The impact of globalization on the global financial market. The impact of the globalization process on the international financial market. The essence of globalization of financial markets

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"GLOBALIZATIONWORLD'SFINANCIALMARKETS"

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Chapter 1. Globalization of the world economy

1.1 Prerequisites for globalization

1.2 Development of the world economy

1.3 Globalization of the loan capital market.

Chapter 2. Globalization of world financial markets

2.1 Financial globalization: essence and scope

2.2 Impact of financial globalization on monetary policy

2.3 Responses to the challenges of financial globalization: developed and developing countries

Conclusion

Bibliography

INconducting

Today the world is beginning to transform into a single market. First of all, this is reflected in a significant expansion of international financial markets and a noticeable increase in the volume of transactions in the foreign exchange market and capital markets. Advances in information and telecommunications technologies, liberalization of capital markets and the development of new financial instruments will continue to stimulate increased international capital flows, leading to greater efficiency in global financial markets.

The term globalization was proposed by T. Levitt in 1983. By it he understood the phenomenon of merging markets for individual products produced by transnational corporations. The new term was given a broader meaning at Harvard Business School, and its main popularizer was K. Homais, who published the book A World Without Borders in 1990. According to Homais, the state of the global economy is now determined by the triad formed by the European Union, the United States and Japan.

Due to the development of the global market, the economic nationalism of individual states, in his opinion, is currently meaningless. The globalization of the economy now refers to a number of directions: the formation of global transnational corporations, regionalization of the economy, the intensification of world trade, convergence trends and, finally, financial globalization. In domestic economic science, attempts are also being made to understand the new phenomenon. In particular, S. Dolgov believes that globalization is essentially the same as what has long been called the internationalization of economic life, and financial globalization is manifested in an increase in the turnover of international capital markets, the emergence of new financial instruments and expanded opportunities for investors and borrowers. His description of financial globalization is based on an analysis of the development of international capital markets, thus effectively talking about financial internationalization.

However, there are significant differences between internationalization and globalization.

Today, the turnover of the global financial market is orders of magnitude higher than the product newly created by the world economy. In fact, the global financial market has ceased to be just an auxiliary superstructure over the economic base and has turned into an independent powerful system.

The global financial market, ensuring freedom of movement of capital on an international scale, is an important condition for the functioning of the world economy.

The main factor in its formation was the process of globalization, which progressed most in the financial sector.

The relevance of this topic is due to the fact that currently the global financial market plays a leading role in the functioning of the international economic system.

The purpose of this work is to highlight the main theoretical aspects of the global financial market, study the features of the international and Russian financial markets, as well as attempt to forecast and assess the prospects of the global financial market. The subject of the study is the current state of the global financial market. The object is the global financial market.

Chapter 1. Globalization of the world economy

1.1 Prerequisitesglobalization

Globalization means worldwide capitalism, and capitalism is the market plus corporations. Over the past decade, new powerful forces have emerged and established themselves on the world stage. Until the middle of the 20th century. the main subjects of international economic relations were the state and entrepreneurs under their jurisdiction. A giant leap in the development of the world economy occurred in the second half of the twentieth century. During this period, new forms of international cooperation are developing, which combine various material and spiritual resources for joint research and applied purposes. New units have emerged and are rapidly developing - transnational corporations (TNCs) and global financial centers (WFCs). Their origins go back to the long history of foreign trade and foreign investment. An important factor in their formation since the 70s was the liberalization policy, which allowed the strongest companies and banks to slip out from under national state control and acquire considerable independence. However, they became one of the central objects of political research only a generation ago. These trends, manifested in international cooperation in all spheres of political life, can be defined as a transition from classical foreign policy to global domestic politics. A geographic compression of world space has occurred, requiring new forms of relationships.

1.2 Developmentworldeconomy

In the 1990s, the concept of “globalization” became an indispensable element of international political discourse. Aware of the internal contradictions of this process, Western experts and politicians nevertheless prefer to talk about its inevitability and beneficialness for humanity. Such unanimity in Western political thought and journalism has not been observed, perhaps, since the second half of the 19th century, since the memorable discussions about free trade. The necessary dose of healthy skepticism, in our opinion, should be introduced by an understanding of globalization as a complex geo-economic, geopolitical and geo-humanitarian phenomenon that has a powerful demonstration effect on all aspects of the life of the countries involved in this process.

A prerequisite for globalization was the economic liberalization and financial integration of the EEC, which began in 1992. This process covered such areas as uniform regulation and control of markets, improved access to them for all participants, standardization of capital requirements, economic integration of Europe, opening of the US banking system, efforts to standardize the worldwide clearing and settlement system, etc. The benefits of globalization and its disadvantages are perceived differently at different levels, in different countries and by different firms. In particular, corporations have come to understand the potential benefits of globalizing their marketing activities. True multinational corporations are born only when a company learns to mobilize capital in other countries.

A serious impetus for globalization was the qualitative improvement of transport and communications: contacts between peoples, regions and continents not only accelerated, became denser and simplified, but also became more accessible to the majority of the population. However, globalization has so far embraced a relatively narrow group of industrialized countries, which form the basis of several successfully developing integration groupings with the participation of more than 60 states (EU, NAFTA, APEC, ASEAN, MERCOSUR and others). In 1997, these countries accounted for approximately ½ of world GDP and world trade - a fact that statistically records not so much globalization as the regionalization of world space. We can say: globalization is capturing and involving more and more new participants and areas of activity, but at the same time the forces opposing this process in its current form are strengthening.

Modern multinational companies pay little attention to national boundaries and have no allegiance to particular governments. They are global in scale because they produce products, market them and obtain financial resources anywhere and however they want, as long as it best suits their long-term strategic plans. They are able to mobilize capital from any developed market, and they are motivated to do this by the desire to minimize costs and maximize profits.

Globalization has also made markets larger and increased competition. This benefited consumers who received better quality products at reduced prices. At a higher level, as we have already noted, globalization is beginning to cover entire continents (Europe - EEC, North America - NAFTA, etc.), between which there is a competitive struggle to move the center of economic dominance. Within these economic formations, the largest and most powerful organizations, with managers capable of dealing with many geographically dispersed firms, will eventually become pan-European firms, smaller firms will solve regional problems, and others will survive if they find market niches of a secondary nature.

It should be emphasized that globalization is still at the very beginning of its development. This is a very long process, because counteracting trends (differences between international and interregional trade within the country and at a higher level) still persist in the modern world. It should also be noted that individual regions within the country are usually more specialized and have a large trade turnover among themselves. Limiting factors for the development of globalization are also very significant target, economic, linguistic, cultural differences, different consumer preferences, etc. For example, European countries are striving to develop integration in order to create a new superpower capable of resisting the United States. To achieve this, the EEC countries are creating an economic and monetary union with a single European currency, the euro, and the European Central Bank in Frankfurt, to which all aspects of managing national monetary policy will be transferred.

Just like everything else, the globalization of the economy has its drawbacks and so-called crises.

The crises of globalization and the world system as a whole stem not only from contradictions of a geo-economic nature. There are conflicts that arise under the influence of unilateral initiatives of the political elites of industrialized countries in relation to some member states of the world community. The directly observable part of this big problem is the emergence of “rogue” regimes in the world system (Iran, Syria, Libya, Iraq, North Korea, Yugoslavia, Cuba, etc.).

1.3 Globalizationmarketloancapital

Let us dwell in more detail on the globalization of one type of market - the loan capital market, which in this regard is ahead of both commodity markets and the sphere of direct investment. Globalization of financial markets means, first of all, the harmonization of regulatory rules and the reduction of barriers, which should lead to the free movement of capital and allow all firms to compete in all markets. It naturally presupposes the equalization of profitability levels, transaction costs and credit risks, although one cannot count on their complete equalization as long as national currencies and national borders exist. The main barrier between international and national markets for loan capital remains currency restrictions (on the inflow and outflow of capital). The free movement of capital is perhaps the most state-controlled area, since finance serves as a kind of circulatory system of any national economy. Not a single state, even the most “liberal” one, allows either the free admission of foreign capital into its own market or the uncontrolled outflow of domestic capital abroad.

In the second half of the 20th century, the prerequisites for the globalization of loan capital markets were created: technical advances in the field of information processing and telecommunications; eliminating or easing restrictions on the movement of capital across borders; liberalization of domestic capital markets; development of unregulated foreign markets (off-shore market); accelerated growth of derivatives. This allowed for rapid cross-currency transactions and was accompanied by increasing competition between these markets for a share of global trade. Back in the late 50s, a specific international capital market appeared, with a tendency to increase - the Eurodollar market. In parallel with it, the market for Euro mottos developed. But especially rapid growth occurred in the 1980s, due to the expansion of money market mutual funds and the process of eliminating banking intermediaries.

The emergence of offshore, largely unregulated foreign markets (Bahamas, Bahrain, Hong Kong, Singapore, etc.) has allowed players to obtain financing or invest outside the domestic market. These markets are not subject to any of the securities and registration regulations typical of many domestic markets (USA, Japan, etc.). This made it possible to raise funds faster at a lower cost, while minimizing the disclosure of accurate and competitively valuable information. Another important factor in accelerating the globalization of capital markets was the invention of swaps. Those who entered foreign markets could obtain financing from them, but the most attractive financing opportunities were not always denominated in the desired currency or had the desired form of interest rate (fixed or floating). Using the capabilities provided by swaps, you can quickly and inexpensively convert any currency into almost any other, as well as fixed rates. Consequently, the unregulated nature of foreign markets, the flexibility made possible by swaps, the access to information and new processing capabilities created by technological advances have become the driving force behind the process of globalization of the capital market. In turn, the competition brought by the increasing globalization of capital markets has led to increased efficiency and easier access to traditional capital markets in many countries.

Another important feature of the development of the capital market was the large increase in the number of futures and options exchanges. They were dominated by the trend of trading contracts with Eurodollars, currencies, US Treasuries and other financial instruments with global appeal.

The presence of a network of futures exchanges and connections between them, the increase in their operating hours made round-the-clock trading possible. The effectiveness of fund mobilization by international banks is determined by three factors:

1. Financial markets are rapidly expanding into international institutions, many of them (for example, markets for deposits in Eurocurrencies, markets for foreign currencies and government securities) are becoming markets connecting Europe, North America and the Far East into a single financial network that functions continuously. Equity markets are not far behind, as are futures markets, with operations spread around the world in an effort to satisfy as many companies as possible and expand financial instruments (as evidenced, for example, by the expansion of the Tokyo Stock Exchange or the London International Financial Futures Exchange).

2. Old lending methods are being transformed into new financial instruments and methods of raising capital. Among the most significant are loans against securities and the creation of the largest mutual funds.

3. Many countries are eliminating barriers between securities dealers and international banks. Many international banks and other financial firms attribute their future success to the ability to establish strong footholds in all markets around the world and offer a full range of financial services, focusing primarily on securities trading and underwriting, investment planning and management with a certain assumption risk. This is of particular importance in the mobilization of capital by international banks and other financial structures, since in the conditions of intense competition in our time, each such structure must find the cheapest sources of capital, wherever they are. This is the general trend.

In a fully integrated and financially efficient world, there should be only one interest rate for a given type of capital. In the current state of partial integration, interest rates in different markets are determined interdependently. High rates in some countries compared to low rates in others will generate arbitrage, which will result in capital movements.

Jacques Attali, in his book “Horizon Line” published in 1990 in Paris, writes that the third era is coming - the “era of money”,

dominance on the planet of a single liberal-democratic ideology and market system. Along with the development of information technology and the process of globalization, the world becomes united and homogeneous, and the geopolitical realities that have dominated throughout history recede into the background. He identifies three most important regions, which in a united world will become centers of new economic spaces:

American space, uniting both Americas into a single financial and industrial zone;

the European space that emerged after the economic unification of Europe;

the Pacific region, which has several competing centers - Tokyo, Taiwan, Singapore, etc.

These centers will structure around them less developed regions located in spatial proximity. There will be competition between them. Thus, the era of geoeconomics begins. Jacques Attali's model found a complete expression of the ideas that underlay the “tripartite commission”. This is the so-called “optimistic” version of Atlanticism. But there is another “pessimistic” version - neo-Atlanticism, its essence ultimately boils down to continuing to consider the geopolitical (and geo-economic) picture of the world from the perspective of the confrontation between new geopolitical zones and the West.

Chapter2. Globalizationworldfinancialmarkets

The world community on the eve of the 3rd millennium is a political space, the ever-increasing “density” of which is directly related to the actively developing planetary processes of modernization. The deepening of universal interdependence has objectively contributed to fundamentally new challenges to civilization, creating real prerequisites for the joint activities of groups of people across state and sociocultural barriers. These processes are usually called “Globalization” and/or “internationalization”. The accumulation of empirical material brings social disciplines to a problem-theoretical understanding of new phenomena and trends in global development. The development and description of a general model of globalization will make it possible to see the inconsistency and impulsiveness of transition processes, to feel the effect of fundamental laws in the evolution of the world community as a system of the highest complexity, i.e. to feel the relationship between the past, present and future, to connect short-term events, factors and long-term trends, whose causality is determined by the course of history.

Today's world political processes have a solid geo-economic basis. The internationalization of the world economy that began in the 1970s had several far-reaching political consequences. Firstly, intra-industry cooperation in the world economy objectively increased the role of supranational factors in structural restructuring processes and actually undermined such once immutable principles as sovereignty and national development strategy. Secondly, even the very beginning of globalization inevitably entailed the uncontrolled accumulation of transnational short-term capital, contradictory by its very nature. While satisfying the current needs of the economy, this capital, due to its speculative nature, is capable of increasing the scope of market fluctuations, giving rise to national and regional financial crises and shaking political systems. Even active proponents of internationalization point to the dangers posed by the cumulative effect of such processes. Thirdly, the free movement of labor does not fit into globalization, since in industrialized countries the unemployment rate is very high, and if there is a demand for labor, it relates to highly qualified “human capital”. Constantly tightening immigration rules in the West are increasing the contradictions between the “center” and the “periphery.” In most developing countries, the rate of demographic dynamics clearly exceeds the rate of economic growth.

Finally, the prevailing ideas about globalization are based on the idea of “market” tools for managing social processes, which many countries are not ready for. Moreover, real prerequisites for reducing the functions of the state have not yet developed. Where detailed management takes place, it occurs under the influence of international financial institutions, and this layers the contradictions brought by globalization on top of unresolved, old problems.

Globalization is by no means a new phenomenon: as the internationalization of economic relations and as a form of interethnic communication, it actively developed in the late 19th and early 20th centuries. Indicators of the level of internationalization have not changed fundamentally since then: while the share of accumulated foreign investment decreased slightly (from 12% of GDP at the beginning of the 20th century to 10% in the 1990s), the export quota in world trade increased slightly from 1913 to 1994 (from 13 to 14.5%). True, world crises, wars and the collapse of colonial empires in the 20th century significantly weakened the impulses of globalization.

2.1 Financialglobalization:essenceAndscale

The current stage of development of the world economy is characterized by the intensification of globalization processes, including its financial component. The literature provides various definitions of financial globalization. We proceed from the fact that it represents a process of gradual unification of national and regional financial markets into a single global financial market, as well as increasing interdependence between the markets of individual financial instruments.

An important prerequisite for financial globalization was the removal of restrictions on current account transactions and cross-border capital transactions at the national level, first in developed market economies (in the 1960s-1980s), and subsequently in developing countries (in the 1980s-1990s). In the 1990s, the former socialist countries of Central and Eastern Europe and the CIS, as well as China, joined the process of currency and financial liberalization. Another key prerequisite for the development of globalization processes in the financial sector were technological advances that made it possible to link together, on the one hand, national financial markets, and on the other, the markets of various financial instruments.

The volume of transactions on the global foreign exchange market significantly exceeds the indicators of global foreign trade. If in April 2004 the average daily turnover of the former amounted to $1.88 trillion, then the annual volume of world exports of goods and services in the same year was equal to $11.2 trillion. (1) At the same time, the average annual growth rate of world foreign exchange turnover market in 1989-2004. amounted to 8%, while the volume of world trade in goods and services over the same period in dollar terms increased by 6.4% per year. It follows that the world foreign exchange market serves less and less foreign trade transactions and more and more deals related to the movement of capital.

Cross-border capital flows in leading industrialized countries in the 1990s and early 2000s actually grew at a faster rate than foreign trade turnover. Let us consider the dynamics of cross-border capital movement (2) in 1991-2005. using the example of three countries: the USA, Great Britain and Canada, the first two of which are leaders in this field.

First of all, we note the significant growth rates of cross-border capital flows over the period under review (17% on average per year in the USA, 26.9% in the UK and 9.8% in Canada). However, the growth of capital flows was not constant. Thus, in the USA and Great Britain there were two distinct recessions - in 1998 and 2001-2002. The first was obviously associated with the consequences of turmoil in the Asian and Russian financial markets, and the second with the decline in activity in the stock market of developed countries. In Canada, in addition to those noted, there was a decline in 1995, and a decline in 2001-2002. extended to 2003.

One of the key qualitative indicators of financial globalization is the difference between real interest rates in different countries. Theoretical works formulate the thesis that, under the influence of growing volumes of cross-border financial flows and increasing efficiency of financial intermediation, this gap should gradually narrow.

We analyzed data on the difference in real interest rates on government securities (Treasury bills) of leading industrialized countries and on major currency pairs (three-month LIBOR rates) (see Figures 2 and 3). Indeed, by the mid-2000s, compared to the early 1990s, this difference between countries had decreased. However, some clarification is required here. If we take the late 1980s as our starting point, the conclusion becomes less obvious. In addition, within the period under review, there are several sub-periods when the difference in almost all pairs of real interest rates reached a minimum: for government securities these are 1995 and 1998-2000, and for LIBOR rates - 1989, 1994 and the first half of the 2000s. At the same time, in the second half of the 1990s for world currencies and in the first half of the 2000s for government securities, there was a significant divergence in real interest rates.

Thus, the process of globalization has led to a significant increase in financial flows and turnover in the global foreign exchange market and a decrease in the difference between interest rates. But at the same time, in our opinion, this conclusion needs to be corrected: financial globalization cannot be characterized as a unidirectional process; within its framework, rollbacks are quite possible, as evidenced by crises in a number of emerging markets in the 1990s, the most destructive of which was the regional Asian financial crisis of 1997, as well as the decline in leading stock markets in 2001-2003, which led to recession in developed countries (3).

Currently, there are also risks that could lead to another (but, apparently, again temporary) reversal in globalization trends. Let us name, first of all, two problems: global imbalances generated by the “double deficit” in the United States (the state budget and the current account of the balance of payments), and speculative “bubbles” in the financial market (we are talking mainly about the real estate market).

2.2 Impact of financial globalization on monetary policy

globalization economics financial monetary

Financial globalization creates new challenges for national monetary policy, limiting the space for its independent implementation. This is due to the increased impact of the external environment on the national economy in general and the monetary sector in particular. As economies become increasingly included in the system of world economic relations, their interdependence increases. Thus, the ratio of foreign trade to world GDP increased from 19% in 1980-1989. up to 25% in 2000-2004 (4) As a result, national central banks, when making their decisions, must take into account a greater number of factors beyond their direct control: the dynamics of the global economy and the economies of neighboring countries; the state of the world's major commodity and financial markets; decisions of other central banks, primarily key players in the global market (Federal Reserve System, European Central Bank and Bank of Japan).

The effect of external factors limits national monetary policy in several directions: directly, by narrowing the ability of central banks to use individual instruments and set different goals, and indirectly, when central banks are forced to respond to the consequences of external negative shocks.

Due to the abandonment of foreign exchange regulation instruments, in particular the abolition of restrictions on cross-border capital transactions, the degree of independence of the central bank in determining the goals of monetary policy and using interest rates as its instrument is reduced. It is known from economic theory that only two of three goals can be achieved simultaneously: full capital mobility, a fixed exchange rate and an independent monetary policy. That is, in modern conditions, the implementation of an independent monetary policy can no longer be combined with any form of fixing the exchange rate (unlike, say, the situation in the 1960s).

An increase in capital flows with the lifting of restrictions on its external mobility leads to the fact that the interest rate within the economy is determined to a large extent on world financial markets (taking into account the risk premium built into it by investors). Even the world's largest central banks now have less direct impact on medium- and long-term domestic real interest rates than before. However, regulation of short-term interest rates still remains the prerogative of the monetary authorities.

As an example of external shocks, let us consider two of their varieties, the most important, in our opinion, for the conduct of national monetary policy: price shocks and financial crises. But first, let us turn to the question of how the very nature of pricing is changing in the context of financial globalization. Globalization processes help reduce the rate of inflation within the country. The most powerful channel for the spread of such influence is restrictions on the growth of firm costs. As global competition increases, businesses increasingly perceive prices as fixed and find it more difficult to pass on costs to customers.

