Globalization

The process of globalization began long ago, but the effect is still unknown for many industries. In the past ten years the world saw a number of financial crisises that in many places.

World has seen many major changes in the last two decades, particularly in developing countries. These changes have led to globalization, which began when the trend of financial opening in the 1990s was accompanied by a renewed degree of international mobility of capital not seen since the beginning of this century. In developed countries, the abolition of restrictions on capital flows accelerated in 1980 and 1990, starting with Margaret Thatcher reforms in the UK continues with Japan on the liberalization of capital inflows and outflows at the beginning of 1980, and ending with the European Community on the elimination of intra-Community barriers to capital flows in 1990 (on line).

Globalization means that the world is capitalism and capitalism is on the market and the company. For the last ten years on the world stage a new executive operational forces appeared and were confirmed. Fundamental issues of international economic position of the state and the operators under their jurisdiction
With the emergence of new technologies, the growing global market, people, goods and services are crossing borders more and more fees. Economic globalization, helps the growth of new technologies, offers new opportunities for economic growth. This created enormous economic and social benefits for some countries but not others, and disproportionately on certain groups in these countries. It has also reduced the regulatory body for national and local government (public sector) and more power and influence of multinational companies (private sector). The planet may shrink in terms of commercial interests, but the gap between rich and poor and between nations, it is possible in the opposite direction. This has profound implications for people, both in developed and developing countries.
Economic globalization described the integration of economic activities which were previously national or regional level on the entire planet-operation. It is not a new phenomenon, but it was typical of the capitalist economic expansion at least a century or more. The size of the enlargement, especially in the financial or speculative "hot money", is new. So this is a shift in the structure of multinational companies (one company sells its products to many countries) to multinational companies (a company with production facilities spread across many countries). Economic globalization is also associated with a new regime for the liberalization of trade and investment.

Moreover, globalization wills banks diversification of risks and the overall performance of the economy by improving the allocation of resources. On the minus side, if too much consolidation, this could lead to abuse of market dominance and moral hazard problems, such as the institutions deemed too big to fail. Moreover, excessive participation in foreign markets without sufficient knowledge of local economic conditions could increase the vulnerability of individual banks.