This is likely to, in turn, have an adverse knock-on effect on the level of employment and the general inflation level. Furthermore, a country that does not conform to international standards and best practices with regard to its financial system, risks isolation from the international economic community.
Globalisation is a global trend toward the freer flow of trade and investment across borders, resulting in the integration of the international economy. In a globalised world, no country can afford being isolated, as there is no room in a globalised world for an economy isolated from world trade and foreign investment.