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Complexities of the U.S. Financial System

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Complexities of the U.S. Financial System
For the past few years after the financial crisis the United States financial system has been going through many changes. The financial system has impacted several environmental aspects in the economy, federal regulation and individuals. One way the United States financial market can impact the economy is by the use of use of mutual fund improvements using it as a tool for price changes, which will trigger the effect, by identifying the strong outcome of market prices. The decrease in valuation leads to a 7% increase in acquisition, likelihood, relative to a 6% takeover possibility. In addition, globalization has an impact in the financial markets by reducing companies' cost of capital. Furthermore, globalization also helps improve corporate governance in a way that manager engagements are better aligned with stakeholder interests. This progress in corporate governance further contributes to a reduction in a firm’s cost of capital. Another impact on the organizations are the cost of raising resources in capital markets (its “cost of capital”). On the other hand, there are conditions under which globalization improvements itself has led to a decrease in United States cost of capital. Financial markets had not just impacted the economy, businesses, and individuals of the U.S. but also had an effect in the economy all over the world. The United States Federal Reserve have very important role in the expenditures system of the country. There are twelve Federal Reserve Banks that provide finance services to the federal government and all the depository institutions. Depository institutions maintain accounts, offer numerous payment services, electronically including transferring funds, collecting checks, and receiving and distributing currency and coin. The U.S. federal government and the Reserve Banks have important roles, each party act as fiscal representatives, by paying Treasury checks, processing electronic payments, and transferring, issuing and redeeming the United States government securities. Recently the congress actions are more focus to increasingly improve the effectiveness of the payments system. The government party is achievement this actions by encouraging the increase use of technology. Furthermore, in the late 1800’s, the congress passed the Expedited Funds Availability Act or better known as: EFAA, which provided the panel, for the first time the authority to standardize the payments system in general, including those payments through the Reserve Banks.
The Federal Reserve Board has the authority under the Expedited Funds Availability Act to renovate the check-return system. In addition, the board improved the presentment privileges of private-sector banks and established governing rules to the time that financial banks can hold funds from the deposits of a checks into client accounts before it can make the moneys available for withdrawal. On the other hand, in the early 2000’s, the congress passed the 21st Century Act. For clearing checks by decreasing legal and concrete impediments to check transactions, and electronic collection of checks, which enhanced the effectiveness and the speed of the payments system.
There are key factors that focus in international policies, one key focus that has become a debate the past recent years is Global liquidity. The global financial environment reflects the view that drives the major position for international financial solidity. The evolution of international business has been intense and clear. Two extensive reasons are: strategic imperatives and environmental changes. Strategic imperatives motivate globalization, and the environmental changes which helps to facilitate it, having an influenced in the U.S. and global financial environment interest rates.
Strategic imperatives embrace leveraging global financial environment and the U.S. by the capabilities of acquiring resources at low cost, growing into new markets, and also by competing with other industry rivals. Even though strategic imperatives specify why firms desire to internationalize the company’s operations, this impact interest rates and has significant influences for changes not just in the political portion but also in the technological environment. Moreover, the evolution of the International and other information technologies have the probability to redefine international competition and ways of doing global business in a complex way once again.
Global financial environment, impacts the United States financial environment, in the process of internationalization, which is the process that firms incorporate themselves into the non-native environments particularly extraneous nations and global system or cultures of marketing and production, through the collaboration of capital, product, technology, and workforce with production factors that are outside the company’s home nation. At the end of the day it is economically important for all global financial environment including the United States to have business all around the world. To understand the language of business internationalization, to commit to resources and production factors by those strong executives for the other non-native markets and all the international business, which cover a broad range.

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