Evaluatin of Feasibility of Financial Stability in Increasingly Essay

Evaluatin of Feasibility of Financial Stability in Increasingly Globalized Economy - Essay Example There comes a question whether the current increasing trend of globalization is leading the countries towards financial stability or not, is yet to explore. This article critically discusses the question whether increasing globalization directs the financial stability in detail with both arguments in favor as well as against of this question. This article is structured in such a manner that it is divided into four major parts such that the first section emphasizes on the concept of globalization followed by second section which describes phenomenon of financial stability. Third section of this article provides arguments in favor of the statement that increasing globalization assists in gaining more financial stability followed by the last section which provides opposite arguments in contradiction of that statement. Conclusion will lead to an end of this discussion. Globalization The term globalization has different meanings and different interpretations but over here its meaning is t aken as the phenomenon due to which the individuals have come closer to each other beyond their geographical boundaries. Today, if any individual whether a person or a country wants to develop some sort of relationship with other individual, that decision is not even in his/her capacity such that all other individuals have joined hands and became a unit. So in case, if an individual tries to be isolated and independent from other individuals, this possibility has become quite rare. If this concept of globalization is viewed on a broader level in terms of the international relations developed among different countries of the world, an important trend can be noticed such that more frequent changes have emerged as the nations are shaking hands with each other despite of even having the worst historical experiences. The current trend which is highly adopted by the countries as well as leading towards an increasingly globalized society is the unification of different sorts of block on di fferent basis (Greenidge, 2008). These blocks are developed due to some mutual interests of the countries such that different backgrounds set the stage for the countries to develop such blocks. For instance, oil producing countries have developed their own block and decide as per their own preferences about the production and supply of oil. Similarly, some countries establish a block for their mutual economic interest like the case of European Union. There are blocks which are developed due to mutual defence related interests for the security of those countries. So in a nutshell, the most important reason behind current movement of emergence of globalization is the increasing pattern of building up various kinds of blocks based on the mutual interests of the participant countries (Greenidge, 2008). Financial Stability The concept of financial stability refers to the financial environment whether on an individual level of a country or on global basis such that the participants of tha t environment feel confident regarding the value of their economic and financial resources (Rahn, 2010). Basically, it is the confidence level of the people or countries that bring financial stability into that particular region. If the people or institutions are