Cost growth can largely be limited by reducing wage costs. As a result, on the one hand, of more active inclusion in world economic relations of countries with large populations and low wages (primarily China and India), and, on the other hand, of growing opportunities for transferring production outside the country and outsourcing, the bargaining power of trade unions in developed countries wages are falling, and developing countries also face external constraints on their growth.

There are other explanations for the impact of globalization on inflation. Thus, experts note that, in general, the gap between aggregate demand and aggregate supply in national output (output gap) plays an increasingly less important role as an inflation factor. A significant part of domestic inflation, in their opinion, depends on some “common factor” associated with globalization. A study conducted by M. Cicarelli and B. Mojon shows that 70% of the variation in inflation in 22 OECD countries in 1960-2003. was determined by this “common factor” (5). IMF experts believe that in the new conditions, the costs of pursuing too soft an economic policy are increasing, since foreign capital located in the country also reacts to its consequences. In other words, globalization encourages more prudent economic policies (6).

To understand how financial globalization has affected inflation processes in general, let us consider the dynamics of world inflation from 1970 to 2005 and the IMF forecast for 2006-2007.

Since 1996, the global inflation rate has dropped below 10% and in the first half of the 2000s dropped to a record level of 3-4%. At the same time, the period of the late 1980s and early 1990s was marked by extremely high global inflation as a result of the transformation crisis in countries with transition economies and high inflation in large Latin American economies (Argentina, Brazil, Uruguay, Peru, etc.). However, in industrialized countries from 1980 to 2005, there was a steady trend towards a decrease in the inflation rate (if in 1980 only in one of the ten countries under consideration the inflation rate was below 5%, then since 1996 - in all ten countries, see Fig. 5). At the same time, the current period in this regard can hardly be called unique: the 1960s, with their rather strict restrictions on cross-border capital movement under the gold and exchange standard, were also characterized by low inflation rates.

In addition to the general price level, globalization has also affected relative prices. As a result of the rapid growth in demand in Asian countries, energy prices sharply increased, while the increase in the supply of manufacturing products on their part, on the contrary, contributed to a decrease in relative prices for them. In 1999-2005 oil prices on world markets (in US dollars) grew at an average annual rate of 22.2%, and for manufactured products participating in world trade - only 2.2% (7). The rise in energy prices in the early 2000s is a classic example of an external price shock, under the influence of which domestic inflation begins to rise, fueled by cost-push inflation. However, the global economy as a whole managed to mitigate the latest price shock due to increased global competition. At the same time, individual oil-producing countries (for example, Nigeria, Azerbaijan) faced an increase in inflation rates in the first half of the 2000s.

At first glance, the main trends in the development of inflationary processes expand the capabilities of national central banks: they can pursue a looser monetary policy in order to stimulate economic growth, being less afraid of its inflationary consequences. This is precisely the policy pursued until recently by the Federal Reserve System and the European Central Bank. However, it is too early to say that the current global decline in inflation rates is final and that movement in the opposite direction is impossible, including due to the fact that the successes achieved are partly explained by the effective anti-inflationary policies pursued since the second half of the 1990s. Thus, the rise in energy prices on world markets, although with some lag, is already reflected in domestic inflation.

The period of globalization is characterized by a higher exposure of national economies to external financial shocks. Domestic financial crises are either initiated or aggravated by the reactions of financial markets in other countries and regions. Examples include the impact of the 1997 Asian financial crisis on Belarus and, in turn, the 1998 Russian crisis on the CIS countries and some countries of Central and Eastern Europe. The national central bank must have the necessary arsenal of tools to mitigate the negative consequences of such crises and, what is especially desirable, to prevent them.

As a result of globalization processes, the functioning of national financial markets is also changing, and the uncertainty of the impact of measures taken by the central bank on macroeconomic variables increases (8). This is happening under the influence, on the one hand, of the growth of cross-border capital flows, and on the other, of financial innovation (the emergence of new financial instruments and their markets). Thus, the development of the interbank money market led to the formation of new segments on it - repo and the currency swap market, which helped reduce the dependence of commercial banks on the central bank in the event of a temporary lack of liquidity (9).

The growth of cross-border capital flows increases the risks of speculative “bubbles” in asset markets and the scale of their negative consequences. In this regard, there are sometimes proposals that the central bank should regulate the dynamics of not only inflation (measured by the consumer price index), but also asset prices, changes in which have a direct impact on welfare.

This approach is criticized, among others, by the former chief economist of the IMF, K. Rogoff. Having reasonably shown that the exchange rate also represents the price of an asset (more than the relative price of goods), he extends this approach to the regulation of exchange rates. K. Rogoff believes that the continued volatility of asset prices is at least partly due to their increasing sensitivity to changes in risk as risk levels fall and the growing ability of financial markets to diversify risks (10). However, we note that asset price volatility does not always reflect only changes in risk. Their sharp drop may lead to the passage of a certain “critical” threshold, leading to a loss of investor confidence and increased instability in the economy. H. Wagner and W. Berger in their study come to the conclusion that globalization acts on the volatility of international capital flows as a multiplier; in their opinion, the volatility of financial markets is one of the key problems of financial globalization (11).

In our opinion, the key issue here is not so much control over the dynamics of asset prices, which is extremely difficult in the context of financial globalization, but rather the formation of alternative segments of the financial market. Developed countries managed to survive a significant decline in the stock market at the beginning of the 21st century relatively painlessly. largely thanks to the “advanced” financial market, where, in addition to the stock market, the markets for bonds, real estate-backed securities, etc. play an important role. An opposite example is the 1997 crisis in Asia, when a sharp decline in stock indices led to catastrophic consequences for economy. Therefore, it is no coincidence that Asian countries are now paying significant attention to the development of other segments of the financial market, especially the bond market.

So, we can state that:

a) the results of national monetary policy in the context of financial globalization become less predictable (under the influence of changes in the transmission mechanism);

6) the degree of predictability of the monetary policy environment itself is decreasing (under the influence of external shocks and changes in capital flows, which are often caused not by “fundamental” indicators, but by various “news”);

c) national monetary policy faces limitations both in terms of its objectives and the instruments available for its implementation;

d) the degree of responsibility for an insufficiently thought-out monetary policy increases, which can lead to an outflow of capital from the country, a financial and economic crisis on a larger scale than in a partially closed economy.

2.3 Responses to the challenges of financial globalization: developed and developing countries

In the current situation, monetary authorities of both developed and developing countries are faced with the need to solve new problems. Due to the weakening relationship between the dynamics of the money supply and inflation, on the one hand, and the negative consequences of regimes of limited fixation of exchange rates (12), on the other, the central banks of a number of countries began to abandon targeting the money supply and exchange rate and move on to setting targets directly based on the price index.

The inflation targeting regime has become widespread since the early 1990s, and now, according to the IMF classification of actual monetary policy regimes, it is used by 24 countries - both developed (Sweden, Great Britain, Norway, Canada, Australia) and developing (Brazil, Chile, Korea, Mexico, a number of countries in Central and Eastern Europe that have joined the EU). Note that over two years (from the end of 2003 to the end of 2005) the number of countries using it has not changed. In addition, the world's three leading central banks (the United States, the euro area and Japan) have not yet switched to this regime, preferring to maintain elements of discretionary policy.

The current chairman of the US Federal Reserve, B. Bernanke, advocates a gradual transition to an inflation targeting regime. However, among the members of the Federal Reserve and the US Congress in 2006, there was no majority in favor of moving towards setting an explicit inflation target (now the US is actually pursuing a discretionary monetary policy, since the Fed has a “dual mandate” - to maintain a stable level prices and high employment) (13).

When switching to an inflation targeting regime, most countries have problems related to meeting the basic conditions for its functioning and unwillingness to give up other (important from the point of view of national monetary authorities) goals. This regime is not limited to setting an explicit goal regarding the dynamics of the price index. Its effective implementation requires the fulfillment of a number of conditions:

1. Lack of fiscal dominance (monetary policy should not adapt to the dominant fiscal policy) or, more broadly, a fairly high degree of independence of the central bank.

2. The absence of other “anchors” (that is, targeting the money supply or exchange rate) (14). This condition is key because, as already mentioned, with financial globalization the “room for maneuver” of monetary policy is limited.

3. High level of transparency of monetary policy. Thus, central banks implementing an inflation targeting strategy, as a rule, publish a report once a quarter that contains estimates of price dynamics over the past period and its forecasts. One of the main advantages of such a regime is precisely its transparency, since, along with the exchange rate, the inflation rate is one of the most understandable indicators for economic agents (unlike, say, the money supply).

4. The presence of a clear connection between the operational procedures of monetary policy and its final and intermediate goals (in this case, the inflation rate). Recently, interest rates on open market operations have been used as operational procedures for monetary policy in developed and a number of developing countries.

Although the introduction of a full-fledged inflation targeting regime requires the abandonment of exchange rate regulation, most countries continue to use the corresponding “anchor” in monetary policy. Among developing countries with fairly large economies, these include primarily China, as well as Saudi Arabia, Pakistan, Malaysia, Venezuela, and Ukraine.

In many developing countries, there is a so-called “fear of free floating” (15) of national currencies. They either retain official regulation of the exchange rate, or, despite the official announcement of the introduction of a free-floating exchange rate regime, intervene in the foreign exchange market in order to regulate it. This is due to a number of reasons: the close connection between the dynamics of inflation and exchange rates in developing countries; limited borrowing opportunities in national currency (with a significant portion of government debt denominated in foreign currency); low level of trust in monetary authorities, which increases inflationary expectations. As a result, the costs of a possible sharp depreciation of the national currency increase, and developing countries seek to reduce them. Note that active regulation of the exchange rate requires either less attention to other goals (and, as a result, may be accompanied by higher rates of inflation), or partial isolation of the country from global markets through currency regulation (which, for example, is still actively used by China ).

M. Goldstein proposed one of the theoretical options for solving the problem of “fear of free floating”: the introduction of a “managed floating plus” regime, which includes three elements - smoothing exchange rate fluctuations, inflation targeting and market regulation and development policies, which allows limiting the possibility of imbalances in the currency exchange rate. market (16).

There is a widespread point of view in the economic literature according to which, in the conditions of financial globalization, there is a rejection of intermediate forms of fixing the exchange rate ("currency corridor", "creeping peg", etc.) and a transition to either free unregulated "floating" or to extreme forms of fixation (currency management or unilateral refusal of the national currency).

