Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Was the Trade Boom partly driven by cheap credit?


I was just reading a report by Capital Economics on a decline in Chinese exports. They wrote

….strains have been growing in the system of trade finance that underpins global trade. Industry sources report that 70% of China’s exports last year were financed by letter of credit which, anecdotal reports now suggest, banks are now less willing to issue or accept.

I wonder. When you buy stuff from the other side of the world, somebody has to finance the goods in transit. Could it be that cheap credit made it easier to outsource production to China?


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus