Why is an open financial market a key factor to the globalization of International Financial Markets?

Answer 1

Open equity markets allow foreign investors to buy into each country's firms..... companies such as malayan Banking would not be 'global' without a sufficient level of equity mkt opennness.

Open bond markets ensure that every company can borrow at the world market price (interest rate, repayment terms) for a business of their size and rating (AA, B- or whatever at Moody's and Standard and Poors).

There is also a 'knock on' effect of encouraging transparency and fair pricing in domestic debt markets for smaller businesses.

4thly, open financial markets make it harder for govts to do anti-competitive things like controlling the exchange rate (like China, a semi-closed country in some ways still, does).

Answer 2

Having open financial markets means that foreigners are allowed to participate along with domestic investors. If you don't allow foreigners to participate in your domestic markets, what kind of globalization would that be?