Functioning of the international financial market in the conditions of financial globalization

Анотація

Globalization of the economy is based on the internationalization of labor relations in high-tech areas based on direct foreign investment, the formation of global markets, especially financial ones, and the continuity of their activities. According to neoclassical theory, financial globalization is defined in terms of the underlying economic benefits it creates since it is globalization that allows investors around the world to reallocate risks and achieve the highest efficiency due to the existing comparative advantages of capital. The globalization process aims to form a single global economic space. It has been established that the main subjects of the globalization process, creating its institutional system, are national states, international and regional organizations, transnational banks and corporations, and international financial markets. The global economy has advanced significantly in its financial development in recent years. It was determined that one of the directions of globalization has become the globalization of finance as an activity and science. It represents the formation and functioning of the world financial, currency, and credit systems, accompanied by high capital mobility in the respective world markets. The structure of financial globalization includes world financial markets and global financial products as subjects. Globalization of the world financial market implies its growth on a worldwide scale due to an increase in trade turnover, the number of participants, and instruments. Further development of the global financial market continues under various factors. The most critical prospects and requirements of global financial markets and their participants are established based on the developed scientific and economic literature. Financial integration reflects the development process of interaction between individual countries on the international capital market. Global financial integration contributes to the economic growth of national economies through direct and indirect channels. The necessary direct channels in this case include increasing domestic savings, reducing the cost of capital due to better risk distribution, technology transfer, development of the financial sector, etc. The main indirect channels then become measures that promote the development of production and trade specialization, investment policy, and general state regulation of the financial market.

Класифікація

Ідентифікатори

Схожі роботи