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Conclusion

16.37 This chapter's aim was to act as an antidote to the relentless focus of trade finance on techno­logical solutions.

Whilst it is not the intention to deny the significance that technological advances are likely to have in reducing the costs and increasing the efficiency of trade-fi­nance operations, technology alone cannot do all the work. It is also necessary to examine alternative commercial and legal frameworks within which technology can achieve its aims. Whilst open account trading and supply-chain financing techniques appear to be eclipsing more traditional financing frameworks,[1904] such as the documentary letter of credit, both of these techniques are based upon certain assumptions about the political, economic, and financial context in which trade parties are dealing. In circumstances where these assump­tions come under strain, such as in times of national or international crisis, there may be other financing techniques, such as countertrade, that may serve trade parties' interests better. Standing on the precipice of an unprecedented economic, social, and health crisis, the time may be right to consider repurposing old financing techniques to deal with new problems.

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Source: Hare C., Neo D. (eds.). Trade Finance: Technology, Innovation and Documentary Credit. Oxford University Press,2021. — 417 p.. 2021
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