International Capital Markets

Globalization and modern technologies of information to the traditional notion of “world economy” of today totally different, new value. The term “financial globalization” understands the world as interrelated and interdependent, and continues to integrate a market without limits. However, the concept of “internationalization” in relation to the global economy, which economists said and written before the 80-s, imply an active relationship with the world of independent national and regional markets.

The globalization of financial markets, revolutionary effects of today in fact, not only for financial markets in the world in general, but also for international investors and borrowers of capital, based on the globalization of trade flows. In the 60s the process of globalization has begun to develop on the basis of the internationalization of production, capital and goods markets, primarily in the triangle of America-Europe-Asia. The industry has played a leadership role in the financial sector.

The modern economy

In the modern global economy, trade relations given the monetary and financial impetus in the intensification of the globalization process. last quarter century is characterized by significant changes in the financial world, the introduction of many innovations in the organization, banks and management methods in the client-sluzhivaniya businesses and individuals. Cash-century techniques of acid and methods of the bank, fake mustache, acquire new capabilities. At the same time, numerical experiments with new types of operations and initial services, which has no analogues in world practice and made possible through a complex combination of factors that influence demand and supply capital money.

International markets

Internationalization of markets means that the nature of the operations of both borrowers and lenders, the broad diversification of assets and liabilities across countries and regions, the presence of a strong network of offices, branches and subsidiaries abroad olitse not allow you to create only with the country of his nationality. A global resource name “capital mobility mobility becomes important. The flow of capital around the world for the most attractive possibilities and cost effective implementation.

globalization of markets, the process is very similar to the internationalization and strengthening the role of international markets in terms of borrowing and lending by residents of different countries. internationalization and globalization lead to the growth of international financial institutions and enterprises to increase the proportion of firms corresponds to foreign countries.

The globalization of financial markets is also a convergence, convergence of conductivity and the identity of price and quality in a time frame for a specific financial product worldwide. At the same time, not taking into account the local cost-SE or other local conditions.

Financial Sector

In the financial sector, market participants such as banks, financial institutions, stock exchanges, governments, central banks, media, borrowers, investors and manufacturers of information technologies affect the most important factors of financial globalization. By the interaction between them and the factors may be: in stitutsionalnye / mezhdunarodnye capital flows, the modern theory of portfolio management, the professionalism of the participants, the financing of PV innovation, liberalization and deregulation of markets, competition, the search for more profitable opportunities for new capital investment, free movement of capital, competition for access to cattle tilnost capital markets, information technology, securitization, standardization of financial products, markets in developing countries, the demographic situation, the amount of savings. Thus, the parties are called the engine of globalization.

The interdependence of national economies counlas gradually developing in the context of the deepening division of labor, the whisker root NTP. raw resources have been globalized for the first time in 1960, which were followed by currency derivatives, securities and indices. Developing or emerging economies (emerging markets), despite the currency and financial crisis emerging in the long term is considered an important component of many integrated global financial world.

For international investors and borrowers loom at the end the following capabilities and requirements of the globalized financial market.

highest level of diversification and the high rate of innovation

International investors and lenders now face a choice between cotton NEOH markets, financial products, foreign exchange risks, etc. of the securities firm is global in global financial markets, new investors. Active participants will receive a further examination of markets, products, capital flows and the competitive situation. Global competition is also the press to keep the pace of introduction of innovations, usually higher than the market for sound, protected by national protectionist policies.

higher liquidity – The participants in global markets and finance are characterized by products in most cases the best side visibility. This is particularly true for financial markets-nym formally organized.

Labour Risk Management – Information Technology Globalization, financial innovation, organization and management of modern portfolio theory as it is for a short period of time to develop a specific system of risk management and optimization: the risks are classified assessment, move, delete, and are limited. Therefore, the risk of substitution, where you can evaluate, identify, convenient, portable and easy to manage.

A more efficient allocation of capital, globalization and information technology have brought the possibility of a more efficient allocation of investment capital, at least in the medium term. In essence, globalization promotes mutual understanding with the investor and the borrower.

Financial globalization means that markets as allocators emotions rigid and free movement of capital to more efficient investment opportunities in other conditions specified in the world. Due to the fact that investment opportunities, as mentioned above, shareholders and the shareholders have not been evaluated at all, but rather, both have different opinions on the most profitable alternative use of capital the pressures of globalization can be considered a balance between the risks of catalyst for the rational allocation of capital.

complex chains of influence – the globalization of financial markets creates a new chain of cause and effect mainly external: the facts of global politics, economics, science, demography, etc. participate in the emotional power of perception people most unexpected reaction, which immediately affects national and international events in progress.

Global players speculative regional stock markets

The globalization of financial markets often leads to the difference between global and focused on the domestic market participants. Therefore, the regional capital markets are important national event for small businesses and medium businesses can use to get margins. These exchanges of small and medium should help strengthen its competitiveness as a member of the global market integration. In this process of globalization can have a positive impact on net domestic markets, if not revolutionary measures, at least evolution.

The globalization of financial markets increases the abuse potential of all the various financial instruments. Each hedging instrument can be used for speculation. short-term benefits may go against future risks and liabilities. The most important and most urgent technical issues of a modern society, the global network that identifies and calculates the mutual obligations. It is also crucial for more advanced systems, serving the flow of payments, securities trading and custody of securities.


In general, self-regulation and market forces will self-correction were perhaps the most optimal and efficient. Yet, despite all the potentially dangerous moments, the benefits (or opportunities) provided by the globalization of financial markets are larger. Crucial in this are the following assumptions: first, self-discipline (within the framework handles the complexities of globalization and concentration of capital through careful observation official), and secondly – the choice of reliable partners (the only institution in the highest class of all-encompassing set of financial products and information technologies appropriate configuration can be considered a partner).

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Wednesday, January 12th, 2011 International Business

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