The paper "Factors that Are Driving Globalization of the International Financial Markets" is a perfect example of finance and accounting coursework. The great depression was the worse global or worldwide economic crisis or depression ever witnessed. It started in the decade preceding World War II in about 1929 until the late 1930s (Berlatsky, 2010, p. 223). The great depression varied across nations due to different economic conditions and stability. It was the deepest depression, longest, and widespread of the 20th century because it shows how the economy declined globally. The great depression started in the US where the stock prices fell drastically from September 4, 1929 (Committee on Capital Markets.
2009, p. 124). It was declared on the worldwide news on October 29, 1929, that there was a global stock market crash popularly known as Black Tuesday. From then on, it spread to other countries very quickly; hence a crisis worldwide (Chapra, 2009, p. 12). The great depression had severe effects in every country, poor and rich, developed and developing. International trade went down or plunged by half to two-thirds while tax revenues, prices, profits, and personal income dropped significantly (Berlatsky, 2010, p.
224). Unemployment rose to 25% in the United States of America and in some countries especially the developing ones rose to 33% (Hal, 2009, p. 172). The most affected nations on the issue of unemployment were those dependent on heavy industry. General construction was stopped in many countries as farming in rural areas suffered because of crop prices falling by more than 60%. Areas that were dependent on logging, mining, cash cropping, and informal sector suffered most from the negative effects of depression or economic crisis (Hal, 2009, p.
174). Factors that are driving the globalization of the international financial markets There are several factors that are driving the globalization of the international financial markets. Technological advancement is one of the main factors that has enhanced and promoted globalization (Nanto, 2010, 102). International financial markets have been promoted by multinational banks and international financial institutions which have been listed in the foreign stock exchange. Securities, treasury bills, options, bonds, forwards, and futures can be transacted online through e-commerce (Chapra, 2009, 13). The current competitive economic environment and financial pressure to improve on the performance, earnings, and margins have led to a conducive operating environment (Helvia & United Nations.
2009, p. 43). The attempt to gain competitive advantage is forcing many financial institutions to become effective and efficient in service delivery. The management has been trained on financial management issues so that they can be able to maintain and improve the performance in the financial institutions all over the world. The internal control environment has been set so that every person is accountable for his or her deeds in the financial institutions (Committee on Capital Markets.
2009, p. 125). Rules and regulations have been set to govern all the operations and to ensure stability in all financial institutions. The World Bank and IMF are constantly monitoring and evaluating all the key players in the financial market to ensure stability (Helvia & United Nations. 2009, p. 43). The effective internal control program and policies set by the World Bank are a clear indication of ensuring the conducive economic stability of all financial institutions and all the financial markets globally.
The standards set to apply to all financial institutions in all countries globally. This is aimed at minimizing cases of fraud and mismanagement (Berlatsky, 2010, p. 225).