In: Finance
In a fast changing and increasingly complex world, there is more that interests shareholders, CEOs, managers and stock owners. Discuss the truth in this statement in view of business globalization.
Globalization refers to the changes in the world where we are moving away from self-contained countries and toward a more integrated world. Globalization of business is the change in a business from a company associated with a single country to one that operates in multiple countries.
In fact globalisation leads to the conversion of many markets
and economies into one market and economy. The aim of
international standards and regulations is also to deregulate all
these markets. The economy needs financial structures
capable of handling the higher level of risk in the new economy.
For this reason financial markets must be broad, deep,
and liquid and at present only the U.S. financial markets are large
enough to provide this financial structure in the world
market. Global stock market projection and Pan-European stock
market projection are part of this changing. There are
many similar examples in the current situation for market
integration which are also the result of increasing
competition
in the economy. Integration examples are prominent in company
mergers and acquisitions as well.