International Trade, Part III: Countertrade

In this 3rd part of our series on finance in international trade, we’re touching briefly on countertrade, or the trade arrangement in which groups circumvent strict foreign exchange controls and/or low creditworthiness by the practice of countertrade. In brief definition, countertrade is the arrangement in which services and/or goods are exported by a manufacturer with … More International Trade, Part III: Countertrade

International Trade, Part II: Government Programs

Continuing in our series on trade financing, here we’re going to talk a bit about government programs to subsided credit for national exporters. One example is export credit insurance, which allows an exporter to receive insurance in the case that the customer (importer) defaults on payment.  If so, the insurance agency will pay a large … More International Trade, Part II: Government Programs

New Series! International Trade Finance – Forfaiting

There are classic ways of financing certain types of projects and then sometimes you need to work with the alternatives to make things work out well.  In trade finance, there is such an alternative financing tool that is called forfaiting. The aim of forfaiting is to eliminate risk of nonpayment by the importer if they … More New Series! International Trade Finance – Forfaiting