What Are The Advantages And Disadvantages Of International Financial Market

✓ Additionally, an acquisition may result in the acquirer being exposed to a greater concentration of counterparty credit risk that did not previously exist.

The company expects to deal in both import and export transactions, in a combination of documentary letter of credit and open account transactions. Its primary markets will be the United States, China, India and possibly a foray into the European Union through Ireland.

International trade and finance:

The answer: 1)First of all, other things remaining the same, the greater the expected profit from the new capital, the greater is the amount of the investment and the greater the demand for loanable funds. So an increase in expected profit will shift loanable demand to right . As we can see

FITTskills: International Trade Finance Sixth Edition Course Objectives • Define and discuss the “Four Pillars” of trade finance— payment facilitation, risk management, financing and the provision of information related to a transaction • Describe the impact of technology on trade finance • Describe the major products and services related to trade finance, including the role and requirement of each party to a transaction • Discuss the importance of export credit agencies and international financial institutions in international trade • Describe the importance of adequate planning relative to the financial aspects of international trade 10/20/2015 TF 1-2 An Introduction to Trade Finance The

a number of gains to be obtained from international trade, such as lower prices, greater choice,

2. List five examples of products that are commonly purchased as either business products or consumer products. How would the classification impact the marketing strategy? 1. Maintenance people are always going to need things repaired. Some people cannot repair things themselves or do not have the time. This will keep job for people and equipment being bought. 2. Materials people are going to always have a need for raw materials. People will need to produce these items keeping the market moving. 3. Clothing people are always in need of clothing through the season changes as well as the fashion trends. 4. Technology such as phones, cameras, mp3 players. These items are always upgrading and getting a new version. 5. Furniture styles are always changing on these items keeping stylist, builders, and manufactures in business.

6. a. Diversification is actually like “don’t put all your eggs in one basket”, hold one stock is risky, but on the other hand, investors won’t lose all of their money because of that one stock, investors holds more stock has low risk but they will loss most of their money if the company had bad performance. So, Dropping the basket will break all the eggs. Placing each egg in a different basket is more

5. An active secondary market for debt or equity securities makes raising new capital less expensive for firms.

* A broader capital base gives the company more access to credit which gives the company an option to venture into new business opportunities

It need to watch and also hold fast entirely to the principles and directions by an overseeing

Generally a customer wants quality goods at a low cost. They would also want a variety of products to choose from and convenient way to purchase the products.

Globalization can be defined as ‘international integration’, which can be described as the process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, and political forces (dictionary.com).

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in