(Rousseau & Sylla, 2001) While the two identified "strands of literature" one dealing with domestic and the other international developments, are no always related to one another" but are however, both elements of the story called financial globalization." Definition of a "Good Financial System" states that there are five key components which are: (1) Sound public finances and public debt management; (2) Stable monetary arrangements; (3) a variety of banks, some with domestic and others with international orientations, and perhaps some with both orientations; (4) a central bank to stabilize domestic finances and manage international financial relations; and: (5) Well-forming security markets."
Impacts of Globalization on National Economies
Impacts on the economies of the world have been stated in relation to globalization as well as there being noted an affect of the goods and services production. "Investment, technology, efficiency, productivity and competitiveness are all noted to be impacted by the world's globalization."(Intriligator, 2002) the growth of foreign direct investment (FDI) is at a lucrative rate and this element plays a key role in investment in enterprise, technology transfer, industrial restructuring and in the global enterprise formation initiatives.
Globalization contains both good and bad or positive and negative effects to the individual. Many effects of globalization that are of a positive nature stem from the root of competition. There are however, negative effects related to globalization. Along with the possible increases in output and raising of wages and living standards is the possibility of greater human well being throughout the world. Potential conflicts and costs of globalizations are stated to be of a diverse nature being Regional, National, or International. One of these is described as the "who" that gains from the potential benefits due to the fact that equity problems may be of a 'substantial nature' in the distribution of the gains from globalization among individuals, organizations, nations and regions. This is illustrated through the gains being channeled to the rich nations and individuals which creates an even greater inequality and leads to possible conflicts nationally and internationally. Secondly, a cost/problem exists that stems from globalization is that of "major potential regional or global instabilities that are caused by interdependencies of economics globally.
Section 1 and Section 2 of the work entitled, "Financial Systems, Economic Growth and Globalization" is a discussion of the meaning of "good" or "well-functioning" financial system and accompanying case studies from other countries are developed and the five key components are realized." Those five are 1) Sound public finances and public debt management
2) Stable monetary arrangements
3) a variety of banks, some with domestic and others with international orientations or both 4) Central; Bank to stabilize domestic finances and manage international financial relations, and 5) Well functioning securities markets.
This type of system used in financial aspects can mobilize capital domestically thereby promoting a country's economic development and growth. Stated is that: "A strong convergence effect, as indicated by negative and significant coefficients on initial income and a positive an significant role of financial depth in subsequent growth is common to all four regressions" Fundamental changes in the nature of the developed world countries' economies as well as the business types that the corporations are engaged in are stated to "present a significant challenged to screening an affective SRI mechanism" according to Jorgensen (2000)
Presently there are three accepted tools of SRI which are:
Social Screening
Shareholder activism
Community:
Community Profit is to include returns that are measured in terms of organizational capacity, local economic well-being, quality of life, economic justice such as equal access to capital and the strengthening of political inclusion and democratic institutions, community investment actively build civil society.
Anti-globalization Movements - Classical Theorists
The Classical...
The final form of these tables and charts will be dependent upon the form and types of data that are found during the conduct of the research. Data Analysis Methods Data analysis methods will be similar to those used by Asseery & Al-Sheikh (2004). They will include multiple regression analysis based on cointegration techniques. Error correction techniques will be applied that are similar to that which was found in Plazolo &
Financial Development and Economic Growth The United States of America has made significant developments with respect to their financial market which in turn has resulted in the form of high economic growth. When we compare the U.S., which has one of the most developed financial markets, to other less developed countries, we find that the United States accumulates capital and grow at a higher rate due to markets being more stable.
Economic growth between U.S. And China The ascend of China from a deprived, moribund state to a most important financial supremacy within an instant period of merely 28 years is frequently depicted by psychoanalysts as one of the most monetary triumph narratives in contemporary era. Taking into account the recent years economic growth China has managed to comfortably join the top bands as one of the leading economies in the world.
Financial System financial markets are the places where capital exchanges hands. Those with capital to invest are able to invest in businesses that are seeking capital. The same occurs with financial institutions as intermediaries. The result is that the economy benefits significantly from this arrangement. People with good ideas are able to raise capital in order to bring those ideas to market. For businesses, the U.S. financial markets are a source
Interest rates are very low in the U.S. right now, and this should mean economic expansion. The U.S. is the largest single national economy is the world, so how the U.S. performs in terms of its economics is an important thing for the world. Growth in the U.S., spurred by low interest rates, should mean growth elsewhere as well, since the U.S. can buy more products from those countries and
Coefficients reflect to a rate of change in the dependant variable which leads to one point change in dependant variable. For example, coefficient of -0,05 infers small negative influence of this explanatory variable on the dependant variable, while coefficient of 1.5 implies that 1.5 rate growth of this variable will lead to positive growth by one point of the explanatory variable. The results of the regression model are as follows: GDP
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