Trend of international financial activity

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If you review the history of international financial activity from 1960 up to the present, you will read about an expansion of international banking, that multinational corporations can buy Thai Baht in the branches of Citibank in São Paulo, Brazil, and that an American bank located in London accepted a deposit denominated in Japanese yen from a Swedish corporation, or to lend Swiss francs to a Dutch manufacturer. (Chapter 20)

Develop a graph that shows the trend of international financial activity from the 1960s up to now.

Explain and demonstrate in quantitative formatting the economic reasons for this trend regarding:

  • The growth of world real GDP
  • The expansion of international business by developing and underdeveloped economies. 
  • The world's need for liquidity
  • The expansion of global business
  • The expansion of international banking
  • Offshore Banking and Offshore Currency Trading
  • Whatever other reasons you might find appropriate such as constant current account deficit in the USA

Reference no: EM133203198

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