Financial Globalization Essay

Financial Globalization Essay

Length: 1800 words (5.1 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Executive Summary

During the past two decades, financial markets around the world have become increasingly interrelated. Financial globalization has brought considerable benefits to national economies and to investors, but it has also changed the structure of markets, creating new risks and challenges for market participants and policymakers. The international marketplace continues to present opportunities for companies. But change is constant and prudent so companies must work to minimize their risks while maximizing their opportunities. The International marketplace can offer considerable financial returns to companies conducting business but there are risks that have to be considered such as trade, foreign exchange, cash management, cross border financing, investment, and multi currency requirements. Especially, financial institutions (seeking a return on their capital, both financial and intellectual), who have developed the product engineering skills and innovation necessary to undertake cross-border financial activities.
This paper will attempt to explain the roles of the financial institutions in the global economy while also looking into the future of the financial services industry over the next decade and speculating as to how the industry is likely to change. Finally, I will examine how these changes might impact the stakeholder relationships my organization has with financial institutions.

1. Globalization

To understand the role financial institutions play in the global economy it is important to first understand the nature of the globa...


... middle of paper ...


...brd.com/about/index.htm.

About the IMF. (2005). Retrieved Nov. 4, 2006, from International Monetary Fund
Home Web site: http://www.imf.org/.

Holmes, A. (2005). Retrieved Nov. 28, 2006, from Just Associates Home Web site:
http://www.justassociates.org/Global%20Economy%20Definitions.pdf.

Nanto, D. K. (1998). Crs report for congress. Retrieved Nov. 30, 2006, from
Federation of American Scientists Web site:
http://www.fas.org/man/crs/crsasia2.htm.

SAP Global, (2005). Financial services companies' greatest competitive advantage is adaptability, economist study finds. Retrieved Nov. 30, 2006, from Business Source Premier database.

Wikipedia, (2005). Asian financial crisis. Retrieved Nov. 11, 2006, from Wikipedia,
the free encyclopedia Web site: http://en.wikipedia.org/wiki/Asian_financial_crisis.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on The Market Integration And Financial Globalization

- The US capital market is considered as the largest and most liquid market in the world. As summarized in the study of Hail and Leuz (2009), the advantage of cross-listing on US exchanges over other exchanges can be attributed to the following reasons. First, 4In this study, ‘financial market integration’ and ‘financial globalization’ are treated as interchangeable term. 17 outside investor protection is strengthened, which allows firms to raise external finance more easily (e.g. Reese and Weisbach, 2002; Benos and Weisbach, 2004; Doidge et al., 2004)....   [tags: Stock, Stock market, Stock exchange]

Powerful Essays
794 words (2.3 pages)

Financial Globalization Has Brought Benefits And Crisis Essay

- es, financial globalization has brought benefits and crisis that leads to contagion, because of the unregulated nature of international banking activity and world financial system that leaves it vulnerable. Financial globalization has grown throughout the years; therefore it has become even more complex to be managed by the government. There are times the government refuses to give regulatory authority to the global institutions that limits the oversight of the international global markets. Overall, there are measures that the government has taken to reduce the threats that include more serious offshore banking and global securities regulations....   [tags: Bank, Finance, Federal Reserve System]

Powerful Essays
732 words (2.1 pages)

Financial Globalization Essay

- Executive Summary During the past two decades, financial markets around the world have become increasingly interrelated. Financial globalization has brought considerable benefits to national economies and to investors, but it has also changed the structure of markets, creating new risks and challenges for market participants and policymakers. The international marketplace continues to present opportunities for companies. But change is constant and prudent so companies must work to minimize their risks while maximizing their opportunities....   [tags: Globalisation Essays]

Powerful Essays
1800 words (5.1 pages)

Political Science Divided into Public Administration and International Poltical Economy

- After globalization, the scope of political science has been divided into public administration and international political economy. Nearly in the end of the Cold War, international political economy got kept tabs on issues raised by monetary globalization, incorporating the practicality of the state in an undeniably globalized worldwide economy, the part of multinational organizations in producing clash and also development in the newly known worldwide economy, and different issues identified with significance, justice, and truthfulness (http://www.britannica.com/EBchecked/topic/467600/political-economy/255578/International-political-economy )....   [tags: globalization financial, worldwide]

Powerful Essays
1761 words (5 pages)

Labor in the United States and Outsourcing Essay

- ... Opposed to widespread belief of outsourcing threatening the labor of United States economy it has been seen that businesses have been able to extract a multitude of benefits through the outsourcing which has in turn created a number of employment opportunities along with it. When the stock market plummeted; companies began to discharge distress signals and corporations commenced labor cutbacks, as a result of which unemployment began to increase greatly. In times when the recession was reaching its peak, the only alternative was to look for cheap labor and outsourcing proved to be an option for them....   [tags: globalization, financial arena, politics]

Powerful Essays
1040 words (3 pages)

The Impact of Globalization in Poverty Essay

- Improvements in communication, information, transportation and trading technology have chained nations together into interconnected and interdependent communities through the process of globalization. These days, governments and international organizations have increasingly focused their attention on the impact of globalization on poverty. Many economists have argued that globalization has helped advance the wellbeing of the poor and that the positive relationship formed between globalization and poverty through trades and Foreign Direct Investment will lead to growth and development in nations....   [tags: financial crisis, developed countries]

Free Essays
521 words (1.5 pages)

Impact Of Globalization On Accountancy Practices Essay

- Globalization might influence in economic and political aspects. Moreover, globalization of business has closed connection with accountancy practices in many viewpoints. In particularly, the effect of globalization of business on accountancy practices presents both great opportunities and significant challenges. However, the greatest challenges are time, distance and comparability of financial report which influences the role of accounting practices. Additionally, accountancy practices have modified by globalization of business, because accountants are required to work cooperatively with colleagues those who work in foreign firms....   [tags: International Financial Reporting Standards]

Powerful Essays
1650 words (4.7 pages)

Is Outsourcing Positive? Essay

- Is Outsourcing Positive??. Outsourcing- out•sourc•ing (out sôr s ng, -s r -) n.: <business> Paying another company to provide services which a company might otherwise have employed its own staff to perform, e.g. software development(dictionary.com) Outsourcing is becoming a common occurrence for industries in the United States. In order to save money, time, and employees, companies are hiring outside businesses to conduct operations for them, especially in the technology field. Many companies are choosing to use outsourcing....   [tags: Globalization, Technology, Businesses, Financial]

Free Essays
1126 words (3.2 pages)

Globalization And Globalization Of Multinational Corporations Essay

- Word Count: 2660 Globalization Technology is a huge part of today’s society and it is helping the world come together in many ways. Because of technology, and what it is capable of, our world is becoming globalized. Because of globalization, multinational corporations are quickly changing how they do business and this is impacting how financial management is conducted. For a better understanding, this report will discuss the pro’s and con’s that technology has on the globalization of multinational corporations, as well as how it is changing MNC’s financial management....   [tags: Globalization, Multinational corporation]

Powerful Essays
2779 words (7.9 pages)

Japan and Globalization Essay

- Japan, home of some of the largest multinational technology corporations in the world, has been influenced in myriad ways through globalization. The effects of globalization on Japan provide valuable insights into the transformation of Japanese society. Global processes have increased wages and homelessness, strengthened environmental management programs, shifted governance towards regionalism, and threatened linguistic diversity in Japan. Numerous studies on Japan’s economy provide both the positive and negative effects of globalization....   [tags: financial, cultural, sociological changes ]

Powerful Essays
970 words (2.8 pages)