THE IMPACT OF GLOBALIZATION ON INTERNATIONAL FINANCIAL MARKETS

Abstract

Nowadays globalization is defined as the irreversible growth of interdependence of countries in various aspects, including the economic sphere. In this context, it is important to consider globalization as a key factor in the development of the international financial system. Various aspects of this phenomenon and its impact on global financial processes were examined in this article. The fact that globalization contributes to the increase in the volume of international financial transactions, and it was reflected in the growth of international investments was well-founded. This increase in financial flows contributes to the development of countries that attract investment and helps to expand opportunities for doing business. With the help of global financial markets, companies gain access to additional capital and can manage their finances more effectively. The relationship between the growth of world trade in goods and the growth of GDP has been revealed. It was determined that globalization creates new challenges for the international financial system. In particular, the expansion of international financial operations creates new risks, such as financial instability and volatility of exchange rates: the negative consequences of financial crises, which necessitates the development and improvement of the system of international financial regulation and focuses attention on the need to strengthen international cooperation in this area. A number of direct and indirect channels of international financial integration that contribute to the sustainable  economic growth of countries were outlined. It has been established that globalization also affects the distribution of world financial resources, on the one hand, it can bring financial stability and development to the developed countries, on the other hand, developing countries can suffer from the negative consequences of increasing economic inequality due to large financial flows. It has been proven that globalization also affects the development of new technologies and innovations in the financial sector, in particular, the rapid development of technologies has contributed to the creation of new financial instruments that can change the face of the international financial system. It was analyzed that globalization has both positive and negative consequences for the international financial system. It creates new opportunities for the development and innovation, but also makes challenges and require attention and effective management of international organizations and governments.