On International Trade Finance

In present, facilitating preferential credit term play an important role among the international trade bargain terms. As the scale, quantity of international trade expands, scope of mercantile partnerships widens, and complexity and uncertainty of trade increases, both trade parties are in a dilemma in which they have to choose between the bargain and risk. Taking the advantage of international trade finance can eliminate the dilemma above. From a micro point of view, international trade finance could not only satisfy the capital demand of export enterprises, reduce the capital occupancy and elevate the funds liquidity, but also enhance enterprise competition by the mercantile partnerships, expand the trade opportunity and increase the export. From a macro point of view, international trade finance could accelerate external trade and promote economic development and employment. These advantages have already been extensive applied in the developed countries but not played the role in our foreign trade. Therefore, this thesis attempts to sysmatically analyze international trade finance, find the problems and constrains existing in our trade finance and thus propose corresponding suggestions and measures.The thesis first introduces development trends, role and advantages of international trade finance; then expounds risks international trade finance faced and corresponding principles and measures; finally analyses our main trade finance problems existing in banks, government and enterprises, and proposes the corresponding micro measures and macro suggestions. The thesis consists of 4 chapters: Chapter 1, Introduction of international trade finance. Introduces concept, classification and development trends of international trade finance. Chapter 2, Necessity of develop international trade finance. The conclusion that international trade finance should be promoted is drawn by studying its role and advantages. Chapter 3, Risks in international trade finance and risk control. Chapter 4, Problems existed in our foreign trade finance and countermeasures. Countermeasures areproposed from the aspects of prevention of risks, perfection of export credit system and development of varied forms of financing.