• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Explain the meaning of the term globalisation and identify its benefits and costs. How and why will it affect banks' staff, their owners, their depositors, and their borrowers?

Extracts from this document...

Introduction

Explain the meaning of the term globalisation and identify its benefits and costs. How and why will it affect banks' staff, their owners, their depositors, and their borrowers? The meaning of the word globalisation has been explored by many scholars, leading to a strong controversy. Despite the existence of different views and theories on the term globalisation, there's a broad agreement that although globalisation may be a much debated topic, there's no argument from the view that we live in a period of globalisation. Globalisation refers to the ongoing global trend towards the freer flow of trade and investment across borders which results in integration of the international economy. This interdependence of buyers and sellers in countries around the world results due to a number of factors. Mainly the maturation of the Eurocurrency markets since the 1960s, desire by financial institutions to expand their lending and other activities outside geographic boundaries and desire to control balance sheet risk through Interest Rate Swaps and other financial swap agreements. ...read more.

Middle

Globalisation also leads to an increased liquidity of capital allowing investors in developed nations to invest in developing countries. Lastly, the immigration and emigration of people causes cultures and communities to spread all over the world which is a way of diversity being created. We should not underestimate the costs related to globalisation. I will now talk about them. Due to globalisation, there are more chances of economic disruptions in one country affecting other countries as they may be reliant on them for a certain commodity. Also there's a great risk of diseases being transmitted unintentionally between nations. Most importantly, there's a big chance of globalisation being violent in an attempt to preserve cultural heritage because multinationals may bring in their cultures and customs changing the historic culture in that country. There are more chances of civil war within developing countries and open war between developing countries as they compete for resources due to there being demand for a materialistic lifestyle and an attitude within the population that sees consumption as the path to prosperity. ...read more.

Conclusion

and governments are tempted to loosen domestic rules to gain advantage are focused on refining the rules on capital requirements, on increasing disclosure and on improving international cooperation (Vaitilingham,2006). So to conclude, it is clear that the world is becoming more and more globalised. Globalisation is a man made feature of our world and it is unlikely that it will stop or slow down in the foreseeable future. Globalisation may lead to a compression of the world and an intensification of consequences of the world as a whole but the benefits surely outweigh the costs as otherwise it would not have existed as long as it has. Globalisation is a process of interaction and integration among the people, companies, and the governments of different nations, a process driven by international trade and investment and aided by information technology; this process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well being in societies around the world. 972 words. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    Advantages and disadvantages of Globalisation. Need for development.

    4 star(s)

    The poor in LDCs desperately need work and injections of capital. Low pay is better than no pay and no work, especially in LDCS with no state benefits. MDCs injection of skill and organisation lead to labour scarcity and higher wages and economic growth.

  2. Marked by a teacher

    What is an international bank? How do international banks compete?

    4 star(s)

    Normally, major banks act as clearing agents not only for individual customers but also for smaller banks and financial institutions. SWIFT, FEDWIRE and CHIPS and CHAPS are the main electronic system payments used. From these systems, SWIFT has shown to be the most popular electronic fund transfer system because it offers real-time settlement 24 hours a day.

  1. "What do sociologists mean by the term 'Globalisation' and how have they tried to ...

    have shaped the international economy and they are the main driving force of the globalisation process. Products such as Coca Cola, Levi jeans and Kodak film are now available on an international scale. The key goal of these corporations is to gain market advantage over rivals and so they decide

  2. Corruption and Globalisation - Both of them have been so pervasive in recent years. ...

    The answer is yes. Corruption damages and slows down the growth of countries. Corruption is a major impediment to the economic progress of developing countries. For international companies that are aiming to developing countries, they may pay bribes and deal with official extortion; this is actually equivalent to facing an extra tax.

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    who are in a position to be effective in the WTO. The focus of their efforts must be the Doha round, whose success or failure will, alongside unilateral, bilateral and regional initiatives, determine the medium-term future of the world trading system.

  2. To what extent has globalisation been benefical to China's economic growth?

    reduced investment barriers and improved its investment environment by opening more regions and economic sectors to foreign investors. In addition to such policies, it has the world's largest population providing an abundance of cheap labour (Appex.4) and a potentially huge market.

  1. Why has GDP growth been so slow in Somalia?

    When famine stuck Somalia earlier this year there was widespread report of aid being stolen by the black market and sold openly, causing the 'many unnecessary deaths' of the 3.2million in dire need of the aid61. However, the biggest contributor to the Somali black market is piracy.

  2. A Study of Globalisation - A study of multinationals and their effect on our ...

    These empires built an infrastructure in developing countries; railways, ports and beautifully constructed colonial buildings were just some of the benefits these developing countries could take advantage of. Even though these commodities weren't built for the benefit of the developing country (they were built for British trade)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work