Globalization

GLOBALIZATION AND INTERNATIONAL FINANCE

INDEX OF TABLE OF CONTEXTS

Introduction---------------------------------------------------------------------------------- 3

Globalization and the construction of a global market ---------------------- 4

Factors that determines the onset of Globalization--------------------------- 4

Globalization changes the International PBI------------------------------------- 5

Integration as an essential pillar for globalization----------------------------- 6

Multinational corporations and their profits in the global market-------- 8

Participation of International Finance in the Globalized World----------- 8

Are they equal the international and domestic finance? -------------------- 9

Pross and Cons of Globalization----------------------------------------------------10

The Globalization and its criticism------------------------------------------------- 10

Globalitazion and inequality---------------------------------------------------------- 12

The theory of the "myth of globalization" ---------------------------------------- 13

Globalitazion and Neoliberaslim---------------------------------------------------- 13

Hypothesis of good behavior and other half-truths -------------------------- 14

Executive Summary---------------------------------------------------------------------- 15

Bibliography----------------------------------------------------------------------------- 16

INTRODUCTION

The growth of international finance and the overwhelming growth of globalization in its various aspects have been distributed in several countries.

Refer to globalization, invites us to analyze every aspect that includes this term, such as: economic, political, cultural, financial level among others.

However, it is in this latter aspect, financial, where globalization has greatly influenced, reaching the point where now the most are globalized financial markets, outperforming the market products.

The advancement of international finance is reflected in the consolidated integration of foreign capital. Therefore, here underscores the importance of the domain of international finance for any employer opposite in many cases, a globalized world where countries compete unevenly.

Globalization is present not only in production but also in investment and consumption. It is the foreign exchange market which has full integration through a single price internationally.

For this work we will consider only the economic and financial aspects; however, the criticisms of globalization and how it affects national identity in a country where two or more countries compete unequally is also considered.

1. Globalization and the construction of a global market

In this panorama, we can define globalization as a process of integration that seeks to create a single global market, where similar products are exchanged. Here origins involving companies with difficult to determine, since its operations and activities are carried out in different countries, making it difficult to differentiate the parent company and subsidiaries.

We consider that this single global market wrought by globalization involves economic, political, cultural, environmental and financial aspects, because although globalization is a market issue, this market has your participation, often affected by the implementation of new trends.

Globalization not yet have a fully global market, however, this term is present in output, investment and consumption, with the globalization process in some more developed than in other areas. As mentioned above, the financial market is the greatest advance has its currency market.

2. Factors that determines the onset of Globalization

This process has its origins in the 1980s and its growth is due to several factors.

First, the reduction of trade barriers and promoting global trade after the Second World War is the first step for the onset of globalization.

Another factor contributing to the growth of globalization was the standardization of goods and services and some degree of homogenization of tastes.

Shrinkage of geographical space, thanks to the improvement in telecommunications and transportation, through tariff reductions of long distance, cost and overall time of international travel have created a sense that the world is smaller. If we refer purely to global trade, and has been reduced and standardized the item and shipping and air freight.

Undoubtedly, the collapse of communism and the end of the Cold War, contributes to the birth of capitalism. However, it is a counter to capitalism criticized called Liberalism, with ideas such as the existence of a democracy in the political sphere and the creation of a free market; reduce the role of government in the economy and privatization.

Among other factors that contribute to the dynamism of globalization also highlights financial liberalization during the 1980s debt.

Finally, the third industrial revolution generates global changes in technology, organization and exchange relations in the political arena - social.

3. Globalization changes the International PBI

Globalization presents various measures, which are shown in the share of exports in world gross domestic product growth rate of exports of a country compared to the rate of economic growth, the level of internationalization of investment portfolios , the amount of transactions in international financial markets, the share of industrial production by multinational enterprises.

In the case of Mexico, the contribution of exports in world GDP has grown considerably. In the past 50 years their participation in international trade increased from 7% to 20%; in this

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