Globalization Of Financial Markets And The Global Crisis

Globalisation of Financial Markets and the Global Crisis The financial markets are increasingly and highly interconnected, which means that the regulation of the financial services is becoming globalised as well, since most of the bigger firms operate all over the globe, the standardization of the regulation is a very common practice nowadays, making very difficult especially for developing countries keep up with the regulation. The financial crisis of 2008 was one of the most devastating and longest crises the contemporary world has seen, after the crisis a set of reforms, institutions and regulation were created, to avoid this happening again. Financial markets are in need of stronger regulation and higher penalties for infringement, nevertheless the main challenge for most countries is the implementation of the international regulations. The crisis is the result of different factors. This essay will analyse firstly, some of the factors that contribute to globalisation of the markets. Secondly, how these factors led to the financial crisis of 2008 and how the crisis developed. Thirdly, it will analyse the changes made regulation wise in order to try to mitigate the crisis and avoid another crisis of this magnitude. The definition that the QFINANCE Financial Dictionary (2009), gives of markets is â€Å"market for buying and selling financial instruments market in which financial instruments are traded. The financial markets are stock exchanges, commodity exchanges, bondShow MoreRelatedThe World s Economy Was Devastated1732 Words   |  7 Pagesrise to globalization. Globalization is process of integration of the world’s views, products, ideas and culture. As more and more countries began to interact and the barriers of global economy were broken, the effects of one country’s economic problems could affect their trade partners and other markets. 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