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ABSTRACT: Nowadays, financial globalization as latest stage of financial internationalization process becomes to be the most discussed subject by economic scientists. It has many forms of manifestation and directions of development. One of the main features of financial globalization is increasing the role of the financial sector, linked with the expansion of the scope and complexity of foreign economic relations. The financial system has increasingly become a means of redistribution of financial resources in accordance with the needs and possibilities of development of production not only at national but also at the global level. In this work are presented modern views on financial globalization under aspect of concepts, trends, effects and perspectives.
KEYWORDS: Financial globalization, global financial market, world financial centres, international financial flows.
JEL CLASSIFICATION: G15.
1.VIEWS ON FINANCIAL GLOBALIZATION
1.1.Definition of financial globalization
Globalization is an objective world tendency, due to the strengthening of international political, cultural, economic, financial, informational, technical and other ties between the States at various levels. It implies a process of transformation of the world economy in the single market for goods, services, capital, labour and knowledge. In essence, globalization can be defined as a higher stage of the internationalization of economic life, its further development (Sharonov, 2008, p. 126).
In our opinion, financial globalization is a form of general process of globalization and has many aspects, therefore economic literature contain different definitions of this notion, provided from various sources:
* The term financial globalization refers to the process by which financial markets of various countries of the globe are integrated as one. Financial globalization may also be defined as a free movement of finance across national boundaries without facing any restrictions (Arestis, Santonu, 2003, p.1);
* Financial globalization is understood as the integration of a country's local financial system with international financial markets and institutions (Schmukler, 2004, p. 39);
* Financial globalization is an aggregate concept that refers to rising global linkages through cross-border financial flows (Prasad, 2003, p. 7);
* We could define financial integration as the process by which financial markets and institutions become more tightly interlinked and move closer to full integration, under which the law of one price would hold (Gudmundsson, 2008, p. 9);
* Financial globalization is higher stage of internationalization of...