Question

30) The theme dominating global financial markets today is the complexity of risks associated with financial globalization. List and explain examples of the complexity of risks affecting the leading and managing of multinational firms in the rapidly moving marketplace.

Answer 1

Answer and Explanation:

The following are the examples:

1. Effect on the big deficit or the public debt crisis: It involves the present eurozone crisis, in this the rate of interest and the exchange rate would be effected

2. The monetary system i.e. international would be under scrutiny. As if there is an increase in the renminbi of chinese so the outlook of the would be varied on the currencies i.e. reserved, currency exchange, etc

3. Many of the countries would continue the balance of payment that represent the country would import more goods, services as compared with the exports that would become dangereous

4. The ownership, the framework of the government would be varied over the globe