Evaluatin of Feasibility of Financial Stability in Increasingly Essay

Evaluatin of Feasibility of Financial Stability in Increasingly Globalized Economy - Essay mannequinThere comes a interrogate whether the current increasing abridge of globalization is leading the countries towards financial stability or not, is yet to explore. This article critically discusses the question whether increasing globalization directs the financial stability in detail with both arguments in favor as well as against of this question. This article is structured in much(prenominal) a manner that it is divided into four major parts such that the first section emphasizes on the concept of globalization followed by secant section which describes phenomenon of financial stability. Third section of this article provides arguments in favor of the statement that increasing globalization assists in gaining more financial stability followed by the last section which provides opposite arguments in contradiction of that statement. Conclusion will lead to an end of this discussion . Globalization The term globalization has divers(prenominal) meanings and different interpretations besides over here its meaning is taken as the phenomenon due to which the individualists have come closer to each other beyond their geographical boundaries. Today, if any individual whether a person or a country wants to develop some sort of relationship with other individual, that decision is not til now in his/her strength such that all other individuals have joined hands and became a unit. So in case, if an individual tries to be isolated and independent from other individuals, this conjecture has become quite rare. If this concept of globalization is viewed on a broader aim in terms of the international relations developed among different countries of the world, an important trend can be noticed such that more frequent changes have emerged as the nations are shaking hands with each other despite of even having the worst historical experiences. The current trend which is h ighly adopted by the countries as well as leading towards an increasingly globalized society is the unification of different sorts of engine block on different basis (Greenidge, 2008). These blocks are developed due to some mutual interests of the countries such that different backgrounds set the stage for the countries to develop such blocks. For instance, oil producing countries have developed their own block and decide as per their own preferences about the production and supply of oil. Similarly, some countries establish a block for their mutual economic interest like the case of European Union. There are blocks which are developed due to mutual defence related interests for the hostage of those countries. So in a nutshell, the most important reason behind current movement of emergence of globalization is the increasing pattern of building up various kinds of blocks based on the mutual interests of the participant countries (Greenidge, 2008). Financial Stability The concept of financial stability refers to the financial environment whether on an individual train of a country or on global basis such that the participants of that environment feel confident regarding the value of their economic and financial resources (Rahn, 2010). Basically, it is the confidence level of the people or countries that bring financial stability into that particular region. If the people or institutions are