skills | Course project |
Exam (35%).
Export project (25%).
Cases and in-class assignments (25%).
Participation (15%).
1. Initiation of internationalization
1.1. Internationalization motives
1.2. Triggers of export initiation
1.3. Internationalization barriers and risks
2. Export readiness and support
2.1. Export readiness assessment
2.2. Institutional support to exporting firms
3. The export market selection process
3.1. Market expansion strategies
3.2. Market selection methods
3.3. Sources of information
4. Export modes
4.1. Indirect export modes
4.2. Direct export modes
4.3. Cooperative export modes
5. Cross-cultural sales negotiations
5.1. Cross-cultural negotiations
5.2. Intercultural preparation
6. Export operations management
6.1. Handling the export order
6.2. Terms of delivery: Incoterms
6.3. International physical distribution
6.4. Methods of payment
Week | Session | Description of the content | In class (2 h) | Outside of the classroom | ||
Large | Small | Description | h | |||
1 | 1 | Presentation and introduction | X | Reading the syllabus and reading and studying the materials | 6 | |
1 | 2 | Internationalization motives | X | |||
2 | 3 | Triggers of export initiation | X | Reading and studying the materials | 6 | |
2 | 4 | Internationalization barriers and risks | X | |||
3 | 5 | Case 1 | X | Reading the and studying the materials. Export Project (EP) | 6 | |
3 | 6 | Export readiness assessment | X | |||
4 | 7 | Institutional support | X | Reading and studying the materials. EP | 6 | |
4 | 8 | Seminar | X | |||
5 | 9 | Case 2 | X | Reading and studying the materials. EP | 6 | |
5 | 10 | Market expansión strategies | X | |||
6 | 11 | Market selection methods | X | Reading and studying the materials. EP | 6 | |
6 | 12 | Sources of information | X | |||
7 | 13 | Case 3 | X | Reading and studying the materials. EP | 6 | |
7 | 14 | Indirect export modes | X | |||
8 | 15 | Direct export modes | X | Reading and studying the materials. EP | 6 | |
8 | 16 | Cooperative export modes | X | |||
9 | 17 | Case 4 | X | Reading and studying the materials. EP | 6 | |
9 | 18 | Export Project (EP) – Control 1 | X | |||
10 | 19 | Cross-cultural negotiations | X | Reading and studying the materials. EP | 6 | |
10 | 20 | Intercultural preparation | X | |||
11 | 21 | Case 5 | X | Reading and studying the materials. EP | 6 | |
11 | 22 | Export orders | X | |||
12 | 23 | Incoterms | X | Reading and studying the materials. EP | 6 | |
12 | 24 | International logistics | X | |||
13 | 25 | International payments | X | Reading and studying the materials. EP | 6 | |
13 | 26 | Case 6 | X | |||
14 | 27 | EP – Control 2 | Studying the materials. EP | 6 | ||
14 | 28 | Preparation of EP presentation | ||||
15 | 29 | EP presentation | X | Studying the materials | 6 | |
15 | 30 | EP presentation | X | |||
16 | 31 | Exam | X | |||
16 | 32 | Feedback | ||||
17 | 33 | Feedback | ||||
17 | 34 | Exam | X | |||
18 | 35 | Feedback | ||||
18 | 36 | Feedback |
Access the bibliography that your professor has requested from the Library.
Basic lecture material (PowerPoint slides) will be made available online (MiAulario). You will be expected to supplement this with the reading of specific chapters of the two books below.
- Hollensen, Svend (2013). Global Marketing - A Decision-oriented Approach, 6th edition, Pearson.
- Albaum, Gerald and Duerr, Edwin (2011). International Marketing & Export Management, 7th Edition, Prentice Hall.