Thursday, April 2, 2009

financial globalization:recent phenomenon?(3)

In today is rapidly globalizing world ,where the value of foreign exchange transaction involving international assets far exceeds the value of foreign exchange transaction involving good and services ,it is important to examine more closely the nature of these modern transaction .the actors in the international financial system have developed a huge and bewildering variety of different types of traded assets ,with each asset designed to satisfy particular liquidity ,risk ,and return demands of financial investors and asset holders.we survey different general types of assets that are exchanged internationally ,and we provide information on their size,characteristics ,and markets .we begin by looking at international bank lending and then examine international bonds and stocks (equities ). we then consider in some detail a number of specific financial instruments that belong to the broad category "financial derivatives " Our purpose here is to familiarize you in a general way with the range of financial instruments available for transferring wealth across country borders and to indicate the many possibilities that exist internationally for satisfying financial investors particular preferences.

No comments:

Followers