ABSTRACT
The factor which has possibly had the greatest impact on competition within the international construction industry in the 1980s is the increased need for finance in developing countries to carry out construction projects. The availability of credit from other subsidiaries in addition to parent company funds vastly expands the number of possibilities of internal financing. In the case of project finance, which forms the basis of financial competition, the contractor faces a different situation to the provision of working capital. The term 'export credit' refers to the set of facilities that the home government makes available to exporting enterprises so that the exporter faces minimal risk exposure and financial obstacles as a consequence of exporting. The basis of financial competition on mixed credit, which is significant to the discussion of financial competition within the international construction industry, stems from the fact that different countries view tied aid differently according to industry and government policies and objectives.
