The Borrower's Perspective Access to a global supply of savings reduces the cost of borrowing. Financial globalization gives the borrower access to sophisticated products and services. Indirectly, globalization will increase the sophistication and efficiency of domestic financial markets. The Investor's Perspective Financial globalization gives investors access to investments with higher returns and thus greater profits.
Financial globalization gives financial institutions access to new markets.
Borrowers' Ability to Compete Depends on Massive Regulatory Reform and Global Economic Coordination. Asian Governments Pegged their Exchange Rates to Promote Confidence. By Adopting Pegged Exchange Rates, Host Countries Promised Everyone They would Defend the Declared Value of the Currency, a Promise they Eventually had to Break. The Steep Devaluations of the Regional Currencies have Caused Great Economic and Social Pain. Although the Precise Causes Continue to be Studied.