International Trade, Finance and Investments

International Trade, Finance
and Investments

Executive Summary
This report provides a broad overview of the international trade, Finance market and investment.
It describes how financial organization and markets in different financial securities make up the
international financial system, and the size of this system. It also discusses how the global
financial system helps to rise economic growth and facilitates global trade. And also the different
theories are used for the allocation of the capital in domestic market and international economy
by evaluating the economy of India and the challenges faced by the India due to industrialization
and trade policies.

TABLE OF CONTENTS.
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
3. Background of Financial Market.............................................................................................4
4. Capital Allocation Within Domestic Economy.......................................................................5
5. Capital Allocation within International Market.......................................................................6
6. Evaluation of India as an economy..........................................................................................8
7. Challenges country faces due to industrialization and trade policies....................................10
8. CONCLUSION..........................................................................................................................12
9. Recommendations-....................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Financial market is a market where the exchange of securities occurred among various investors
which include stock market, share market, bond market and derivatives. It smoothly operates the
capital economies. This report introduced the background of the financial market which include
the exchange rate mechanism, foreign exchange rate, money market and capital market and also
include the capital allocation with domestic economy by understanding the comparative
advantage and aggregate theories, models like classical economy, monetarism and new classical
economies and the capital allocation of international market (Goldstein and Yang, 2017). This
report is also introduced Evaluation of the economy of India that critically analyse the
challenges that are faced by India due to industrialization and trade policies.
MAIN BODY
3. Background of Financial Market.
Financial Market is a marketplace where the people trend the financial instrument and
derivatives at low transaction costs. Some instruments include raw material, bonds and share
which are known for financial market as trade good. The financial market of India present more
advanced sectors to become organized with security exchange. It opens up in many market area
like the credit market, Debt market, capital market (Zhao and Zhao, 2019). As the purpose of
financial market is to save the economy to ultimate users. Financial market set the price of the
trades of commodities, securities and current globally and helps company to increase their fund
which are required for their smooth workflow and meet the financial obligations. Financial
market are damaged into different components based in the dimension of financing offer and the
asset that is traded such as money market, foreign exchange market, Derivative market, capital
market, insurance market, equity market and mortgage market.
Money Market- It's a short-term Financial Instrument having an objective to increase the
financial liquidity of the organizations with an advantage that for the investor they can easily
convert the securities into cash. The purpose of the money market is to develop the country and
stable the liquidity to commercial banks, large organization and government.