International Trade Finance and Investment

International Trade
Finance & Investment
Tabl

Table of Contents
Tabl..................................................................................................................................................1
Table of Contents.............................................................................................................................2
. INTRODUCTION.........................................................................................................................1
. EXECUTIVE SUMMARY...........................................................................................................1
. TASK1...........................................................................................................................................1
. Background of the financial markets:........................................................................................1
. Capital allocation within domestic economy:............................................................................2
Allocation of Capital within International Markets:....................................................................4
TASK 2............................................................................................................................................5
Evaluation of an economy:..........................................................................................................5
Critically evaluating the challenges that is faced by country because of policies related to
industrialisation and trade:...........................................................................................................6
CONCLUSION................................................................................................................................7
. REFERENCES..............................................................................................................................8

INTRODUCTION
In the international trade finance and investment, there are two market is including in it,
which is capital market and money market, capital market is the market in which different types
of securities are included like equities, debt and shares that is buy or sold. In this market
individuals earn more from their savings and used for the long-term decisions regarding the
investment in different economies. In simple terms, it is the platform for the purchaser and seller
for the purpose of identifying the trade of financial assets like bonds, stocks and equities. Money
market means provide the money to the entrepreneur for the short period of time which is less
than one year for the expansion of the business. By the help of both market clients can become
businessman by their support (Accominotti and Ugolini, 2019). This report is based on the
investment holding of all peoples that is used for making global investment and international
investment in the organization. In this, junior consultant is required to build a report based on the
international trade, finance issues and investment matters. In these different things are discussed
like capital allocation in UK as well with the international market. There is the background of the
financial markets and challenges that the country faces due to industrialization and different
policy.
.EXECUTIVE SUMMARY
In the international trade finance and investment, there is the use of the allocation of the
capital in their domestic market and use of the allocation with the international market. There is
the description of the financial markets in the economy for increase the GDP, in the market share
and evaluation of the economy in the country. There is lot of challenges that is faced by the
country due to industrialization and trade policies. In this there is the description of the money
market and capital market. Through the use of this there is increase in all sector of the UK by use
of various technology and cash flow management.
.TASK1
.Background of the financial markets:
Financial market is the place in which buyer and seller are trading the securities and stocks
which is running according the different market in the economy. There are some financial
markets that include shares, debenture, bonds etc. It consists of various parts such as capital,
money market and primary and secondary market. At this platform everyone is come for buy or
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sell of securities, bonds and other contracts. Purchaser firstly looks into the low price of assets
and seller see the stock which has large value so they earn profit from them (Coşar and Demir,
2016).
In the UK, financial market holding in the economy is about 25% in the private equity
across the world. Apart from these they cover the 52% of the European equity market. At this
place, London stock exchange is the largest stock market in the Europe, they employs about
5000 peoples in the UK. Their GDP contribution in 2007 is 0.8% and they run their services
from past 300 years. At the end of year they generated 1.4 trillion of funds from this market. It is
the marketplace that is popular for the sale of the assets such as foreign exchange, assets and
derivatives. There are many names called for this Wall Street. The main reason of every
businessman to go into financial market is for expansion of the business and makes money from
there. There are so many functions are included for this market. They create an open system for
the entity to take large amount of the capital, this can be done through stock market and bond
market. In this markets are used by everyone, so there is transparent price is used by all the
public. The share size of the market provides liquidity to all owners. Seller can raise the stock for
the cash which reduce the cost of business. They have not to go far to find the buyer and seller
the automatically at this platform for making the profit and hold foreign currency in a very
limited form. All these markets help the big business by provide them finance to fulfil various
goals of the company. For example- in 1977 company name Apple persuade loan from the
investor of 250,000. In 5 years later they were able borrow 100 million from the markets by
selling small size lot of shares in the entity. Apple has worth of hundreds of billions and give
employment around 10,000 peoples. So, it is seen from them that they worked well for make the
country better. In this market there are various types of financial assets are including like- Shares
which refers to the ownership of the company in the form of the paper, bonds refer to loans
which is issued by the governments to large corporations and Foreign exchange market means
individuals exchange one currency for another currency. In this more than 412 billion clients are
managed by the stock broker and fund manager in the UK (Goldfarb and Trefler, 2018).
.Capital allocation within domestic economy:
Domestic economy
It means area, production and trade of the market in highly social market in the economy
for the most globalised economies. It is the fifth largest domestic economy in the world. In this
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