ABSTRACT
Because of the development of communication technology, there has appeared the tendency of globalization in the international economy. And the magnitude of capital flows around the world has also gradually surpassed the scale of international trades, forming a huge international financial market. This financial market, which goes beyond the limitation of geography and the constraint of time, makes it easy for the demanders and suppliers of capital, who are located in different countries, to conveniently complete their trades. Such convenience makes the depth and width of international business trades greatly strengthened and has helped the world economy to develop unprecedentedly. However, at the same time, speedy flows of large capital amounts have also created huge impacts on the international payments and national economies of all countries directly or indirectly through capital and financial accounts, and caused monetary, financial crises that went across national borders.
