Active learning ideas
Exporting and importing are the most common ways to enter international business, but they involve complex procedural and legal steps. This topic details the journey of a shipment, from receiving an inquiry to the final settlement of payment. Students learn about essential documents like the Bill of Lading, Shipping Bill, and the Letter of Credit, which ensures payment security in global trade.
Activity 01
Students are divided into Exporters, Importers, and Bank Officials. They must pass a set of 'documents' (mock Letter of Credit, Bill of Lading) between them to successfully complete a trade and release payment.
What are the key steps in an export transaction?
Activity 02
Each group is given a sample of a real trade document (e.g., a Commercial Invoice or a Certificate of Origin). They must identify its purpose and which authority issues it, then present it to the class.
Why is a Letter of Credit important in international trade?
Activity 03
In teams, students must correctly arrange the steps of an import transaction, from obtaining an IEC (Import Export Code) to customs clearance and delivery.
What role does customs clearance play?
A few notes on teaching this unit
Watch Out for These Misconceptions
A Letter of Credit is just a regular bank statement.
A Letter of Credit is a guarantee from the importer's bank to the exporter that payment will be made if the terms are met. Using a 'Trust Triangle' diagram (Exporter-Bank-Importer) helps students understand how it reduces risk for both parties.
Customs duty is only a way for the government to make money.
While it generates revenue, customs duty is also used to protect domestic industries from foreign competition and regulate the flow of essential goods. Peer discussion on 'why we tax imported luxury cars' can clarify this protective role.
Methods used in this brief
Introduction to International Business
Understand the meaning, scope, and complexities of international business compared to domestic trade. Explore the rationale behind countries engaging in global trade.
8 methodologies
International Trade Institutions
Analyze the role of major international institutions such as the WTO, World Bank, and IMF in facilitating global trade. Understand the impact of trade agreements on developing nations like India.
8 methodologies