scholarly journals Trade finance constrains as a barrier for Chilean services internationalization

2020 ◽  
Vol 15 (1) ◽  
pp. 2-19
Author(s):  
Dorotea López ◽  
Felipe Muñoz
Keyword(s):  
International Economy ◽  
Trade In Services ◽  
Trade Finance ◽  
Trade Financing

The growing importance of trade in services in the international economy motivates the study of different factors that may influence the development of this sector. This paper seeks to contribute to the scarce research on access to financing for the internationalization of services. Through a survey, we analyze the perception of Chilean services exporters about access to financing instruments for trade, and whether this constitutes an obstacle in the process of internationalization or not. For companies that participated in the study, access to trade financing is not a barrier for exports. However, these results vary according to characteristics of the companies.

scholarly journals The role of factoring in international trade financing

2020 ◽  
Vol 3 ◽  
pp. 36-41
Author(s):  
Tural Alasgarli ◽  
Keyword(s):  
International Economic ◽  
International Trade ◽  
Foreign Trade ◽  
Economic System ◽  
20Th Century ◽  
Trade Finance ◽  
Trade Relations ◽  
Trade Financing

As 20th century ends, international economic system has gained new characteristics, international trade and its finance has reached at a different aspect. Parallel to the increasing trade relations, new technics of foreign trade finance has been widely available. Among them, factoring was evaluated in this study.

scholarly journals Examining Contracts used in Islamic Trade Financing: Issues in Bai Al-Dayn and Murabahah

2019 ◽  
Vol 6 (4) ◽  
pp. 366-374
Author(s):  
Nur Ermiedza Radzali ◽  
Nurul Awfa Muhammad Noor Habibi ◽  
Nurul Amira Mohd Sabri ◽  
Siti Aqilah Ismail
Keyword(s):  
International Markets ◽  
Journal Articles ◽  
Financial Contracts ◽  
Trade Finance ◽  
Chamber Of Commerce ◽  
Trade Financing ◽  
International Chamber Of Commerce

In an interest-based economy, trade transactions are financed through credit for the purpose of acquiring and selling goods in the domestic or international markets. In an Islamic economy, trade operations may be financed through credit or on a participatory basis. The purpose of this paper is to review two Islamic financial contracts; Murabahah and Bai Al-Dayn. This paper also aims to review Islamic Trade Finance (ITF) and issues concerning ITF facilities, given they are operating under conventional International Chamber of Commerce (ICC) rules. To achieve the research goals, data has been gathered from journal articles, books, industry reports, and product disclosure statements issued in Malaysia. This paper highlights the underlying issues for Murabahah and Bai Al-Dayn, and provides recommendations to overcome the challenges associated with processes shaped by the underlying Islamic trade finance contract.

scholarly journals ANALYSIS OF FACTORS AFFECTING INTERNATIONAL BANKING ACTIVITIES: A FOCUS ON THE TRANSACTIONS OF ISLAMIC INTERNATIONAL TRADE FINANCING Case Study in XYZ Islamic Bank

2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Puspita Puspita
Keyword(s):  
International Trade ◽  
Multinomial Logistic Regression ◽  
Secondary Data ◽  
Primary Data ◽  
International Banking ◽  
Trade Finance ◽  
Factors Affecting ◽  
Multinomial Logistic Regression Analysis ◽  
Islamic Bank ◽  
Trade Financing

This research aims to analyze the factors affecting international banking activities,especially the transactions of Islamic International Trade Financing (case studyin XYZ Islamic Bank). Multinomial Logistic regression analysis was used in thisstudy. The independent variable consisted of capability of human resources, customers’ needs of Islamic International Trade Financing (IITF) facilities and product divercification of Islamic International Trade Finance. Meanwhile, the dependent variable was the Islamic International Trade Financing activities at XYZ Islamic Bank. This study used both primary and secondary data where primary data collected from questionnaire survey of 70 respondents and secondary data from various literatures. The result showed that the factor that significantly affected the Islamic International Trade Financing was the custumers’ needs of Islamic International Trade Financing. The other two factors did not significantly affect the Islamic International Trade Financing at XYZ Islamic Bank. The influence of customers in increasing Islamic International Trade Financing at XYZ Islamic Bank was the active customers which had opportunity 6.024 times higher than the passive customers in affecting Islamic International Trade Financing at XYZ Islamic bank. Recommendation from this study is encouraging the consumer to enhance international trade finance transaction to be more recognize the characteristics of XYZ Islamic Bank consumer. This way would be change passive consumer become active consumer.

Strategic Management of Finance and Role of Documentary Credit

2019 ◽  
pp. 395-416
Author(s):  
Yurdagül Meral
Keyword(s):  
International Trade ◽  
Strategic Management ◽  
Trade Finance ◽  
Potential Risks ◽  
Trade Financing

Financing is one of the most important aspects of trade. International trade, although seemingly not different from local trade, differs from local trade because shipment/delivery takes longer, and different documentation and legislation is due to different countries involved in international trade. Financing also differs compared to local trade, and there are some specific methods used in international trade like documentary credit, although there is no limitation for documentary credits to be used in local trade. Documentary credit is a well-known method generally used in international trade. This chapter aims to define the role of documentary credits in international trade finance. In this chapter along with other finance methods, documentary credits, types, process will be explained. It is aimed to help importers and exporters how to mitigate the potential risks by using documentary credit. Furthermore, which type of documentary credit is to be used depending on the situation is clarified.

scholarly journals Trade Finance in Digital Era: Can FinTech Harness the Current Risks and Challenges?

2021 ◽  
pp. 78-89
Author(s):  
Safeza Mohd Sapian ◽  
Nurudeen Abdulkadir ◽  
Norhazlina Ibrahim
Keyword(s):  
International Trade ◽  
Internal Control ◽  
Global Economy ◽  
Service Providers ◽  
Risk Identification ◽  
Financial Service ◽  
High Price ◽  
Trade Finance ◽  
Digital Era ◽  
Trade Financing

Trade and commercial activities are the foundation and supporting pillars of the global economy. It is through trade, particularly international trade, that a country’s economy is developed and sustained. It is a fact that FinTech platforms help financial service providers to become more time and cost-efficient in delivering trade finance services, however, the moves come with a high price. As the system becomes complex, the risks associated with it are also high due to systemic vulnerabilities, hackers and security hurdles. This current state requires more rigorous risk identification and management systems along with proficient internal control system, especially for international trade and trade financing. It has propelled many financial intermediaries to be more competitive in committing to the development of digitised channels and propositions, preparing to cede market share to a new generation of providers that have already seized the imperative to respond to market evolution in international trade.  The main aim of this paper is to explore how far can FinTech platforms help the financial service providers to be more efficient in providing their services to the end-user while at the same time be excellent to harness the possibilities of cyber and FinTech risk in this digital era. The study reviews past studies done in this area, especially on the risks and challenges, the prospects and opportunities of FinTechs in trade financing and its ability to cope with the risks inherent in FinTech solutions. The findings show that the benefits of FinTech platforms outweigh the shortcomings and with sustained collaboration, standardization and a holistic approach to the development of FinTech solutions, the risks of digital transformations can be considerably reduced.

scholarly journals PROBLEMS OF TRADE FINANCING DEVELOPMENT IN THE RUSSIAN FEDERATION

2018 ◽  
pp. 34-44
Author(s):  
Lyudmila Nikolova
Keyword(s):  
Russian Federation ◽  
System Analysis ◽  
Research Study ◽  
Economic Sanctions ◽  
Projection Methods ◽  
Trade Finance ◽  
Letter Of Credit ◽  
Finance Management ◽  
The Russian Federation ◽  
Trade Financing

