Internationalization of Financial Markets Essay - 1

Internationalization of Financial Markets - Essay ExamplePeople adopt all these strategies to reduce the jeopardy and allocate the resources in a strategic manner.During the last 20 years, internationalization of financial markets has developed at a very swift pace. This took place due to the amalgamation of goods market leading to the presence of international corporations. Imports and exports volumes have increase largely leading to increasing in international transactions. All these elements have increase their presence internationally only the growth of internationalization of financial markets has gone beyond the adjustment of trade. along with this growth, banks existence has also increased internationally with many new branches in new countries to satisfy the unavoidably of customers working for multinational organizations (Horne, 1990).The reason that banks have different packages for different countries is that people have different ineluctably and trends. Some countrie s might have the trend of saving more and some might have enthronisation trend depending on the current situation of the country. If there is inflation in the country, demand is high but supply is very low because the purchasing power of consumers has increased but output has not increased at the same pace. The government will increase the interest rate so that instead of disbursement the money people save the money and do not demand much (Welch & Liostarinen, 1993). During this period, foreigners will bestir oneself saving their money in those countries banks. Similarly, when there is deflation in any country government will cliff the rate of interest so that people invest more to stimulate the production and prices.Moreover, different countries wait different kind of natural calamities and other destructions. Insurance companies have great significance in these kinds of countries, they aggregate premium from people periodically and invest this money in different projects.