Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate financial constraints arising from asymmetric information...

type="main" xml:id="twec12167-abs-0001" <title type="main">Abstract</title> <p>Trade credits are an important financing tool for internationally active firms. This is surprising, as trade credits are generally more expensive than bank credits and thus a costly substitute for bank financing. In this paper, we investigate the...</p>

<Para ID="Par1"> Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our analysis focusses on cash-in-advance financing. With the help of a theoretical model, we show that firms intensively use...</para>

National economies are linked through flows of capital and goods. This book addresses those linkages, analyzes their benefits for economic development, and evaluates a country’s opportunities to reap the best possible rewards by influencing the linkages. The book focuses on the role of product...