ipl-logo

Advantages And Disadvantages Of Financial Globalization In Mauritius

977 Words4 Pages

During the past decades financial market around the world has become increasingly interconnected and has given rise to financial globalization. Financial globalization is the integration of financial market all around the world with their various currencies. This integration allows the breaking down of the different barriers of convertibility in order to ensure uniformity. Financial globalization definitely represents news challenges and opportunities to developing countries and in particularly small developing island like Mauritius.
2.2. Advantages of Financial globalization for small developing countries like Mauritius.
 Inducement for better policies

Due to financial globalization small developing countries like Mauritius needs to be compliant with the financial conditions set by international financial institutions like IBRD International Bank for Reconstruction and Development.
These policies involve disciplined fiscal policy, transparency in management, employee management equilibrium and adequate customer service. In Mauritius the government has encourages the creation of several financial regulators like Financial Services Commissions, Independent …show more content…

Financial crisis can happen if pessimistic investors believe that the exchange rate will fluctuate they can speculate against the currency and discourage potential investors. Moreover, due to the high interdependent that exits in financial globalization when a problem happen in one part of the world this will automatically cascade down to the small developing country. In July 2008 there was a financial crisis in the US markets and this had a spilt over effect on the European bank and other major bank in Europe. As Mauritius has an open economy, it has been put under pressure as the tourism receipt has drastically decreased causing a decline in the capital inflow of the

Show More
Related

  • Est1 Task 1

    632 Words  | 3 Pages

    Task 1 My chosen organization is Standard Chartered Bank this is the Public Limited Multinational banking and financial services, the head quarter of this company is in London. It can operate networks of more 1,700 branches and outlasts across other than 70 countries in the world. It is the Universal Bank with operations in buyers’ trade and influential banking and treasury facilities. And can find about the company in this website www.sc.com (Standard chartered, 2014).

    Read More

  • Naked Economics Chapter 12

    219 Words  | 1 Pages

    Chapter 12 deals with financial crises, systemic or nonsystemic, refer to the most recent crisis and how it began. Financial crisis is to a phenomenon in which an economy is characterized by a continuous and significant reduction of economic activity. Through years there have been thousands of crises occurred for various reasons, but if we focus to the one that we experience today we can say that is a result of housing asset bubble. Asset bubble occurs when there is a sudden increase in the value of bond, equities, real estate, etc. In combination with the rapid spread of subprime loans and the transfer of risk from banks' balance sheets to the public and investors through securitization, the crisis resulted in an impact in social and economical

    Read More

  • America's Worst Economic Time: The Great Depression

    443 Words  | 2 Pages

    People were growing anxious about the unsureness of the security if their money. Consumers started spending less and the wealthy were pulling all assets and investments out of the economy. Bankruptcies went the roof. The first bank panics began when a bank failed in Nashville, Tennessee starting a wave of bank failures in the Southeast. Depositors lost confidence in the security of their bank causing them to withdraw funds all at once.

    Read More

  • What Caused The Great Depression Essay

    918 Words  | 4 Pages

    The mass panic across the country led people to flee to the banks to withdraw their money before the banks closed. However, a large number of the banks have used said money others stored for speculation buying and were unable to pay back investors. This means they did not have the money to even return to those who used the banks and others could not retrieve their money since many banks closed before people could get to them. The Federal Reserve System was no help in the bank failures as they installed policies that contributed to the issues at hand. For starters, they increased interest rates in response to the speculation buying, but this caused people to just stop spending their money.

    Read More

  • External Environmental Issues In Financial Services Organizations

    1759 Words  | 8 Pages

    Compliance to these laws and regulations will cause extra cost, additional taxes, legal fees or development of new technology for the financial service organizations. Like in case of Green environment where the organizations are striving to lower the carbon emissions (Gupta, 2009). The major issues which have been found as the biggest challenges in the financial service organizations are: • The appetite for risk is again on the rise for the financial institutions •   Managing the complexity is one of the biggest challenges which the financial services organizations will face, because during 2011 the turbulent global economy had great impact on the financial sector.

    Read More

  • Advantages And Disadvantages Of Emerging Market

    1883 Words  | 8 Pages

    Definition of emerging market In terms of investors emerging markets are used to describe developing countries, in which investment would be expected to achieve higher returns but it would be ac-companied by a higher risk. Emerging markets are between developed markets. “Even index providers cannot agree on precisely what constitutes an emerging mar-ket. MSCI, the US company that introduced the benchmark MSCI Emerging Market index in 1988, defines an emerging market in terms of the number of quoted compa-nies of a certain size and “free float” (the proportion of shares available for ordinary investors to buy), plus a market’s openness to foreign ownership and capital.

