Ragamalya R, BBA LLB., [Hons]. School of Excellence in Law, The Tamil Nadu Dr.Ambedkar Law University, Chennai
Rohit Arun A S, BBA LLB., [Hons]. School of Excellence in Law, The Tamil Nadu Dr.Ambedkar Law University, Chennai
ABSTRACT
In today’s interconnected global economy, financial systems play a crucial role in shaping economic outcomes across nations. Since the 1980s, the processes of liberalization and globalization have driven efforts to align financial regulations worldwide. The goal of such harmonization is to minimize sectoral risks, improve coordination between countries, and enhance communication across regions. This alignment fosters international cooperation, promotes shared economic interests, and builds cross-border trust.
However, achieving regulatory harmony is complex and requires navigating multiple levels—global, regional, and national. A significant but often underestimated factor in this process is the impact of cultural differences. Cultural norms and practices heavily influence financial behaviors and relationships, complicating efforts to establish uniform regulations. This paper focuses on the role of cultural dynamics in shaping financial harmonization efforts, highlighting how these factors can both support and challenge the integration of financial systems in a globalized environment.
Keywords: Cultural Factors, Harmonization, Financial Relations.
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