Challenges of Industrialization and Trade Policies in Kenya

International Trade
Finance and Investment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

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.
Commodities Market- Commodities Market has dealing of different types of
commodities takes place effectively and efficiently. Therefore, in this market the business
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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-
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.
The presence of Financial Markets in an economy is quite important for the growth of
any economy in the long-term. In this way the economy can witness higher-level of growth if the
different types of financial markets are able to perform in the right manner. Thus it is important
for the parts of financial markets to function properly which will therefore help in ensuring that
the short-term, medium-term and long-term goals and objectives can be attained effectively and
efficiently. Therefore the growth of the GDP of a country is also dependent on the performance
of the financial markets.
U.K. Domestic Economy-
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