'Globalisation does more harm than good to a country's economy.'!!

"The transformation of national segmented financial markets into integrated parts of the global financial market - the globalisation process - involves complex cross-border and cross-sectoral integration in which capital movements and financial services are key determinants." (Oxelheim, 1996, p. 21) The large multi national corporations (MNC's) play a major role in this transformation process, as it is these organisations that have a very wide variety of funding options. A number of the large corporations engage in arbitrage …

…in the country, they may desire to hold foreign currency as an asset or store of value. The value of all currencies is not determined by the transactions in the foreign exchange market. Some currencies are pegged to other currencies, for example the Malaysian Ringgit is pegged to the US Dollar. A number of the governments influence the value of their currencies by open market buying or selling, hence push the price up or down.