UNIVERSITY SCHOOL OF BUSINESS

DEPARTMENT OF COMMERCE
Bachelor of Commerce (H)
GLOBAL CAPITAL MARKET (22CMT-285)
Course Instructor: Tejinder Singh
Employee No: 4473

DISCOVER . LEARN . EMPOWER

Technology and Capital Markets(1/2)
Impact of Technology on Trading:
1. Electronic Trading Platforms: Introduction of electronic trading platforms revolutionized
stock exchanges, enabling faster and more efficient transactions.
2. High-Frequency Trading (HFT): Utilization of algorithms for high-speed trading, influencing
market liquidity and volatility.
Access to Information:
3. Information Dissemination: Technology democratized access to market information,
empowering retail investors and reducing information asymmetry.
4. Real-Time Data Analytics: Advancements in data analytics offer traders insights into market
trends, enabling informed decision-making.

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Technology and Capital Markets(2/2)
Algorithmic Trading and AI:
1. Algorithmic Trading Strategies: Automated trading strategies using algorithms based on
quantitative analysis and machine learning techniques.
2. Role of Artificial Intelligence: AI-driven systems analyze vast amounts of data, predicting
market movements and optimizing investment decisions.
Global Connectivity and Market Integration:
3. Cross-Border Transactions: Technology facilitates seamless cross-border transactions,
enhancing global market integration.
4. Impact on Capital Flows: Improved connectivity fosters capital flows between international
markets, affecting asset prices and market dynamics.

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Globalization and Price Evidence in
Global Markets-1
Trade Liberalization and Price Dynamics:
1. Import-Export Impact: Globalization leads to increased trade, affecting the prices of goods
and services worldwide.
2. Comparative Advantage: Nations specialize in production, influencing the global price levels
of commodities and manufactured goods.
Exchange Rates and Market Prices:
3. Currency Fluctuations: Globalization and exchange rate movements impact prices of
imported/exported goods.
4. Hedging Strategies: Companies use hedging instruments to manage currency risks, affecting
product prices in global markets.

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Globalization and Price Evidence in
Global Markets-2
Supply Chain and Price Transmission:
1. Supply Chain Disruptions: Global supply chains impact prices due to disruptions caused by
natural disasters, geopolitical events, or pandemics.
2. Price Transmission Mechanisms: Changes in input costs and production disruptions lead to
price adjustments across global markets.
Financial Market Integration and Asset Prices:
3. Interconnected Financial Markets: Globalization integrates financial markets, influencing
asset prices like stocks, bonds, and commodities.
4. Contagion Effects: Financial crises in one market can spill over to others, affecting asset
prices globally due to interconnectedness.

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Empirical Evidence and Case Studies
1.Examples of Technological Impact:
1. Case Study: Rise of Bitcoin and Cryptocurrencies - Technology-driven digital assets
impacting global financial markets and investment patterns.
2. Empirical Evidence: Studies showcasing the impact of algorithmic trading on market
liquidity and volatility in specific stock exchanges.
2.Globalization and Price Evidence:
1. Evidence from Commodity Markets: Price fluctuations in commodities like oil, gold, and
agricultural products due to global demand-supply dynamics.
2. Case Study: Effects of trade agreements on consumer prices and market competition in
specific regions or industries.

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Conclusion
• Technology and globalization have significantly transformed capital markets and
global price dynamics. The integration of technology in trading processes, along
with the effects of global connectivity, has altered market structures, price
discovery mechanisms, and investor behavior.
• Empirical evidence and case studies further highlight the intricate relationship
between technology, globalization, and price evidence, emphasizing their
profound impact on global markets and the need for adaptive strategies in an ever-
evolving financial landscape.

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Assessment Pattern

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THANK YOU

For queries
Email: tejinder.usb@cumail.in