Financial Globalization: Threats and Advan-Tages for Investment Safety of Ukraine

Topics: Economics, Economy, Investment Pages: 5 (1693 words) Published: March 24, 2011
Problem statement. The personal touch of contemporaneity is inten-sive development of processes of globalization with bringing in of national economies in the world economic system, strengthening of their mutual dependence. The reflection of these processes was become by internation-alization and hasty growth of financial markets. The process of financial globalization opened the new ways of motion of capitals to the financial market of Ukraine, including on such segment of market, as an investment. Research objective. Revealing of essence, objective bases and con-tradictions of financial globalisation, and also definition of the basic threats and advantages of influence of financial globalisation on investment safety of Ukraine. Degree of a readiness of a problem. Works of many scientists-economists are devoted studying of problems of globalisation. These are Abalkina L.I., Bulatova A.S., Dolgova of S.I., Glazyev S.Y., Kochetova E.G., Mysljaevoj I.N., Osmovoj M. N, Pivovarovoj M. A, J. M.Keynes, C.P.Kindlebergera, A.Kejrnkrossa, V.Lenin, K.Marx, J.S.Mill, R.Nurke, B.Olina, A.Ragmena, S.Hammer. Researches of processes of financial globalization led to forming of two basic approaches – supporters and critics of globalization. Accordingly, attitude toward the processes of financial globalization is different – from positive in obedience to which financial globalization creates numerous benefits, to negative in obedience to which the benefits of financial globalization are appropriated by a two-bit economic the developed coun-tries, and for countries which develop, globalization has investigation of increase of dependence on world financial markets. As a result of processes of economic and financial globalization an obvious socio-economic break was formed between the small group of post-industrial countries (“by global leaders”) and other countries of the world (“by global outsiders”). It is the variety of system asymmetry of economic development, which increases as a result of global interdepend-ence of financial markets. Its basic display is development of financial markets. Free motion of capitals is instrumental in it, unlike limitations on the markets of commodities, labour force and non-financial services. Overall, the global financial market development aimed to increasingly reduce the real economic sector and deregulation of their activity on the part of individual Governments and international organizations. Therefore, financial globalization is developing an uncontrolled manner that constitutes a real threat to economic stability around the world. Result of investigation of processes of financial globalization that has increased in recent years attention to the problems of globalization, as it became clear that the simplified view of economic globalization led to at-tempts to transfer Western institutions and economic mechanisms in pe-ripheral countries. Overall complexity of financial markets and predictabil-ity of the global financial system increases the instability of the system and increase the risks inherent in this complex system. Doubt that financial globalization increases the general interdependence of financial systems and their complications generate instability of financial markets. Therefore, even economically developed countries cannot be free from increased risks arising from financial globalization [1]. Therefore, integration of national financial markets as a result of fi-nancial globalization than advantages in attracting investment to developing countries and countries with economies in transition is the cause of increase of the general instability in world financial markets. Globalization processes have increased disparities of national financial markets; it also becomes a factor of international financial crises. Overall, the result of financial globalization is not only the likelihood of financial crises, but also increasing the impact of these crises in other countries. Features of the...
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