Globalization and Its Impact on International Finance
GLOBALIZATION AND ITS IMPACT ON INTERNATIONAL FINANCE
CONTENTS 1. Overview……………………………………………………………………...1 2. Introduction to the concept of globalization…………………………………..2 3. Different areas of effect of globalization……………………………………..5 4. International finance…………………………………………………………..9 5. The impact of globalization on international finance i. Relationship between globalization and international finance……....12 ii. Globalization and its impact on developing countries……………….14 iii. Positive & Negative effects of globalization on international finance………………………………………………………………17 iv. Impact of globalization of international finance on global financial crisis………………………………………………………………….21 6. Summary and conclusion……………………….……………………………24 7. References…………………………………………………………………...25
OVERVIEW
Human societies across the globe have established closer contacts over many centuries. Recently, the global integration has dramatically increased. The major changes in communications, transportation, and computer technology have given the process new impetus and made the world more interdependent than ever. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, technology and raw materials move ever more swiftly across national borders. Along with products and finances, ideas and cultures circulate more freely around the world. As a result of this, laws, economies, and social movements are forming at the international level.
International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade.
The implications of globalisation for international finance are many. Developing countries are the mostly affected. The recent wave of financial globalization has been marked by a surge in capital flows among industrial countries and, more notably, between industrial and developing countries. Although
CONTENTS 1. Overview……………………………………………………………………...1 2. Introduction to the concept of globalization…………………………………..2 3. Different areas of effect of globalization……………………………………..5 4. International finance…………………………………………………………..9 5. The impact of globalization on international finance i. Relationship between globalization and international finance……....12 ii. Globalization and its impact on developing countries……………….14 iii. Positive & Negative effects of globalization on international finance………………………………………………………………17 iv. Impact of globalization of international finance on global financial crisis………………………………………………………………….21 6. Summary and conclusion……………………….……………………………24 7. References…………………………………………………………………...25
OVERVIEW
Human societies across the globe have established closer contacts over many centuries. Recently, the global integration has dramatically increased. The major changes in communications, transportation, and computer technology have given the process new impetus and made the world more interdependent than ever. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, technology and raw materials move ever more swiftly across national borders. Along with products and finances, ideas and cultures circulate more freely around the world. As a result of this, laws, economies, and social movements are forming at the international level.
International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade.
The implications of globalisation for international finance are many. Developing countries are the mostly affected. The recent wave of financial globalization has been marked by a surge in capital flows among industrial countries and, more notably, between industrial and developing countries. Although