INTERNATIONAL FINANCIAL MARKETS

Financial markets and in particular the monetary today are of enormous importance and influence international business operations. It is unwise to create scenarios or for example, marketing plans without taking into account the effects of the financial markets. We must also take into account the analysis of the macroeconomic environment.In the sixties, the banking business was essentially domestic, in the eighties major banks began to be present in numerous countries with branches (some offshore), branches and representative offices.

In the 90s came the internationalization and globalization of financial and economic activities, so that the financial and banking system started to operate on a global scale – the international capital markets. The degree of integration achieved is related to the freedom of capital movements and the advances in information technology.

Capital market is part of the money market, in it participate central banks and commercial companies for banking and commercial enterprises in an indirect way.In particular, the currency market was created to meet the needs of payment for goods traded between countries. Developed in addition to speculation and arbitrage operations.Following this, the capital markets and in particular foreign currency, contributing to the efficiency of international trade by reducing transaction costs, uncertainty and risk and the possibility of exchange of assets present for future assets. Ie, we move from one phase to support business transactions and investments abroad to other more sophisticated financial products.

In summary, we can synthesize the majority of financial transactions such as:- Purchase of goods and services from one country to another currency; – crediting deposits and foreign currency assets; – buying and selling currency for tourists; – remittances; – hedging risk; – possibility of speculation and arbitrage operations.