Advantages And Disadvantages Of Trade Finance

Trade is the transaction of buying or selling of goods and services from one country to another. Because of trade, international consumers now have a wide assortment of products placed directly in front of them that their region cannot provide. For instance, one can walk around the Bronx and come to the zoo where there will be a giraffe from South Africa showcased for all to see. There are no safari like animals such as the giraffe freely roaming around America. This is all possible due to the trading system that has been

Foreign trade can be defined as the import and export of goods, resources and services from nation to nation. There is a scarce amount of countries that are self sufficient, leaving most countries to rely on other nations. Foreign trade includes many agreements made by similar nations looking for a similar outcome. These types of agreements can be in the form of laws which help regulate the the trade. The amount of trade made in a country can be measured by the growth domestic product (GDP). The GDP is the absolute value of all things produced by all people and companies (CITE). There are advantages and disadvantages to the transporting of trade. Some benefits of foreign trade includes providing jobs, improving quality of life and empowering women around

Ramey, Joanna. "Low Freight Rates To Aid Importers." WWD 5 July 2011: 5. Academic OneFile. Web, retrieved from: http://go.galegroup.com

Trade between nations of the world is extremely important in many aspects such as keeping a strong relationship between countries and to hold a good strong trust. It is through trade that

• Trade Finance: Companies that are involved in export and import have sought the expertise of unique trade finance solutions of Kotak Mahindra Bank. These primarily include tailor made solutions designed to meet the needs of export and import services. Apart from this, corporate are being provided by bank guarantees and other unique domestic services.

International trade is defined as the exchanging of goods, services, capital between different countries and regions, which have given rise to a global economy. The various types of trade as well as the constant advancement in technology are continuously changing the economic trends among various industries. In terms of supply and demand, international trade is constantly altering based on current events that are occurring throughout the world.

International trade is the exchange of goods, capital, and services across international borders or territories. In most countries this trade represents a significant share of their (GDP) gross domestic product. This type of trade has political, economic, and social importance to all nations involved. There are many factors surrounding international trade, such as, advantages, limitations, foreign exchange rates, and others. As we review these factors, this will allow us to better understand how international trade truly functions.

Why do countries trade? Why do we have allies? Why don’t we just become self-sufficient? It's because if we were to become self-sufficient we would not be able to cycle money and we wouldn’t have as many resources and amenities to get by with our entitled selves and only our spoiled selves, we would collapse into our own reality and eventually the word apocalypse would be innocent compared to what we would do to ourselves. So yeah self-sufficiency is not an option, we must trade.

There are international markets where the internationally accepted currency is a trade. Such currency is deposited with

Trade agreements can either be bilateral, regional or multilateral. No matter how they are they are intended to lower or remove trade barriers between the participants. Lowering trade barriers among each other increases the degree of economic integration between the participants. Trade agreements that increase the access of each member’s market are supported by sectors that export their products but are opposed by sectors that face competition from imports

Still, to cater for the new foreign customers and buyers, adding a currency converter in real time could help speed up the process of buying or placing an order. Adding a section for international buyers to place reviews as they become available on the website could prove to provide comfort and trust to the future buyers looking to buy from the site. This also includes an inquiry section for potential buyers to ask questions regarding any issue arisen. Due to different taxation prices in different countries, it is important to include sample taxes and duties for the target countries and also add text the customer’s responsibility to pay them all. Shipping options should be included also to fit accordingly to different buyers across the world and adding cheaper shipping alternatives could prove to earn more trust from customers. Providing a clearly written returns policy is also key to preventing unnecessary confrontations and misunderstanding with the customer.

Trade protectionism is basically a rules and regulations of a government to maintain or to constitute a limitation on the import of commodities and services to protect or promote domestic product and also to create new businesses. Basically, protectionism is the economic policy of government to preserve our domestic product and industry by imposing duties on restrictive quotas, imported goods, and also a mixture of other government regulations to prevent foreign product from taking over of domestic markets. Trade protectionism is used by countries when they believe their industries are being damaged by unfair competition from foreign industries (Kimberly, 2014).

The driving force of trade is one of the most powerful influences on human activity. Therefore since the medieval time till this day; Commercial law has been constantly developing by adapting new principles due the continuous growth in the commercial transactions; in order a to fit and match the sellers and buyers needs in our modern societies. In addition the harmonization of the principles and rules of commercial law governing international transactions has played a main role on positively affecting the commercial transactions by encouraging sellers and buyer to carry on with international business where the parties are located in different countries; which earlier was a risk to them due to conflict of laws and different jurisdictions.

With MiFID emphasizing on best execution of trades across trading venues and the emergence of Multilateral Trading Facilities, (MTFs), competition between trading venues increased. As a natural progression of this, competition emerged in the post trading area amongst CCPs and CSDs to provide clearing and settlement services to trades executed on the new trading platforms. EMIR provided a further impetus to this by setting out common rules for CCPs, enabling recognized CCPs to offer their services across the

Alibaba.com is collaborating with LendingClub, which US manufactures can approach financial aid when they go for purchasing on Alibaba.com (Merced 2015). Loan lending partnership is also cropped recently with Iwoca and Ezbob, where a credit line is set up in Alibaba.com for UK SMEs to purchases products for Chinese suppliers (Titcomb 2015). Financial loan for the SMEs can also be accomplished by collaborating with local bank. For instance, the introduction of Trade Facilitation Centre in India by Alibaba.com with ICIC Bank to assist Indian SMEs not only in business load, but also transaction in foreign exchange, commitment in case management solution, bank guarantee and more (‘ICICI Bank Partners with Alibaba.com to offer easier trade finance for Indian SMEs’ 2015,).