COMCEC Trade Outlook 2016
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Figure 40: Top Ten Member States Receiving the Highest FDI Inflows in 2014
Source: UNCTADSTAT
Figure 41: Member States Receiving the Lowest FDI Inflows in 2014
Source: UNCTADSTAT
Trade Financing:
Trade finance is a general term used for financing of the international trade. Some 80 to 90
percent of the world trade relies on trade finance (trade credit and insurance/guarantees),
mostly of a short-term nature (WTO 2013).
Exporters usually get payments after delivering the goods to the importers. During this period,
which may take several months, the exporter may need financing for delivering the orders on a
timely manner. Therefore, financing is needed not only for the import-export process itself, but
also for the production of the goods and services to be exported, which often includes imports
of machinery, raw material and intermediate goods (UNCTAD 2012).
Available trade financing within a country increases the competitiveness of firms to compete in
international markets and encourages the firms especially the SMEs to export. Thus, it helps to