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The tide of financial globalization is sweeping the world in an irresistible trend. As a trend, financial globalization has brought vitality to the development of the world economy on the one hand, but on the other hand, it has also posed a severe challenge to the financial security of all countries, especially developing countries. The impact of financial globalization on China's economic and financial development has both positive and negative effects.
1.The positive effect of financial globalization on China's finance.
1) Financial globalization is conducive to attracting foreign investment and accelerating the process of industrialization in China (2) Financial globalization is conducive to the introduction of advanced financial operation experience into China and improving financial efficiencyThe negative effects of financial globalization on China's finance.
1) Financial globalization has brought challenges to China's financial industry.
2) Financial globalization has created an environment for international investors to create financial risks, and (3) financial globalization has exacerbated the vulnerability of banks.
4) Financial globalization has made financial supervision more difficult.
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The role is as follows:
1. Promote the tremendous development of world economic globalization;
2. Provide funds for the economic development of various countries;
3. It is conducive to adjusting the balance of payments of various countries.
4. Promote the internationalization of the financial industry;
5. Cause large-scale international capital flows.
It attracts countless multinational financial organizations, especially the banking industry. The international financial market has become the distribution center of the major international banks. The financial market organically combines these banks through various activities, so that the bank credit of all countries in the world breaks through the space constraints and becomes international bank credit, and promotes the internationalization of many financial businesses to a greater extent.
The emergence and development of the international financial market is a deficit in the balance of payments.
China provides a channel for adjusting the balance of payments, that is, deficit countries can borrow or raise funds in the international financial market, so as to plan economic development more flexibly, and can also alleviate the pressure of balance of payments imbalances to a greater extent.
The basic role of the financial market: the first is discovery, that is, trading and pricing; The second is to provide liquidity, which can be sold and liquidated at any time; The third is to reduce transaction costs.
Reducing transaction costs is competition, and the more competition there is, the thinner the benefit. The financial market can quickly and effectively guide the rational flow of funds and improve the efficiency of capital allocation. It expands the opportunities for the supply and demand of funds, facilitates financial transactions, and reduces financing costs.
It has improved the efficiency of the use of funds. The financial markets have opened up a wider range of financing avenues for fundraisers and investors. The financial market is a variety of financial instruments with different maturities and contents.
Conversion to and from each other provides the necessary conditions. The development of financial markets can promote innovation in financial instruments.
A financial instrument is a set of standardized contracts that combine expected returns and risks. Diversification of financial instruments allows investors with different preferences for risk and return to seek the investment that best meets their needs by providing a more granular breakdown of the risks inherent in various investments in the economy. Diversification of financial instruments can also allow the diverse needs of financiers to be met as much as possible.
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1. The use and allocation of large-scale international funds, and the allocation adjustment should be carried out in a reasonable and efficient manner. Internationalization of production and capital.
2. Adjust the balance of payments of countries. automatic exchange rate adjustment; utilization of international reserves; Borrowing and raising funds in the financial market to maintain a country's balance of payments.
3. Smooth access to international financing would enable some countries; Successfully obtain the funds needed for economic development. The rise of the Federal Republic of Germany and Japan depended on European money markets; Asian money markets play a positive role in the economic development of the Asia-Pacific region.
4. Internationalization of banking business. Multinational banks, banks of various countries are organically linked through the market and have established good credit relations in the world.
The allocation of surplus funds has greatly promoted the economic development of the third world, thus making the whole world look new.
Of course, there will also be negative effects, such as the impact of floating capital, the spread of crises, and the existence of speculation.
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Answer]: The globalization of financial markets is mainly manifested in: First, the fragmentation between various regions is like the interconnection of financial markets, forming a global financial market, especially the development of offshore financial markets, which has led to the rapid flow of capital in the world.
Second, the trading entities and trading instruments of the financial markets of various countries are becoming more and more internationalized, and investors and fundraisers can choose markets and investment objects on an international scale. The internationalization of trading entities, especially the identity of fundraisers, has brought about the increasing internationalization of financial market trading instruments. Third, the gap between the major financial assets and the income rate of the financial markets of various countries is narrowing day by day.
Financial globalization has promoted the convergence of the exchange rate levels of major currencies in the foreign exchange market and the integration of the global equity market.
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