Globalization is a process which is in continuation since thousands of years and is continuously grows through interconnectedness and interdependence and is still in its continuity with increased speed and ease. It is a process of global linkages that leads to organization of social lives at global scale with increase in the level of consciousness at global levels. Globalization consolidates the society of the world as one. Interconnectedness among individuals in the world is due to advanced transportation and communication systems and also because of latest advancements in information technologies. The technological convergences are the results of changes at political, economic and cultural levels all over the world.
Here the topic of discussion is “Is globalization bringing the world closer together, or dividing it?” The process of globalization had brought world closer in many aspects that had led to many beneficial outcomes for the whole world.
Global financial system:
The global financial system is becoming deeply interconnected with the economies of various nations. In one way it is posing threat to the stability until an international approach is taken. A mini revolutionist period for generations had resulted in financial globalization as a genuine system. The global financial system had helped in the alteration of risk-return opportunities by the international policymakers which are the greatest opportunities for business expansion but have high level threats associated with them (Bhandari, 2010). If the fortunes of various countries are associated with the global financial system, then the cross-border flow of capitals from various nations is seen as an option of higher growth for all nations instead of taking the cross border flow of capitals just as an exposure to inter-banking among various nations of the world. On the other hand, if it will be considered as just international banking regulation, then it will be observed that less information is learned about the international rules which have been reformed for the formation of international monetary system.