International Finance Trade
Not what you're looking for?
Due to the difficult financing conditions prevailing in the international credit markets and increased risk aversion by the lending, gross inflows of short-term trade credit to India declined in 2008-09 and this trend continued in 2009-10.
Use India as an example and learning tool to appreciate the complexities of international trade financing.
What would your biggest concerns be if you were financing trade with India?
What could be done to minimize the risks?
Purchase this Solution
Solution Summary
challenges of trade finance with India as example are provided along with risks associated with financing trade
Solution Preview
Challenges of Financing International Trade
The financial crisis which began in 2007 still has ongoing impact on the world. The difficult financing conditions prevailing in the international credit markets and increased risk aversion by the lending had adverse impact on several economies including India, where gross inflows of short term trade declined in 2008-09 and continued to do so in 2009-10. The financial crisis has given one of the most important lessons in international trade. It is the role of trade finance as enabler of cross border commerce. In fact, part of the contribution to financial crisis was from finance trade given that a majority of world trade relies on finance trade. When banks were hit by liquidity crisis, trade finance became expensive. The pricing reached a level of 400-500% of normal. Difficulty to obtain pre-export finance resulted in significant drop of trade flows from Asian countries like India to Europe and the Americas. While the trend has stabilized over years, the linkage between trade finance and trade flows has gained importance among senior business and political leaders ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce