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The financing procedures of British foreign trade

McGregor, P.G. (1981) The financing procedures of British foreign trade. Economic Journal, 91 (362). pp. 571-572. ISSN 0013-0133

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Abstract

The authors provide the first detailed empirical investigation of the financing of UK trade flows based on questionnaires received from samples of firms engaged in exporting or importing in February, I975. The first five chapters (IOO pages) are concerned with the formulation and testing of various hypo- theses relating to trade financing practices. The remaining two chapters are concerned with the implications of the results for the foreign exchange market and for policy formulation. Discussion of the former section of the book can be conveniently organised around the four main characteristics of trade financing identified by the authors; currency of denomination of the invoice; the use of forward cover; the method of settlement; the period of credit.