The globalisation of finance that has taken place over approximately the last thirty years and it has benefited many people. Give details of the changes that have taken place. Who has benefited and who has lost

Includes graphs. Globalization / Internationalization of the financial sector. FDI, economic theories and financial infrastructure. Over 2000 words, slightly longer version. I have also uploaded a shorter version.

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The globalisation of finance that has taken place over approximately the last
thirty years and it has benefited many people. Give details of the changes that
have taken place. Who has benefited and who has lost?
The past decade has seen a rapid increase in cross-border financial flows. Economic
and financial phenomena have become increasingly linked to globalisation, which is
why great attention has been given to the potential benefits of the international
integration of financial markets (Kamin, 2010; Bordo, 2000; Kose et al., 2006).
However, the global financial crisis has raised tremendous arguments about the
effectiveness of financial globalisation models and their potential effects (Borio,
Claudio and Disyatat, 2011; Lane, 2012), as it has become evident that financial
globalisation can also lead to crises and contagion. Taking this into consideration, this
essay will critically discuss the possible advantages and disadvantages of financial
globalisation. First of all, it will provide a definition of financial globalisation; then, it
will analyse the changes that have taken place as a result of financial globalisation.
This essay will also discuss financial globalization, in terms of usefulness and
constraints, using practical examples. Finally, relevant conclusions will be drawn.
Definition
According to Arestis and Basu (2003, p.2), financial globalisation can be defined as
“the process by which financial markets of various countries of the globe are
integrated as one” or “a free movement of finance across national boundaries without
facing any restrictions”. Schmukler and Labaton (2001, p.1) note that financial
globalisation is “the integration of a country’s local financial system with
international financial markets and institutions” which require a single currency and
single international monetary authority regulation. In conclusion, financial
globalisation is the international integration of financial markets.