Role Stable Financial System Play Maintaining Globalization Provide Example Unstable Finan Q34209262

What role does a stable financial system play inmaintaining globalization? Provide an example of an unstablefinancial event and how it affected global activity.

Expert Answer

Stable financial system plays an important role in maintainingglobalization by ensuring that there is better coordination betweeneconomies. There is increased financial transactions as a result ofglobalization. Stable financial systems indicate that theobjectives and goals are clear in policy making and enable longterm investment. Global lending and exchange rates are importantpart of globalization and depend on stable financial systems.

Example of an unstable financial event that has affected globalactivity is collapse of Lehman enterprises as it led