A Guide to Global Financial Market Interconnectedness

Global markets have never been more interconnected due to globalization of commerce, cross-border access and financial trading. This interdependence makes small disruptions have greater repercussions across borders and can trigger risk events that lead to major financial crises. Understanding these links is integral to global management, and there are effective techniques available such as the D-Y methodology that allow managers to gauge interconnectivity. 1. Stock Markets Global stock markets have never been more interlinked due to globalization, cross-border commerce and easy trading access. Minor disruptions can quickly snowball into larger…

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