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

Question

Quizplus · Accepted Answer

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.

Financialization Is the Increased Importance of Financial Markets, Motives, Results