Global Market Overview
Global Market purely depends on international trade, foreign investment and exchange rates. In order to understand Global Market, one has to understand currency swaps, international economics, trade deficits, capital flows and international projects. Various model such as Optimum currency model and Mundell-Fleming Model; has explained the overview of Global Market and Global Finance.The multinational organizational structure reflects the homogeneity of Global Economy. There are several philosophies and terminologies that contribute in the making of Global Market.
Multinational companies divide themselves on number of divisions and units, which play their strategies according to the local market. At the same time, they form Global Market based on cross border commerce, trade barriers and other related factors.
According to the World Federation of Exchanges, which contains 54 stock markets that regulated the world market; the total capitalization of Global Market is $46.634 trillion (up to January 2010). The breakup of World Federation of Exchanges stock value is as follows:
- American market - $18.985 trillion
- Asia Pacific region - $14.099 trillion
- Middle East, Europe and Africa - $13.549 trillion
NYSE and NASDAQ take the 1st and the 3rd market place in WFE, in terms of market capitalization. The 2nd place has been acquired by Tokyo Stock Exchange.
According to World Federation of Exchanges, the top performing markets in 2009 were Brazilian and Indonesian Markets. Nine stock exchanges of WFE in 2009, has doubled their market capitalization value.
NASDAQ Global Market Trading:
National Association of Securities Dealers Automated Quotations (NASDAQ) is one of the world’s largest stock markets. Other markets such as New York Stock Exchange (NYSE), Europe, China and Japan are the major competitors. NASDAQ is popular around the world as well as in America. It was established in 1971, and grew itself from computer equity trading and global manufacturing trading firms.
For any company, who wish to get listed in Global Trading Exchanges, has to fulfill the recognition requirements. If any listed company fails to fulfill the criteria’s such as market capitalization, average costing, market value of their property or shareholders equity; then that company is removed from the list.