International Capital Mobility Essay -- Economics Economy Financial Is

International Capital Mobility Globalization is todays reality. Like it or not, the move to a existence economy is a fact of life. At some pinnacle in the 1990s the process achieved critical mass and people started to hinge upon up and take notice. Many were apprehensive. Today, almost all of us ar awargon that our lives are being shaped by an interconnected world economy of cross-border flows of trade, finance and technology. In our hearts, we know that there is no difference back.-Maria Livanos Cattaui, Secretary General of the International Chamber of Commerce. As evidenced by the above quotation, any analysis of the central economic issues of our time is unelaborated without a clear understanding of the increasing interconnectedness among nations. Globalization and integration are two very potent and monumental forces that are chop-chop transforming not only the way individuals and governments conduct business, but the nature of the youthful world i tself. Nations economies interact on a level unforeseen a century ago, consequently rendering isolationism no longer possible. The ties that bind are growing tighter and economic phenomena are transcending the local to have worldwide implications. It is therefrom imperative for todays observer of economic events to be familiar about the greater picture surpassing the regional. In this regard, there is no greater subject to begin studying than global finance. The international financial system is a phenomenon of vast importance that has demonstrated its power in fueling large amounts of economic growth. Many extol its virtues, citing the massive gains in productivity it channels. Others, however, harbor misgivings and claim... ...ld Economic Crisis, New Republic April 17, 2000.7 capital of Minnesota Krugman, Capital Control Freaks, Slate/The Dismal Science September 28, 1999.8 Paul Krugman, Capital Control Freaks.9 J. Bradford DeLong10 Robert Krol, The circums tance for pass around Global Capital Markets, Cato Trade Briefing Paper March 15, 2001.11 Robert Krol12 Robert Krol13 Robert Krol14 Robert Krol15 Robert Krol16 Robert Krol17 Lawrence H. White, Asia ineluctably Capital Controls? It Just Aint So Freeman March, 1999.18 Lawrence H. White 19 Anna J. Schwartz, International Financial Crises Myths and Realities Cato Journal , Winter 1998 251-25620 Lawrence H. White21 David F. DeRosa, In Defense of Free Capital Markets The Case Against a New International Financial Architecture, (Princeton Bloomberg Press, 2001) xiv.22 DeRosa xiv.