1.Explain the difference
between investment and finance. What role does each playin the
globalization dynamic?
2.What is the difference
between short-term capital and long-term capital? Why docountries not
rely on long-term capital alone so as to secure a safe path to
economicdevelopment?
3.How many types of risks
are associated with globalization? Explain how these riskstend to be
interrelated and it is impossible to control one without impacting onthe
others.
4.Explain how globalization
has created new challenges for conventional banking andhow commercial
banks have tried to meet them.
5.Compare the benefits and
costs of financial globalization. Is there any reason tobelieve that the
benefits should outweigh the costs in the long run? Why or why not?
6.What is the meaning of
secular stagnation? How is it relevant in today’s world?
7.While portfolio
diversification may eliminate a certain type of risk it may not beso
effective in diffusing all other risks so well. Do you agree? Why or why not?
8.From what we have seen in
this chapter is it reasonable to conclude that only thosecountries with
developed capital markets stand to gain the most from globalization?Why
or why not?
9.Globalization seems to
have allowed a proliferation of speculative financial assets.Do you
agree? Explain.
10.What are some of the
challenges faced by the global economy today? Which of these might be most
critical? Explain