ABSTRACT
Financial markets worldwide are rapidly becoming more integrated and thus better at allocating capital to its most productive uses. The continuing liberalization of financial markets; the trend towards securitization (and hence tradability) of financial assets; and more effective management of risks and returns through the use of derivatives are all helping to lower barriers between domestic financial markets worldwide. A more efficient global capital market should be better able to match savings in the developed world with the hugely profitable investment opportunities in developing countries.
