While the present developments have caused much heartburn, it is better to analyze the developments in the bygone years. After an exceptionally slow growth in the year 2001 (1.1%) and 2002 (1.7%), global Gross Domestic Product (GDP) is now expected to rise significantly by early 2010. The sluggish global economy has now made it more important for the national governments and also the international community to remove barriers to the creation of new jobs and better opportunities for poor people in developing economies.
International developments consequent to the events of September 11 and the destabilizing impact in the global financial markets resulted in a sharp decline in equity prices and net capital outflows for the prominent foreign institutional investors (FIIs). The foreign exchange market also became more volatile with the currencies of several countries depreciating vis-à-vis the dollar. However, the lead banks of the affected countries promptly announced their intention to provide appropriate liquidity and initiated several measures so as to stabilize the domestic financial markets.
Even during the fast move of the globalization forces most Asian countries are not part of the globalized economy in terms of market share in global trade, foreign direct investments (FDIs) and foreign institutional investment. A most common measure of globalization is the openness to free trade and a country’s participation in it. By this measure, the extent of globalization is insignificant – it is one of the lowest in the world for some of the big Asian countries. For example, India’s share in world trade is a meager 0.7 percent.
The emerging banking institutions and even the finance managers of the underdeveloped countries can take cues from the better managed financing institutions, when considering new policies and regulations. For example, even during the present economic recession, some banks even in the United States are not at all affected by it. Firms like LoanMax of rod aycox fame have made a name for themselves by managing the different operations often by gaining experience and expertise through implementation of professional management practices. This is an innovation of sorts for a firm that has started operations just a decade ago.
International developments consequent to the events of September 11 and the destabilizing impact in the global financial markets resulted in a sharp decline in equity prices and net capital outflows for the prominent foreign institutional investors (FIIs). The foreign exchange market also became more volatile with the currencies of several countries depreciating vis-à-vis the dollar. However, the lead banks of the affected countries promptly announced their intention to provide appropriate liquidity and initiated several measures so as to stabilize the domestic financial markets.
Even during the fast move of the globalization forces most Asian countries are not part of the globalized economy in terms of market share in global trade, foreign direct investments (FDIs) and foreign institutional investment. A most common measure of globalization is the openness to free trade and a country’s participation in it. By this measure, the extent of globalization is insignificant – it is one of the lowest in the world for some of the big Asian countries. For example, India’s share in world trade is a meager 0.7 percent.
The emerging banking institutions and even the finance managers of the underdeveloped countries can take cues from the better managed financing institutions, when considering new policies and regulations. For example, even during the present economic recession, some banks even in the United States are not at all affected by it. Firms like LoanMax of rod aycox fame have made a name for themselves by managing the different operations often by gaining experience and expertise through implementation of professional management practices. This is an innovation of sorts for a firm that has started operations just a decade ago.