Financial Globalization And Countermeasures

Now we have lived in the economic globalization age. Globalization offers enormous benefits, in the form of higher productivity and living standards. But it also poses daunting challenges-worsening the unjust allocation problem. We can see that globalization tops the international agenda in policymaking circles, it absorbs academics and scholars, and it fascinates people around the world as they debate the impact on their own lives. As UN Secretary General Kofi Annan said: "It is our job to ensure globalization provides benefits, not just for some, but for all; that peace and security hold, not only for a few, but for the many; that opportunities exist, not merely for the privileged, but for every human being everywhere." 2 Financial globalization, which is the focus of this paper, is the main part of the globalization. It is a phenomenon whose economic dimensions involve increased in the flows of trade, capital, and information, as well as human resources across borders and it has deep effect on the world economy. The paper introduces both the opportunity and the challenges financial globalization has brought to the countries in the world. Then it provides some developing strategies for China's economic continuous development. Financial globalization covers wide range of fields: Banking, Insurance, and Stock Markets. Though they all belong to finance field, each of them concerns complicated theories, it is almost impossible to discuss in detail the financial globalization, esp. when it is now developing with flying speed. Because of this, the paper has to mainly discuss and analyze, to a certain depth and wideness of, the main points of the topic. To achieve a reasonable researching result, adopting the latest developments of financial researchers from both inside and outside from internet is very important. What more, one of the main features of this paper is that its analysis methods: That is applying the theory to the real situation while at the same time using a lot of comprehensive analytical comparison to get the result. The first chapter of this paper introduces some important economic terms such as economic integration, international economy, economic globalization and financial globalization and makes clear the orientation of the paper's research. The paper defines the term"Financial globalization",which is based on the economic globalization, as the global flows of capital and stock investment and the procedure of building comprehensive financial institutes and fulfilling international financial government. Such definition helps the other chapters of the paper focus on the main point. Because almost all the rules are set by the developed countries, the coming chapter of the paper figures out in detail the hard working of U.S., European Union and Japan done to take the leading position of financial globalization. With no doubt, American takes the leading position all the time. The activities of American TNCs promoted the development of globalization. The financial institute liberalization made the financial industry more prosperous. The lift of the rules that limit the combining banking affaires with stock business, as well as the initiation of network bank, has made the European Union and Japan feel the stern challenge they are facing. In addition, U.S. has effectively controlled the IMF and WB, and push power politics with the help of these two organizations. To grasp more and more rights in international affaires and the international financial organizations, the Europe and Japan have promoted the financial liberalization in their own countries and thus will lift the financial globalization into a higher level. On the other side, the developing countries on the whole are in a fairly unfavorably position. By participating in the globalization, the developing countries may probably obtain certain foreign funds, market, advanced technologies and management experiences, thus accelerating their economic development, but they are greatly affected by the negative...