The impact of the financial crisis on the Tunisian financial market The patterns of cross-border capital raised the effect on the developments of domestic markets and highlighted the differences between advanced and developing economies. One of the effects of this globalization is the introduction of the euro and the effect it had on the European and global capital markets by bringing into existence a currency area comparable in size to that of the United States. However, the globalization had also a downside resulted by the effects of the financial crises on foreign capital raisings during the 2007-09 global financial crisis. Financial globalization expanded the international capital markets to investors and firms all over the world. Foreign capital raisings by firms have increased substantially since the early 1990s in terms of equity as well as debt. The integration of financial markets has emphasized the rapid flow of capital across borders as well as magnifying
Introduction Investment is financed by saving. There are various ways to finance capital investments: Borrow the money, from a bank or from a friend or relative.Alternatively, convince someone to provide the money in exchange for a share of future profits. Use own savings. In all cases, investment is financed by someone else’s saving . The financial system consists of those institutions in the economy that helps to match one person’s saving with another person’s investment. FINANCIAL INSTITUTIONS The financial system moves the economy’s scarce resources from savers (people who spend less than they earn) to borrowers (people who spend more than they earn). Savers supply their money to the financial system with the expectation that they will get it back with interest at a later date. Borrowers demand money from the financial system with the knowledge that they will be required to pay it back with interest at a later date. The financia