Australian Finance History

FINM3403 - Lecture 1 Introduction More recently we have seen an increase in globalisation which has been aided by the removal of various regulatory barriers Globalisation of financial markets Trade liberalisation and economic integration king-size scale privatisation of state owned enterprises Increased globalisation allows firms to: brandish customer base Exploit dismantle input and labour cost overseas Benefit from government concessions Raise capital at lower costs (possibly expand shareholder base) Costs of globalisation involve: Have to deal with political uncertainty Need to comply with local anesthetic regulations Capital controls Disclosure requirements Environmental laws Labour laws Discriminatory taxation multinational Mvirtuosotary System (IMS) is a set of rules that govern outside(a) payments Foreign currentness put back rate is the price of one countries currency in units of another.

They can be either fixed, vagabond or managed exchange rate regime The rate at which the currency is fixed, or pegged, is frequently referred to as its par value If the govt does not mediate in the valuation of its currency, the currency is classified as planless or flexible Gold Standard (1873 - 1913) Countries fixed an official currency price and allowed free convertibility between domestic property and florid at that price The currency price is referred to as mint likeness and this determines exchange rate National currency and coins can only be issued with the backing of gold No restrictions were placed upon the import and export of gold by citizens as well as the use of gold for international transactions International arbitrage kept exchange pass judgment within a very narrow band Misalignment in exchange rates and imbalances of payments corrected by the price-specie flow mechanism (international arbitrage) Because the money supply was directly linked to stock of gold, this kept prices comparatively balanced (ie. Inflation) via the price-specie flow mechanism) The... If you want to get a serious essay, order it on our website: Orderessay

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