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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.