Asked by Hannah Snyder on May 24, 2024

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Financialization is the increased importance of financial markets, motives, results, and institutions relative to:

A) the production and delivery of goods and services
B) the development of global markets
C) international trade
D) labor and the environment

Financial Markets

Platforms where buyers and sellers trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices reflective of supply and demand.

Financialization

The increasing influence of financial markets, institutions, and motives in the economy, affecting decision-making in businesses and governments.

Goods And Services

Goods are physical items that are sold or exchanged, while services are intangible activities or benefits that are provided.

  • Assess the contribution of financial markets and institutions to the global economic framework.
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DA
Davaamalar AngamuthuMay 24, 2024
Final Answer :
A
Explanation :
Financialization refers to the shift in focus of corporations and economies towards financial markets, institutions and motives, over tangible goods and services production. This means that Wall Street's priorities and financial market valuation of companies may be more important than a company’s actual economic performance, and may drive a disproportionate allocation of resources towards speculative investment over productive investment. Financialization is therefore characterized by an increasing dominance of finance over production, and by the prioritization of shareholder value over other stakeholders such as labor and the environment. Global markets, international trade, and labor and the environment are related issues, but not synonymous with financialization.