International Trade Investment and Finance

International trade
investment and finance

EXECUTIVE SUMMARY
International trade investment and finance enables expansion of process of trading in
country and enhances proposals for investment. It incorporates trading activities around globe
and enhances economic condition of nation by increasing its market share which ultimately leads
to expansion or development of nation.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
EVALUATION OF ECONOMY OF THE CHOICE.....................................................................1
a. Background of financial market of country.............................................................................1
b. Capital allocation within domestic economy of the country...................................................1
c. Capital allocation in global market..........................................................................................2
CRITICAL EVALUATION OF CHALLENGS FACED BY THE COUNTRY DUE TO
INDUSTRIALISATION AND TRADE POLICIES.......................................................................2
Background of the financial market................................................................................................3
Shanghai Stock Exchange and Shenzhen Stock Exchange.............................................................4
Inter-Banks......................................................................................................................................6
Repo Market....................................................................................................................................7
OTC Market.....................................................................................................................................8
The Biggest Banks in China............................................................................................................8
Fiscal and Monetary Policy.............................................................................................................9
Capital Allocation within domestic and international market.......................................................11
Evaluation of challenges the selected company faces because of trade policies and
industrialisation..............................................................................................................................11
CONCLUSION..............................................................................................................................11
RECOMMENDATIONS...............................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International trade and finance are essential drivers for growth of economy. It can be
described as market that consists trading or investment across country's border (Brini, Amara and
Jemmali, 2017). This report is based on study of international trade and investment of United
Kingdom in context to international market of China. This report covers financial market
background and capital allocation of UK in its domestic market. Further, capital allocation for
international market of china is evaluated. Along with it, challenges regarding policy
implementation for industrialization and trading is studied.
EVALUATION OF ECONOMY OF THE CHOICE
a. Background of financial market of country
Financial market is a place where investor purchase or sell securities. In case of China
this market has been divide into 2 sectors, money market and capital market.
Money market: This market is deal with short term securities which is valid for short period of
time. The liquidity of these security is high.
Capital market: This market is used for dealing with long term business securities. It is
categorised into 3 parts which define below:
Equity market: This market is dealing with equity shares related securities and bonds. It
is essential for any Chinese companies to incorporates in Shanghai stock exchange, or Shenzhen
stock exchange for dealing in equity market. This will help in issuing share specially for public
companies (Gu and Qiu, 2017).
Bond market: This is related with dealing of long term bond securities which increase
liabilities of organizations. Financial institutions, banks exchange market and OTC deal with
bond marten.
Stock Index future: Securities market is dealing with offering various kinds of securities
which include future derivates, bonds, shares, all these are traded in this market.
Any business entities to run their business in effective manner can invest money in capital as
well as money market as per their needs and business requirement.
b. Capital allocation within domestic economy of the country
Capital allocation means a process of disturbing and allocating the financial resources of
an organization for the purpose of enhancing the organization's long term financial stability. If all
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