Partners in international trade
A HSBC case study

Page 1: Introduction

This case study focuses on the HSBC Group, which, as one of the largest banking and financial services organisations in the world, is able to develop partnerships with organisations either trading or wishing to trade overseas. Through combining its local understanding of business and commercial environments with global expertise, it is able to manage the processes for effective trading. The HSBC...
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Page 2: Benefits of international trade

Buying and selling in overseas markets offers potential for businesses to develop and expand opportunities. Some of the key benefits are: greater sales volumes which, providing the business is trading profitably, will translate into higher profits an organisation’s ability to compete in several markets can improve through observing the range of trends in quality, product development...
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Page 3: Secure trading

Catering for all of these differences can involve greater risk. Some markets may suffer from political and economic instability. In others, distribution channels may make it difficult to get products onto the shelves. Trading with companies in North America or Europe usually means trading on ‘open account’ terms so payment is less certain. In other parts of the world...
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Page 4: Import and export finance

Arranging payment to the satisfaction of both importer and exporter can be a problem. The exporter would ideally like payment in advance of shipping goods, while importers like to delay payment until goods have been received. HSBC assists both import and export customers by acting as a trusted third party. Other than ‘open account’, there are two well-used methods of dealing with the...
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Page 5: Examples of transactions

Example 1 ‘An excellent way to boost our sales’ is how a company manufacturing and exporting textile machinery for processing cotton and synthetic fibres describes HSBC Trade Services’ Insured Export Finance facility. In this business, competition comes primarily from Germany but also from Swiss, Italian and Japanese companies. This manufacturer has developed new markets in the...
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Page 6: Conclusion

International trade is becoming a way of life for an increasing number of businesses. As there are many business risks and uncertainties associated with trading outside domestic markets, organisations require secure partnerships. HSBC Trade Services’ strength is to provide an understanding of the local needs of its customers, while having the global coverage to ensure it can provide...
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