In merchanting, a company purchases a good from an entity that is resident abroad and subsequently sells it to a foreign buyer, without the good crossing the border of the country where the merchant is based.
[4] See Di Nino, V., Habib, M. M. and Schmitz, M. (2020), “Multinational enterprises, financial centres and their implications for external imbalances: a euro area perspective”, forthcoming in Economic Bulletin, Issue 2, ECB. [5] Following Lane, P. R. and Milesi-Ferretti, G. M. (2018), “The External Wealth of Nations Revisited: International Financial Integration in the Aftermath of the Global Financial Crisis”, IMF Economic Review, Vol.