Foreign trade plays a crucial role in the global economy, enabling countries to exchange goods and services that they cannot produce as efficiently or cost-effectively within their borders. The SS 1 Scheme of Work for the second term in Foreign Trade provides students with a clear understanding of the basics of international trade, its structure, documentation, and transportation methods. This guide aims to explain each topic comprehensively, making it understandable for beginners while also ensuring that it is engaging and educational for learners.
Scheme of Work Overview
| Week(s) | Topic(s) | Content |
|---|---|---|
| Week 1 | Foreign Trade – Introduction | Overview of foreign trade, its importance, and the basic concepts surrounding international trade. |
| Week 2 | Balance of Trade, Terms of Trade, Balance of Payment, etc. | Study of the balance of trade, balance of payments, and terms of trade, explaining how countries measure and manage their foreign trade activities. |
| Week 3 | Foreign Trade – Structure and Procedures | Introduction to the structure of foreign trade, including key procedures involved in exporting and importing goods and services. |
| Week 4 | Foreign Trade – Stages and Documents | Understanding the stages of foreign trade, including the necessary documents used in international trade transactions. |
| Week 5 | Customs and Excise Authority | Overview of customs and excise authority, their role in regulating imports and exports, and their significance in international trade. |
| Week 6 | Terms of Quoting Prices / Methods of Payment in Foreign Trade | Explanation of how prices are quoted in foreign trade and the various methods of payment used in international transactions. |
| Week 7 | Ports Authority | The role of ports authorities in managing ports and facilitating the smooth flow of goods in and out of the country. |
| Week 8-9 | Transportation | Overview of transportation methods used in foreign trade, including land, sea, and air transportation, and the logistics involved in getting goods to international markets. |
| Week 10 | Water Transportation | A deeper dive into water transportation, one of the most widely used methods for moving goods internationally. |
| Week 11 | Revision | Review of all topics covered throughout the term to reinforce key concepts and prepare for exams. |
| Week 12 | Exams | Final exams to assess the students’ understanding of all the topics covered during the second term. |
Detailed Explanation of Each Topic
Week 1: Foreign Trade – Introduction
Content: This week introduces students to the concept of foreign trade, emphasizing its importance to a country’s economic growth and development. It explores the basic principles of international trade, such as comparative advantage, and introduces key players involved in global trade.
- Example 1: A country imports food products that it cannot grow due to climatic conditions.
- Example 2: Exporting oil from a country rich in natural resources to another country that lacks oil reserves.
- Example 3: A company trading in goods with foreign businesses.
- Example 4: The role of government policies in foreign trade.
- Example 5: Global demand for specific products like electronics, textiles, and automobiles.
- Example 6: How foreign trade promotes cultural exchange and international relations. By the end of this week, students will have a solid understanding of the benefits and importance of foreign trade to national economies.
Week 2: Balance of Trade, Terms of Trade, Balance of Payment, etc.
Content: This week focuses on the different ways to measure foreign trade and a country’s economic relationship with other nations. The balance of trade refers to the difference between the value of a country’s exports and imports. The balance of payments includes all transactions between a country and the rest of the world. Terms of trade are the rates at which one country’s goods trade for those of another.
- Example 1: A country has a favorable balance of trade if it exports more than it imports.
- Example 2: Terms of trade can improve if the price of a country’s main export rises.
- Example 3: The impact of a negative balance of payments on a country’s economy.
- Example 4: The role of exchange rates in balancing international trade.
- Example 5: How governments monitor and control their balance of payments.
- Example 6: A favorable balance of payments can lead to economic growth and stability. Students will understand these economic indicators and their role in managing foreign trade.
Week 3: Foreign Trade – Structure and Procedures
Content: This week explains the structure of foreign trade, including the roles of exporters, importers, customs authorities, and international trade organizations. The procedures involved in exporting and importing goods are outlined.
- Example 1: A company preparing products for export.
- Example 2: The documentation process for exporting goods internationally.
- Example 3: The role of freight forwarders in coordinating the movement of goods.
- Example 4: Importing goods and the required customs declarations.
- Example 5: How trade agreements impact the structure of foreign trade.
- Example 6: The role of banks in financing international trade transactions. Students will learn how goods are moved across borders and the key players involved in the process.
