London, New York, and Tokyo; what do they all have in common? Each country is a major player in the International Financial Market. Millions of transactions happen every day at institutions in the mentioned countries. The International Centers today play a key role as different investment options for those limited by their home countries options. Not just any country can declare them self a global financial center, first a couple considerations must be taken into account. First, the global financial center’s home country must be politically stable. It would be hard to get an investor’s business and even tougher to acquire the international investor if there is political turmoil. Already taking on the financial risk associated with investing in a market, why would one want to take on political risk, a variable that could be avoided in a different country? Next the global financial center’s home country must have minimal government intervention. Too much government regulation could have a dismal effect on the free market. A country that has a solid legal infrastructure in place would be another reason to be considered to house an international center. As needed by every country, a first-rate legal system gives investors peace of mind. Lastly, the country must also possess a firm financial infrastructure. If a country cannot provide a safe and efficient financial market, then obtaining investors to invest in your country in the first place will to be difficult.  The main purpose of international centers is to provide access for foreign investors to invest worldwide. One way international centers make this possible is through the Foreign Bond Market. Yankee Bonds, bonds that are issued in the United States by a foreign entity and Samurai Bonds, or bonds that are issued in Yen in the Japanese market by a non-Japanese company. The Foreign Bank Market is another option provided by international centers. The Foreign Bank Market is linked to the country’s domestic market. This creates additional options for United States companies to acquire funding. One last method of investing through international centers is to utilize the Foreign Equity Market. Using this market as a tool to diversify risk is one function. International Centers are crucial in order to promote global investing options. Each center’s country has proven to be solid and stable. International Centers help create different investments where investors are limited by their home countries laws.  Source: Greco, Joseph. Chapter 12 Power Point – International Financing and National Capital Markets