outside(a) Financial Marketing is any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having simple pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade.
several(prenominal) financial markets only allow participants that meet certain criteria, which so-and-so be based on factors like the amount of bills held, the sit downors geographical location, knowledge of the markets or the profession of the participant. selective information transparency is important to increase the confidence of participants and therefore promote an efficient financial marketplace.
Reasons for using International Financial Marketing
? The markets for very or financial assets are prevented from complete integration by barriers such as tax differentials, tariffs, quotas, labor immobility, communication costs, pagan differences, and financial reporting differences.
? Barriers can also create alone(predicate) opportunities for specific geographic markets that will attract exotic investors ? Investors invest in unknown markets:
? ? ?
To take advantage of favorable scotch conditions; when they expect strange currencies to appreciate against their own; and To reap the benefits of global diversification.
? Creditors provide credit in foreign markets: ? ? ? ? To capitalize on higher foreign interest rates; When they expect foreign currencies to appreciate against their own
? Borrowers borrow in foreign markets: To capitalize on lower foreign interest rates When they expect foreign currencies to depreciate against the ir own
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Types of International Financial Markets
? Foreign put back market ? Eurocurrency market ? International Money market ? International bond market
? International stock markets
FOREIGN EXCHANGE MARKET
The foreign exchange market provides the physical...If you want to get a abounding essay, order it on our website: Orderessay
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