The international trade activities of MNCs have grown in importance over time. This trend is attributable to the increased globalization of the world economies and the availability of trade finance from the international banking community. Explain various trade finance methods of financing international trade.

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Currency Market

The currency market, also known as the foreign exchange market, consists of currencies worldwide. This market determines the rate of all currencies based on the buying and selling of forex. It is an over-the-counter market. It is the largest and most liquid market based on trade volume.