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Global Financial Markets - Risks and Challenges

During the past two decades, financial markets around the world have become increasingly interrelated.

Although globalization has brought considerable benefits to national economies and investors, what new risks and challenges has this created for market participants and policymakers?

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The most difficult thing for policymakers is to keep the financial industry free and moving forward while not allowing it to affect the economic policies for the domestic concerns. This has not always been successful as we have seen throughout several recessions and economic issues that affect other countries and regions such as the Asian crisis and the control China keeps on the Yuan.

The policymakers must also strike a fine balance between protecting investment and finances, but not interrupting the flow of commerce and currency exchange. The balance is even more difficult in the face of deals with other foreign governments with the right to control their money and their investments as well. There are also cultural and currency rate concerns ...

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This solution provides a detailed discussion of the given finance problem.