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The global financial market offers an extraordinary range of opportunities to invest and borrow money, benefiting investors, firms, and economies. On the borrowing side, if a U.S. entrepreneur is not satisfied with her American options for raising funds for a new business, she can seek funds in Europe or Japan. The wider range of options available to borrowers has increased competition among lenders, helping to keep the cost of borrowing down. This has made it easier for firms to finance business expansion plans and acquisitions, generating jobs and economic growth.
Likewise, on the investing side, a European stock investor hoping to earn a higher return than he can earn in his home stock market can now explore alternative investments in the United States. Access to a wider range of international opportunities has helped successful investors increase their earnings and minimize risk through diversification of their investment portfolios.
The global financial market has increased the growth potential of individual countries. By opening up their financial sectors to international flows of capital, countries have been able to acquire the funds they need to support all sorts of private and public sector development initiatives. These funds have the potential to spur higher levels of growth.