StudentShare solutions
Triangle menu

What explains today's high degree of global financial integration - Essay Example

Nobody downloaded yet

Extract of sample
What explains today's high degree of global financial integration

lobal integration in the financial market has given the opportunities to the investors to diversify the risks and to access the financial products in a more easy way. (Agarwal, n.d.)
The functionalities of the process of globalization has been motivated by heterogeneous factors, such as gradual increase of trade in goods and services, increase of free movement of capital across international borders, increase of international mobility of labor and increase of global technological transfers. The impact of international movement of capital and global financial integration on the developing countries experienced a dramatic change in the early 1990s with the enhancement of financial deregulation in many countries. (Wolf 2005) This is the period when the free capital movement from the developed and industrial nations to the developing nations had started to rise vividly which was seen through the increase in growth of the developing nations. However, during this era the globe has also seen a sequence of financial crises across many countries. In one hand many developed countries faced the financial crises, such as the 1992 and 1993 financial crises of the developed countries in the European Exchange Rate Mechanism (ERM). On the other hand the developing nations also faced such crises, like the Mexican Tequila crisis in 1995, 1997 and 1998 Asian crises, the Latin American and the Russian crises from 1998 to 2000 etc. All these crises that were seen throughout different part of the globe gradually proved that there lies an inherent risk of the international financial integration behind its benefit. The international financial integration through the opening of the cross border financial markets is a multifarious phenomenon that involves in unrestricting the movement of foreign direct investment (FDI) from the developed countries to the developing countries and pulling up the regulations from both the short term and long term financial instruments which are responsible ...Show more


Global financial integration on one hand implies the deregulation of the domestic financial market and the opening up to the international trade and capital movement of an economy and on the other hand it implies integration of the domestic financial market of the economy with…
Author : tcrooks
What explains todays high degree of global financial integration
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"What explains today's high degree of global financial integration"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Global Economic Integration Brazil
The main aim of increasing the trade helps the distributors and consumers as the prices being lowered once there is no requirement to pay the custom duties within the specific integrated states. For the recent years, the economic integration between Brazil and other nations has been flourishing and still it is on the rise.
2 pages (500 words) Essay
Integration of Financial and Operational Management
Dell has been a market leader since its inception. The company experienced a period of difficulties in mid 90s where it faced numerous operational and financial issues which affected the profitability of the company. Changing customer’s demands and its inefficiency in stock management systems made the company face declining revenues and profitability, diminishing quality and negative cash flow position.
8 pages (2000 words) Essay
European Integration High School Essay
On the other hand, the process of integration has fostered a democratic atmosphere that has resulted in a highly stable and influential diplomatic partner and ally for the US that has greatly enhanced America's national security. The growth of European unity from a six nation trading block in the 1940s to the 25 nation political, military and economic confederation that exists today has been accompanied by a similar evolution in America's attitude toward the integration of Europe.
8 pages (2000 words) Essay
Global Financial Environment
Integration has given way to opportunities for competition. As technologies break down communication and transportation barriers, countries of the world are finding exploiting the opportunities for expansion easier. Some of the drivers that positively influence globalization include the growth of industrialization in other countries of the world which reduces costs, tariff and working capital.
11 pages (2750 words) Essay
Business Strategy in a Global Environment
Conventional management and strategies have give way to new models and techniques. Companies are compelled to look at a broader perspective than local issues and characters. Even small firms are more worried about increasing flow of capital from one destination to another and emergence of wider market.
12 pages (3000 words) Essay
Global Warming High School Essay
Global warming can be traced to the increased level of greenhouse gases like carbon dioxide in the atmosphere because of human activity such as coal burning and the use of automobiles (Global Warming Basics 2). This rise in temperature is expected to bring about sudden changes in the global climate "causing parts of the earth to dramatically heat up or cool down in a span of few years" (Global Warming 1).
2 pages (500 words) Essay
Global Financial Crisis
Record numbers of people have lost their jobs in the past year and a half. I have taken up the global financial crisis as my focus of discussion. The essay has been structured into three parts. The first part explains what recession is. The second part analyses the causes for this economic downturn and the third portion is where I have tried to provide some solutions that might help preventing the situation in the future.
5 pages (1250 words) Essay
Global Financial Crisis essay
In 2008, the overall world growth slowed down by 3 per cent (HM Treasury UK) in wake of political instability, economic downturn, humongous trade deficits, and heavy reliance on energy sources, creating peaks and troughs for oil and energy prices in wake of the Iraq war and the overall political uncertainty across the world.
4 pages (1000 words) Essay
The Most Challenging Aspects of Today's Global Business Environment
Four of these forces as illustrated in figure 1 below are political, economic, social and technological forces, together referred to as the PEST forces (Porter and Kramer, 2006). In the opinion of Ghemawat (2007), the kind of evolution being experienced in business gives
6 pages (1500 words) Essay
Organizational Alignment: Managing Global and Local Integration
Lack of teamwork in the organization has caused the problems it is facing and there are barriers to effective teamwork in the organization. To build effective teamwork in such an organization
3 pages (750 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic What explains today's high degree of global financial integration for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us