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متابعة

What is the major difference between Trade Finance and Finance?

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تم إضافة السؤال من قبل JAFAR SADIQUE MOHAMED SALI , Senior Accountant , ANKER MANAGEMENT LOGISTICS
تاريخ النشر: 2016/10/19
SYPUDDIN.M SAIF
من قبل SYPUDDIN.M SAIF , MEDICAL REPRESENTATIVE , FDC LTD AND FEMURA PHARMA

Trade finace is nothing but which is the finace used in day to day business purpose and Finace is used for long term activities of abusiness.

zaidu Mohammed Nadeem
من قبل zaidu Mohammed Nadeem , Transaction processing Analyst , Accenture

The basic differences relate to the intertemporal nature of financial trades and to the potential for asymmetric information to eliminate trade gains. Asset trade inherently involves commitment – the commitment to pay on a later date. Payment in reality is therefore always contingent, and the circumstances of contingency can depend on information known to only one party to the deal. Thus, financial transactions inherently must allow for the asymmetric-information distortions that we call moral hazard and adverse selection. These distortions reduce the gains from asset trade that would otherwise be available – even with an efficient and impartial judicial enforcement system.

As is well appreciated, government guarantees aimed at mitigating the redistributive effects of financial crises can, in fact, worsen moral hazard and raise the probability of eventual crises.

Again, the difference compared to goods markets is a matter of degree. A consumer durable yields returns over time, it may be known to the seller to be a “lemon,” yet an unconditional service contract may leave the owner with insufficient incentives to operate the durable good appropriately. But there is no doubt that commitment and informational problems are by far most severe, and have the widest systemic ramifications, in the financial market setting.

Ashraf E. Mahmoud (PhD)
من قبل Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

"Trade Finance": is mainly concerned only with the funding of the "Trade Cycle Gap" i.e. the "Net Working Capital", which equal "Current Assets - Current Liabilities", of the organization.

Whereas, 

"Finance": is concerned with the funding of all aspects of financial requirements of the organization's activities..

Buwet Junadar
من قبل Buwet Junadar , Sales Manager , Citi - Singapore

Hello there. Convenience is one of the biggest benefits that makes Toyota Financial the best choice for those looking to purchase a car. You can apply for financing online, and it will be reviewed very quickly, and if approved, everyone will be able to quickly receive their car. And if anyone needs preliminary consultation on the terms of financing, you can always call the toyota financial phone number and their highly qualified employees will be happy to answer all questions.

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