It has been evident that globalization had its impacts on almost all aspects of life. With the introduction of the concept of globalization as early as the 1970s, the world started to be thought of as one single unified entity that is borderless. The concept has been witnessing many shifts over years. There are four major aspects that are related to the concept of globalization according to the IMF (2000). These major aspects are trade and business operations; money and movements of investment; processes of human capital movement; and dissemination of knowledge.Reviewers suggest that the financial sector has probably witnessed massive changes due to globalization. This essay shed light on the banking sector in Bahrain as one of the sectors …show more content…
The number of the retail banks reached 28 while the whole sale banks were 76. Conventional banksoutnumber Islamic banks as conventional banks are 79 banks while Islamic banks are 24 banks (CBB, 2015). To make a better understanding of the impacts of globalization on the banking sector in the kingdom of Bahrain, an analysis of the external environment of the banking sector can be carried out. PESTLE analysis constitutes a framework that includes some macroeconomic factors that enable any organization to investigate the components of the external environment of the organization. PESTLE is a strategic management instrument (CIPD, 2009). PESTLE stands for six external environmental factors which are Political, Economic, Social, Technological, Legal, and Environmental …show more content…
It is accepted that globalization is an economic phenomenon that significantly affects countries' economies as well as international economies. Numerous trade unions were introduced under globalization and many countries emerged as economic powers in the global economy. Some other powerful economic entities disappeared as a result. In Bahrain, the banking sector was apparently impacted by the global economic changes particularly by the monetary crisis that emerged due to globalization. The banking consumer behavior was impacted. Banks had to make use of tough procedures on lending, and interest rate was directly impacted. Bank performance was dramatically impacted (Hidayatand Abduh,
Macro-environmental factors may affect the incorporation of the market in Malaysia. The macro-environmental factors which affect the target market are identified and these factors affect the potential of the company to form a new market in the economy. Environmental factors of the country and the surroundings effect the formation of a new plan. These are external factors and cannot be controlled by the company. The target market for the future retail banking by Santander is influenced by the company. Malaysia has diversified culture and the environmental factors are such that cannot be controlled by any means. These macro-environmental factors include the
The discernments provided in this book by a distinguished ‘insider’ is manna for economists, investment banks, governments of both developing and developed countries and just about anybody who wants to learn and understand economic development, the politics of international business and globalization, and public policy formulation with regards to globalization and liberalization. The author provides a holistic view of all aspects of globalization – the good, the bad, and the ugly. International organizations and business practitioners in particular will be wise to glean valuable insights from this book.
But this house of cards, started to collapse. Were two important factors which brought down the earlier System of Globalization.. Capital, soon started to circulate back to the United States, this, then revealed the chasm for the rest of the world which was racking up big deficits. Germany and Austrian banks began to crack and along came the crash of Wall Street of 1929, this made things worst since they depended on USA acting as a lender. All of this began the process then of brining the financial system to its knees.
The world we live in today is going through enormous changes in economics, technology, culture, politics, etc. The effects of the changes are not so clear, since it is hard to predict how each sector would affect the other and how society will be affected. However, analyzing past and present occurrences provides some information for experts to interpret society’s reaction in the future to different transformations. Globalization can be seen as a process in which societies around the world come together and expand through the combination of different forces. This paper will explore the effects of globalization on US companies, US society and economy, and the implications for other countries in the post-industrial world.
enables organisations to make effectives plans and decisions in terms of business growth and development in the future. The PESTLE framework helps to determine factors such as whether or not the political state of the country is affecting the industry, if there are any economic issues, new technological innovations, current legislations and environment concerns within the industry. The macro-environment of an organisation consist of all of these factors and these can have various long-term effects on each different industry as they have no control over them. However, it is vital for any company to analyse these aspects when developing future plans as the organisation will have a greater understanding of the external environment and will enable them to maximise opportunities while minimizing any threats that may arise against the organisation. 1.
Globalization as Matthew Sparke defines, "is the extension, acceleration, and intensification of consequential worldwide interconnections” (2013, p. 3). In others words, globalization integrates social, economic, and political factors that shape the world. Globalization can be thought of as a great phenomenon; similarly, it can be thought of as quite the opposite. This paper will explain when, where, how and why BP Plc. has become a transnational corporation through globalization by offshoring, outsourcing, and merging with other companies. In addition, this paper will discuss the successes and consequences caused by globalization through BP’s three key strategies.
