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Running head: FOREIGN TRADE ZONES 1

FOREIGN TRADE ZONES 2

Global Financial Markets

Mario Djukic

Key Term: “Global Financial Markets”

This key term intrigues me since it manages one of numerous imperative parts of worldwide business. It interests me academically as I have found this to be all connected to my final project, and it can prove to be beneficial in the worldwide business. Although, some key terms are of higher significance than others. For instance, If I ever have a chance to venture out of local business and go global, then this would be helpful. This key term does not have any significance to my present place of employment, but rather in a distant future if I decided to step out of my comfort zone.

Explanation of the Key Term

Global financial market is a global economic framework, which deals with both formal and informal economic implications, and facilitating investments and global trade. Improvements in technology are correlated with improvements in communication and transportation technology, which is a reason for the advancements in worldwide economy. In developing nations, standard of living improvements have changed for better, which is related to an increase in marketing of goods and services across nations. Furthermore, many goods are made in nation, and are available for sale worldwide, and at the same time they are competing against other nations who make same product. Global financial market is a trade center that facilitates financial activities worldwide.

Major Article Summary

Jaradat, M., & Motocu, M. (2015). Developments in global financial markets. Valahian Journal of

Economic Studies, 6(2), 83-90. Retrieved from

http://ezproxy.liberty.edu/login?url=http://search.proquest.com/docview/1777715479?accountid=12085

I have chosen this article because I wanted to generate more knowledge on global financial markets, and specifically the developments. Advancements in the global financial market show a gradual growth in the constant development of worldwide money related markets that are displayed throughout the article. Furthermore, the various correlations indicate adjusted upward economic growth in global trends. The banks have dropped the "begin and hold" that was designed to expand their value. In order to achieve that, banks came up with new procedures - specifically securitization, which involves changing over bank loans into monetary securities. The objective was just to no longer keep credit and its related dangers on their books. They changed these credits into securities as organized money related items, which they sold to different banks or private monetary organizations. Influence impacts have become more robust after some time. Clearly this causes issues. Because of deregulation, banks could create exercises requiring monstrous measures of financing (and along these lines of obligation) without representing them on their accounting report. They occupied with such a great amount off-balance sheet action that in 2011 the volume of the exercises being referred to surpassed 67,000 billion dollars (which is around comparable to the entirety of the considerable number of GDPs of the considerable number of nations on the planet). This is what is alluded to as shadow banking. At the point when off-balance sheet movement prompts to enormous misfortunes, sometime it will influence the soundness of the banks who started it. The significant banks are by a wide margin the ones who overwhelm shadow managing an account. The danger of disappointment has incited governments to go to the guide of these banks by recapitalizing them. According to the author, the analysis provided in this article is sufficient enough that we are able to use the data and come to a conclusion that a stock market and debt in countries across the world is calculated in relation to GDP.

Discussion

After reading chapters 5 and 6 for his week's reading material I have a broader understanding and concept of global financial markets. This week we have been concentrating on global financial markets, regional economic integration, and trade agreements on a worldwide scale. The main article discusses the data and analyses how global financial markets are developing, which deals directly with what we have been reading in our class. Seeing every one of the laws and directions in various nations is a major part of working together internationally, which implies one must comprehend how exchange of goods and services across the border is handled, and must understand involvement from both borrowers and landers perspective. Extending organizations through worldwide exchange and ventures created worldwide economy, which has expanded both assembling occupations and acquired more financial specialists locally and comprehensively. I feel like the article is specifically related with global financial markets. The other 4 articles are also very informative, and cover the information similar to the main article, which kind of work like expansions that are building on each other. The first article depicts and goes over proposition for exchange understandings, and breaks down the data and analysis for developments in global financial markets. Second article covers the hypothesis of 44 countries over in sub-Saharan Africa between 2000 and 2007. Third article addresses the social connectivity and impact that it has economically. Forth article demonstrates the global financial services, and the capital versatility and financial deregulation of national economies are giving the chance to many foreign related foundations to enter emerging nations, or to answer any other questions one might have in regards to global financial markets. All of the articles combined deliver essential knowledge to better understand global financial markets. After reading these, I have a better understanding with global financial markets overall.

References

Polteva, T. V., & Ajupov, A. A. (2016). STRUCTED FINANCIAL PRODUCTS IN

GLOBAL FINANCIAL MARKET. Journal of Economics and Economic Education

Research,17, 51-56. Retrieved from

http://ezproxy.liberty.edu/login?url=http://search.proquest.com/docview/1826877786?accountid=12085

Deléchat, C., Ramirez, G., Wagh, S., & Wakeman-linn, J. (2010). How global financial markets affect sub-saharan africa. IMF Staff Papers, 57(1), 172-208. Retrieved from: http://dx.doi.org/10.1057/imfsp.2009.29

MacKenzie, D. (2004). Social cennectivities in global financial markets. Environment and Planning d-society & space, 22(1), doi: 10.1068/d317t

Moshirian, F. (2008). Financial services in an increasingly integrated global financial market. Journal of Banking and Finance, 32(11), 2288-2292. doi: 10.1016/j.jbankfin.2008.03.003