This course will enable you to:
- Understand how best to source foreign supplies for your organisation
- Formulate your business plan and explore what business models are appropriate
- Agree commercial and financial terms of supply
- Understand long-term trade financing options and the risks associated with them
Inevitably, international trading holds more risks than domestic. Whether you are selling direct overseas, or running overseas subsidiaries, you need to understand the risks involved and how to operate effectively.
This course explores how to formulate a plan for your approach to foreign sales markets, making and collecting payments, the time-cycles involved in foreign trade, as well as highlighting risks and the contexts in which they arise.
Foreign sources of supply
- What do you need to know about your organisation?
- How well do you know players upstream in your industry supply chain?
- What are the costs of sourcing foreign supply?
- What business models do foreign suppliers use?
- How should you engage with new suppliers?
- How should you engage local support?
- How should you formulate your business plan?
- How do you sense-test your business plan?
- What do you need to consider before contracting with overseas suppliers?
Foreign sales markets
- How well do you know players downstream in your industry supply chain?
- What are the different market sizes?
- What is your potential market share?
- What are tangible business restrictions?
- What are tangible financial restrictions?
- What are intangible restrictions?
- What business model should you use to enter a foreign sales market?
- How do you engage with foreign buyers?
Securing supply and paying for it
- How do you contract the terms of supply?
- How do you agree the terms of payment?
- How easy is it to start a new overseas company?
- What are the tax considerations for your company?
- How can you fund your payments?
- What do you need to set up a foreign bank account?
- What are the benefits and challenges of foreign bank accounts?
- What financial tools are required to pay for the offtake?
- What types of payment guarantee might an exporter ask for?
- What do you need to consider when making cross-border payments?
Making the sale, financing it, and getting paid
- What should you consider when contracting to supply?
- Why establish a sales channel?
- When should you send the invoice?
- How can you minimise float?
- How should you collect payments?
- What is credit insurance?
- Why might you want a buyer to accept a Bill of Exchange?
- What services do banks offer?
- Who takes the risks on a bank payment obligation?
- What is pre-shipment finance?
Long-term trade finance
- What is export finance?
- How were projects funded in less-developed countries?
- How was export credit used in the Western world?
- How did "country risk" catch up with OECD banks?
- How are major capital projects financed now?
- What are the risks of financing a capital project?
- What are the different types of bonds?
- How do you structure term financing?
- How does a supplier credit work?
- How does a buyer credit work?
ACCA partner with accountingcpd.net to provide high quality CPD for members. As an ACCA member, you are required to complete at least 40 relevant units of CPD each year, where one unit is equal to one hour. 21 units must be verifiable; the other 19 can be non-verifiable.
Your accountingcpd.net course counts as verifiable CPD, if you can answer "yes" to these questions:
- Was the learning activity relevant to your career?
- Can you explain how you will apply the learning in the workplace?
You select courses that meet these criteria, and as you complete each course you get a CPD certificate so you can provide ACCA with the evidence that you undertook the learning activity.