1. Improved the stability of the world economy
The fluctuations in international trade have caused instability in the macroeconomic development of various countries. and one of the main factors in changes in the world economy. **The development of trade finance can promote the development of international trade and improve the stability of international trade, thereby greatly improving the stability of the world economy. **Trade finance combines international trade and international financing, linking the movement of international goods with the movement of international funds, reducing the disconnect between economic operations and financial operations. **Trade finance also promotes economic connections and mutual understanding between trade and financing parties, increases the transparency of economic exchanges, and helps reduce transaction costs such as information search for economic operations; increases the accuracy of decision-making and reduces operational costs. of blindness. **The development of trade finance can increase the expansion of macroeconomic aggregates and market diversification of countries around the world by promoting the expansion of international trade scale. As a result, countries around the world are strengthened and their ability to resist cyclical changes and fluctuations is improved. The close integration of international trade and international financing has improved the coordination of economic operations among countries and greatly improved the stability of world operations.
2. Strengthened international economic exchanges and world economic integration and globalization development
** The new trend of changes in the development of trade finance reflects the increasing degree of market participation in international trade finance, which means that the development of international trade finance has begun to deviate from the official promotion track and has begun to enter a stage of automatic market participation and automatic development. **The convenience of trade financing naturally promotes the development of international trade; the development of international trade strengthens the economic ties between trading parties. Through international trade financing, the two parties involved not only have economic ties through trade in goods, but also have closer economic ties through capital exchanges or other financial exchanges. **Trade financing enables business exchanges between different countries in both the real economy and the financial field, which further strengthens the economic exchanges between different countries and closes the economic ties and interdependence between different countries. As a result, the degree of world economic integration has been improved and economic globalization has been developed.
3. Improved the stability of international capital flows
**Trade financing makes international capital The flow is linked to international trade, reducing the disorder and volatility of international capital flows. Whether it is a direct financing form or an indirect financing form of ** trade finance, the flow of funds is related to the entityThe operation of the economy is connected; compared with the pure flow of funds in the financial market, the profit-seeking nature of funds reduces the frequency of flows due to its integration with the real economy, thus improving the stability of capital movements. The information in the international financial market is ever-changing, and the use of modern financial trading techniques such as program trading also causes financial capital to fluctuate on a large scale and rapidly as the information changes, regardless of the authenticity of the information. **Trade finance enables international capital flows to be locked in by the "stickiness" of international trade, which inherently has high stability; **Capital flows in trade finance, through demonstration effects, can drive the stability of other financial capital flows improve. **Trade financing also increases the credit capacity of developing countries by pledging international trade goods, improves the resistance of developing countries to the impact of international hot money, and helps reduce the aggressive behavior of international speculative capital. , which also improves the stability of international capital flows on the other hand.