Gobal Economics and Financial Systems
In recent times, international finance is characterized by issues that are both favourable and unfavourable which include international monetary policy, global economic governance, foreign direct investment, multinational corporations, capitalism, privatization, global capital markets and global financial crisis (Cornford, 1996. Charles, 2007. Argitis amp. Pitelis, 2008).Globalization and international finance are two inseparable concepts. The field of international finance affects the whole world and for this reason, it is an integral part of globalization. The world is rapidly becoming a global village (Krugman amp. Venables, 1995. Charles, 2007. Osland, 2003). The world has been reduced to a small village in terms of space and time. This has taken place in all sectors such as health, finance, telecommunication, information technology, transport, stock market among others. According to Charles (2007). Osland (2003) and Helleiner (2001), the origin of globalization is a controversial issue and a subject of an ongoing debate with some scholars citing its origin to modern times whereas others regard it as a phenomenon that has a long history. Globalization has its advantages which include, but are not limited to, benefit to developing countries. increased productivity due to increased options for manufacturers and entrepreneurs. wider global market with increased access. increased access to labor and money markets. reduction of cost of production in things like communication and transport (I Love India, 2010. Yale Center for the Study of Globalization, 2010. Helleiner, 2001. Osland, 2003). Much as globalization has been considered by many people as the saviour of the world, it has its shortcomings such as increased inequality of nations. loss of jobs by most Europeans due to low labour cost in Asian countries. social stratification and degeneration. profit repatriation from developing countries.