International Financial Management - Essay Example

And the larger financial markets now have a much bigger consumer base than ever before. (Issing, 2000) With the occurrence of globalization the capital structure of MNC has changed. This is because these companies can now be owned by their customers from outside their base country. Like for example Jaguar (originally British) being owned by the Tata Group of India (Berkowitz, 2008) and Volvo (originally Swedish) is now owned by Geely which is a Chinese company (IBSEN, 2010). The stock market activities are now largely dependent on the availability of information.

Stocks are traded on the basis of information coming from across the world. And with the time difference between the major stock markets from East to West, stock market activities are now held round the clock. Globalization has essentially made the financial markets much more competitive by broadening the horizon of their operations. Therefore it is safe to say that the affect of globalization on the financial sector has helped it grow and give exposure to a wider array of investors. Berkowitz, J.

(2008, March 25). Tata Motors Buys Jaguar and Land Rover for $2.9b. Retrieved from The Truth about cars: http://www.thetruthaboutcars.com/2008/03/tata-motors-buys-jaguar-and-land-rover-for-2b/ IBSEN, D. A. (2010, March 30). VOLVO TO BE OWNED BY A CHINESE CONGLOMERATE, BUT WILL STAY A SWEDISH BRAND. Retrieved from The Marketeer: