Vol. 8 No. 4 (2022): FINANCE AND BANKING
Issue Articles

Directions of influence of trade financing on the amount of foreign trade

Ishandjanov Sardor Tulashbekovich
Bio

Published 2022-12-29

Keywords

  • trade, trade financing, foreign trade, e-export, import, mercantilism, comparative advantage, absolute advantage, Heckscher-Ohlin factor supply, International product life cycle, New trade theory

How to Cite

Ishandjanov, S. (2022). Directions of influence of trade financing on the amount of foreign trade. FINANCE AND BANKING, 8(4), 50–57. Retrieved from https://journal.bfa.uz/index.php/bfaj/article/view/106

Abstract

This article examines the impact of trade financing on foreign trade operations. Financial support for international trade has a long history, with archaeologists having found evidence that foreign trade was financially supported in Mesopotamia even BC. Since ancient times, credit or debt funds have been provided to buyers or sellers based on a bill of exchange to finance foreign trade. However, international trade financing is a risky and time consuming process. Therefore, trading partners need to agree not only on the price and features of products and services, but also on the terms of delivery and payment. Various financing arrangements are made to share risks and provide financing during the period between production and sale.

 

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