Financial globalization is where a country purchases from another county which makes the world smaller and work together much easier. Also, it makes the economy get effected easier when a country gets effected in political problem all other countries who is involved with them economically to get effected as well. For example, the Arab oil-exporting countries are sensitive to global financial fluctuations as a result of the combination of volatility in oil prices and high investment concentration in Western countries. Therefore, currencies make a monetary variable to those countries and others who imports good using the dollar as their means of exchanging goods. Currently, GCC economies has a limited level of success because of the increased economic diversification in an attempt to reduce to volatility in oil prices. Also, most MENA countries remain dominated by an inefficient public sector and facing the geopolitical shocks is an important contributor to financial instability in all MENA countries.
Globalization shows the global combination of international trade, information technology, investment and cultures. The government regulations and policies creates open economies locally and internationally to development in less fortunate countries and raise standards of living for their people. However, these policies mainly benefits multinational corporations in the Western world to the detriment of smaller businesses, cultures and common people.
Globalization allows developing countries to reach developed nations through increased manufacturing, diversification, economic expansion and improvements in standards of living. Outsourcing by companies brings jobs and technology to developing countries. Trade initiatives increase cross-border trading by removing supply-side and trade-related constraints.