Today's public markets don't exist in isolation - they're part of a massive, interconnected global network. When markets open in Tokyo, the ripple effects can reach New York within hours.
This global integration has transformed how capital flows and how quickly financial information spreads worldwide.
Engagement Message
Name one reason events in one country can move markets far away.
Here's how it works: As the sun moves around the earth, major stock exchanges operate in sequence. Tokyo opens first, then Hong Kong, London, and finally New York.
This creates a 24-hour trading cycle where information and investor sentiment flow continuously from market to market.
Engagement Message
Identify one advantage investors gain from a 24-hour global trading cycle.
Cross-border capital flows are massive. American pension funds invest in European companies. Chinese investors buy U.S. stocks. German banks fund Australian mining projects.
Money moves across borders instantly, seeking the best investment opportunities regardless of geography.
Engagement Message
Mention one way global capital flows can benefit developing countries.
This interconnectedness means local events can have global consequences. When China's economy slows, commodity markets worldwide feel the impact because China is a major buyer of raw materials.
One country's crisis can quickly become everyone's problem - or opportunity.
Engagement Message
Can you think of a recent global event that affected multiple stock markets?
Here's a real example: In 2008, problems with U.S. housing mortgages triggered a global financial crisis. Banks worldwide had bought these risky assets, so American mortgage defaults crashed markets from London to Tokyo.
Modern markets are so interconnected that local problems become global contagions within days.
Engagement Message
