|Course code: 176842||Subject title: INTERNATIONAL TRADE MANAGEMENT|
|Credits: 6||Type of subject: Optative||Year: 5||Period: 1º S|
|Department: Business Administration|
|MARTIN MARTIN, OSCAR (Resp)|
"International Trade Management" is an elective course belonging to the fourth year of the Bachelor of Business Administration and Management.
International Business; Export Management; International Marketing; internationalization; export readiness; export market selection; export modes; cross cultural sales negotiations; export orders; Incoterms; international physical distribution; methods of payment.
General instrumental competences
CG01 A capacity for analysis and synthesis
CG04 Oral and written communication in a foreign language
CG06 The ability to search for and analyse information from different sources
CG07 The capacity to solve problems
CG08 The capacity to make decisions
General personal competences
CG09 The capacity to work as part of a team
CG11 Work in an international context
CG13 The capacity to work in diverse and multicultural environments
Systematic general competences
CG17 A capacity for self-reliant learning
CG18 The capacity to adapt to new situations
CE02 To identify sources of economic information relevant to their particular enterprise and their contents
CE03 To discern information and data relevant to their particular enterprise which a non-professional would be unable to recognise
CE04 To analyse business management problems, applying professional criteria based on the use of technical instruments
CE05 To produce advisory reports on specific business and market situations
CE06 To design general management projects or projects specific to functional areas in the relevant enterprise
CE08 To manage and administer an enterprise or organisation, understand its competitive and institutional position, and identify its strengths and weaknesses
CE13 To identify an enterprise as a system and recognise the interdependencies between its different functional areas
CE18 To develop marketing policies which enhance knowledge of consumer needs and increase consumer satisfaction
At the completion of this course, students should be able to:
- Understand international trade decisions and operations.
- Apply 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 skills and competencies needed to work effectively in business settings involving cultural diversity.
|Learning outcome||Content (Chapter #)||Activity||Evaluation|
|Understand international trade decisions and operations||1, 2, 3, 4, 5 & 6||A1, A2, A3, A4, A5||E1|
|Apply key concepts and tools related to export decisions and operations||1, 2, 3, 4, 5 & 6||A2, A3, A4||E2, E3, E4|
|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||1, 6||A2, A3, A4||E2, E3|
|Identify sources of international information and use quantitative and qualitative data in the analysis and decision process||2, 3, 4 & 5||A1, A2, A3, A4||E1, E2, E3|
|Formulate and design export strategies and implementation plans applying the main concepts to specific markets and products of exporting firms||2, 3 & 4||A2, A3, A4||E2, E3, E4|
|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||1, 2, 3, 4, 5 & 6||A2, A3, A4||E2, E3, E4|
|Develop team skills and competencies needed to work effectively in business settings involving cultural diversity||1, 2, 3, 4, 5 & 6||A2, A3, A4|| E2, E3
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 professional/expert will be invited to present a seminar on a topic related to the syllabus content.
|Activity||In class (hours)||Outside of the classroom (hours)|
|A2 Practical sessions (case studies)||12|
|A3 Course project||8||22|
|A4 Group assignments||8||12|
|A5 Seminar (professional/expert)||2|
|A6 Independent and private reading and study||28|
|A7 Individual assignments||4|
|A8 Examinations preparation||24|
CG01 A capacity for analysis and synthesis
|A2, A3, A4|
|CG04 Oral and written communication in a foreign language||A2, A3, A4|
|CG06 The ability to search for and analyse information from different sources||A3, A4|
|CG07 The capacity to solve problems||A2, A3, A4|
|CG08 The capacity to make decisions||A2, A3, A4|
|CG09 The capacity to work as part of a team||A2, A3, A4|
|CG11 Work in an international context||A1, A2, A3, A4|
|CG13 The capacity to work in diverse and multicultural environments||A2, A3, A4|
|CG17 A capacity for self-reliant learning||A6, A7, A8|
|CG18 The capacity to adapt to new situations||A3|
|CE02 To identify sources of economic information relevant to their particular enterprise and their contents||A3, A4, A6, A8|
|CE03 To discern information and data relevant to their particular enterprise which a non-professional would be unable to recognise||A3, A4, A6|
|CE04 To analyse business management problems, applying professional criteria based on the use of technical instruments||A1, A2, A3, A4, A5|
|CE05 To produce advisory reports on specific business and market situations||A3|
|CE06 To design general management projects or projects specific to functional areas in the relevant enterprise||A3|
|CE08 To manage and administer an enterprise or organisation, understand its competitive and institutional position, and identify its strengths and weaknesses||A1, A3, A5, A6, A8|
|CE13 To identify an enterprise as a system and recognise the interdependencies between its different functional areas||A2, A3, A5|
|CE18 To develop marketing policies which enhance knowledge of consumer needs and increase consumer satisfaction||A1
E1 Exam (35%). Minimum passing grade is "5".
E2 Cases and in-class assignments (25%).
E3 Export project (25%).
E4 Participation (15%).
"International Trade Management" 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.
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
The specific learning objectives for each chapter are the following:
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.
|Week||Session||Description of the content||In class (2 h)||Outside of the classroom|
|1||1||Presentation and introduction||X||Reading the syllabus and reading and studying the materials||6|
|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. Group assignments (GA) and Export Project (EP)||6|
|3||6||Export readiness assessment||X|
|4||7||Institutional support||X||Reading and studying the materials. GA and EP||6|
|5||9||Case 2||X||Reading and studying the materials. GA and EP||6|
|5||10||Market expansión strategies||X|
|6||11||Market selection methods||X||Reading and studying the materials. GA and EP||6|
|6||12||Sources of information||X|
|7||13||Case 3||X||Reading and studying the materials. GA and EP||6|
|7||14||Indirect export modes||X|
|8||15||Direct export modes||X||Reading and studying the materials. GA and EP||6|
|8||16||Cooperative export modes||X|
|9||17||Case 4||X||Reading and studying the materials. GA and EP||6|
|9||18||Export Project (EP) – Control 1||X|
|10||19||Cross-cultural negotiations||X||Reading and studying the materials. GA and EP||6|
|11||21||Case 5||X||Reading and studying the materials. GA and EP||6|
|12||23||Incoterms||X||Reading and studying the materials. GA and EP||6|
|13||25||International payments||X||Reading and studying the materials. GA and EP||6|
|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|
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.