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Course work

The problem of globalization of financial markets

INTRODUCTION

The main process determining the development of the world economy in the 21st century is increasing globalization, which has a universal character. It practically influences all spheres of public life, including the economy, politics, ideology, social sphere, culture, ecology, security, lifestyle, as well as the very conditions of human existence. The objective basis of globalization is the development of transnational production, foreign trade, growth in flows of financial capital and direct investment, improvement of means of communication, which leads to the creation of the effect of a “network” economy, with global production, sales and financial structures.

An integral economic system on a planetary scale is being formed, which dictates its own rules of the game to individual national economies.

In the context of globalization, the interdependence of economies and hierarchy in relations between countries is increasing, issues of ensuring the competitiveness and economic security of the national economy are becoming acute, and the increasing openness of the economies of countries simultaneously expresses a high degree of dependence on external factors.

The consequences of globalization are dual in nature, affecting national economic systems, changing the way they are included in the world economy, the internal mechanisms of functioning and development. On the one hand, globalization can become a factor in stabilizing the socio-economic development of entire regions of the world, promoting a more efficient and rational use of limited resources by combining them. On the other hand, it can undermine such stabilization, exacerbating old and giving rise to new economic contradictions and international political conflicts. In addition, globalization carried out by highly developed countries acts as a means of establishing economic and political dominance and exploitation of developing countries by post-industrial countries.

In this regard, issues of assessing the contradictory nature of the impact of globalization on the functioning of national economic systems require careful attention and comprehensive analysis, despite the universality of the principles of the manifestation of globalization. Thus, the relevance of the topic is obvious.

The purpose of the course work is to study the problems of globalization of financial markets. To achieve the goal, it is necessary to solve the following tasks:

- define the concept of “globalization”;

- consider the role of globalization in the formation of the modern world economic system;

- study the features of globalization of world markets;

- explore the positive and negative impact of globalization on the development of the world community.

The object of the study is financial markets.

The subject of the study is the process of globalization of financial markets.

The methodological and methodological basis of the course work is the theoretical developments of domestic and foreign authors. The work used methods of analysis and comparative characteristics of data.

1 . Theoretical foundations of globalization of the world economy

1.1 The essence and concepts of globalization

The problem of globalization is one of the most pressing topics discussed by the world community and the scientific community. Changes in the dynamics of social interactions are associated with the formation of global infrastructures that facilitate penetration across national borders, the development of global industry, changes in financial flows and the emergence of transnational corporations. Globalization has a transformative impact on all the basic structures and values of modern civilization. In other words, globalization is a new worldwide process of social transformation.

Globalization of the world economy is the process of transforming the world space into a single zone (a single global system) of international economic, cultural, informational and legal space, where there is free movement of information, goods and services, and capital.

Views on the origins of globalization are controversial. Historians view this process as one of the stages in the development of capitalism. Economists trace back to the transnationalization of financial markets. Political scientists emphasize the spread of democratic institutions. Culturologists associate the manifestation of globalization with the Westernization of culture, including American economic expansion. There are information technology approaches to explaining globalization processes. There are differences between political and economic globalization. Regionalization acts as a subject of globalization, giving a powerful cumulative effect in the formation of world poles of economic and technological development.

At the same time, the origin of the word “globalization” itself indicates that the leading role in this process is played by the rapid growth of international trade that occurs at certain historical stages. The word “globalization” (meaning “intensive international trade”) was first used by Karl Marx, who in one of his letters to Engels in the late 1850s. wrote: “Now the world market really exists. With the entry of California and Japan into the world market, globalization has been accomplished.” The same leading role of international trade in the processes of globalization is indicated by the fact that the previous globalization, which began in the era of Marx, ended in the 1930s, after all developed countries switched to a policy of strict protectionism, which caused a sharp curtailment of international trade.

Globalization of economic activity in theory, with perfect competition and equal conditions, has a positive effect on the development of the economy of individual countries and the whole world. It is believed that thanks to this process, economies of scale in production are achieved, factors of production are allocated more efficiently in the world, and achievements of science and technology become more accessible. In practice, as the experience of the 80s and 90s of the 20th century has shown, the benefits from the worldization of economic activities, the instruments of which are TNCs, accrue to the leading developed countries. Not surprisingly, the concept of globalization has a distinctly Western origin, American-centric in its focus. Politically, globalization acts as a tool for economically leading powers to solve the problems of strengthening their dominant positions. The concept of globalization includes the provision of a single state capable of acting globally and having global interests in all major areas.

* By sharply intensifying competition in national markets, globalization does not allow the economies of less developed countries to grow stronger. TNCs strive to subordinate the social orientation of national development, which affects the social situation in all countries - in the countries where TNCs are based and in host countries. One consequence of this is a further decline in the influence of organized labor on the labor market. The world economy as a whole needs a free labor market, but it is mainly created not due to the freedom of movement of labor between countries, but due to the free choice of TNCs for the best conditions for using labor. For developed countries, the main impact of worldization is expressed in pressure on the employment of low-skilled workers.

* The globalization of economic systems, accompanied by the increasing openness of national economies, facilitates TNCs and TNBs to quickly transfer huge financial resources from one center to another, plunging weakened national economies into a state of financial crises.

It should be noted that the phenomenon of globalization goes beyond purely economic boundaries and has a noticeable impact on all major spheres of social activity - politics, ideology, culture. It will undoubtedly play a decisive role in the global economy of the 21st century, giving a powerful impetus to the formation of a new system of international economic and political relations.

Globalization has an impact on the economies of all countries of the world. It concerns the production of goods and services, the use of labor, investment, technology and their distribution from one country to another. All these manifestations affect production efficiency, labor productivity and competitiveness. At one time, it was globalization that caused an intensification of international competition.

Globalization is caused by the following factors of world development: the deepening of the international division of labor, scientific and technological progress in the field of transport and communications, thus reducing the distance between countries.

One of the main sources of international globalization has become the phenomenon of transnationalization, due to which a certain share of production, consumption, exports, imports and income of a country depends on the decisions of international centers outside the borders of a given state. The leading forces here are transnational companies (TNCs), which themselves are both the result and the main protagonists of internationalization.

1.2 Stages of globalization of the world economy

There are many views and debates on the origins of globalization. Historians consider the process of globalization of the international economy as one of the stages in the development of capitalism. Economists believe that globalization originated from the transnationalization of financial markets. Political scientists highlight the spread of democratic institutions. Culturologists associate the emergence of globalization with the Westernization of culture, including American economic expansion. When did the globalization of the world economy begin?

Even in the era of antiquity, some features of globalization appeared. One of the first states that asserted its hegemony over the Mediterranean and thereby led to the deep interweaving of various cultures and the emergence of an interregional division of labor in the Mediterranean, was the Roman Empire.

In the XII-XIII centuries. At the same time, with the beginning of the development of market (capitalist) relations in Western Europe, the active growth of European trade began, as well as the formation of the European world economy.

In the XIV-XV centuries. there was a decline in the development of globalization. However, in the XVI-XVII centuries. the process of globalization continued. During this period, Europe experienced steady economic growth, thanks to advances in navigation and geographical discoveries. This contributed to the fact that traders spread throughout the world and began colonizing America. In the 17th century, the Dutch East India Company, which traded with many Asian countries, became the first truly multinational company. The 19th century saw a significant increase in trade and investment between the European powers, their colonies, and the United States, all thanks to industrialization. During this period, unfair trade with developing countries had the character of imperialist exploitation.

In the first decades of the 20th century, even the First World War could not prevent the process of globalization. The growth of international trade continued even when the foreign trade of Western European countries was liberalized in the 1920s.

In the 1930s, after the onset of the Great Depression and the introduction by the leading Western powers in 1930-1931. high import duties, there was a sharp collapse in international trade and a curtailment of globalization.

After World War II, globalization resumed at an accelerated pace. Its development was facilitated by improvements in technology, which led to rapid rail, air and sea transport, as well as the availability of international telephone communications. The removal of barriers to international trade since 1947 has been the responsibility of the General Agreement on Tariffs and Trade (GATT), a series of agreements between major capitalist and developing countries. But the real breakthrough in this direction occurred after the Kennedy Round (a series of international conferences within the GATT in 1964-1967). In 1995, 75 GATT members formed the World Trade Organization (WTO).

There are large regional zones of economic integration. In 1992, the European Union became a single economic area with the Maastricht Agreements. This space provides for the abolition of customs duties, free movement of labor and capital, as well as a single monetary system based on the euro. Less close integration is observed between the participants of the North American Free Trade Area: the USA, Canada and Mexico. Most of the former Soviet republics joined the Commonwealth of Independent States after its collapse, providing elements of a common economic space.

Globalization of the world economy brings a number of advantages:

- increased international competition. Competition and market expansion lead to deepening specialization and international division of labor, which in turn stimulates production growth not only at the national but also at the global level;

- economies of scale, which can likely lead to lower costs and prices, and this will lead to sustainable economic growth;

- gains from trade based on mutual benefit. This contributes to the satisfaction of all parties, which satisfies all parties, which may include individuals, firms and other organizations, countries, trade unions and even entire continents;

- increased productivity as a result of the rationalization of production and the dissemination of advanced technology at the global level, as well as competitive pressure for continuous innovation on a global scale.

The benefits of globalization allow all partners to improve their position by increasing production, raising wages and living standards.

The globalization of the world economy is fraught with negative consequences or potential problems:

- The main financial and information flows are limited to developed countries; the gap of inequality between rich and poor countries becomes insurmountable; poor countries finally occupy the position of raw material appendages, markets for sales (discharge) of obsolete products and location of hazardous industries;

- Complete or partial loss of economic independence by individual countries;

- A crisis in any market segment can have detrimental consequences for the economy of a particular country; the state cannot influence the price of goods (services) produced on its territory;

- Control over information by transnational corporations, biased coverage of events and processes;

The emergence of a new world order with the leading role of the United States and some NATO countries, active (direct and/or indirect) interference in the internal affairs of countries trying to defend their interests; international terrorism as a response of a number of “weak” civilizations to forced modernization

The emergence of marginal groups (and entire nations), for one reason or another, lacking the skills to work with high technologies and therefore unable to adequately represent and protect their interests

Globalization contributes to the deepening, expansion and acceleration of worldwide interconnection and interdependence in all spheres of current social life. The existence of positive and negative aspects of globalization is an objective process to which all subjects of international life must adapt.

