Globalization, financial (financial globalization)
The supply of and demand for loans are increasingly spilling over from domestic markets and becoming internationalized. Between 1990 and 2000 alone, the worldwide flow of capital increased fourfold (to USD 7.5 trillion). This process has been accelerated above all by – advances in information technology, – the increasing exchange of goods between nation states, including foreign investment, – the opening of national financial markets to foreign market participants, – the development of new financial products which, among other things, enable global risk diversification, and – strong competition among providers: in addition to traditional banks, non-banks are also emerging as competitors, such as investment funds, insurance companies and even large manufacturing and trading companies. – Banks relocate labor-intensive areas from the back office to cheaper foreign countries when the cost of labor rises above the marginal product of labor (the change in output per unit change in labor). – See activity analysis, foreign staffing, bank mergers, champion, national, file management, centralized, decoupling thesis, Europe AG, layoff productivity, globalization, internationalization, outsourcing, shadow banking, economy, bifurcated, interest allocation function. – See Deutsche Bundesbank Monthly Report of September 2006, p. 45 ff (direct investment contributes to financial globalization), ECB Monthly Report of August 2008, p., 88 ff (euro area’s position in financial globalization; overviews, literature references; model issues), ECB Monthly Report of February 2012, p. 117 ff (cross-border capital flows in the euro area; detailed presentation; many overviews), Deutsche Bundesbank Monthly Report of July 2014, p. 65 (German direct investment worldwide: overview).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/