Although the origin of the GFC might have been the housing and financial crisis in the US, it affected both developed and developing countries in a devastating way. More specifically, the crisis has destroyed global financial systems and government budges, strike the confident and security of financial markets. It was universally recognized the worst global economic downturn since the Great Depression in the 1930s (Ciro, 2012). Before the financial crisis, the increasing food and oil prices had affected the non-producers and because of the developed economies are more integrated within the global financial systems and markets, they were the worst affected by the GFC in the short term. Developing countries were looking more optimistic in the short term as their economies were not as integrated into the global financial market system. Nevertheless, the escalated impact of the crisis did affect the real economy of developing countries especially on the export-orientated nations. As the demand of goods and services has been weakening from the developed countries, the output of manufacturing or services companies decreas...
Globalization remains a pivotal topic in many schools of thought, and continues being a topic of controversy even in local economies today. Perhaps the reason for this is integration and competitiveness the world over. Conceivably, even more than integration, is the competitiveness of organizations, has possibly facilitating the fascination and misconception about of globalization. Nevertheless, globalization has brought about a number of effects influencing the design and geographical location of the organization. However, globalization has effectively placed the world in a bubble, or maybe one could equate the changes to being placed in an envelope.
As the world has recently passed through the global financial crisis that begun in 2008 in the USA with the banks’ collapsing, analysts are giving different opinions and making new economic hypothesizes about the origin of, as well as the process of different countries escaped from the crisis. Among all these new “theories”, the case of Islamic banks is interesting in terms of its nature and consequences. In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system.
Globalization refers to a process that involves integration and interaction among individuals, companies as well as government of various countries. It is bolstered by international trade, investments as well as modern technology. Globalization, through internet, has revolutionized business in various ways. Companies in foreign nations can compete for clients in other regions of the world due to globalization. Notably, the importance of globalization has mainly been cherished in the business world forgetting about its impacts on social lives of individuals. In the past, there have been debates regarding the role of globalization various cultural practices across the world. Globalization has been termed in many occasions as the
Globalization was derived from colonialism to control over previously colonized nations, and the way it did so was through the creation of the World Bank in 1945. Globalization is defined in Steger's book as, "the expansion and intensification of social relations and consciousness across world-time and world-space" (Steger 15). Globalization included numerous aspects but one that had heavily influence countries across the world was the World Bank, previously known as The International Bank for Reconstruction and Development. The World Bank was created during the Bretton Woods Conference, a t...
Asian financial crisis in 1997 is a good example to demonstrate the globalisation as a single issue in one country will motivate a domino effect on other countries. Since the crisis stared in Thailand because of the fail in banking system, a political upheaval was triggered in South Korea and Indonesia. At the same time, financial centres in New York, London, Hong Kong and Tokyo were also affected in this crisis. During the crisis, global news agencies utilised the Internet and telegraph updating news to their home countries. Such as the Economist, Reuters and the Financial Times which ar...
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
The process of globalization allows the global market to include products and services from all the companies around the world, including all the investments that are across national borders. Indeed, many American companies have taken their merchandise, manufacturing and services to invest in other countries. However, this has produced a negative effect on the global economy. American companies who invest in other countries produce an economic deficiency for the country, similarly companies that invest in other countries produce a loss in the global economy that affects the citizens of the whole world.
Globalization is one of the main aspects in the 21st century. Globalization has brought the world closer; all the things that are happening nowadays are recognized globally even if they happened locally (Buckley). According to Nayef Al-Rodhan GCSP (Geneva Centre for Security Policy) globalization is not a single word or concept. It contains many other concepts within itself. Globalization is composed of different concepts like incorporation regarding the economics, transmitting information or understandings, stability within beliefs, and other concepts (Al-Rodhan p.3). This paper deals with the definition of Globalization, the advantages and disadvantages of globalization, and based on these information the views that to which extend the globalization is beneficial for majority of the world's population. The concept of globalization has changed the whole shape of the world. It has both its positive and negative impacts on people's life. However, by taking both the advantages and disadvantages into consideration we can find that to a large extend globalization is beneficial for majority of the world's population. With the help of globalization the works that were difficult in past is getting easier in today's environment. People are getting closer to each other, which is a product of globalization. Moreover, the knowledge and informations are being circulated in very good way which is a very good sign for having a good and prosperous life.