International Trade and Investment

International Trade
and Investment

Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................3
INTRODUCTION...........................................................................................................................................3
Task 1...........................................................................................................................................................3
Background of financial market:..............................................................................................................3
Capital allocation within UK’s domestic economy...................................................................................5
Capital allocation within international market: ......................................................................................5
TASK 2..........................................................................................................................................................7
Economy of England................................................................................................................................7
Critical evaluation of challenges faced by the country with respect to Industrialization and trade
policies ....................................................................................................................................................8
CONCLUSION.............................................................................................................................................10
REFRENCES................................................................................................................................................11

EXECUTIVE SUMMARY
International trade and finance means the trading activities across the border of nation.
They have a direct impact on economic position of the nation and also enhance the gross
domestic product. The report is based on the financial market and the allocation of funds in
domestic as well as International market. There is discussion related to challenges that are faced
due to industrialization.
INTRODUCTION
International finance refers to financing activities that are conducted between different
countries involved for a specified time period. These include financial transactions between
various countries of the world. It includes expanding of business in other countries that assist
them in generating more income. This may be for the purpose of investment for country. The
report is based on International trade and investment (Delany, Signal and Thomson, 2018). There
is discussion related to background of financial market which are considered as main platforms
that increases liquidity of the company and enhances gross domestic product of the nation. The
role of financial markets and how they help in efficient utilisation of resources is described.
There is discussion related to capital allocation within domestic economy. In the end there is
description related to challenges that are faced due to industrialisation of trade policies.
Task 1
Background of financial market:
The investors get return on the return on the investment. It is a place where the people that
want money get the money from the one who have excessive money. Financial market plays a
vital role in economic growth of a nation. It mobilizes the savings for their productive
investment. There are different instruments that are dealt in financial markets. All the procedures
are conducted in electronic form and do not have any physical existence. It is time when
electronic trading takes place in the market. Individuals go to financial market today for the
growth of their business and it helps them to make more money. The aim of the investor is to
generate more profit from the securities. Financial market has advantage of asset liquidity as the

buyer and seller can decide to treat at any time (Kowalski and Rabaioli, 2017). There is Equality
for each investor or debtor no matter what the size is. The various types of market are money
market, derivatives market, forex market, capital market, bond market and over the counter
market. This over the counter market does not have any physical location. Participants are
directly indulged in trading and there in electronic form. It can be explained as there is no
requirement of broker in this market. In respect to bond market the lenders lend money for a
specified time period and the rates are also decided. Bond is type of agreement between borrower
and lender. It also includes bills, notes, and so for private and public expenditures. Bonds
generally have fix payment and are for specified period of time. The person that wants regular
returns with minimum return can choose bond market. In context to financial market help to
lower down the unemployment rate as they provide many job opportunities. It is a place where
businesses get money for their expansion and growth. Forex market is related with selling,
speculation and purchase of currency. It is important to understand each market and then enter.
Along with that there are various rules and regulations that are formulated and essential to be
followed. Capital market instruments are used by various companies to raise funds to do their
business. The capital market instruments include shares and bonds issued by the company. The
six core sector of capital market are the stock market and private, leveraged loans, corporate
bonds, M&A activity, and equity equity capital markets.
World Trade Organization is an organization that promotes free trade between all the
countries. It is the only organization that regulates the trade between all the countries. WTO
reduces the tariffs and eliminate the barriers so that there free trade between various countries.
All the trade agreement between various countries are managed by WTO.
England financial market
UK covers around 25% of European equity market. London stock exchange is considered
as the largest stock market at place. It gives employment to around 5000 people in United
Kingdom. The companies that are listed in UK they have two principle markets from which they
can choose. They are London Stock Exchange (LSE) and the Alternative Investment Market
(AIM). The financial services industry is largest in London. The sector is contributing to the
gross domestic product of the nation. The business person prefer the financial market as that is
the place where they get funds that help them to expand their business (Owens and Zhan, 2018).