From the standpoint of enterprises, searching for the minimum-risk methods and ways of organizing settlements in foreign trade is always a topical problem. The research study identifies the problems of trade finance in the Russian Federation (RF) after the sanctions have been imposed. The key features of trade finance management are formulated. The influence of economic sanctions on trade financing mechanisms is analyzed. Some mechanisms are considered for using a documentary letter of credit, one of the most popular trade financial instruments in international settlements today. Measures for eliminating the factors restraining the growing use of trade finance instruments and the possibility of their implementation under the conditions of current economic sanctions are grounded. System analysis methods and techniques, analogy methods, expert assessments and projection methods are used as part of this research study.

scholarly journals THE CONDUCT OF RISK MANAGEMENT IN TRADE FINANCING PROCESSES: EXPLORING THE PROSPECTS AND CHALLENGES IN FINTECH ERA

2020 ◽  
Vol 8 (2) ◽  
pp. 431-440
Author(s):  
Safeza Mohd Sapian ◽  
Norhazlina Ibrahim ◽  
Syahidawati Hj. Shahwan
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Industrial Revolution ◽  
Framework Analysis ◽  
Trade Finance ◽  
New Era ◽  
Banking And Finance ◽  
Wide Range ◽  
Trade Financing ◽  
Current Risk

Purpose of the study: To investigate the conduct of risk management in trade financing processes as well as to identify potential issues in risk management relating to fintech in trade financing. At the same time, this study had the opportunity to explore all possible prospects and challenges that this new era of digital could offer to the banking industry. Methodology: The study employed an interview with experts for the means of data collection with the aim of gathering a wide range of information and opinion from the industry experts on the subjects of this study. The data collected from interview transcripts are analysed contextually based on thematic analysis and framework analysis. Main Findings: The findings suggested risk management in trade financing processes is critical due to the nature of cross-country transactions and the current era of fintech has further escalated the risk exposure to fintech-related types of risk. Strategies to improve the current conduct of risk management in trade finance processes have been identified where opportunities and challenges can be managed effectively. Applications of this study: Findings from this study will give valuable insights to the banking and finance industry’s practitioners, especially those who are directly involved in trade financing processes as well as the top management of the banks to further improve current risk management practices in particular catering for the new fintech era. This is essential in facing the wave of the 4th industrial revolution. Novelty/Originality of this study: This study has contributed to the limited number of published studies in this area. Most importantly, the attempt to investigate the current practice of risk management and identify actual issues and problems in trade financing processes through financial technology platform has not been researched and explored before.

International Trade Finance

2008 ◽  
Author(s):  
Tarsem Singh Bhogal ◽  
Arun Kumar Trivedi
Keyword(s):  
International Trade ◽  
Trade Finance

Trading Barriers

2017 ◽  
Author(s):  
Margaret E. Peters
Keyword(s):  
Immigration Policy ◽  
International Competition ◽  
International Economy ◽  
Trade Barriers ◽  
Foreign Competition ◽  
Capital Movements ◽  
Social Concerns ◽  
Business Support ◽  
The World ◽  
At Home

Why have countries increasingly restricted immigration even when they have opened their markets to foreign competition through trade or allowed their firms to move jobs overseas? This book argues that the increased ability of firms to produce anywhere in the world combined with growing international competition due to lowered trade barriers has led to greater limits on immigration. The book explains that businesses relying on low-skill labor have been the major proponents of greater openness to immigrants. Immigration helps lower costs, making these businesses more competitive at home and abroad. However, increased international competition, due to lower trade barriers and greater economic development in the developing world, has led many businesses in wealthy countries to close or move overseas. Productivity increases have allowed those firms that have chosen to remain behind to do more with fewer workers. Together, these changes in the international economy have sapped the crucial business support necessary for more open immigration policies at home, empowered anti-immigrant groups, and spurred greater controls on migration. Debunking the commonly held belief that domestic social concerns are the deciding factor in determining immigration policy, this book demonstrates the important and influential role played by international trade and capital movements.

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