Global Capital Markets: Risks and Rewards

Today’s world economy is becoming increasingly financially integrated. Funds are flowing in vast amounts across the globe. “In today’s world the money moves instantaneously, the money is like electron somewhere on somebody’s hard drive”, says Jack Blum, UN Consultant. A US citizen can provide funds to a foreign entity like Sony or Toyota by buying stock or bonds issued by these corporations, or a Japanese citizen can lend money to the US Government by purchasing US treasury bills. This is all feasible through financial globalization which is the removal of restrictions on the international trade of financial assets.