Advantages And Disadvantages Of Globalization In The Banking Industry

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. According to economic and political writer Doug Bandow, “Some critics of globalization have contended that the process has helped the rich and hurt the poor. However, the best research indicates that this is accurate: ‘Poverty is falling rapidly in those poor countries that are integrating into the global economy.”. In both documentaries “The True Cost” and “Living on One Dollar” we can see how companies exploit their employees for consumer benefit, as well as the social and economic inequalities that are attached with globalization.

Citigroup has over 200 million customer accounts and does business in more than 160 countries. It supplies deposits and loans, asset banking, brokerage, and wealth management. Citigroup selling strategy is to sell to underperforming and noncore businesses and to refocus on traditional banking.

Citigroup was formed as a result of a merger between Citicorp and the Travelers Group on October 8, 1998. Citicorp started as City Bank of New York in 1812. City Bank of New York increased in size from acquiring several other New York-based banks. It continued to expand in subsequent years by acquiring several other banking entities and expanded across the national boundaries acquired International Banking Corporation in 1918. It went public in 1962 and 1976, it was renamed as Citibank. International expansion continued which gave it a new name of ‘Citicorp’. Citigroup merged with the Travelers Group, which started as the Travelers in 1864. It started as a life and accident insurance company. It also started the operations of commercial credit in 1912. It continued to expand and acquired Shearson Lehman Bros. In 1993 and the Travelers Group was the result of this acquisition. It continued to expand through acquiring companies like Aetna Casualty and Surety Co., Standard Fire Insurance and Salomon Inc. between the periods of 1993 to 1996. Finally, it merged with Citicorp to form Citigroup. Citigroup, which insured its stakeholders that it will grow through internal operations, kept expanding through contrasting channel, which was through acquisition of other companies. Until 2003, revenue, net income and pre-tax profit margin of Citigroup grew more than the sum of net income and pre-tax profit margin of its top three

export capital (factories, jobs, resources) for production abroad (remember, you will want to concentrate on the ethics of this proposed action, rather than the political or legal implications) on

CIBC’s Wealth Management sector provides clients who have money to invest with investment and advisory solutions from a team of almost 1500 employee’s throughout Canada. There Strategic Priorities include attracting new clients and deepening relationships with existing clients, seek new clients to source investments, and chase new investments and acquisitions (CIBC).

If you were to travel anywhere in the world and ask their people what “McDonalds” is, the likelihood of that person knowing the renowned food chain is skyrocketing by year. This is because of Americanization, which is basically the spreading of American cultures and traditions. Americanization is one of the biggest parts of globalization to date. Globalization is the idea of countries getting more and more involved with each other; becoming more and more interconnected. Essentially, increased globalization has a severe impact on several different aspects of general life, but overall, the effects are far more positive.

The financial giant has implemented a customer focused business strategy that is aimed at listening to customers to anticipate their needs in order to provide high-quality service, while managing simultaneously managing internal growth. This strategy execution is evident as JP Morgan Chase utilizes their size and strength to provide resources, exceptional banking products, and the authority need for decision-making in the field at both the global and local

Globalization can be defined as ‘international integration’, which can be described as the process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, and political forces (dictionary.com).

The phenomenon globalisation can be thought of as an integration of economies, industries, markets and cultures. Globalisation is the connectedness of our world. Advanced and modern communications have made it possible for national and regional economies to combine with one another and trade freely. Globalisation is particularly common amongst capital markets and commodity markets. This phenomenon can be known as a great deal of things as globalisation can be seen as more than just “a way of doing business” but can viewed as a process, a process that allows our world to communicate and trade products.

Citigroup - Citigroup was formed in 1998, a culmination of ten separate businesses into a 146 billion dollar organization. In 1812, New York State charters City Bank of New York, by 1894; City Bank had changed its name to National City Bank of New York and become the largest bank in the United States. In 1919 City Bank becomes the first U.S. bank to accumulate 1 billion dollars in assets. In 1974 National City changes its name to Citicorp to better suit its global businesses. By 1996 Citicorp was the again the largest banking institution in the United States and was the largest issuer and servicer of credit cards in the world. In 1998 Citicorp and Travelers Group merged their talents to become Citigroup which in 2006 had over 89 billion dollars in revenues.

The purpose of this paper is to outline the relationship between Chinese and American financial markets. The paper will outline the levels of debt for chines, the major drivers of that debt, and the future consequences of debt levels. The paper will also describe the the structure of Chinese banking system; it will not describe the U.S structure simply because we had a whole semester discussing that material. I believe this research is essential because of the sheer interconnectedness of the global banking system; and the rise of China specifically has implications that should not go misunderstood.

I chose to look into Citigroup and see how their mission statement matches their actions. According to wikipedia, Citigroup is an “american multinational investment banking and financial services corporation headquartered in Manhattan, New York City.”("Citigroup", 2016) Founded in 1812, Citigroup became the third largest bank holding company after a merger with the Travelers group. Now that we know who they are, we will explore whether or not they are true to their missions statement.

Citigroup has four primary business segments, retail banking, commercial banking, Citi-branded cards, and Citi retail services. Our firm analysis will focus on the Citi-branded cards segment and commercial banking in the North American market.

Globalization is the integration of the worldwide economy in which resources and products move freely across the globe. Globalization has been present for decades however it has predominantly become a more frequent process and has potential good and bad effects on the world of business. Problems can include competition in manufacturing jobs and unemployment in industrialized countries. However, this can also be beneficial in other situations as globalization gives you a larger market trade will be cheaper so more countries can import and export goods which can bring in profits to multi-national corporations.

However, as Stern and Hammond (2004) notes, as the firm begins to expand the geographic scope of its operations, it enters a wide range of markets, and the degree of cultural and economic diversity between these markets increases sharply. Costs of coordination and information acquisition increase sharply, resulting in diseconomies, which have a negative impact on profit. In the past, the primary focus of FMCG’ international marketing strategy has been affluent developed countries, notably those in the industrial triad and particularly those engaged in marketing consumer goods. These markets have fueled growth and been a key source of profits (Alden