Globalization has many facets. By this mean, it covers different and heterogeneous sides of the countries' life. No matter how it affects the process of development positively or negatively, the subject of the worldwide economies interconnection becomes more than before an astonishing and fertile ground of research and investigation. Foreign direct investment for instance is considered both as a concrete way to practice globalization and realize the targets of the international business network. This paper attempts to shed light on the capacity of the countries to catch the benefits of the foreign direct investment as a dynamic process to increase the participation magnitude of the country that hosts FDI in the international economics.
The financial system in any economy occupies an outstanding position in channeling the necessary funds to boost the economic growth. In this context, a critical debate had been launched in an attempt to reveal the mechanism of developing the financial system and increasing its performance vis-à-vis the other economic cycles' departments. Financial liberalization comes as a strategy to improve the funds pooling and channeling process and come up with the demands of the other economic agents (investors and consumers). The antagonists of the financial liberalization argue that this tactic whether takes the sequencing or big bang approach may lead to hard distortion within the system because it requires the lift up of the government hand on the financial system and let the latter working according to the market law. These laws may deprive a large portion of the society to benefit from the gains of the financial system. This paper tries to explain the interrelations between the financial system and the requirements of the financial liberalization paradigm, and how the latter impact the efficiency of the former.
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