Problems and Countermeasures of International Trade Financing of Small and Medium-Sized Enterprises in China

Small and medium-sized enterprises are the foundation of China’s national economy, and they are important forces to promote economic and social development. They play an irreplaceable role in promoting scientific and technological progress, increasing social employment, expanding foreign trade, and other aspects in which they have become an important part of China’s socialist market economy. Based on the research background of international trade financing, this paper analyzes the problems existing in the international trade financing of small and medium-sized enterprises in China to put forward countermeasures and suggestions, hoping to help these small and medium-sized enterprises solve the financing problem so as to achieve a healthy development in the international trade market environment.

Role of Cash Waqf Linked Sukuk In Economic Development and International Trade

The aim of this paper is to examine the role of Cash Waqf Linked Sukuk (CWLS) in economic development and trade in Indonesia. This research is motivated by the fact that there is still limited financing to economic development in Indonesia as well as trade financing. The research based on a qualitative methodology using the data from scientific journals and paper in the field of Cash Waqf, including CWLS. The results cash waqf in several countries has been used for beneficiaries. Especially for CWLS, it consists of 2 types, namely wakaf sukuk and retail waqf sukuk. For waqf sukuk, the proceeds of the waqf have been channelled to finance the construction of the retina center and glaucoma center at the hospital. Meanwhile, retail waqf sukuk are used by each nazir to finance the program. This research shows that CWLS is proven to play a role in economic development, particularly infrastructure. The infrastructure that has been built is in the health sector. CWLS can also be an alternative source of funds with low-cost of fund which in turn enables the Eximbank/ECA to extend trade financing to the cooperative with competitive price. However, there are some action need to be taken, i.e (i) conduct socialization regarding CWLS to improve public awareness and enlarge the wakif base and (ii) issue DSN regulations regarding CWLS.JEL Classification: F13, F63, P33How to Cite:Tanjung, H., & Windiarto, A. (2021). Role of Cash Waqf Linked Sukuk in Economic Development and International Trade. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 275-290. https://doi.org/10.15408/sjie.v10i2.20493.

Trade Finance in Digital Era: Can FinTech Harness the Current Risks and Challenges?

Trade and commercial activities are the foundation and supporting pillars of the global economy. It is through trade, particularly international trade, that a country’s economy is developed and sustained. It is a fact that FinTech platforms help financial service providers to become more time and cost-efficient in delivering trade finance services, however, the moves come with a high price. As the system becomes complex, the risks associated with it are also high due to systemic vulnerabilities, hackers and security hurdles. This current state requires more rigorous risk identification and management systems along with proficient internal control system, especially for international trade and trade financing. It has propelled many financial intermediaries to be more competitive in committing to the development of digitised channels and propositions, preparing to cede market share to a new generation of providers that have already seized the imperative to respond to market evolution in international trade. The main aim of this paper is to explore how far can FinTech platforms help the financial service providers to be more efficient in providing their services to the end-user while at the same time be excellent to harness the possibilities of cyber and FinTech risk in this digital era. The study reviews past studies done in this area, especially on the risks and challenges, the prospects and opportunities of FinTechs in trade financing and its ability to cope with the risks inherent in FinTech solutions. The findings show that the benefits of FinTech platforms outweigh the shortcomings and with sustained collaboration, standardization and a holistic approach to the development of FinTech solutions, the risks of digital transformations can be considerably reduced.

Structured Financing Producs as an Alternative to the Traditional Financing

The article examines key aspects of the structured trade financing instruments and prerequisites for their existence. The research is based on an analysis of synergies between financial and commodity markets, and aimed to the development of sustainable risk management tools by enhancing access to capital thru alternative financial instruments, especially for the small and medium size entrepreneurs. The main focus is concentrated around developing economies.

A Technical and Industrial Analysis of Global Plastics Market, Trade, Financing, and Operations

Plastics are synthetic or semi-synthetic meltable substances that can be modeled in solid objects. In the modern world, it seems impossible today to live without plastic or synthetic polymers, which production and usage only go back to 1950. While plastics play a central role in modern society, the production of safer and cleaner products for potential use is required for decreasing the negative environmental effects. The purpose of this article is to analyze the plastic industry, the role of plastics in our social life, the situation in the plastics market, plastic recycling, and masterbatch compound production. For the purpose of this article, the main markets which have been analyzed are; Europe, Asia, and North America. There is a specific part focusing on Turkey who ranks 6th in terms of plastics processing capacity in Europe and has a huge plastic waste mismanagement problem. Finally, there is an analysis of the financial and operational side of global plastics trading, contract terms, and payment methods, which are being used today by the companies who are operating in the petrochemical industry and commodity trade financing generally.

Trade finance constrains as a barrier for Chilean services internationalization

The growing importance of trade in services in the international economy motivates the study of different factors that may influence the development of this sector. This paper seeks to contribute to the scarce research on access to financing for the internationalization of services. Through a survey, we analyze the perception of Chilean services exporters about access to financing instruments for trade, and whether this constitutes an obstacle in the process of internationalization or not. For companies that participated in the study, access to trade financing is not a barrier for exports. However, these results vary according to characteristics of the companies.