Financial integration

Definition

Financial integration is the process where financial markets in different countries become more interconnected and interdependent, allowing for easier movement of capital and investment across borders. It involves the harmonization of rules, regulations, and practices to facilitate international economic transactions.

Related terms

Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale, often leading to increased connectivity and interdependence among nations' economies.

Capital Mobility: Refers to the ability to move capital (money for investment) freely from one country to another, a key aspect enabled by financial integration.

Foreign Direct Investment (FDI): An investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country