Trap of Financial Globalisation on Developing Economies

THE MYSTERIOUS TRAP OF FINANCIAL GLOBALIZATION ON developing ECONOMIES Ankita Kohli Globalization is primarily a monetary phenomenon in which expanding liquid induces investors to take more risks engaged in investing in underdeveloped markets with anticipation of higher investment return. The oil jar of 1973 and the collapse of the Bretton Woods system, both of these developments were momentous and were responsible for place the foundation of the contemporary era of financial orbiculateization. Advances in IT and ready reckoner technology are cited as one of the most in-chief(postnominal) factors driving financial globalization. Transnational corporations also helped in global financial integration. Developing Countries are eager to welcome any kind of foreign large(p) inflows to overcome the debt crisis situation. From the supply side of meat also there are some strong motivator factors, which led the international investors towards the financial market of the developing countries. The correlational statistics between the movements in developed and developing countries financial market, the slowing in industrial economy markets and high growth prospects of the less(prenominal) developed market are some of the important reasons, which make them an attractive option for portfolio diversification.

The recent wave of financial globalization that has occurred since the mid-1980s has been marked by a surge in capital flows among industrial countries and, more notably, between industrial and developing countries.This paper provides a comprehensive assessment of empirical evidence close to the impact of financial globalization on growth, volatility and monetary policies in developing countries. This paper also examines the possible cause of financial globalization on the central banks and monetary insurance strategies such as: 1. Volatility of net capital flows 2. strange Direct Investment 3. Portfolio Investment... If you want to get a full essay, evidence it on our website: Orderessay

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