SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the fundamentals of international trade and execute international purchases 
SAQA US ID UNIT STANDARD TITLE
336705  Demonstrate an understanding of the fundamentals of international trade and execute international purchases 
ORIGINATOR
SGB Procurement, Logistics and Supply Chain Mngt 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Procurement 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status

PURPOSE OF THE UNIT STANDARD 
This Unit Standard will enable learners to demonstrate an understanding of the fundamentals of international trade and execute international purchases.

This understanding will enable the learners to gain a more comprehensive understanding of the challenges facing businesses and government when they enter into the arena of cross border trade.

A learner credited with this Unit Standard will be able to:
  • Analyse the fundamentals of international trade.
  • Assess the role of trade policy in facilitating or inhibiting international trade.
  • Analyse and apply the international purchasing process.
  • Analyse and apply the fundamentals of counter trade. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Communication at NQF Level 4.
  • Mathematical Literacy at NQF Level 4. 

  • UNIT STANDARD RANGE 
    The applied competence expressed in this standard covers the knowledge and understanding of:
  • The need for international trade.
  • The basic barriers to international trade.
  • The impact of globalisation on trade.
  • The fundamental risks associated with international trade.
  • The role of government in creating trade policy.
  • What is meant by international and global trade.
  • The reasons for international trade.
  • The management of international and global trade.
  • The basics of the international trade procedures.
  • Appropriate activities associated with effective international/global trade.
  • The concepts of counter trade. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the fundamentals of international trade. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of international trade is analysed to reflect its importance, purpose and implications for a country. 
    ASSESSMENT CRITERION RANGE 
    Analysis includes points of departure of traditional and modern trade theories, advantages and disadvantages, impact on current and future needs, INCO terms such as FOB, FOR, FAS, CIF; counter trade and forward cover on pricing.
     

    ASSESSMENT CRITERION 2 
    The current and past direction of international capital flows are identified and evaluated to determine trends. 

    ASSESSMENT CRITERION 3 
    International trade is evaluated to reflect the fundamental principles underlying foreign exchange markets and exchange rates. 

    ASSESSMENT CRITERION 4 
    The basics of balance of payments accounting are assessed to reflect the process of classification and the functioning of balance of payments. 

    ASSESSMENT CRITERION 5 
    The South African current international trade situation is analysed to reflect it impacts on economic growth and the challenges facing SA in terms of international trade. 

    SPECIFIC OUTCOME 2 
    Assess the role of trade policy in facilitating or inhibiting international trade. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role of trade policy is assessed indicating how current South African trade policy is impacting on current and future international trade. 

    ASSESSMENT CRITERION 2 
    The role of trade policy is assessed indicating how it impacts on economic growth. 

    ASSESSMENT CRITERION 3 
    Fundamental concepts of trade policy are evaluated to determine their influences on and implications for international trade. 
    ASSESSMENT CRITERION RANGE 
    Fundamental concepts include but are not limited to protectionism, optimum tariff theory, market failures, micro-economic implications of trade policy, impact of regionalisation.
     

    ASSESSMENT CRITERION 4 
    The application of volume restrictions on trade is evaluated to determine its impact on economic growth. 

    SPECIFIC OUTCOME 3 
    Analyse and apply the international trade process. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A flow diagram of the international purchasing process is produced to reflect its elements. 

    ASSESSMENT CRITERION 2 
    The key role players are identified to determine their roles in the international trade process. 

    ASSESSMENT CRITERION 3 
    The documentation relevant to the different role players are utilised in accordance with their purpose. 

    ASSESSMENT CRITERION 4 
    The international trade process is applied whilst dealing with the legal implications for the organisation, supply market and country. 

    ASSESSMENT CRITERION 5 
    Recommendations are made of suitable precautionary measures to limit risks. 

    SPECIFIC OUTCOME 4 
    Analyse and apply the fundamentals of counter trade. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concepts and aims of counter/reciprocal/barter trade are analysed to determine their advantages and disadvantages. 

    ASSESSMENT CRITERION 2 
    Counter trade transactions are executed to exchange goods, services, or ideas for money. 

    ASSESSMENT CRITERION 3 
    The impact of forward cover on pricing is examined to determine the impact on consumption, investment and growth. 