Globalization is a process of worldwide economic, political and cultural integration and unification. The main consequence of this is the global division of labor, migration (and, as a rule, concentration) throughout the planet of capital, human and production resources, standardization of legislation, economic and technological processes, as well as the rapprochement and fusion of cultures of different countries. This is an objective process that is systemic in nature, that is, it covers all spheres of society. As a result of globalization, the world is becoming more connected and more dependent on all its subjects. There is both an increase in the number of problems common to a group of states and an expansion in the number and types of integrating entities.

One-sided advantages in distributing the benefits of globalization of national economies complicate the harmonious development of the world economy, leaving many countries and regions on the sidelines of economic progress and even outside its scope. Therefore, UNIDO experts defined globalization as “the restructuring of the world economy, in the process of which the gap widens between those nations that have achieved the industrial critical mass necessary to ensure global competition and those that are lagging behind.”

The worldization of economic life is opposed by common values reproduced by national institutions.

The positive significance of globalization is difficult to overestimate: the capabilities of humanity are immeasurably multiplied, all aspects of its life are taken into account more fully, and conditions for harmonization are created. The globalization of the world economy creates a serious basis for solving the universal problems of mankind.

The positive consequences (benefits) of globalization processes include:

Globalization promotes deepening specialization and international division of labor. Under its conditions, funds and resources are distributed more efficiently, which ultimately helps to increase the average standard of living and expand the life prospects of the population (at lower costs for them).

An important advantage of globalization processes is economies of scale, which can potentially lead to cost reductions and lower prices, and, consequently, to sustainable economic growth.

The benefits of globalization are also associated with the gains from free trade on a mutually beneficial basis that satisfies all parties.

Globalization, increasing competition, stimulates the further development of new technologies and their dissemination among countries. In its conditions, the growth rate of direct investment far exceeds the growth rate of world trade, which is the most important factor in the transfer of industrial technologies and the formation of transnational companies, which has a direct impact on national economies. The advantages of globalization are determined by the economic benefits that are obtained from the use of advanced scientific, technical, technological and qualification levels of leading foreign countries in the relevant fields in other countries; in these cases, the introduction of new solutions occurs in a short time and at relatively lower costs.

Globalization is increasing international competition. It is sometimes argued that globalization leads to perfect competition. In fact, we should rather be talking about new competitive areas and tougher competition in traditional markets, which is becoming beyond the power of an individual state or corporation. After all, internal competitors are joined by strong external competitors who are unlimited in their actions. Globalization processes in the world economy are beneficial, first of all, to consumers, since competition gives them the opportunity to choose and reduces prices.

Globalization can lead to increased productivity as a result of the rationalization of global production and the spread of advanced technologies, as well as competitive pressure for continued innovation on a global scale.

Globalization gives countries the opportunity to mobilize greater amounts of financial resources as investors can use a wider range of financial instruments in an increased number of markets.

Globalization creates a serious basis for solving universal problems of humanity, primarily environmental, which is due to the unification of efforts of the world community, consolidation of resources, and coordination of actions in various fields.

The end result of globalization, as many experts hope, should be an overall increase in well-being in the world.

Negative consequences, potential problems and dangers of globalization

The processes of globalization in the world economy are perceived and assessed differently. But not only individual scientists, specialists and experts, but also residents of different countries treat them differently. Globalization processes are most often welcomed in developed countries and cause serious concerns in the developing world. This is because the benefits of globalization are not evenly distributed. Therefore, one of the main questions causing the most heated debate is: who benefits from globalization?

Modern globalization processes are unfolding primarily between industrialized countries and only secondarily covering developing countries. Globalization strengthens the position of the first group of countries and gives them additional advantages. At the same time, the unfolding of globalization processes within the framework of the modern international division of labor threatens to freeze the current position of the less developed countries of the so-called world periphery, which are becoming objects rather than subjects of globalization.

Consequently, the degree of positive impact of globalization processes on the economy of individual countries depends on the place they occupy in the world economy; in fact, the bulk of the benefits go to rich countries or individuals.

Unfair distribution of benefits from globalization creates the threat of conflicts at the regional, national and international levels. What is happening is not income convergence or equalization, but rather income polarization.

Considering the uneven distribution of the benefits of globalization, of course, the negative consequences of globalization processes in a particular country will significantly depend on the place that this country occupies in the world economy. In this regard, we will highlight three groups of threats, dangers, and potential problems that arise at the present stage of development of the internationalization of economic activity, depending on which countries they can spread to. First of all, we will highlight the dangers of globalization that exist for all countries, then those that could potentially arise in less developed and, separately, industrialized countries, and at the end of this section of the article we will dwell in more detail on the most significant negative consequences of globalization processes.

In the context of globalization, the destructive influence of centrifugal forces associated with this process is possible, which can lead to the severance of traditional ties within the country, the degradation of uncompetitive industries, the aggravation of social problems, and the aggressive penetration of ideas, values, and behavior patterns that are alien to a given society. Problems that could potentially cause negative consequences from globalization processes in all countries include:

uneven distribution of benefits from globalization across individual sectors of the national economy;

possible deindustrialization of national economies;

the possibility of transferring control over the economy of individual countries from sovereign governments to other hands, including to stronger states, TNCs or international organizations;

possible destabilization of the financial sector, potential regional or global instability due to the interdependence of national economies at the global level. Local economic fluctuations or crises in one country can have regional or even global consequences.

The most painful consequences of globalization may be felt by less developed countries belonging to the so-called world periphery. The bulk of them, participating in internationalization as suppliers of raw materials and manufacturers of labor-intensive products (and some of them as suppliers of parts and assemblies for modern complex equipment), find themselves fully dependent on advanced powers and have, firstly, lower incomes, secondly, they are very unstable, depending on the situation on world markets.

The greatest benefit from participation in globalization is for industrialized countries, which get the opportunity to reduce production costs and focus on producing the most profitable high-tech products, and transfer labor-intensive and technologically dirty production to developing countries. But industrialized countries may also suffer from globalization processes, which, if not controlled, will increase unemployment, increase the instability of financial markets, etc.

globalization participant financial market

2 . Features of the globalization of financial markets

2.1 The essence of globalization of financial markets

Globalization and the successful application of modern information technologies in finance have formed a new concept of financial globalization in the world economy - the desire of individual independent national and regional markets to create a single connected and interdependent capital market.

The globalization of financial markets, which is revolutionizing all world markets today, is based on the globalization of commodity flows as a result of the division of labor and scientific and technological progress. The first in the middle of the 20th century. Commodities and labor were globalized, followed by currencies, securities and derivatives. As a result, the end of the century was characterized by major changes in world finance, with the introduction of innovative methods of organizing and managing banking assets. The techniques and methods of banking that have evolved over centuries are acquiring new features, and at the same time, completely new types of operations and services are emerging that have no analogues in the past.

The basic prerequisite for accelerating integration processes was the rapid development of information technologies and systems that make it possible to make payments and trade assets, as well as receive operational information on the state of world markets in real time. NASDAQ, Cedel, Euroclear, SWIFT and modern Reuters and Bloomberg have made it possible to unite the world into one market in search of the most profitable opportunities for investing capital. Integration processes between countries have led to the removal of barriers to entry into national capital markets for foreign financial institutions, increased capital mobility and reduced transaction costs.

All this happened against the backdrop of deregulation and liberalization in the field of international trade and an improvement in the investment climate in many countries, including developing ones. As a result, on a global scale, capital has become highly mobile, flowing around the world to the most attractive and more profitable application opportunities.

The nature of the operations of global market participants with the diversification of assets and liabilities across countries and regions, the presence of a wide network of representative offices, branches and subsidiaries abroad no longer allows them to be identified only with the country of nationality. Globalization of markets also means the strengthening of the role of international markets in the implementation of lending and borrowing operations by residents of various countries. This has already led to the growth of an international network of financial institutions and corporations, an increase in the share of business coming from foreign countries, and fundamental changes in their systems of organization, management structure and management philosophy.

Globalization of financial markets is an objective and natural process of development of a market world economy. As a result of the significant growth in production since the mid-20th century and the emergence of transnational companies (TNCs), the world has moved to a new phase, the phase of globalization.

Financial markets have ceased to have a national character; thanks to cheap labor, Asia has turned into a production site for the whole world. Investment funds began to migrate to the East, and from there in the form of material assets back to the West. The emergence of new financial flows and the globalization of financial markets have led to lobbying for the interests of TNCs around the world, hence the increase in liberalization and changes in legal norms and values.

The process of globalization of financial markets implies continued integration of national financial markets, increased capitalization, better accumulation and redistribution of financial resources. An increase in financial flow entails the emergence of newer and more modern theories of portfolio management, increased innovation and competition for access to capital, and the emergence of new information technologies and IT solutions.

The globalization of financial markets is characterized by an increase in the international activities of banks and other financial institutions. A number of factors contribute to this:

deregulation and liberalization of financial markets and related activities;

technological progress, in particular, the emergence of electronic communications, which makes it possible to monitor financial markets on a global scale, conduct financial transactions, and analyze risks;

growing institutionalization of financial markets. The highest level of globalization is typical for the market of “wholesale” financial services, i.e. services in the interbank and corporate segments. However, globalization is beginning to penetrate into the sphere of “retail” services provided by banks and other financial institutions to the population.

The main goal of the globalization of financial markets is to provide financial resources with absolute freedom of movement both from the domestic to the world market and in the opposite direction. The globalization of markets leads to the search for the most effective business solutions, the flow of investments is directed to the local market where productivity will be higher and costs will be lower.

Gradually, the globalization of markets will lead to standardization and unification of macroeconomic policy, to the universalization of tax, antimonopoly, and agricultural policy requirements. The standards will become uniform for the whole world in absolutely all spheres of human activity, and will affect even such conservative ones as religion and culture.

2.2 Requirements for financial market participants

Globalization makes corresponding demands on market participants and implies specific opportunities and risks that characterize this stage of development of world finance:

1. High world standards and competition.

To maintain competitiveness, global market participants obviously must meet high requirements for the quality of products and services, market positioning, technology, as well as transparency of activities and reporting. This is driven, first of all, by the growth of international competition between lenders and borrowers - residents of different countries. Today, the cost of capital and regular access to cheap resources are no longer taken for granted. And if relatively recently, European banks, for example, worked in a fairly calm environment, today they must assert themselves in an exhausting struggle for position in the market.

