ADVANCED CERTIFICATE IN INTERNATIONAL TRADE Module One - The Business Environment
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1 ADVANCED CERTIFICATE IN INTERNATIONAL TRADE Module One - The Business Environment This module has been designed to provide a broad knowledge and understanding of the conditions under which international traders must operate their business and how business is affected by changes in the political, economic, social, and technological environment both nationally and internationally. Students will also be provided with a basic knowledge of the law relating to international trade with a focus on the law of contract, sale of goods and agency law LEARNING OUTCOMES On completion of this module the successful student will be able to: Categorise different types of economy and the structure of industry in the UK Explain how the structure of UK industry has changed and the effects of this on the international trade of the UK Identify how competitors and suppliers activities affect market structures Describe the workings of the business cycle, the operation of the multiplier and accelerator processes and the effects of inflation and deflation on the economy List the reasons for international trade and be able to describe the conditions under which international trade occurs Contrast developing and developed economies with particular reference to international trade List the main trading blocs, the differences between types and the reasons for their formation Tabulate the advantages and disadvantages of trading blocs Identify the sources and types of law Describe the types of contract and outline the features of a valid simple contract and its terms Distinguish between international, consumer and other sales and the relevant legislation and decisions dealing with the sale of goods Describe the various forms of agency used in international trade and the contractual implications to both parties For more information: Telephone institute@export.org.uk
2 PART A A THE UK ECONOMY AND THE ORGANISATION The UK economy as a mixed economy 1.01 Types of economy, the UK economy as a mixed economy 1.02 The structure of primary, secondary, tertiary and quaternary industry 1.03 Changes in the structure and the growth of the service industry 1.04 The broad aims of business organisations Business growth - organic growth, mergers and acquisitions 1.05 Organic (internal) growth by acquisition - mergers and take-overs 1.06 Diversification and integration - horizontal, lateral and vertical The development of large-scale enterprises and multinational companies (MNCs) B ECONOMIC ENVIRONMENT OF THE ORGANISATION The effects on the organisation of competitors and suppliers actions 1.08 Market structures; competitive markets, oligopolies, monopolies 1.09 Production, supply and costs. Internal and external economies of scale 1.10 Market structure and the implications of pricing policy, methods of competition and the organisation s objectives 1.11 Market price as determined by demand and supply. Market behaviour e.g. grey markets 1.12 Demand and consumer behaviour - elasticity of demand 1.13 Supply and cost - revenue and profit considerations Monetary and fiscal policies. Specific interventions 1.14 Monetary policy, interest rates and exchange rates 1.15 Fiscal policy, employment policies, regional policies Selection and effects of government economic policy 1.16 The multiplier and the accelerator 1.17 The business cycle process and the implications for business 1.18 Inflation and deflation - measurement, effects on different sections of the economy and implications for economic performance For more information: Telephone institute@export.org.uk
3 C THE INTERNATIONAL TRADE ENVIRONMENT The environment of trading organisations 1.19 The reasons for international trade 1.20 Absolute and comparative advantage 1.21 Trade flows and the UK direction of trade 1.22 The global economy and its regional components Free trade and protection 1.23 The advantages of free trade and the reasons for protection 1.24 The Aims of the World Trade Organisation (WTO) For more information: Telephone institute@export.org.uk
4 1.25 Methods of protection tariff and non-tariff barriers on goods and services 1.26 The European Union as a single market 1.27 Other trading blocs Less developed and developing economies Economic aspects of balance of payments accounts 1.29 The balance of payments, balance of trade 1.30 Effects of imbalances in trading accounts 1.31 Measures for restoring equilibrium, controlled or floating exchange rates, revaluations, inflation, interest rates PART B D THE LEGAL ENVIRONMENT Introduction to law 1.32 Public and private law. The Courts of Law 1.33 The sources of law; statutes, cases, E.U. law, custom, delegated legislation Principles of the law of contract 1.34 Types of contract 1.35 Essential features of a valid simple contract 1.36 Conditions, warranties and intermediate/innominate terms 1.37 Misrepresentation and mistake 1.38 Discharge of contract by breach, repudiation or frustration 1.39 Remedies for breach The sale of goods in international trade 1.40 Sale of Goods Act 1979 (as amended) - historical background, conditions and warranties, price, passing of property and risk, delivery, acceptance and rejection of goods, examination 1.41 Unfair Contract Terms Act 1977 The Unfair Terms in Consumer Contracts Regulations 1999, and the Sale and Supply of Goods to Consumers Regulations Distinction between international, consumer and other sales 1.43 Rights of the unpaid seller; damages, lien, stoppage in transitu; re-sale; Romalpa clauses; the Nemo Dat rule and its exceptions 1.44 Remedies of seller and buyer 1.45 INCOTERMS 2000 Relationship between UK and EU competition law 1.46 UK - Legislation, Competition Act 1998, Chapter I and Chapter II infringements 1.47 EU - Articles 81 and 82 of the Treaty of Rome - Procedure (notifications, complaints, fines, interim and final measures, negative clearance, exemption), block exemptions to Article 81(1), abuse of a dominant position 1.48 The four freedoms goods, people, services and capital 1.49 Articles of the Treaty of Rome: Free Movement of Goods For more information: Telephone institute@export.org.uk
5 Law of agency 1.50 Formation of agency 1.51 Rights and duties of principal and agent 1.52 Authority and ratification 1.53 Types of agency 1.54 Commercial Agents (Council Directive) Regulations 1993, compensatory provisions For more information: Telephone
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