The impact of globalization upon the developing countries are reflected in the following aspects: 1) It deepens interdependence and economic integration between the developed and developing nations, an outcome that also tends to raise the position of the latter in the world economic arena. 2)It facilitates the inflow of capital and technology into the developing countries and also provides an opportunity for them to expand market shares. Needless to say, this benefit also entails more external competition for them. 3)It tends to widen the gap in the developing world itself. 4) It increases financial risks for the developing nations that are seeking integration with the world economy by opening up their capital account. It seems that financial risks for the developing countries is the most important issue to be dealt with in the age of globalization.The following implications might be drawn from the Peso crisis in 1994,the East Asian crises in 1997 and Brazil’s financial turmoil in early 1999:1) Government regulations and supervision over the financial sector is imperative. 2) The ability and capacity of the government and the financial sector regarding risk management needs to be upgraded.3) Generally speaking, a gradual approach is required for the opening of the capital account. 4)A cautious attitude should be taken to deal with the inflow of short-term capital. The impact of globalization upon the developing countries are reflected in the following aspects: 1) It deepens interdependence and economic integration between the developed and developing nations, an outcome that also tends to raise the position of the latter in the world economic arena. 2) It facilitates the inflow of capital and technology into the developing countries and also provides an opportunity for them to expand market shares. Needless to say, this benefit also entails more external competition for them. 3) It tends to widen the gap in the developing world It increases that the financial risks for the developing nations that the most important issue to be dealt with in the age of globalization The following implications might be drawn from the Peso crisis in 1994, the East Asian crises in 1997 and Brazil’s f inancial turmoil in early 1999: 1) Government regulations and supervision over the financial sector is imperative. 2) The ability and capacity of the government and the financial sector regarding risk management needs to be upgraded.3) Generally speaking, a gradual approach is required for the opening of the capital account. 4) A cautious attitude should be taken to deal with the inflow of short-term capital.