International Trade, Finance and Investment

INTERNATIONAL TRADE,
FINANCE AND INVESTMENT

EXECUTIVE SUMMAY
The report cites about the international investment and capital market fluctuations in
emerging markets. Key focused areas are how the financial markets work to allocate capital
within a domestic economy and internationally for trade, investment and development purposes
and evaluation of key challenges faced by an emerging country due to industrialization and trade
policies. GARCH model is implemented in order to analyses the effective market hypothesis.

Contents
EXECUTIVE SUMMAY................................................................................................................2
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Background of financial markets............................................................................................1
Domestic economy and capital allocation..............................................................................2
International economy and capital allocation.........................................................................5
Trade financial and investment theories.................................................................................8
Contributions of different global reforms in international trade............................................8
QUESTION 2...................................................................................................................................9
BRICS.....................................................................................................................................9
Analysation of evolving economy..........................................................................................9
Analysis of challenges that organisation faces due to trade policies and industrialisation. .12
Recommendation..................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
International trade, finance and investment indicates towards commercial transactions and
deals in different commodities like shares, equities, bonds and at international level (Desierto,
2015). This report is prepared to analyse the impact of financial markets to allocate capital
among domestic economy and global trade for the purpose of enhancing trade. Second section
discuss about the key challenges faced by an organisation due to industrialization and trade
policies. Different figures and elements are presents with graphs and charts so that main
objective to be communicated properly.
QUESTION 1
Background of financial markets
Financial market is recognized as a platform whereby financial commodities like shares,
preferred stock, securities, futures, currency and are generated as well as exchanged. By
organizing resources among them, it behaves as an interpreter among both the debt holders and
shareholders. There are lots of financial markets emerging due to increased demand and multiple
feasibility. Debts and equity markets are one of the emerging financial markets being used by
organisations to meet the business requirements (Cornwall, Vang and Hartman, 2019).
(Source: Financial equity and debt markets, 2019)
1