The reasons of raising global capital market and its future trend(International Business)

The global capital market which comprises of investor, seeker of the financial fund and intermediating institution is on rising. The globalization and liberalization have been a major factor to bring all diversely scattered resources into the mainstream of global financial platform and disruptive technological innovations along with liberalization have facilitated the flow of funds across the borders. The global stock market raised from $ 3600 billion in 1990 to $33,913 billion in 2012 and in the same way the international bond market raised from $3515 billion in 1997 to $21979 in 2012 billion (Hill, 2011) and the global stock market alone reached a record of $76.3 Trillion (Baccardax, 2017).

In the future, I think the growth will be even higher, Accenture in their report entitled “Technology for Digital Capital Market in 2022” has emphasized the amalgamation of technology as more disruptor for such ramification. It would be through intelligent and automated technology, big-data analysis along with open and accessible platforms.  These technologies are making financial transaction real time and are running 24*7.  On the other hand, liberalization and deregulation are providing ample opportunities to individual investors as well as to the corporate investors move across the border. The systematic, tech-savvy real-time stock exchange platforms like NYSE(USA), HKEK(Hongkong), LSE(London) are helping the free and fair flow and transfer of the primary and secondary capital.

Except this, multi-national banks like JP Morgan, Bank of America, Standard and Charters, Soft Bank et cetera are globally collecting and investing in promising projects along with bond equity markets.  With the members count reaching 162 countries in WTO, which comes with the promises to open financial market in the global arena, I can fell that there will be more flow of funds and rise in the value of the capital market.

Seamlessly, need for higher innovation to come across the expectation of global customers, the rise of the fourth industrial revolution, the use of artificial intelligence, blockchain technologies, new mode of virtual currencies like cryptocurrencies, all are creating a need for investment in the gigantic level which is only possible through the well matured and maintained capital market.

Bibliography

Baccardax, M. (2017, July 14). The Global Stock Market Is Now Worth a Record $76.3 Trillion - And That's Terrifying. Retrieved from www.thestreet.com: https://www.thestreet.com/story/14229200/1/global-stocks-are-now-worth-more-than-the-global-economy-and-that-s-worrying.html

Hill, C. W. (2011). International Business: Competing in the Global Market Place,8E. New York: McGraw-Hill Irwin.