1. Liberalization of capital flow: Financial globalization makes the capital flow between countries more liberalized, and investors can cross national boundaries and conveniently conduct investment and financing activities on a global scale. The free flow of capital accelerates the allocation of international capital and the rapid transfer of profits, and also promotes the vigorous development of international financial markets.
2. The rise of multinational financial institutions: With the in-depth development of financial globalization, international commercial banks, multinational insurance companies, investment funds and other multinational financial institutions have risen rapidly on a global scale. These institutions cross national boundaries and provide various financial services, thus strengthening the integration and interoperability of the international financial system.
3. Cross-border M&A and joint ventures: Financial globalization has promoted the frequent appearance of cross-border M&A and joint ventures. Multinational companies can quickly enter other countries' markets through mergers and acquisitions or joint ventures, realize resource integration and improve their competitiveness. This phenomenon has also increased the degree of competition in the international market, making the market more international and diversified.
4. Increase of financial products and financial innovation: Financial globalization has promoted the rapid development of financial products and financial innovation. Various financial derivatives, structured financial products and new financial services are constantly emerging, which provide investors with more diversified choices and increase the complexity of the financial system.
5. Interconnection of transnational capital markets: With the advancement of financial globalization, the capital markets of various countries are increasingly closely linked. For example, exchanges in international financial centers such as Shanghai, Hong Kong and London have established interconnection mechanisms to facilitate the flow of global capital between different markets.
6. Increased complexity of the international financial system: Financial globalization has made the international financial system more complicated, with various financial institutions, financial products and financial markets intertwined, and financial supervision and risk management are facing greater challenges. The financial crisis may quickly spread to the global scope because of the financial system problems of a country or region, and have a far-reaching impact on the global economy.
7. Internationalization of money markets: Financial globalization has promoted the internationalization of money markets in various countries. Major currencies such as the US dollar, the euro and the Japanese yen have become the main settlement currencies for international trade and financial transactions, and most international trade and investment activities use these currencies as trading media.
8. US dollar hegemony: In the process of financial globalization, the US dollar, as the main international reserve currency, occupies a dominant position. In global trade, energy transactions and international financial transactions, the dollar is widely used and its hegemonic position can be maintained.