Financial Markets and Export Financing

Only available on StudyMode
  • Download(s) : 177
  • Published : February 7, 2013
Open Document
Text Preview
FINANCIAL MARKETS AND EXPORT FINANCING
SUBJECT: INTERNATIONAL BUSSINESS
PROFFESSOR: SEHER RAJANI

GROUP MEMBERS

ANKIT PREMANI 26
BHAKTI THAKKER 43
JAINY SHAH 33
NIYATI SHAH 34
PALLAKH SAWHNEY 32
ZISHAN SIDDIQUI 37

SR NO| TITLE| PAGE NO|
1.| INTRODUCTION| 4-5|
2.| FINANCIAL MARKET| 6-10|
3.| ROLE OF FM| 11|
4.| FUNCTIONS OF FM| 12-13|
INDEX
5.| TYPES OF FM| 14-19|
6.| EXPORT FINANCE| 20-22|
7.| GENERAL CONSIDERATION| 23-24|
8.| TYPES OF TRADE FINANCE| 25-26|
9.| Export financing enables businesses to all over the world| 27| 10.| EXPORT FINANCE EXAMPLE| 28-29|
11.| BIBLOGRAPHY| 30|
12.| ACKNOWLEDGMENT| 31|

INTRODUCTION
A financial market is a market in which people and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods. There are both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded). Markets work by placing many interested buyers and sellers, including households, firms, and government agencies, in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy.

Export Financing
A range of financing products (loans. guarantees, letters of credit, insurance etc.) in support of a variety of activities which help Canadian firms expand into new export markets. Trade Finance is a specific topic within the financial services industry. It's much different, for example, than commercial lending, mortgage lending or insurance. A product is sold and shipped overseas, therefore, it takes longer to get paid. Extra time and energy is required to make sure that buyers are reliable and creditworthy. Also, foreign buyers - just like domestic buyers - prefer to delay payment until they receive and resell the goods. Due diligence and careful financial management can mean the difference between profit and loss on each transaction.

This project is intended as an introduction to the different types of trade finance and the different funding sources available. Understanding these alternatives will help borrowers avoid common mistakes like securing the wrong type of financing, miscalculating the amount required or underestimating the cost of borrowing the money.

FINANCIAL MARKETS

A financial market is a market in which people and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods. There are both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded). Markets work by placing many interested buyers and sellers, including households, firms, and government agencies, in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy. In finance, financial markets facilitate:

* The raising of capital (in the capital markets)
* The transfer of risk (in the derivatives markets)
* Price discovery
* Global transactions with integration of financial markets * The transfer of liquidity (in the money markets)
* International trade (in the currency...
tracking img