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Financing Foreign Trade Capstone Project

Financing Foreign Trade The promising prospects of Asian economies and to be specific China has endeared many business enterprises the world over to trade with it. China's trade volume totals 1.4 trillion U.S. dollars while its export amounts to 762 billion U.S. dollars (Alomar, 2007). This paints a rosier picture of foreign trade. That is not a true representation especially for small businesses that undertake to engage in foreign trade. Such businesses are faced with myriad challenges ranging from tedious paper work, regulatory issues, and inherent risks (Alomar, 2007). Some challenges come in the context of difficulty to secure reasonable credit terms locally, risky payment processes, and supply chain management issues (Alomar, 2007). The essay ventilates the main products traded between Australia and the United States and major issues involved in financing trade between Australia and the United States.

The bilateral trade relationship between United States and Australia is informed by the fact that Australia has interest in U.S. positions just like the United States has Interest in Australian positions. Some of the goods traded between these two countries include chicken, pork,...

These are taken exported to Australia. Other products that are traded include sugar, dairy, cotton, foreign built and owned ships for seaborne commerce, and beef. The Australians producers export Beef, Dairy, Tobacco, Cotton, Peanuts, and Avocados free of duty to the United States (Oxley, 2001). Textile and apparel is also trade between these two countries.
The United States government promotes exports by providing credit, finance, and insurance programs that are administered by the Export-Import Bank, the Department of Agriculture, and the Overseas Private Investment Corporation (OPIC). Department of Commerce through International Trade Administration promotes the exports of United States goods and services (Congressional Research Service, 2011). The Obama administration has since introduced the National Export Initiative (NEI) to look into exportation of goods and services by small and medium sized companies. The NEI seeks to double the U.S. exports to generate new jobs. It improves coordination and funding of federal export promotion activities and provides greater U.S. export financing (Congressional…

Sources used in this document:
References List

Alomar, K. (2007). Doing Business with China: Taming the Dragon. Secured Lender, 63(4), 68-

69.

Congressional Research Service. (2011). International Trade and Finance: Key Policy Issues for the 112th Congress. Retrieved from http://assets.opencrs.com/rpts/R41553_20110107.pdf

Oxley, A. (2001). Report: An Australia-United States Free Trade Agreement- Issues and Implications. Retrieved from http://www.dfat.gov.au/publications/aus_us_fta_mon/
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