Final answer:
The primary factors that led to the development of global financial services are World War II, which over time supported rebuilding of global financial capital flows, and deregulation, allowing more competition and innovation.
Step-by-step explanation:
The development of global financial services has been influenced by multiple factors. Among the options provided, two key factors stand out:
- World War II: While initially it hindered international trade, the post-war period led to a slow rebuilding of global flows of goods and financial capital, eventually supporting the growth of financial services.
- Deregulation: This led to freer markets and was a driving force in the development of global financial services by allowing more competition and innovation within the financial sector.
However, while not listed as an option, the internet has also had a significant impact on global financial services, especially with the advent of online banking, trading, and the global reach it provided to financial institutions. Even though reduced manufacturing can influence a shift towards service industries, including financial services, it is not a direct cause for the development of global financial services, thus it is not typically considered a primary factor.