Scribd
Upload
12 views6 pages

Financial Integration and Global Markets

Financial integration involves the free flow of capital and investment between countries, allowing funds to be raised and invested anywhere for expected returns and risks. It benefits economic growth and productivity, but also brings risks like structural changes, poor regulation, and increased volatility that countries must manage. Financial integration is shaped by governments, international businesses, and financial institutions.

Uploaded by

Gaurav Yadav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
12 views6 pages

Financial Integration and Global Markets

Financial integration involves the free flow of capital and investment between countries, allowing funds to be raised and invested anywhere for expected returns and risks. It benefits economic growth and productivity, but also brings risks like structural changes, poor regulation, and increased volatility that countries must manage. Financial integration is shaped by governments, international businesses, and financial institutions.

Uploaded by

Gaurav Yadav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

IBM

Unit 3
Anjali Singh
 Integration of countries in terms of financial
markets & financial operations
 Free flow of capital & investment is essential
 Ability to raise money anywhere and invest funds
anywhere in the market on basis of expected
return & risk.
 Key players – National government, International
business firms & international financial
institutions
 Financial Integration & Economic Growth
 Financial Integration & Productivity
 Financial System’s spillover
 FDI’s Spillover
 Consumption Benefits
 Higher rate of return
 Diversification of risk
 Changes in Developed Nations
 Changes in developing Nations
 International Rate of Interest
 Investor Herding
 Cross country Contagion
 Banks are diversifying their portfolios, making
use of technology & increasing scale of
production
 Risks
 Structural changes
 Poor regulatory systems
 Increased volatility

You might also like