Assignment Type: Discussion Board Deliverable Length: 4–6 paragraphs Points Possible: 75 Due Date: 8/26/2012 11:59:59 PM CT The Discussion Board (DB) is part of the core of online learning. Classroom...

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Assignment Type:Discussion Board
Deliverable Length:4–6 paragraphs
Points Possible:75
Due Date:8/26/2012 11:59:59 PM CT

The Discussion Board (DB) is part of the core of online learning. Classroom discussion in an online environment requires the active participation of students and the instructor to create robust interaction and dialogue. Every student is expected to create an original response to the open-ended DB question as well as engage in dialogue by responding to posts created by others throughout the week. At the end of each unit, DB participation will be assessed based on both level of engagement and the quality of the contribution to the discussion.


At a minimum, each student will be expected to post an original and thoughtful response to the DB question and contribute to the weekly dialogue by responding to at least two other posts from students. The first contribution must be posted before midnight (Central Time) on Wednesday of each week. Two additional responses are required after Wednesday of each week. Students are highly encouraged to engage on the Discussion Board early and often, as that is the primary way the university tracks class attendance and participation.


The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each week.


You recentlypublished an in-house articleon the liberalization and international integration of world financial markets and world stock markets.Several peoplehave e-mailed you asking for follow-up information as well as your opinion. Compose 4–6 paragraphs of information including the following:



  • Explain several important events or changes that contributed to the globalization of financial and stock markets.

  • How have these changes affected thecapital structureof MNCs?

  • To what extent has globalization affected stock ownership and stock market activities?

Answered Same DayDec 20, 2021

Answer To: Assignment Type: Discussion Board Deliverable Length: 4–6 paragraphs Points Possible: 75 Due Date:...

Robert answered on Dec 20 2021
130 Votes
Explain several important events or changes that contributed to the globalization of financial and
stock markets. How have these changes affected the ca
pital structure of MNCs? To what extent has
globalization affected stock ownership and stock market activities?
Answer:
Over the period 1880 to 1998, both net flows of foreign capital and stocks relative to GDP have
followed a U-shaped pattern under globalization. The ratio of both net flows of foreign investment
and stocks relative GDP in the pre1914 was even higher than today. It collapsed to almost negligible
in the during the interwar and World War II, until recovering in 1970s to the higher levels that is
observed today. Followings are the events that contributed to the globalization of financial and
stock markets;
1. The adherence to gold standard system (a regime in which member countries were locked
together making their currencies convertible into gold) in the pre1914 encouraged free
capital mobility between different countries. This is because under this system, the value of
capital was stable; capital market was investor friendly, current account was fully
convertible (into gold) and capital market did not have much risk. But after World War I,
countries resorted to fixed exchange rate regime, and capital controls and exchange rate
controls became universal across countries. This development continued till 1960s until
there was restoration of current account convertibility.
2. The collapse of fixed exchange rate regime in...
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