ABSTRACT

Trade and supply chain finance, though fairly esoteric and specialized, involves mechanisms, products and processes that are well established, highly flexible and adaptive, and solidly proven across a wide variety of contexts. The ability of businesses to mitigate foreign currency risk and to secure advisory support are equally well suited to smaller companies, and the refocus on adequate risk mitigation in the context of trade and supply chain finance adds the final element that makes the value proposition compelling for developing and emerging markets. Developing markets are unique and differentiated, as are most markets across the globe; however, there are several shared and relevant characteristics worth considering, in the context of international commerce and trade finance. The range of risks covered is encompassing, from country and political risk to bank and commercial risk, and even transaction-specific risk such as foreign currency exposure and others.