GLOBALIZATION, FINANCIAL MARKETS AND CRISIS

Altough there is no single definition that everybody agrees with, globalization especially after the 1990s, has become a subject which has attracted great attention. Today, the world appears as if it is a single uniform economy. The effects of globalization on financial markets have been especially powerful. In this study, both the definition of globalization and its effects on financial markets are investigated. Due to the effects of technological developments financial markets have become globalized and functioned as if they are branches of a single financial market. The reduction of regulations, an important factor that has helped create financial globalization, has made these markets vulnerable to crises. The integration of markets have created a global dimension to crises.