Financial Globalization : The International Economic System

Decent Essays
The financial globalization is growing nowadays and it is important to know what its causes are and how they influence the world’s economics or one of the separate countries.
The main area of globalization is the international economic system (economics), i.e. global industry; the exchange and consumption done by the enterprises in their national economies and in the world market. As a result of the globalization, the financial capital gained the considerable mobility, seeking for the most attractive and profitable opportunities. Financial globalization has increased the influence of international markets on the operations of lending and borrowing by the residents of different countries. This process has led to the growth of the international network of financial institutions and corporations, and to fundamental changes in their systems of organization of flows of funds management. At the same time, the financial globalization seriously affects different countries, as the competition of national economies for credit resources, which are freely reallocated on the scale of the new global world economy, becomes tougher in new conditions. As for this paper, the focus lies in arguing that microeconomic principles were applied to promote recovery in South America, Poland, India, and Russia, since it proved to be the only way to stabilize the decaying economics of the abovementioned countries.
Considering the microeconomic policy prescriptions, it is worth saying that Russia
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