GLOBALIZATION AND FINANCIAL CRISIS

Globalization and Financial Crisis

ABSTRACT

The principal drive behind carrying out this research is to develop a rational and designed evaluation of the possible implication that financial globalization has had over the international financial market over the years. The focus of the research would be towards finding any legitimate relationship between globalization and recent financial crisis that might bring a halt to the globalization process in the future. Alternatively it will also be discussed whether globalization can play a part in ending financial crisis prevailing in the global market. In order to formulate a structural analysis on whichever aspect of globalization and financial markets is true, a review of pre-globalization financial and economic conditions will be matched up with post-globalization conditions. Comparative review of literary pieces and real world scenarios will be carried out to infer whether theoretical implications of globalization, match up with empirical evidences. The research will aim to gather qualitative evidence of possible linkage between globalization and international financial market structures and conditions.

Table of Contents

CHAPTER ONE: INTRODUCTION4

Background of the Study4

Aims and Objectives5

CHAPTER TWO: CONTEXT OF STUDY7

CHAPTER THREE: INITIAL LITERATURE REVIEW9

CHAPTER FOUR: METHODOLOGY12

Methods of Data Collection12

Literature Search12

Keywords14

CHAPTER FIVE: CONCLUSIONS15

REFERENCES17

CHAPTER ONE: INTRODUCTION

Background of the Study

It is a common perception that globalization and international economic are extremely correlated with each other. As a general perspective, the innovation in technological and economic development which came about due to the collision of international resources into one colossal group of money and human resource, has initiated improved ways of transferring capital and resources from one area to another. The spur in technological advancement, incurred largely due to global think-tanks pooling their resources and researches together, have made a path for political integration providing a way forward for international trade.

These developments in the international financial markets appear to have great advantageous effects on almost all the countries of the world. However, there is also another side to the impact of an internationally unified economic activity policy. A joint perspective towards strengthening economic conditions on an international forum is not just intriguing, but it also creates some problematic dependency issue. With the spread of business in foreign areas, business operations become dependent on foreign investment and resources. Reliance on foreign activities for domestic economic strengthening could lead to drastic economic crisis.

Thus, the focus of this paper will be to analyze whether financial globalization has contributed more towards strengthening economic conditions in the world or whether it has caused a shift towards a persistent financial crisis situation. It will be conversed whether the stimulation of international financial crisis can be blamed on the spur in globalization activities. Furthermore, the paper will critically evaluate whether international inter-dependency led to a synchronized clash in global economic conditions, which might in the future, lead to a distinctively separable economy around the world. Nevertheless, due to inter-dependent economic activities that the international economy was able to side-step kept receding economic condition.

Aims and Objectives

The main objective of the research will be to access comparative correlation between either globalization and financial ...