2. Favorable price combined with high liquidity.

In most cases, at any given time, the global price of a global product represents the best price that has emerged as a result of the balance of large amounts of supply and demand around the world. A large number of market participants allows transactions to be carried out with minimal time costs, sometimes almost instantly, especially in formally organized markets. All this increases the attractiveness of globalized financial products.

3. Professional risk management and higher level of diversification.

In addition to capital, the parties to global exchange are modern theories of asset portfolio management, professional preparedness of participants and financial innovations. The latest information technologies and management theories allow us to develop and quickly modify our own risk management and optimization systems. As a result, risks can be most adequately assessed, identified and controlled in accordance with an individual investment strategy. All this happens thanks to the maximum information content of the systems, from which participants quickly receive overviews of markets, products, capital flows and the current situation with minimal time for transferring funds from one type of asset to another and low transaction costs.

4. Computerization and informatization of markets, which consists in the widespread use by participants of international financial markets of the latest information systems, global databases and integrated computer management systems. Digital technologies have revolutionized the financial world and will influence it even more in the future. It is thanks to information technology that banking operations without borders have become possible. Today, unified information systems are the main prerequisite for the emergence of modern financial products and global markets. Nowadays, decision-making is increasingly based on complex computer modeling, statistical analysis of huge amounts of data and the use of the latest mathematical modeling methods. In this regard, the reliability of systems serving information and payment flows, asset trading and securities custody becomes important.

5. Integration, concentration and universalization of international financial markets.

As a result of the liberalization and deregulation of markets, the removal of legislative restrictions, regulatory barriers and the growth of operations of foreign participants in national markets, the boundaries between their various sectors and segments on a global scale are blurring. Universal banks become underwriters, arrangers and traders in the bond market, while investment banks arrange and participate in international syndicated loans. Segmentation is also being eliminated among large international institutional investors, who, through the use of highly structured instruments, are beginning to invest in financial instruments that are unconventional for them. As a result of mergers and acquisitions, huge financial resources are concentrated in a limited number of global players capable of conducting active operations in various debt capital markets. All this further increases competition and demands for efficiency.

6. More efficient capital allocation.

Globalization and information technology have made it possible to allocate capital more efficiently, shaping markets as tough, emotionless allocators of capital towards the most efficient opportunity, given other conditions, on a global scale. International investors and borrowers face a huge number of available markets and products with specific return and risk characteristics. Today, an investor can choose from more than 36 thousand listed companies on more than 150 exchanges around the world, and the analysis of financial instruments, innovations, markets and participants is a daunting task even for a professional. Of course, all this gives rise to the problem of difficult choices. However, it becomes possible to rationally focus on financial products and search for the application of capital without the emotional pressure that arises from partnerships, since most transactions now take place not directly between the lender and the borrower. In this regard, globalization can be seen as a risk-weighted catalyst for the rational allocation of capital.

7. More complex chains of exposure and specific risks.

The globalization of financial markets creates new, primarily external, chains of cause and effect: facts of world politics, economics, science, demography, etc. Due to people’s emotional perception, they cause the most unexpected reactions, which in turn immediately affects national and international developments events. In addition, globalization creates a divergence between global and domestic market participants and increases the potential for misuse of many different financial instruments in the pursuit of quick returns on capital. Of course, the risks of global financial markets are not fundamentally new, but what is new is the rapid growth and unpredictability of their global interaction, which can lead to more complex specific risks.

Despite the fact that globalization has long been an integral aspect of doing business in all markets, the question of the degree of attractiveness of global business for most is controversial. The level of requirements and the barrier to entry into global business today is quite high for certain types of business. These include large costs in the form of costs for the acquisition and maintenance of information systems, and high demands on specialists, etc. Only very few can play a serious role here, and leadership in a single country does not mean leadership on a global scale. But still, such a qualitative development of world markets indicates their higher efficiency and the growing role of global international financial markets in the field of circulation of financial assets.

3 . Positive and negative sides of globalization

Today, the globalization of the world economy has become the most important development factor for all participants in international economic relations. In terms of its scale and consequences, it has no analogues in economic history. Globalization has modified the world economic community: from an amorphous set of interconnected countries, national economies are transformed into an integral economic system in which national markets act as components of a single global market space.

The positive significance of globalization is difficult to overestimate: the capabilities of humanity are immeasurably multiplied, all aspects of its life are taken into account more fully, and conditions for harmonization are created. The globalization of the world economy creates a serious basis for solving the universal problems of mankind. Globalization contributes to the deepening and specialization of the international division of labor. Under its conditions, funds and resources are distributed more efficiently, which ultimately helps to increase the average standard of living and expand the life prospects of the population (at lower costs for them).

The following can also be mentioned as positive consequences (benefits) of globalization processes:

1. Globalization promotes deepening specialization and international division of labor. Under its conditions, funds and resources are distributed more efficiently, which ultimately helps to increase the average standard of living and expand the life prospects of the population (at lower costs for them).

2. An important advantage of globalization processes is economies of scale, which can potentially lead to cost reductions and lower prices, and, consequently, to sustainable economic growth.

3. The benefits of globalization are also associated with the gains from free trade on a mutually beneficial basis that satisfies all parties.

4. Globalization, increasing competition, stimulates the further development of new technologies and their dissemination among countries. In its conditions, the growth rate of direct investment far exceeds the growth rate of world trade, which is the most important factor in the transfer of industrial technologies and the formation of transnational companies, which has a direct impact on national economies. The advantages of globalization are determined by the economic benefits that are obtained from the use of advanced scientific, technical, technological and qualification levels of leading foreign countries in the relevant fields in other countries; in these cases, the introduction of new solutions occurs in a short time and at relatively lower costs.

5. Globalization contributes to increased international competition. It is sometimes argued that globalization leads to perfect competition. In fact, we should rather be talking about new competitive areas and tougher competition in traditional markets, which is becoming beyond the power of an individual state or corporation. After all, internal competitors are joined by strong external competitors who are unlimited in their actions. Globalization processes in the world economy are beneficial, first of all, to consumers, since competition gives them the opportunity to choose and reduces prices.

6. Globalization can lead to increased productivity as a result of the rationalization of global production and the spread of advanced technologies, as well as competitive pressure for continued innovation on a global scale.

7. Globalization enables countries to mobilize greater amounts of financial resources as investors can use a wider range of financial instruments in an increased number of markets.

8. Globalization creates a serious basis for solving universal problems of humanity, primarily environmental, which is due to the unification of efforts of the world community, consolidation of resources, and coordination of actions in various fields.

In general, the benefits of globalization allow all partners to improve their situation, having the opportunity, by increasing production, to raise wages and living standards. The end result of globalization, as many experts hope, should be an overall increase in well-being in the world5.

Globalization not only brings with it benefits, it is fraught with negative consequences or potential problems, which some of its critics see as great dangers.

The first threat posed by globalization is that its benefits, while understood by people, will, however, be unevenly distributed. In the short term, as is known, changes in the manufacturing and service industries lead to the fact that industries benefiting from foreign trade and industries related to exports experience a greater influx of capital and skilled labor. At the same time, a number of industries are significantly losing from globalization processes, losing their competitive advantages due to increased market openness. Such industries are forced to make additional efforts to adapt to economic conditions that have changed and are not in their favor. This means the possibility of an outflow of capital and labor from these industries, which will be the main reason for taking adaptation measures, which are associated with very high costs. Adaptation measures are fraught for people with job loss, the need to find another job, retraining, which leads not only to family problems, but also requires large social expenses, and in a short time. Eventually there will be a reallocation of labor, but initially the social costs will be very high. This does not only apply to industries that have undergone significant transformation in Europe over the past thirty years. It should be recognized that such changes pose a serious threat to the existing economic structure, and governments must take on the heavy burden of social costs associated with paying compensation, retraining, paying unemployment benefits, and providing support to low-income families.

The second threat is considered by many to be the deindustrialization of the economy, since global openness is associated with a decline in employment in manufacturing industries in both Europe and the United States. In fact, however, this process is not a consequence of globalization, although it occurs in parallel with it. Deindustrialization is a normal phenomenon generated by technological progress and economic development. Indeed, the share of manufacturing industries in the economies of industrialized countries is declining sharply, but this decline is balanced by the rapid growth in the share of the service sector, including the financial sector.

The next threat that globalization poses is associated with a noticeable increase in the gap between the wages of skilled and less qualified workers, as well as with an increase in unemployment among the latter. Today, however, this is not necessarily a consequence of the intensification of international trade. More important is the fact that the demand for qualified personnel in industries and enterprises is increasing. This is due to the fact that competition from labor-intensive goods produced in countries with low wages and low qualifications of workers entails lower prices for similar products of European firms and a reduction in their profits. In such conditions, European companies stop producing unprofitable products and move to the production of goods that require the use of highly qualified personnel. As a result, workers with lower qualifications remain unclaimed and their incomes fall.

The fourth threat is the transfer by firms in countries with high labor costs of part of their production capacity to countries with low wages. Exporting jobs may be undesirable for the economies of a number of countries. However, such a threat is not too dangerous.

The fifth threat is associated with labor mobility. Today there is a lot of talk about the free exchange of goods, services and capital and much less about the freedom of movement of labor. This raises the question of the impact of globalization on employment. In the absence of adequate measures, the problem of unemployment can become a potential source of global instability. The waste of human resources in the form of unemployment or underemployment is a major loss for the world community as a whole, and especially for some countries that have spent heavily on education. High unemployment in the mid-1990s. signals the presence of major structural problems and policy mistakes within the global economy. These factors highlight the need for effective change management at all levels, especially in areas that directly affect the human condition. In particular, the question of whether international migration can help solve problems of employment and poverty is controversial. Today, labor markets are much less internationalized than commodity or capital markets.

Mass urbanization associated with global demographic, technological and structural changes can also become an important source of tension and conflict. Cities are already becoming key elements of society across countries and the world as a whole, as well as the main channels for the spread of the influence of globalization for a number of reasons. First, the supply of food and energy to cities in many countries depends not on local sources, but on imported resources. Further, cities are the main centers of global standardization of consumption and cultures. These are also where transnational companies operate most actively. Urbanization is likely to intensify the process of globalization, and cooperation between large cities, politically and institutionally, will become a new area of international relations.

Globalization, with its profound economic, technological and social transformations, will undoubtedly impact the world ecosystem. And this is a typical problem of universal human security. Until now, the blame for overall environmental damage is placed on developed countries, although they still cause the main harm to themselves.

