Transforming markets in globalisation

Markovszky, György

Keywords: market concentration, globalisation, concentration of capital, derivatives market, e-trade

The increasingly fast growth of the world economy, changes in the leading regions’ and states’ share of world production, new regions closing the gap, the increased concentration and growing ratio of companies operating above and beyond nations, all adds up to a strengthening geographical and corporate concentration of capital. Alongside traditional industrial sectors, sectoral concentration is also strengthening in the various branches of the service sector. In spite of their fluctuations, money- and capital-markets, the commercial development of the world’s greatest stock exchanges, are dynamic. The volume and sensitivity of derivative products (total derivative transactions being many times greater than share transactions), have elevated them to being the barometer of business life.

The adjustment of the domestic economy to the world economy is contradictory. The circle of large companies that primarily operate on foreign capital are performing outstandingly, exports are growing and SMEs have remained weak, their ability to close the gap doubtful. The analysed data also proves that the process of domestic concentration is speeding up.

The Hungarian capital market, the increasing rise of the derivatives market behind the growth in public share transactions, is a factor increasing market security. The futures and derivatives market represents almost 50% of total transactions. In the previous period, the Hungarian cereal and oil-seed market represented 10% of the foreign exchange futures trade on the commodities exchange, a fact which illustrates the decline and loss of ground of local markets.

The growth in electronic trade – the new market force in the post-millennium period – is dynamic, and its share in certain areas (procurement) is significant.