International Trade Finance & Investments

International
Trade Finance &
Investments

EXECUTIVE SUMMARY
The report is prepared for developing understanding about International Trade Finance
and Investment. With information related to investment opportunities, investors are able to
invest in an economy with expectation of higher returns. This help them in increase of their GDP
by increase their production of the industry. Through this there is the description of the capital
allocation of the domestic economy in international trade and allocation of the economy into
international market. Apart from these, the report includes evaluation of the challenges faced by
the economy of UK.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK1 ............................................................................................................................................1
Background of the financial markets...........................................................................................1
UK domestic economy.................................................................................................................2
Capital allocation in domestic economy for international trade:.................................................3
Capital allocation of the UK in the international market.............................................................4
TASK 2...........................................................................................................................................5
Evaluation of economy:...............................................................................................................5
Challenges faced by the UK in the markets.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
International trade and finance investment refers to the investment made by the one
country in the other country for the expansion of the business and to earn increase their gross
domestic product of the economy. In this approach there is the complete trade transactions
include in this in the variety of the shareholders, importers and exporters. Through this there is
the financing of the trade flows, it help in to mitigate and reduce the risk involved in the
international trade, in the international finance investment there are two players involved in that
first is exporter, pay their goods and services and importers means paying their correct quality
and quantity of the goods. In simple terms it is the study of the monetary transactions between
the one and more country (Auer and Schuhmacher, 2016) In international finance there are some
areas are there to focus is direct investment and currency exchange rates. This report is based on
the domestic economy of the UK, and the capital allocation of the domestic economy in the
international trade. There is also the capital allocation of the domestic economy in the
international markets. Apart from this, there is evaluation of the economy in the UK.
TASK1
Background of the financial markets
Financial markets refer to the marketplace that help in provide the money by selling and
purchasing of the shares, bonds and stocks in the foreign exchange, derivatives. In the financial
market there are two markets are included capital market and money market. These are the
markets where the trading of securities is carried out and thus it includes stock market, bond
market, forex market and derivatives market. These markets are very important because here
trading of the securities takes place and they act as an important source of funds for the different
organizations. Capital market refers to the market in which savings and investments are used by
the supplier which has its own capital, in this they include retail and institutional investors that
help in seeking capital for the business. It include both market primary and secondary market. In
this two markets is involved in UK, stock and bond market (Baldwin, 2016). There are many
companies include in it are insurance, non financial and charitable. Money market refer to the
transaction involve in the monetary terms. In this there is the purchase and sales of the greater
volume of the short term debt. Individual can purchase money through different market such as
mutual fund, treasury bill and commercial paper. This market is play a vital role in the financial
1