There are several sources of future conflicts that will arise in connection with the use of the ecosystem. The struggle for water resources is likely to result in acute regional conflicts. The future of tropical forests and the consequences of deforestation are already a source of deep contention between states due to diverging interests and political goals. In general, the world can no longer afford to waste resources thoughtlessly, causing irreparable harm to the environment.

On the other hand, developing countries do not have acceptable solutions in the use of, for example, energy resources, the ability to develop alternative technologies in transport, industry and agriculture that would avoid soil erosion, aridization, wasteful use of water resources, etc. These problems are also important for industrialized countries, which have their own interests in this regard. Linking mutual interests in the use of natural resources and maintaining the ecological balance is a task whose solution will test the ability of countries to cooperate. Mutual interest must prevail over considerations of competition due to such global consequences as climate warming, radiation, water pollution, etc. .

New economic realities require adaptation of the goals and instruments of state regulation of financial institutions, including insurance relations, to the conditions of globalization. In real practice, this is reflected in the rationalization of the relationship between liberalization and protectionism in state regulation of the insurance market, the ability of the state to provide favorable conditions for the activities of national insurance companies.

Overcoming the negative effects of globalization on the development of markets presupposes an increasing role of the state in the development of macroeconomic, institutional and sectoral measures aimed not against the globalization of economic relations, but at creating a model for a smoother and conflict-free integration of national markets into the globalization process, ensuring favorable conditions for the influx of foreign capital and new technologies in domestic business.

Thus, globalization deepens, expands and accelerates worldwide interconnections and interdependencies in all spheres of today's social life. As we see, globalization on a global scale has both positive and negative sides, but this is an objective process to which all subjects of international life must adapt.

CONCLUSION

The most important trend of the modern world is the globalization of all economic and political processes, which no nation state is now able to resist.

At the end of the 20th century. The world community clearly faced the task of effectively coordinating all global processes - the global economy, global ecology, the political structure of the world community, the problems of poverty and wealth, war and peace, human rights and the sovereignty of national states.

Now there is no longer any doubt that globalization will become the dominant factor in the civilizational development of the world in the first quarter of the new century, when the process of global consolidation will actually end with the formation of a world federation.

1 Financial globalization: essence and scope

Currently, there are also risks that could lead to another (but, apparently, again temporary) reversal in globalization trends. Let us first name two problems: global imbalances generated by the “double deficit” in the United States (the state budget and the current account of the balance of payments), and speculative “bubbles” in the financial market (we are talking mainly about the real estate market).

2 The impact of financial globalization on monetary policy

The effect of external factors limits national monetary policy in several directions: directly, by narrowing the ability of central banks to use individual instruments and set different goals, and indirectly, when central banks are forced to respond to the consequences of external negative shocks.

To understand how financial globalization has affected inflation processes in general, let us consider the dynamics of world inflation from 1970 to 2005 and the IMF forecast for 2006-2007.

financial markets. ...with transformation world financial market. (9) Integrated world financial market made it possible world economic crisis, ...

Globalization, at its essence, is the process of rapidly increasing economic interdependence of countries around the world as a result of the increasing volume and variety of international transactions in goods, services and global capital flows, thanks to the widespread dissemination of information and communication technologies. Globalization, as defined by the American researcher T. Friedman, is “the indomitable integration of markets, nation-states and technologies, allowing individuals, corporations and nation-states to reach anywhere in the world faster, cheaper and deeper.” Globalization opens up new development opportunities associated with the widespread dissemination of the latest technologies and information systems, strengthening the processes of integration and internationalization on a global scale.

The subjects and driving force of globalization are industrialized countries. As a result of globalization, national economies become part of the world market economy and, as a result, institutional legal and technological barriers are smoothed out. The economic world is acquiring the features of integrity on a global scale.

Globalization of the world financial market means, in its essence, an interconnected and largely integrated market that has no borders. It is characterized by such features as the use of modern electronic technologies, means of communication and information, as well as deregulatory processes associated with the abolition of legislative restrictions on a number of operations. As a result, there is a gigantic increase in the volume of financial transactions in the global financial market, especially in the foreign exchange and derivatives markets, which leads to the globalization of the world's financial resources.

In modern conditions, the dominant trend in the globalization of the world financial market is the accelerated consolidation of electronic trading systems in order to reduce costs and concentrate liquidity. These processes are especially active in Europe in connection with the creation of a single currency area and trends towards the integration of financial markets in the region. Almost all leading European exchanges have completely switched to electronic trading systems - LSE, LIFFE, Paris Bourse, etc. A manifestation of this trend was the creation of the Euronext exchange (2000), which united the markets of France, the Netherlands, Belgium, and later Portugal (2002) and became the largest stock exchange in continental Europe. The stock infrastructure of the Nordic and Baltic countries is becoming increasingly consolidated. Thus, the Norex association includes OM Group, which manages the Stockholm Stock Exchange, as well as the stock exchanges of Norway, Denmark and Iceland. In turn, the Helsinki Stock Exchange (HEX) owns and operates the Tallinn and Riga stock exchanges. The NASDAQ system creates exchange structures with local partners based on a single information technology that gave birth to NASDAQ Europe, NASDAQ Japan and NASDAQ Canada. However, Nasdaq Japan was closed in 2002, and at the end of June 2003 the company confirmed the decision to close Nasdaq Europe and withdraw from all joint projects in Europe, including the project with LIFFE for trading stock futures. In the coming years, NASDAQ plans to once again focus on the US market, attracting IPOs and trading shares. Thus, in the future, the world stock market will continue to follow the path of concentration and consolidation of exchange trading systems, acquiring an international character. At the same time, there will be a concentration of clearing and settlement service structures, which will be controlled by leading exchanges. The entire infrastructure of the world stock market will inevitably move towards commercial functioning. What can be considered new is the desire of banks to form partnerships and alliances in order to maintain their clientele; in this regard, banks are beginning to act as an organizer of trade. Thus, in 2000, the six leading world banks - Bank of Tokyo-Mitsubishi, French BNP Paribas, Dresdner Kleinwort Benson, owned by Dresdner Bank, Royal Bank of Canada, Royal Bank of Scotland, Australian Westpac Banking Corp opened an Internet currency exchange X Alliance LLC, which will allow large bank clients, in particular international corporations , investors and investment funds, carry out transactions with foreign currency around the clock. In addition, users of the stage have access to all information from the financial markets, including quotes, research results and forecasts. In 2000, the three largest participants - Deutsche Bank, Chase Manhattan and Citygroup, teamed up with the REUTERS news agency to create an information platform Atriax to enable its customers to compare and select currency quotes provided by these banks. Seven leading financial institutions in the West announced their intention to create a unified trading platform Fxall: J.P. Morgan, Bank of America, Morgan Stanley Dean Witter, Goldman Sachs, HSBC, UBS Warburg, Credit Swiss First Boston. The transformation process has spread from the spot market to derivatives. Brokerage companies entered the foreign exchange market, which until recently were exclusively engaged in transactions with securities. Internet brokerage companies Charles Schwab and E-Trade have offered services for currency transactions in cross-border stock trading. Research companies are joining in the provision of financial services in the foreign exchange market. The Zurich firm Olsen & Associates, which has a controlling stake in the Internet company OANDA.com, planned to create an electronic trading platform where it intended to offer its clients tighter spreads between the sale and purchase rates of currencies. The model of the foreign exchange market being created by this company is electronic communication networks. The ongoing changes in the global foreign exchange market indicate that the boundaries between the interbank and client markets are becoming increasingly blurred, that services in the foreign exchange market are no longer the privilege of banks, and banks themselves are turning into organizers of trade . At the same time, structural changes in the global foreign exchange market appear to ultimately contribute to its consolidation on a new basis of emerging unions and alliances of its largest banks. Overall, p The process of financial globalization is concentrated primarily in three main centers world economy: USA, Western Europe and Japan. The financial transactions of these countries extend far beyond their borders. The globalization of financial resources gives rise to both positive and negative consequences, since its rapid growth contributes to both increased integration of financial markets and the vulnerability of the world economy.

TO positive factors These include the problems of reducing the shortage of financial resources, processes of liberalization and deregulation of the functioning of financial markets and their participants, standardization and unification of the terms of transactions and the main characteristics of financial services, the introduction of financial innovations and modern investment methods, increased competition in national financial markets and the emergence of new dynamically developing countries in the global financial market.

In general, the globalization of the world economy causes qualitative changes in the development of the world financial market and an increase in its role in the accumulation and redistribution of intercountry flows of monetary capital. In modern conditions he are characterized absence of borders and huge scale, use of the world's leading currencies, round-the-clock transactions with a high degree of standardization and, mainly, in electronic form.

TO negative factors it is necessary to include the increased instability of national financial markets due to financial crises in certain regions, access to “hot money” due to the liberalization of national financial markets, the greater dependence of the world economy on the functioning of the global financial market, which can lead to the dependence of national markets on the state of finance , and not the real sector of the economy. In the context of globalization, the dependence of national finances on the behavior of non-residents, who are increasingly present in national financial markets, on transnational corporations, international institutional investors and international speculators, on the state of affairs in international financial centers, is increasing.

It is obvious that the global destabilization of financial markets is reflected in the economic situation of all countries, including Kazakhstan. Operating in conditions of deteriorating access to external borrowing and decreasing liquidity of financial systems, countries at the same time faced high levels of inflation. A characteristic feature of international inflation is its global nature. It affects all countries to varying degrees, unevenly reducing the purchasing power of all monetary units. Considering that the expected growth in consumption has not occurred in the world, the cause of inflation is the imbalance between the commodity and money supply in the global economy. The solution to the global problem of inflation was hampered by the inconsistency of the policies of different governments, which, concentrating efforts on combating the accelerated rise in prices, acted as local participants in a particular market, creating the preconditions for the export of inflationary processes to other countries. States that softened monetary policy in order to maintain the pace of their development thereby provoked inflation, which as a result also led to a worsening of the general economic climate.

As world experts note, a multipolar world awaits us in the 21st century. New poles and new zones of influence are still being formed, which will inevitably lead to a global redistribution of the world economy. Economic recovery in many countries will be long and uneven. China will be the favorite among the contenders for the formation of a new pole in the world. From the former “second echelon” countries - BRIC, South Africa, Iran, Turkey, Indonesia, Kazakhstan, Republic of Korea.

