Monday, August 25, 2008
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.
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3 comments:
Liberalization has helped in realizing the potential of countries like India and China who now act as a treat to the developed world.( this was also evident in the WTO meet a few weeks back .Globalization according to me is a sub-set of liberalization...nice one dada..Maybe u can share some more info with us
Thanks for your inputs Meera. Liberalization has paved the way for Globalization and the latter has induced the developing nations to further liberalize - the progression was a double helical path. But, inter-temporal trade is the key reason why the developed nations resorted to financial globalization.
Hope my latter posts help you freeze your thoughts with better clarity.
Thanks for your nice article.You said well and your thinking is great.I appreciate your wonderful thought.
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