International Trade Finance and Investment

International Trade Finance
and Investment

TABLE OF CONTENTS
Executive Summary...............................................................................................................3
Background of financial market ............................................................................................4
Capital Allocation with Domestic Economy..........................................................................5
Capital Allocation with International Market........................................................................7
Evaluation of UK economy..................................................................................................10
Critical Evaluation of Challenges that the country faces due to Industrialization and Trade
Policies.................................................................................................................................12
Conclusion............................................................................................................................15
Recommendation..................................................................................................................16
REFERENCES.........................................................................................................................17

Executive Summary
This report is on the topic international trade in regard to the UK economy.
Globalisation is the major reason behind the international trade which has created
opportunities for the individuals and economy as a whole. This report provides an insight into
the capital allocation by the economy within the nation and on the internal platform. Also, it
critically analyses the impact of industrialization and trade policies on the economy.

Background of financial market
The financial market is the market which includes the stock, foreign exchange,
derivatives and trading of other financial instruments. This is a type of market which assist
the company in having and creating a good liquidity which assist the company and business
to grow and develop themselves. This market assists the company to manage the risk and the
invest in the market and try to earn a good amount of return (Buckle and Thompson, 2020).
There are different types of financial market which are operated and the business operates in
these market in order to earn a good amount of money. These different types of market are
the stock market, commodities market, derivatives, bond market and many different types of
the market in order to earn higher amount of money.
The chosen economy which will be studied in the present report is UK economy. The
history of financial market is very old and the Wall Street is synonymous to the stock
exchange and the Wall Street was opened on 17 May 1792 at the corner of the Wall Street
and Broadway. Under this stock exchange 24 supply brokers were signed and the agreement
was named Buttonwood Agreement. On the other side the trading under the commodities
and debt market was originally in the Middle Ages and the modern concept of stock market
was initiated in late 16th century.
Financial markets allow the investors to increase their earning by investing their funds
in different companies or commodities. They provide the platform where investors and
people in need of funds can meet. In UK the major financial market activities are very
important for the business to have good and increased profitability. In this the UK financial
market involves the different types of instrument like the fund management, wealth
management, banking, different types of investment products like the derivatives, hedge
funds, securities and many different types of funds and securities to earn a good sort of
income for the company. for the companies to effectively work and operate in the better
manner the most essential thing for the company is to list over the stock exchange of the
country that the London stock exchange or any other regional stock exchange (Sahai, 2020).
The WTO that is world trade organization is the body created in the year 1995 and
this is an international institution which oversee the global trade taking place across the
globe. The major role of the WTO is to help the producer of the goods and services to
manage their business all over the world. The another major role of the WTO is to focus on