In this regard, in the context of globalization, in order to manage universal problems and constant political dialogue on vital issues of universal security, it is necessary to form a new type of human thinking that would allow us to develop new approaches to understanding the world as a single whole. It is necessary to improve existing institutions and create new ones that have global perspectives and are endowed with the authority to make decisions of a supranational nature, monitor their implementation, while simultaneously observing the requirements of transparency and accountability of their actions.

Thus, the globalization of the world financial market deepens, expands and accelerates relationships and interdependencies in all its segments, has both positive and negative sides, but this is an objective process to which all its participants must adapt.

Globalization is a natural process that occurs in the world economy. It represents the gradual transformation of the entire world economy into a common pool of resources, goods, knowledge, services, etc., common to all countries. Globalization of financial markets- an integral part of this process.

Origin and development

The process of globalization of financial markets began in the last century, when the first transnational companies and corporations appeared. At first, national monetary associations were formed, which was due to the low cost of Asian labor and the intensification of investment cash flows to Asian countries. The funds were sent to the East, from where they were returned in the form of inventory items to the West.

This process, in turn, spurred national capitals to mutual integration in order to maximally protect the interests of transnational companies and investments. The globalization of financial markets included increased capitalization and a significant redistribution of funds. The volume of money flow increased, new management portfolios were created, and the struggle for control over capital intensified.

The most important goal of the globalization of financial markets is the free movement of capital into the economy of any country, increasing the efficiency of investments by minimizing costs and increasing profitability. The process is still quite far from completion, but in the end many positive changes are expected:

Standardization of all investment management processes among all market participants.
Development and adoption of stricter antimonopoly laws, agricultural and tax policies.
Unification of macroeconomic management policies.

Ultimately, the world will move to common standards; the globalization of financial markets will make it possible to control all economic sectors, culture and even religion.

Reasons for accelerating processes

The main reason lies in the development and consolidation of industrial production. First of all, this is due to the manufacturer’s exit outside the country. That is, the company is no longer focused on its own country as the main consumer of its product, and is reaching a global level of meeting needs. Help in this movement is provided by the standardization of basic parameters and processes; the assessment of activities, quality of goods and other criteria occurs in monetary terms with reference to.

Another reason for the globalization of financial markets lies in the search for resources to solve world problems (poverty, technical backwardness, disarmament and demilitarization, food problems, ecology, use of natural resources, demography, healthcare, etc.). According to expert estimates, solving these global problems requires annually about one trillion dollars, and this amount is constantly growing.

Naturally, every capitalist, investor or bank strives to obtain the maximum profit on each of its assets, at least a profit comparable in size to other types of placement of free capital. This is another reason for the movement towards globalization of financial markets.

The impetus for the growth in the dynamics of combining economies was given by the virtual economy, which is rapidly developing. Thanks to telecommunications, international banks have the opportunity to operate around the clock and have become a single organism that instantly responds to any important changes and signals anywhere in the world.

Until recently, international capital was represented exclusively by national entities. But since the middle of the last century, organizations (IMF, IBRD, etc.) began to develop that manage and control global flows. It is safe to assume that the level of influence of these organizations and their total share in operations is a kind of indicator of the globalization of financial markets.

What does this mean for the global economy?

The unification and development of financial markets stimulates the creation of universal tools and procedures for internal and external banking operations. Thus, a universal network was created that connected together. With the strengthening of ties, international institutions emerged, the consequence of which was increasing pressure on some governments. The purpose of this pressure was to reduce the intervention of government bodies on internal development processes and liberalize international interaction at the capital level.

The globalization of financial markets eliminates barriers between global and domestic capital, allows for unlimited movement of funds within the planet, borrowing, etc. Already today, the movement of international capital exceeds real trade turnover by 50 times.

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The impact of globalization on the global financial market. The impact of the globalization process on the international financial market. The essence of globalization of financial markets

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Chapter 1. Globalization of the world economy

2.2 Impact of financial globalization on monetary policy

2.3 Responses to the challenges of financial globalization: developed and developing countries

Conclusion

Bibliography

INconducting

However, there are significant differences between internationalization and globalization.

Chapter 1. Globalization of the world economy

1.1 Prerequisitesglobalization

1.2 Developmentworldeconomy

Just like everything else, the globalization of the economy has its drawbacks and so-called crises.

1.3 Globalizationmarketloancapital

2.2 Impact of financial globalization on monetary policy

globalization economics financial monetary

The effect of external factors limits national monetary policy in several directions: directly, by narrowing the ability of central banks to use individual instruments and set different goals, and indirectly, when central banks are forced to respond to the consequences of external negative shocks.

To understand how financial globalization has affected inflation processes in general, let us consider the dynamics of world inflation from 1970 to 2005 and the IMF forecast for 2006-2007.

So, we can state that:

a) the results of national monetary policy in the context of financial globalization become less predictable (under the influence of changes in the transmission mechanism);

6) the degree of predictability of the monetary policy environment itself is decreasing (under the influence of external shocks and changes in capital flows, which are often caused not by “fundamental” indicators, but by various “news”);

c) national monetary policy faces limitations both in terms of its objectives and the instruments available for its implementation;

d) the degree of responsibility for an insufficiently thought-out monetary policy increases, which can lead to an outflow of capital from the country, a financial and economic crisis on a larger scale than in a partially closed economy.

2.3 Responses to the challenges of financial globalization: developed and developing countries

1. Lack of fiscal dominance (monetary policy should not adapt to the dominant fiscal policy) or, more broadly, a fairly high degree of independence of the central bank.

2. The absence of other “anchors” (that is, targeting the money supply or exchange rate) (14). This condition is key because, as already mentioned, with financial globalization the “room for maneuver” of monetary policy is limited.

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Course work

The problem of globalization of financial markets

INTRODUCTION

An integral economic system on a planetary scale is being formed, which dictates its own rules of the game to individual national economies.

The purpose of the course work is to study the problems of globalization of financial markets. To achieve the goal, it is necessary to solve the following tasks:

- define the concept of “globalization”;

- consider the role of globalization in the formation of the modern world economic system;

- study the features of globalization of world markets;

- explore the positive and negative impact of globalization on the development of the world community.

The object of the study is financial markets.

The subject of the study is the process of globalization of financial markets.

The methodological and methodological basis of the course work is the theoretical developments of domestic and foreign authors. The work used methods of analysis and comparative characteristics of data.

1 . Theoretical foundations of globalization of the world economy

1.1 The essence and concepts of globalization

Globalization of the world economy is the process of transforming the world space into a single zone (a single global system) of international economic, cultural, informational and legal space, where there is free movement of information, goods and services, and capital.

* The globalization of economic systems, accompanied by the increasing openness of national economies, facilitates TNCs and TNBs to quickly transfer huge financial resources from one center to another, plunging weakened national economies into a state of financial crises.

Globalization is caused by the following factors of world development: the deepening of the international division of labor, scientific and technological progress in the field of transport and communications, thus reducing the distance between countries.

1.2 Stages of globalization of the world economy

In the XII-XIII centuries. At the same time, with the beginning of the development of market (capitalist) relations in Western Europe, the active growth of European trade began, as well as the formation of the European world economy.

In the first decades of the 20th century, even the First World War could not prevent the process of globalization. The growth of international trade continued even when the foreign trade of Western European countries was liberalized in the 1920s.

In the 1930s, after the onset of the Great Depression and the introduction by the leading Western powers in 1930-1931. high import duties, there was a sharp collapse in international trade and a curtailment of globalization.

Globalization of the world economy brings a number of advantages:

- increased international competition. Competition and market expansion lead to deepening specialization and international division of labor, which in turn stimulates production growth not only at the national but also at the global level;

- economies of scale, which can likely lead to lower costs and prices, and this will lead to sustainable economic growth;

- gains from trade based on mutual benefit. This contributes to the satisfaction of all parties, which satisfies all parties, which may include individuals, firms and other organizations, countries, trade unions and even entire continents;

- increased productivity as a result of the rationalization of production and the dissemination of advanced technology at the global level, as well as competitive pressure for continuous innovation on a global scale.

The benefits of globalization allow all partners to improve their position by increasing production, raising wages and living standards.

The globalization of the world economy is fraught with negative consequences or potential problems:

- Complete or partial loss of economic independence by individual countries;

- A crisis in any market segment can have detrimental consequences for the economy of a particular country; the state cannot influence the price of goods (services) produced on its territory;

- Control over information by transnational corporations, biased coverage of events and processes;

The emergence of marginal groups (and entire nations), for one reason or another, lacking the skills to work with high technologies and therefore unable to adequately represent and protect their interests

The worldization of economic life is opposed by common values ​​reproduced by national institutions.

The positive consequences (benefits) of globalization processes include:

An important advantage of globalization processes is economies of scale, which can potentially lead to cost reductions and lower prices, and, consequently, to sustainable economic growth.

The benefits of globalization are also associated with the gains from free trade on a mutually beneficial basis that satisfies all parties.

Globalization can lead to increased productivity as a result of the rationalization of global production and the spread of advanced technologies, as well as competitive pressure for continued innovation on a global scale.

Globalization gives countries the opportunity to mobilize greater amounts of financial resources as investors can use a wider range of financial instruments in an increased number of markets.

Globalization creates a serious basis for solving universal problems of humanity, primarily environmental, which is due to the unification of efforts of the world community, consolidation of resources, and coordination of actions in various fields.

The end result of globalization, as many experts hope, should be an overall increase in well-being in the world.

Negative consequences, potential problems and dangers of globalization

Consequently, the degree of positive impact of globalization processes on the economy of individual countries depends on the place they occupy in the world economy; in fact, the bulk of the benefits go to rich countries or individuals.

Unfair distribution of benefits from globalization creates the threat of conflicts at the regional, national and international levels. What is happening is not income convergence or equalization, but rather income polarization.

uneven distribution of benefits from globalization across individual sectors of the national economy;

possible deindustrialization of national economies;

the possibility of transferring control over the economy of individual countries from sovereign governments to other hands, including to stronger states, TNCs or international organizations;

possible destabilization of the financial sector, potential regional or global instability due to the interdependence of national economies at the global level. Local economic fluctuations or crises in one country can have regional or even global consequences.

globalization participant financial market

2 . Features of the globalization of financial markets

2.1 The essence of globalization of financial markets

Globalization and the successful application of modern information technologies in finance have formed a new concept of financial globalization in the world economy - the desire of individual independent national and regional markets to create a single connected and interdependent capital market.

The globalization of financial markets is characterized by an increase in the international activities of banks and other financial institutions. A number of factors contribute to this:

The worldization of economic life is opposed by common values reproduced by national institutions.