International Trade Finance and Investment

International Trade Finance and Investment
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EXECUTIVE SUMMARY
The study summarises instability in emerging nations in international capital and fiscal
markets. The key aspects of consideration are how capital markets work to allocate equitable
distribution for purposes of trade, investment and development within same domestic and
international sector, and to determine the major issues faced by a developing countries as a
consequence of industrialization and foreign trade policies.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
(A). Domestic Economy And International Trade Investment And Development:........................4
Background of the financial market:............................................................................................4
National economy and capital allocation in UK:.........................................................................6
International economy and capital allocation:.............................................................................9
Financial investment and trade theory:......................................................................................11
Contributions of international trade:..........................................................................................11
(B). Key Challenges Faced By Developing Economy Due To Industrialization And Trade
Policies:..........................................................................................................................................11
Analysis of Russian Economy on four important factors:.........................................................11
Challenges faced by Russia due to development/industrialisation:...........................................17
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
The processes of trading goods and services through one country to another in
commercial economy are recognized as international trade. It covers two core practices like
importing, flowing products and services from different other countries within country, and
selling products and services marketed in foreign market in a country (Petros Mavroidis, 2012).
The expression investment in finance is event linked to transferring funds to various activities to
produce enough revenue in near future. This study discusses the financial market framework, the
distribution of capital to the international and domestic trade market. Further, this study
addresses the assessment of the developing economy, assessment of the difficulties faced by the
country related to industrialization as well as trade policies.
TASK
(A). Domestic Economy And International Trade Investment And Development:
Background of the financial market:
Financial markets are regarded to be a main aspect of capitalist economy-related efficient and
useful activity. It is a broader term, referring to a platform where stock or shares are exchanged.
The financial market primarily a marketplace where multiple traders trading assets like stock,
securities, foreign currency, derivatives and ferox related items, etc. Financial market's principal
function is to facilitate transactions that might encourage companies to invest and fund their
investments based on their choices and risk management. It will allow to take advantages of
surplus wealth and boost economy.
Traders and big financial corporation are regarded as sector in which investment in
mortgages and bonds are offered and purchased as debt market. Investing in debt is considered
mainly to entail lower risk opposed to investments in equities, but to generate lower yield on
investment. multiple forms of bonds are considered the safest and most common method of
investing in debt, their value fluctuates less in price than any other funding investment (Paul,
Maurice Obstfeld, Marc. 2014). For instance, Corporation ABC is planning to offer $200 million
of funds to bond holders, several of prevalent instance of debt instruments are loans debenture,
bonds etc. While Equity market involves the portion of company's ownership and control that
makes sufficient earnings or profits. These markets are unstable in nature, since investors can
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