The Role Of Financial Institutions In Export Financing

ABSTRACT

Due to tile differences found in the natural environment of resource level in different countries, the concept of specialization was given rise to which led to the concept of exportation business in the different countries. According to Nzotta (2004), countries are characterized by difference in tile level of endowment of natural resources, human and capital resources and technical know-how available to them. Some countries have an adequate level of sonic or 4, all of these resources, while most others lack some or all of these resources necessary to ensure economic growth and high standard of living for their citizens. Thus, they must engage ill Some form of trade across to tile national boundaries in an attempt to gain access to the resources (natural, human, capital and technical) which they require to sustain economic growth. Nzotta, also went on to say that international trade (export) entails lie cited  of trap in goods and services across boundaries. It is note worthy that trade between nations can only occur if it is possible to exchange the currency of one nation for that of another.