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I. What is the globalization of world capital markets?

- Globalization of World Capital Markets (globalization of world capital


markets) is the process of enhancing the connectivity and globalization of
capital markets globally through the enhancement of transaction and investment
between different countries and territories. It includes the access of companies,
institutions and investors to the financial markets of different countries through
the development of information and communication technologies, free trade
agreements and the development of local financial markets.
- The globalization of world capital markets has created many new investment
opportunities for investors around the world, while also returning new formulas
in risk management and ensuring stability for investors. companies main field on
the global request.

II. Some manifestations of the entire world capital market requirement:


A. Positive icons:
1. The growth of emerging markets:
- Emerging economies such as China, India, Brazil are experiencing rapid
growth and attracting many investors from investors around the globe. This
shows the totalization of capital market requirements.
- In recent years, emerging markets have become major investment centers in
the world, with significant growth in the size and speed of economic growth.
Entire investment requirements have begun to pay attention to emerging markets
and make investment decisions in these markets. For example, in 2020, foreign
investment funds have invested a total of 62 billion USD in the Vietnamese
stock market.
- Overall, the growth of emerging markets is a positive manifestation of the
globalization of world capital markets, creating many new investment
opportunities and at the same time posing new challenges for big financial
groups. . However, for sustainable development, emerging markets need to step
up efforts to improve their membership.
2. The increase in investor diversification:
- Investors are now not only domestic investors, but also more investors in
different countries. This shows the expansion of global capital markets.
- Investment diversification means investing in a variety of assets, such as
stocks, bonds, currencies, real estate, and others. This helps reduce risk for
investors, while enhancing profitability and generating stable returns over the
long term. In addition, investment diversification also helps investors to find
new investment opportunities in the global market.
- In recent years, international investors and individual investors have increased
their investment in emerging markets such as the BRICS countries (Brazil,
Russia, India, China and South Africa) and the countries in East Asia such as
Vietnam, Thailand and Indonesia. Investing in these emerging markets not only
enhances the diversification of the portfolios of investors and individual
investors, but also helps support the economic and financial development of
countries. this family. Helping companies in these countries access capital and
technology from other developed countries, thereby helping to improve labor
productivity and improve product quality. Minimize the negative impact of
investment work focused on a specific country or industry.
- One of the ways to diversify investments is through diversification
investments. These symbols invest in a wide variety of assets, from stocks to
currencies, commodities and real estate. Diversified investments provide
investors with a professional and efficient approach to investing in a wide
variety of assets.
- Investment diversification can also be accomplished through investments in
emerging markets and developing economies. These markets typically have high
growth potential and offer investors a new and exciting investment opportunity.
3. Increased Connectivity of Capital Markets:
- Capital markets around the world are becoming more closely connected
through the development of information technology and the media. This makes
it easier for investors to track and invest in capital markets around the world.
- An example of the increasing connectivity of capital markets is the rise of the
Chinese stock market in recent years. Over the past decade, China has become
one of the largest economies in the world and has attracted the interest of
investors worldwide. The opening of China's stock market to foreign investors
and the increasing globalization of the stock market have created new
investment opportunities for investors around the world.
- Increased connectivity of capital markets can also be seen through free trade
agreements between countries, such as the Trans-Pacific Partnership (TPP) or
the Economic Partnership Agreement. Comprehensive Economic Trans-Pacific
Partnership (CPTPP). These agreements create an international business
environment and enhance the globality of financial markets.
4. Strengthening communication and cooperation between countries:
- Cooperation between countries through free trade agreements: Free trade
agreements (FTAs) have helped strengthen cooperation among countries around
the globe. Thanks to FTAs, countries can consume and produce products and
services at more competitive prices, thereby strengthening trade relations
between countries. In addition, FTAs help countries improve production
processes, introduce common production standards, and strengthen monitoring
and compliance with trade regulations.
- Participation of States in International Organizations: Participation in
international organizations such as the United Nations and the WTO has created
an environment in which countries can negotiate and discuss issues. trade and
finance globally. Countries can seek collaborative solutions to these problems
and to create common rules and standards for trade and finance.
- These activities have helped strengthen communication and cooperation
among countries around the globe, leading to a more transparent and fair
business and investment environment.

