Cross Border Government And The Modern International...

Cross-border government borrowing plays an integral role in the modern international finance system. Cross-border government borrowing enables governments to substantially increase their access to cheap credit and can be a particularly attractive option to finance government programs. While raising taxes or cutting government expenditure can be politically treacherous, borrowing in the form of government-issued-bonds enables governments to fund programs and promote growth, which is especially important in developing nations, while â€Å"smoothing over† the costs over a longer period of time in the future. And while governments may be able to issue and sell bonds to exclusively its domestic population, doing so is less desirable. For one, the limited amount of domestic creditors means the government will be forced to pay higher interest rates on their bonds. Secondly, issuing bonds to exclusively the domestic population is more contractionary than the alternative of selling bo nds to the international community at large, as it takes money out of the money supply, which can slow economic growth. Therefore, in order to eschew some of the negative effects that come with selling bonds exclusively to a domestic population, many governments are willing to engage in cross-border governmental borrowing. While there are some risks associated with cross-border government borrowing, the opportunities that cross-border governmental lending presents in terms of its ability to produce growth,Show MoreRelatedCharacteristics Of Economic Globalization893 Words   |  4 Pagesâ€Å"increasing interdependence of world economies† (Shangquan, 2000), as a result of free movement of goods, services, technology, capital, and information between countries and across borders. It is one of the three main areas of globalization; economic globalization moves at an increasingly fast pace as movement across borders progresses. While economic globalization has had many benefits and positive effects on both developed and under developed countries, it has also created, and contributed to, manyRead MoreCross Border And Foreign Borrowing Essay2121 Words   |  9 PagesCross-Border Governmental Borrowing Cross-border government borrowing plays an integral role in the modern international finance system. Cross-border government borrowing enables governments to substantially increase their access to cheap credit and is a particularly attractive option to finance government programs. While raising taxes or cutting government expenditure can be politically treacherous, borrowing in the form of government-issued-bonds enables governments to fund programs and promptRead MorePositive Effects Of Globalization1361 Words   |  6 Pagesâ€Å"increasing interdependence of world economies† (Shangquan, 2000), as a result of free movement of goods, services, technology, capital, and information between countries and across borders. It is one of the three main areas of globalization; economic globalization moves at an increasingly fast pace as movement across borders progresses. While economic globalization has had many benefits and positive effects on both developed and under developed co untries, it has also created, and contributed to, manyRead MoreGlobalization and International Finance, Questions and Answer1533 Words   |  7 Pagesdetail your topic selection. Globalization is defined as moving towards a world in which barriers to cross-border trade and investment are declining; distance is shrinking due to new advance in transportation and telecommunications technology, material culture is starting to look similar the world over; national economies are merging into an interdependent, integrated global economic system (Hill). The word itself. â€Å"globalize†, appeared in the 1960s meaning to â€Å"make global in scope or application†Read MoreGlobalization and Its Impact on International Finance6130 Words   |  25 PagesGLOBALIZATION AND ITS IMPACT ON INTERNATIONAL FINANCE CONTENTS 1. Overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...1 2. Introduction to the concept of globalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..2 3. Different areas of effect of globalization†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 4. International finance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..9 5. The impact of globalization on international finance i. Relationship between globalization and international finance†¦Ã¢â‚¬ ¦....12 ii. Globalization and its impact on developing countries†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreAnalysis Of The Roaring Dragon Hotel 1063 Words   |  5 PagesExecutive Summary This proposal provides blueprint to any business that tries to take over other business in International market by providing importance of cultural adaption especially Guanxi or connections in Chinese Market by providing an example of how Hotel international failed in building Roaring Dragon Hotel reputation back by ignoring the importance of cultural adaption (Guanxi Connections in this case). In addition, business should implement new methodologies considering existing methodologiesRead MoreMultinational Banks and Financial Institutions1661 Words   |  7 PagesPeople in the modern world keep their funds stored in some type of financial institution, whether it’s a small local bank that only operates in a small town or a large multinational bank that has offices in every major city around the world and caters to millions of people. With the responsibility of handling the assets of millions of people banks are sometimes accused for activities that may be illegal, such as mon ey laundering: the method of concealing illegally acquired money or invasion of aRead MoreDevelopment Of The Middle East And Asia5825 Words   |  24 PagesNORTH AMERICAN FREE TRADE AGREEMENT. A significant development in the 1990s was the conclusion of the NAFTA in 1992. The NAFTA is a comprehensive free trade agreement between Canada, Mexico and the US covering, among other things, goods, services, government procurement and investment. ENERGY CHARTER TREATY. The Energy Charter Treaty (ECT) was concluded in 1994 and covers multilateral co-operation in the areas of investments, trade, energy transit, energy efficiency and environmental protection.(44)Read MoreInternational Currency And International Trade1385 Words   |  6 PagesInternational currency basically means the currency that is used and held beyond the borders of the issuing country, not merely for transactions with that country’s residents but also, and importantly, for transactions between nonresidents (Kenen 2009). For a country that have an international currency, it would meet various benefits and costs which could be analyzed from both economic and political dimensions. It has be argued (Cohen 2012)that the main advantages is related to transactions costsRead MoreDevelopment Of The Middle East And Asia5825 Words   |  24 PagesNORTH AMERICAN FREE TRADE AGREEMENT. A significant development in the 1990s was the conclusion of the NAFTA in 1992. The NAFTA is a comprehensive free trade agreement between Canada, Mexico and the US covering, among other things, goods, services, government procurement and investment. ENERGY CHARTER TREATY. The Energy Charter Treaty (ECT) was concluded in 1994 and covers multilateral co-operation in the areas of investments, trade, energy transit, energy efficiency and environmental protection.(44)