International Trade Finance & Investment

International Trade
Finance & Investment

EXECUTIVE SUMMARY
International trade finance or investment refers to an activity that indicates global
investment of nation. Financial markets facilitates international financing, it mainly covers four
types of markets that is stock, bond, forex and derivatives. Nation can allocate its capital within
its domestic economy or international markets. Former states allocation of funds within activities
of country itself for the purpose of growth, while, later indicates finance allocation in another
country. Along with it, implementation of industrialisation and trade policies comes up with
some challenges as well.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Background of financial markets:................................................................................................4
Capital allocation within domestic economy:..............................................................................5
Capital allocation within international market:...........................................................................6
TASK 2............................................................................................................................................7
Evaluation of economy:...............................................................................................................8
Critical evaluation of challenges in relation to Industrialisation and trade policies:...................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International trade investment or finance signifies procedure of fund allocating for the
purpose of trade in international market. International trade can be described as a process of
exchanging products as well as capital across international borders, in other words, international
trade refers to trading that operates globally. International trade financing offers competitive
advantage to nation as it encourages it to specialize in exports or imports and also considers
opportunity cost (Ahn, 2020). Additionally, international trade investments also improves
economies of scale of a country. This report is based on evaluation of trade, financing or
investment opportunities for M&G in international market. Firm serves in the field of investment
management internationally and provides saving solutions to customers. In this report, financial
markets are evaluated along with its working for allocation of capital within domestic economy
and international markets. Additionally, key challenges faced by nation because of policies
related to trade and industrialisation is critically evaluated.
TASK 1
Background of financial markets:
Financial markets: It is a market place in which trading of securities occur That
includes the bonds, share market and many others. It help in smooth functioning of the
operations of the economy and help in allocation of the resource in a proper manner. Financial
markets makes the funds available to the person who are in need of it. Stock market is also a
financial market in which there is buying and selling of the securities take place like equity,
debentures, bonds (Cheng, 2019). The information provided should be transparent enough in
setting the price so that the financial market can easily rely upon them. Their are different types
of the stock market in which the trading can occur easily like over the counter markets, bonds
market, money market and Forex market. These markets have low transaction costs and easily
get traded. Financial markets are flexible enough that creates the liquidity and help the business
to grow in a proper manner and can raise the money (Cottier, 2015). They provide the
information to the investors and traders which help them in reducing the risk and helps in
building the stabilize confidence in the economy. Financial markets make the easy trading and
helps in raising the money.