Problem:
Due to the difficult financing conditions prevailing in the international credit markets and increased risk aversion by the lending, gross inflows of short-term trade credit to India declined in 2008-09 and this trend continued in 2009-10.
Use India as an example and learning tool to appreciate the complexities of international trade financing.
What would your biggest concerns be if you were financing trade with India?
What could be done to minimize the risks?