B. Negative Manifestations:
1. Disparities between economies and economic plans:
- Disparities between economies and economic plans are also an issue when it
comes to capital market globalization. Developing countries and developed
countries will have different requirements and needs in economic development.
Therefore, the financial and monetary policies of countries must be adjusted to
suit each economy.
- World capital markets often focus on developed economies such as the US,
Europe and Japan, while emerging markets such as Vietnam, Indonesia, India
and Brazil are often overlooked or given little attention. arrive.
- A real-life example of this is the decline in emerging markets in 2020 due to
the COVID-19 pandemic. While the stock markets of the US, Europe and Japan
have recovered quickly from the initial decline, the emerging markets have been
severely affected and need a long time to recover.
- Developing countries are also often negatively affected by this disparity. For
example, when developed countries promote economic growth policies with low
interest rates, foreign investment funds can withdraw capital from developing
markets to invest in developed markets. other. This can cause a slowdown in the
economies of developing countries and make it difficult for companies and
businesses to find investment capital.
2. Political and economic instability:
- Political and economic instability is also one of the negative factors affecting
the world capital market. Manifestations of this instability can include policy
risks, security situations, financial crises, even military conflicts. Political and
economic instability can lead to instability in capital markets, creating price
fluctuations and putting investments at risk.
- 2008 Financial Crisis: This financial crisis originated in the US when the real
estate market crashed, credit became difficult and banks and financial
companies went bankrupt. This instability spread globally and impacted
financial markets around the world, causing asset values to plummet and
investment funds and banks to take a heavy toll. This situation has led to
instability in global capital markets and is a prime example of political and
economic instability impacting capital markets.
- The Covid-19 pandemic has had a strong impact on global capital markets.
Political instability within countries also affects the stability of capital markets
3. Fierce competition:
- Fierce competition is also a negative factor in the globalization of capital
markets. Large financial corporations are over-concentrating and competing
fiercely with each other, causing a crisis in the global capital markets. Financial
companies compete with each other to gain a competitive advantage in
supplying provides financial services, including asset management, securities
trading and investment advice. Mistakes in risk management and asset
management by large financial corporations can cause consequences for the
entire market.
- Another example of fierce competition in the capital market is the race for
market share between big tech companies like Apple, Amazon, Facebook and
Google. These companies compete with each other in developing new products
and services to attract users and customers, and especially in providing online
financial transaction and payment solutions. This has created a fierce
competition environment among these companies
III. Conclude:
In the future, in order to promote the positives of globalization of the world
capital markets and overcome its disadvantages, we need to strengthen
management, cooperation, investment and education in a global environment.
sustainability. . At the same time, international organizations and agencies also
need to strengthen supervision and management of the global capital market to
ensure the safety and stability of the entire market.
IV. Solution:
To deal with the consciousness of the whole world capital market structure,
effective solutions are needed. Here are some suggested solutions:
1. Reform of global financial management:
International organizations need to put in place clear and effective policies and
regulations to monitor their operations globally and reduce financial risks.
global finance
2. Strengthening international cooperation:
Countries need to strengthen cooperation with each other to solve problems
related to globalization of world literature. This includes both policy meetings
and economic cooperation.
3. Strengthen supervision and control:
International organizations need to strengthen supervision and control over the
activities of global financial institutions. This can ensure that these financial
institutions operate within sound principles and ethics, mitigating global
financial risks.
4. Enhancing education and strengthening communication:
There is a need to strengthen education and communication on the globalization
of world capital markets, helping investors and businesses better understand the
benefits and challenges of the global capital market. globalization of world
capital markets, and how to deal with them.
5. Increased funding and support:
Need to increase funding and support for countries and organizations with weak
ability to participate in the globalization of world capital markets. This can
ensure that the globalization of world capital markets is conducted in a fair and
sustainable manner.
 To sum up, to ensure maximum effectiveness of the globalization of world
capital markets, cooperation between countries and international organizations is
required.

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