How does globalization affect financial markets Research Paper

How does globalization affect financial markets - Research Paper ExampleThis is because globalization has created a wide-ranging affects in the financial markets of various economies. This canvas will focus on the quantitative and qualitative analysis of globalization of the financial sector. The essay will use descriptive statistics to conduct the quantitative analysis. The piece of music will explain the impact of globalization in the capital, investment and the exchange rate market. The studies of the essay will help the researcher analyze the advantages and disadvantages of globalization in the global financial market. It will show how a single change in the financial market of one nation in the current reality can affect the market conditions of all the other economies. Contents Contents 3 Introduction 4 Situation Analysis 5 Conclusion 17 References 18 Introduction The report will throw a light on the impact of globalization in the financial market. In order to implicitly ana lyze this statement, the paper will utilize both theoretical and technical tools of research analysis. After completing the analysis, the researcher will conclude with the empirical analysis. This is the era of globalization and liberalization. Globalization is the process that involves the international integration between the nations that takes place from the interchange of ideas, products, homo views and culture between nations. In the modern world, the economic growth of any economy is not possible without the effective contribution of globalization. Any development in the transportation, communication or internet segment of the market is provided feasible with the contribution of globalization. This process has helped countries augment the living standard of individuals and substantially helped them to experience the usage of new goods and services. The growth of business activities in the modern economies has shown the essential for contribution of financial sectors. The financial segment of any country includes the commercial banks, non-banking financial institutions and the central banks of the countries (Kang & Paper, 2007). The globalization process has superly influenced the performance of the financial sectors of different countries. The exchange rates now are flexible in order to compete and cope up with the machineries of globalization. Globalization in the world economy has facilitated large capital flows between countries. The monetary authorities between nations are largely entangled with each other due to the globalized state of affairs in the contemporary market system. Capital rising, globalization of the equity markets, domination of the financial sectors in different economies and maximization of the investment returns are all the functions that have enveloped the current world market due to the emergence of globalization. The integration of the financial system between countries has only taken place due to globalization (Baldwin, 1999). Situation Analysis pecuniary Market in the Modern Economies The financial market refers to the markets where the trade involves financial securities or commodities. The transactions are made at low cost and the prices at which the transactions are made reflect the demand and supply of such financial products. The banking and non-banking financial institutions that facilitate the trading of such financial products are overly included in the financial markets. There are a lot of activities in the financial