What are the effects of financial risk on international trade in services

What are the effects of financial risk on international trade in services

An important feature of modern world economic development is the rapid development of international financial services trade, but how does its development affect North-South relations, but few are mentioned. This paper analyzes the concept of international financial service trade and analyzes the characteristics of its development. Finally, it analyzes the influence of the development of international financial service trade on the north-south relationship and draws the following conclusions: The rapid development of international trade in services makes the economic gap between North and South increased, resulting in the instability of North-South relations, and to a certain extent, aggravated the North-South relations unreasonable, unfair and unequal.

With the formation of financial global market and the emergence of new financial technology theory, the development of international financial services trade has increasingly demanded diversification of financial services products, and the supply of financial services products has also increased, including low value-added Wages, government bonds and other service products, including personal finance, banking license, financial advisers, investment and financing consultants, financial derivatives and other high value-added services products. In so many types of financial services products, the development of financial derivatives is the most rapid. In 1972, the Chicago International Commodities Exchange launched a series of foreign exchange futures contracts including sterling, French francs, yen, Canadian dollar and Swiss francs. For a short period of 30 years, financial derivatives in international financial markets According to the international financial authority statistics, the current international financial market derivatives has been as high as more than 1200 kinds of these derivatives in the original financial products based on the combination of re-use combination, derived from the derivative, formed a The world’s huge derivatives market. These vast variety of financial derivatives expand the scope of business of financial institutions, improve the leverage of financial institutions and capital, provide users with the most effective tools to transfer risk and manage risk, but also provide users with new financial investment opportunities. Thus, to some extent, these financial derivatives make financial market transactions more active, more liquid, and continue to expand the breadth and depth of financial markets, improve the financial market operating efficiency and pricing efficiency. However, due to the diversification of financial derivatives is developed in the context of the turbulent international financial market system, it can be used for financial risk management, but also for financial risk investment, and therefore contains a wide range of financial derivatives the market becomes more uncertain.

Leave a comment

Your email address will not be published. Required fields are marked *