Contribution of Treasury Management to International Trade

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JULY 2009

1:4Research Objectives

1:4:1General Objective

The main objective of the study was to examine the contribution of Financial Institutions towards Development of international trade in Tanzania among Small, Medium and Large Enterprises.

1:4:2Specific Objectives
The specific objectives of the research were the following

• To evaluate Methods of payments that financial institutions use in conducting international transactions of their customers.

• To find out procedures involve in conducting international trade transactions through methods of payments offered by financial institutions.

• To find out the extent by which Tanzania Enterprises benefit from transacting international trade through financial institution methods of payments.

• To asses’ problems and risk faced by both parties that is Tanzania SMEs and Financial institution in handling international trade transactions.

• To suggest solutions to the problems that face international trade transactions through methods of payments offered by financial institution in Tanzania.

1:5Research Questions
This study was conducted to answer the following questions. • What are methods of payments that financial institutions use in making international trade payments?

• What are procedures involved in making international trade through methods of payments offered by financial institutions in Tanzania?

• To what extent do Tanzania enterprises benefit from making their international trade transactions through methods of payments offered by financial institutions?

• What are problems/challenges faced by financial institutions and Tanzania enterprises in conducting international trade transactions and suggested solutions to those challenges?

1:6Significance of the Study
This Research study has the following significances.

• It provides knowledge to researcher on how to conduct international trade through methods of payments offered by financial institutions.

• The research findings and recommendations are useful to SCB specifically trade services unity as a guidance toward effective handling of international trade transactions.

• As a part of research requirements for the fulfillment of Bachelor degree of Business administration – entrepreneurship development of Mzumbe University.

1:7Scope of the Study/Delimitation
The study was conducted at standard chartered bank located at international house branch in Trade services unity/department. Where international trade activities are conducted and this enabled researcher to meet SCB international trade Customers who are Tanzania importers and exporters hence obtaining more information pertaining international trade. Researcher was able to gain practical experience on handling of international trade transaction.

1:8Hypotheses of the Study
Kothari defines hypothesis as an assumption or some supposition to be proved or disproved (Kothari 2000:223).

In conducting this research study the following hypothesis guided the study.

• Financial institutions help Tanzania enterprises in conduction their international trade transactions by offering safe methods of payments and other loans facilities.

1.9Limitations of the Study

Methodological problems
• Language problems
Research experience language problem during interview with respondents especially SME’s the language problem exist where most of International trade terminologies are in English language and some of SMEs owners were not able to communicate through this foreign language hence Kiswahili language was substituting English.

• Confidentiality and Trust
The researcher faced a problem in data collection and accessibility due to confidentiality of some materials which if made available to the researcher could be...
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