Global finance is the flow of financial capital around the world, and it supports trade, investment, and other global economic activities. It involves international legal agreements, institutions, and economic actors. The main goal of the global financial system is to facilitate the flow of money, as well as facilitate trade and investment across borders. The system is composed of many different components, but these components are all related.
A strong financial system is vital for long-term economic growth and development. People need access to reliable and affordable financial services. As the world becomes increasingly globalized, more businesses are expanding into international operations. This requires special strategies and knowledge to survive and grow in this new environment. Students in a Master’s in Business Administration with Concentration in Finance program will learn how to deal with these unique challenges.
Globalization has many benefits for society and is a vital means of investing, but it also creates a number of risks. While financial globalization can provide a safe haven for wealthier investors, it can also put societies at risk of financial disaster. Consequently, it is critical for global leaders to understand the global financial system and its complexities.
The financial crisis of 2008 triggered a global financial panic. Investors rushed to withdraw money from investment funds and banks around the world, fearing that the next financial firm would fail. Worse yet, many of these financial institutions were exposed to subprime loans that put them at risk. As a result, financial markets became dysfunctional. Moreover, many institutions were unable to access new financing.