    Read More

  • Globalization And Nations

    1615 Words  | 7 Pages

    Globalization and Nation States Globalization has integrated and intertwined the economies of the world. In the world today, every nation has become independent on every other nation, be it through trade or through finance. Developing countries today are attracting large rounds of foreign investment, and this foreign investment is coming from the developed countries. Thus, the money of the developed countries is today invested in the developing countries.

    Read More

  • The Importance Of Organizational Strategy

    995 Words  | 4 Pages

    This paper will be discussing CIBC FirstCaribbean International Bank organisational strategy to ascertain which theories impacts the

    Read More

  • Kosovo And Globalization Essay

    750 Words  | 3 Pages

    The term “Globalization” has been in existence for the past 50 years. It is one of the major causes of the increase in international trade. The Oxford Dictionary defined Globalization as “the process by which businesses or other organizations develop international influence or operate on an international scale”. It is a phenomenon that has been in the front burner for several years. Certain individuals opine that it serves as an advantage for the developing countries to compete in the global market while others were of the opinion that it favors the developed countries by making them richer (Giddens, A. 1999).

    Read More

  • Pestel Analysis Of Banking Industry

    1748 Words  | 7 Pages

    2.0 SITUATION ANALYSIS Below are Malaysian banking industry’s external environment assessment using Porter’s 5 Forces Analysis. For the purpose of this assessment, 3 top-in-the-league existing domestic banking groups in terms of asset size have been chosen i.e. Maybank, CIMB, and PublicBank. All 8 domestic banking groups have operations in all the 3 segments of banking businesses namely Commercial, Islamic, and Investment bank. Upon analyzing and assessing their immediate surroundings, the banking groups recognize the following important factors that would impact on their competitiveness. THREAT OF RIVALRY AMONG EXISTING BANKS • Too many players in the industry; Each banking group has to contend with 7 other domestic banking groups and 30 other banking intermediaries both local and foreign, comprising 19 Commercial, 8 Islamic, and 3 Investment banks.

    Read More

  • Essay On Advantages And Disadvantages Of Multinational Corporations In Developing Countries

    833 Words  | 4 Pages

    In the past few years, Multinational Corporation has become the most important character in globalization topic. Multinational corporation means an organization that owns sale their goods or service to more than single countries are rising at this age, moreover, these corporations almost come from developed countries (Allen Sens, 2012). In 20 to 21 centuries, considerably multinational corporations have chosen developing countries like China or India for continuous their business. However, is it bring economic benefit to developing country or make that worse? The aim of this essay is to examine some arguments for and against of multinational corporations in developing country

    Read More

  • Disadvantages Of Globalization In Developing Countries

    805 Words  | 4 Pages

    Nowadays, in the light of the development in technology, especially in transportation and media, trade and communication has increased rapidly among countries. This trend is called globalization. Generally speaking, globalization has its own advantages and disadvantages. The development in international trade and communication has created employment and opportunities for millions of people, but it has also made poor countries poorer. In my opinion, globalization has both positive and negative aspects.

    Read More

  • Advantages And Disadvantages Of Globalization In The UAE

    1785 Words  | 8 Pages

    Challenge of modernization and globalization in the UAE society Introduction The UAE is renowned for its rich cultural heritage heavily manipulated by Arab and Islamic traditions. UNESCO has particularly acknowledged the Emirate of Sharjah as a fascinating emirate that has single handedly taken measures in protecting the rich cultural heritage of the Arabs. A classic example is anchoring the Dubai Shopping Festival in cultural values that are local and traditional. It should be noted that the primary aim of the festival is to attract tourists from all over the world.

    Read More

  • Advantages And Disadvantages Of Globalization In Developing Countries

    1006 Words  | 5 Pages

    Globalization is a process of linking the world through many aspects, from the economic to the culture, the political. in different nations. This process uses to describe the changes in society and in the world economy, by creating a linkage and increasing exchange between individuals, organizations or nations in cultural perspective, economics on global scale (Globalization 101, n.d.). A process of creating many opportunities but also causes many challenges for all the nations in the world, particularly for developing countries. There are so many advantages that globalization brings to developing countries like free trade, technology transfer and reducing unemployment.

    Read More

  • Advantages Of Traditional Public Administration

    2910 Words  | 12 Pages

    ‘New Public Management is an alternative to the traditional public administration’. Discuss. ---------------------------------------------------------------------------------------------------- ABSTRACT

    Read More

More about Advantages And Disadvantages Of Financial Globalization In Mauritius

Open Document