Challenges of Industrialization and Trade Policies in Kenya

International Trade
Finance and Investment

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
International Trade refers to the trading of the goods and services which is conducted
internationally by the organizations in the different countries spread all over the world (Auboin
and Blengini, 2019). Finance refers to the management of financial resources within the various
organizations. Investments refer to the amount of money invested by the organizations so that
they are able to attain the goals and objectives effectively and efficiently. For the firms it is quite
important that a relevant importance is given to all of them so that they are able to target higher-
level of profitability without problems and issues in the future. In this assignment, detailed focus
will be made on evaluation of financial markets work in order to allocate capital. Additionally,
specific analysis on critical evaluation of key challenges faced by a country due to
industrialization and trade policies will be considered as a part of this project.
TASK 1
Financial Markets refer to the markets where the dealing of different types of transactions
can take place and therefore the management of funds can be done here easily by the different
types of organizations (Bonfiglioli, Crinò and Gancia, 2019).
There are different types of financial markets which exist within an economy. It is
essential that these markets are considered for the purpose of an explanation about some of these
markets is provided as follows-
Stock Market- Stock Market has trading of different types of shares of the public
companies is done effectively and efficiently (Brini,Amara and Jemmali, 2017). There are
different prices of the shares of various companies which are traded here and thus in this way the
companies can make sure that they are able to enhance their overall reputation and goodwill
effectively and efficiently by trading their shares in the stock market.
Bond Market- In a Bond Market, there are different types of opportunities which are
offered to the companies to secure the money required for the purpose of financing a particular
project or investment (Caballero, Candelaria and Hale, 2018). Thus in this market, there is a
requirement that the investors identify the best company which can offer good returns on the
investment in the bonds which will help the investors in getting a decent return on their
investment.
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Commodities Market- Commodities Market has dealing of different types of
commodities takes place effectively and efficiently. Therefore, in this market the business
organizations are required to place their commodities and ensure that these commodities can find
out the right buyers.
Derivatives Market- In this market, there are derivatives or contracts whose value is
based on the market value of the asset which has been traded. Therefore in this way this is a
financial market where the commodities are effectively managed leading towards the attainment
of higher-level of efficiency and effectiveness.
Background of financial markets-
The financial markets are those markets where the dealing in money and other financial
matters takes place. Thus it is quite important for the companies to consider investing in such
markets because it will be quite helpful in achieving the different types of financial goals and
objectives in the right manner.
Banks, Capital and Money Markets work in a dynamic way so that a proper allocation of
the money can be made within the economy. In an economy there is an importance of all of them
because all of them can be quite helpful in ensuring that the financial system can work in a
smooth manner.
Forms of money-
There are three forms of money i.e. Commodity Money, Fiat Money and Fiduciary
Money. All of these forms of money are quite important to be considered so that the economy
can run in the right manner.
Purposes of money-
The purposes for which money is desired in the economy is that the different types of
activities require money for operating in the right way. Thus the desire of money is due to
different types of reasons due to which its demand is there in the economy and this helps in
ensuring that the demand generation works properly
U.K. has a substantial financial market in which there is a presence of different types of
organizations (Chang, Luo and Chen, 2020). Thus these organizations make sure that they are
able to contribute a substantial amount of investment in these markets so that a boost can be
given to the functioning of the economy.
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