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“Globalization in financial environment” •

Financial globalization has increased pressure and impact on the national industries of developing countries. For historical reasons, the developing countries' economic structure is fragile, their capital is scarce, technology backward and market growth immature. They are vulnerable to impact in the process of being merged into economic globalization, so they not only need private investment and technological aid from the developed nations, but all the more need the assistance of official capital.

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In fact, the developed nations' official capital flowing into developing countries in the past 10 years has notably decreased. Many developed countries have failed to earnestly undertake their responsibilities, falling far short of fulfilling the internationally acknowledged target for aiding the developing countries. The World Bank report "1999 Global Development Fund" shows that the amount of developed nations' official capital flowing into developing countries has fallen from approximately US$60 billion in 1990 to less than US$45 billion at present. Financial globalization under the condition of economic globalization has, without doubt, accelerated the flow of international capital, it, however, has also increased the financial risk of the developing countries. Under the circumstance wherein the financial system is not perfect and financial control capability is not strong, if the developing countries blindly open their domestic financial market, the negative influence of financial globalization will stand out. The best illustration of this is the eruption of the Asian financial crisis in 1997. The negative influences brought about by the tide of economic globalization obviously is not the development target of humanity. The developed nations should bear certain responsibility for the emergence of these consequences. In the world economic arena, the fact that the developed nations are both the participants in the play and the makers of regulations on the play determines that in the solutions of many international trade problems and the formulation of trade regulations, the voice of the poor developing countries is weak.

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• One measure of the extent of globalization is the volume of international financial transactions, with over $1.2 trillion flowing through New York currency markets each day, and with the volume of daily international stock market transactions exceeding this enormous amount.

“Six main forces with four main aspects of globalization in Financial environment"

Forces: Innovation and technological progress Integration of economies Information revolution Advances in Communication Advances in Transportation

Aspects: Trade, Capital movements, Movement of people and finally Spread of knowledge (and technology)

“Reasons of Globalization in world’s financial Envirnoment”  increases in worldwide trade and exchanges in an increasingly open, integrated, and borderless.  people moving through international travel and migration  integration of markets on a worldwide basis, and a movement toward a borderless world, all of which have led to increases in global flows.  significantly lowered the costs of transportation and communication and dramatically lowered the costs of data processing and information storage and retrieval.

 A significance source of globalization has been trade liberalization and other forms of economic liberalization that have led to reductions in trade protection and to a more liberal world trading system.  Formation of multi National companies and businesses and where these companies go their financial trades and works can be seen easily through the head quarters of these companies.  Return on investment (ROI) is High so businesses are globalizing not

only in financial area but also in operations ,marketing and other areas

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