Financial export
Encyclopedia
A financial export is a business service provided by a domestic firm (regardless of ownership) to a foreign firm within the scope of financial services. While financial services are often seen as a domestic service (such as current accounts, mortgages, cashpoints, etc.) the growing international nature of finance means that many services are now being handled abroad or in financial centres, for a variety of reasons. Financial exports include a wide range of activities from insurance to banking and brokerage. Many smaller locations (such as Bermuda
, Luxembourg
, and the Cayman Islands
) lack sufficient size for a domestic economy, thus requiring them to look abroad for markets. The increasing competitiveness of financial services has meant that many countries which were self-sufficient or protectionist have become increasingly reliant on financial service imports (such as the United States
and Japan
).
The United States
, France
, and Japan
are all importers of financial services, whereas Switzerland
and Germany
both record modest surpluses. The leading financial exporter, in terms of exports - imports, is the United Kingdom
, which had £19bn of financial exports in 2004, rising to £21bn in 2005. The UK's position is helped by both unique institutions (such as Lloyds of London for insurance, the Baltic Exchange
for shipping, et cetera) and an environment that attracts foreign firms (all large US banks have offices and operations in the City of London
/Docklands and/or Edinburgh
).
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, and the Cayman Islands
Cayman Islands
The Cayman Islands is a British Overseas Territory and overseas territory of the European Union located in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica...
) lack sufficient size for a domestic economy, thus requiring them to look abroad for markets. The increasing competitiveness of financial services has meant that many countries which were self-sufficient or protectionist have become increasingly reliant on financial service imports (such as the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
).
The United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
are all importers of financial services, whereas Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
and Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
both record modest surpluses. The leading financial exporter, in terms of exports - imports, is the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, which had £19bn of financial exports in 2004, rising to £21bn in 2005. The UK's position is helped by both unique institutions (such as Lloyds of London for insurance, the Baltic Exchange
Baltic Exchange
The Baltic Exchange is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts...
for shipping, et cetera) and an environment that attracts foreign firms (all large US banks have offices and operations in the City of London
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
/Docklands and/or Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
).