International Trade Finance and Investment

International
trade finance and
investment

EXECUTIVE SUMMARY
International trade and finance and investments refers to the company which help in easy
transaction of trading globally across the world with in the national and the international market
so that easy exports and the imports can take place. By doing the export and the import the
company can increase its financial position and can earn the benefit in the long run.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Background of financial market...................................................................................................1
Allocation of capital within domestic economy:.........................................................................2
Allocation of Capital within International markets:....................................................................4
TASK 2 ...........................................................................................................................................5
Evaluation of Economy................................................................................................................5
Critically evaluating the challenges that is faced by country because of industrialisation and
trade policies................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International trade finance refers to the trade that occurs on the border of the nation and
can easily do the export and import in the different countries. International trading helps in easy
transportation of the goods. International transaction have various risks like the payment risk,
country risk and corporate risk (Altomonte, 2016). Trade transactions requires the sellers and the
buyers of the goods. This report is based in the international trade finance and investment of the
UK with the international markets. In this report covers the topics regarding the financial
markets, its allocation within the domestic company and the allocation within the internation
market. Then the evaluation of the international market will be done and the industrialisation and
the trade policies challenges faced by the economy will be studies so that proper information can
be analysed regarding the international trade finance and investment.
TASK 1
Background of financial market
Financial markets refers to the place where the securities are been traded in an easy
manner which includes the stock and the bond markets. It helps in the smooth functioning of the
economy so that financial transaction can take place in an easy manner. It has the low transaction
cost which help in easy flow of the work within an international market. The financial market
acts as the intermediary between the investors and the savers so that flow money can be made in
an easy way. The savings in the financial markets help in the mobilization of the goods so that
the savings can be used for the productive use. It also helps in deciding and fixing the price of
the securities on the basis of the demand of the goods and the supply of the goods. The investors
in the financial market can sell the securities and convert these securities into the cash. Financial
markets helps in saving the time, money of the investors as they do not have to waste the time in
searching for the buyers in the market (Sharma and Mishra, 2015). Financial markets helps in
raising the money for the ventures and help in stabilizing the confidence of employees. There are
the different types of financial market like stock market, bond market, commodities market,
derivatives and the Forex trading. It helps in acquiring the large amount of capital and can be
done only by the bond and the stock market. In the bonds the money is loaned by the investors
and the fixed rate of interest is established and the company have to pay for it. Financial
1