    ASSESSMENT CRITERION 4 
    Forward cover is applied in accordance with specific purposes and principles. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Any institution offering learning that will enable achievement of this unit standard must be accredited by the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA at its discretion.
  • Moderation should encompass achievement of competence described in both individual unit standards as well as the integrated competence described in the qualification. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • The current and historic trends, volumes and direction of international trade flows.
  • What is meant by international portfolio investments and how they are distributed throughout the world economy.
  • What is meant by foreign exchange markets.
  • The impact of exchange rates on the flows of capital and trade.
  • What is meant by balance of payments.
  • The role that balance of payments plays in international trade.
  • The impact of long term capital transactions on international trade.
  • The impact of short term capital transactions on international trade.
  • The concept of balance of payments equilibrium.
  • The economic interpretations of the balance of payments.
  • What is meant by "internal economies of scale.
  • What is meant by external economies of scale.
  • The concept of the mobility of production factors across international borders.
  • What is meant by protectionism.
  • The relationship between protection and welfare in an international trade context.
  • What is meant by an optimum tariff.
  • The fundamental principles associated with export tax.
  • What is meant by an export subsidy.
  • What is meant by voluntary export restraints.
  • The concept of export and import quotas.
  • The concepts of external economies of scale and competitive position.
  • The need and benefits of having a strategic trade policy.
  • The fundamentals of the SA trade policy.
  • How the various market forms could influence trade policy.
  • The implications of regionalisation on trade policy.
  • How to distinguish between international and global purchasing.
  • The differences in planning for international purchasing and for global purchasing.
  • How the organisational structures impacts on the various international sourcing situations.
  • What the procedures and processes are for selecting suppliers on the international market.
  • How to identify and ensure correct completion of the documents used in the payment procedures for international sourcing.
  • What the reasons are for following the required procedures and what the consequences are for not following them.
  • What is meant by counter trade.
  • What the benefits and pitfalls are in applying counter trade.
  • What the activities and procedures are to ensure effective counter trade. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identifying and solving problems in which responses display that responsible decisions using critical and creative thinking have been made when:
  • Solve problems within the sphere of international trade by identifying the challenges facing South African organisations in the global marketplace and applying it to specific organisational situations using a variety of problem solving techniques to recommend appropriate remedial actions in each case. 

  • UNIT STANDARD CCFO WORKING 
    Working effectively with others as a member of a team, group, organisation, and community during:
  • To negotiate effective counter trade offers. 

  • UNIT STANDARD CCFO ORGANISING 
    Organising and managing oneself and one's activities responsibly and effectively through:
  • To manage international suppliers. 

  • UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information when:
  • Collecting, analysing, organising and critically evaluating information on the international purchasing process, documentation, formalities, role players, conditions and payments. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicating effectively using visual, mathematical and/or language skills in the modes of oral and/or written persuasion when:
  • To communicate international trade policy with relevant stakeholders. 

  • UNIT STANDARD CCFO SCIENCE 
    Using science, technology and indigenous knowledge effectively and critically, showing responsibility towards the environment and health of others through:
  • Ensuring adherence to all international legislative requirements relating to international trade. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation when:
  • Demonstrate their understanding of the world as a set of related systems by identifying the cause and effect relationships between the various players within the international trade environment.
  • Demonstrating an understanding of the world as a set of related, influencing, interacting systems by recognising that the organisation is part of a sub-system (in a specific supply market and within a county's economy) that together with other sub-systems form part of a larger system (world economy). The sub-systems differ in power and strength and there is pressure to equalise the subsystems. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This Unit Standard replaces the following Unit Standards:
  • ID 256395: ''Understand the fundamentals of international trade'', NQF Level 6, 6 Credits.
  • ID 256428: "Execute international purchases", NQF Level 6, 4 Credits. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  74149   National Certificate: Supply Chain Management  Level 5  NQF Level 05  Reregistered  2023-06-30  TETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Academics Dynamics (Pty) Ltd 
    2. Aldabri 106 Institute for Quality Pty Ltd 
    3. Andebe Training and Skills Development 
    4. BPL Academy 
    5. Brilliant Skills Development & Training Solutions 
    6. Centre for Logistics Excellence (Pty) Ltd 
    7. College for Business and Maritime Studies 
    8. College of Production Technology 
    9. COMMERCE EDGE SOUTH AFRICA PTY LTD 
    10. Global Maritime Legal Solutions Pty Ltd 
    11. KVR TRAINING AND BUSINESS SOLUTIONS PTY LTD 
    12. Makwedeng Training 
    13. Metro Minds 
    14. Phephani Learnerships cc 
    15. School of Shipping 
    16. Skills Development Specialists 
    17. UKWAKHILE TRAINING 
    18. Y2K College 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.