chapter2 Global financial trends 国际金融专业双语教学文稿.pptVIP

* Chapter Two Global financial trends How the global environment has changed Diversification of the exchange rate system Besides the floating and fixed system, there exists many intermediate system which countries can choose according their needs. Financial liberalization It becomes the trend that financial authorities abolish the strict regulations and economic bodies are entitled to move the capital freely. Cross-border financial activities economic bodies, especially MNEs, take part in the international financial markets to invest and finance. How the global environment has changed Liberalization of trade one target of the WTO is to eliminate the barriers and unfair competition. And WTO has admittedly achieved a big success. Advanced Technology with the time going by, the technology has obtained the great development which provides the prosperity of financial market with the technological support. The development of financial innovation For the severe competition, plenty of financial instruments have been created to increase the profits and decrease the risks. How foreign exchange turnover has grown In April 2001, a survey conducted by the Bank for International Settlements (BIS) estimated the daily global net turnover in traditional foreign exchange market activity to be $1,210 billion. This was the first decline observed by the BIS since it began surveying banks on foreign currency trading in the 1980s. Exhibit Global Foreign Exchange Market Turnover (daily averages in April, billions of US dollars) Source: Bank for International Settlements, “Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2001,” October 2001, . *