Sunday, June 10, 2007

Globalistaion and financial markets

HOW HAS THE DE REGULATION OF GLOBAL FINANCIAL MARKETS ACTED AS A FACTOR OF THE INCREASE OF GLOBALISATION?

Yes, But I would suggest it is quite a limited factor.

Deregulation of financial markets has made it easier to transfer money to investment projects. Therefore, it has helped increase inward investment, which encourages global MNCs to enter developing countries.
Deregulated financial markets make it easier for workers and firms to move from one country to another.

However,

Restrictions of global finance still remain. Especially in countries like China. China has restrictions on residents buying foreign currency. But, China typifies the success of globalisation

Globalisation is due to many other factors
See: What explains the rise of globalisation?

No comments: