Question

Why are banks often involved in export transactions?

Answer 1

Answer:)

Why are banks often involved in export transactions? During the process of payment between two companies from different countries, they have to convert the currency. A bank is the only one who can help companies convert currency to the one they prefer.

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Answer 2

Through foreign branch banking, U.S. based multinational companies can consolidate their financial business at a single bank that handles their trade finance, currency transactions, project loans, payroll, cash management investments and deposit accounts throughout the world.