Week 4: Foreign Trade – Stages and Documents
Content: This week covers the different stages involved in foreign trade, from the initiation of a trade transaction to the final delivery of goods. It also highlights the key documents required for international trade, including the bill of lading, invoice, packing list, and certificate of origin.
- Example 1: Stage 1 – Negotiating terms with foreign buyers and sellers.
- Example 2: The bill of lading as proof of ownership of goods.
- Example 3: An invoice used to bill the buyer for goods purchased.
- Example 4: The role of a packing list in shipping goods.
- Example 5: A certificate of origin required for customs clearance.
- Example 6: The final stage of payment and delivery of goods. By the end of this week, students will understand the steps involved in foreign trade and the documents used throughout the process.
Week 5: Customs and Excise Authority
Content: Customs and excise authorities are government agencies responsible for regulating the flow of goods in and out of a country, ensuring that all goods comply with national laws and tariffs. This week, students will learn the role of these authorities in foreign trade.
- Example 1: Customs officers inspecting goods at a border.
- Example 2: The role of excise duty on goods like alcohol or tobacco.
- Example 3: The enforcement of import quotas and trade restrictions.
- Example 4: How customs duties impact the price of imported goods.
- Example 5: The clearance process for international goods at the port.
- Example 6: The importance of customs in preventing illegal trade activities. Students will understand how customs and excise regulations affect trade.
Week 6: Terms of Quoting Prices / Methods of Payment in Foreign Trade
Content: This lesson explains the various ways that prices are quoted in foreign trade, including the Incoterms (International Commercial Terms) and different methods of payment, such as letter of credit, bank transfer, and cash in advance.
- Example 1: Using Incoterms like FOB (Free On Board) or CIF (Cost, Insurance, and Freight) in quoting prices.
- Example 2: A letter of credit as a secure payment method.
- Example 3: Bank transfers as a common method of payment in international trade.
- Example 4: Cash in advance for high-risk transactions.
- Example 5: How payment terms can affect the price and timing of goods.
- Example 6: The use of trade credit to facilitate international transactions. Students will learn the practical aspects of quoting prices and making payments in foreign trade.
Week 7: Ports Authority
Content: This week focuses on the ports authority, which is responsible for managing the ports, ensuring that goods are efficiently loaded and unloaded, and ensuring safety and security at the port.
- Example 1: The management of container terminals in large ports.
- Example 2: Port fees and their impact on the cost of trade.
- Example 3: The role of ports in customs inspection and clearance.
- Example 4: Handling of bulk cargo in port facilities.
- Example 5: The importance of maintaining infrastructure at busy ports.
- Example 6: The role of ports in promoting international trade. By the end of this week, students will understand the role of ports in facilitating global trade.
Week 8-9: Transportation
Content: This week explores the various methods of transportation used in foreign trade, including land, sea, and air transportation. Students will learn how logistics, costs, and speed affect transportation choices.
- Example 1: The use of trucks to transport goods overland.
- Example 2: Shipping goods via cargo ships.
- Example 3: Air freight for high-value or time-sensitive goods.
- Example 4: The logistics involved in coordinating international shipments.
- Example 5: The costs associated with each mode of transportation.
- Example 6: The impact of transportation on trade efficiency and costs. Students will gain knowledge of the various methods used to transport goods internationally.
Week 10: Water Transportation
Content: Water transportation is a vital method for moving large quantities of goods, especially in international trade. This week focuses on the use of ships and barges for transporting goods across oceans, seas, and rivers.
- Example 1: Shipping containers via large cargo ships.
- Example 2: The role of ports in managing water transport logistics.
- Example 3: The use of tankers for transporting oil.
- Example 4: The environmental impact of water transportation.
- Example 5: The efficiency of bulk shipping for raw materials like coal and grain.
- Example 6: Shipping goods across long distances by sea. Students will understand the advantages and challenges of water-based transportation.
Week 11: Revision
Content: This week provides a comprehensive review of all topics covered during the term. Students will revisit key concepts, discuss real-life examples, and prepare for the upcoming exams.
Week 12: Exams
Content: The final exams will test students’ understanding of all the topics covered throughout the term. The exams will assess knowledge of foreign trade, transportation, customs, and payment methods.