Question

discuss the factor for remarkable growth in inernational banking

Answer 1

Answer:

reason for Growth in International Business

Saturation of Domestic Markets.  

Opportunities in Foreign Markets. .

Availability of Low Cost Labor.  

Competitive Reasons.  

Increased Demands.  

Diversification.  

Reduction of Trade Barriers.  

Development of communications and Technology.

Explanation:

Answer 2

The factors for remarkable growth in international banking are as follows:

1. Expansion of services abroad - Banks expand across borders to reap profit due to monopolistic competition which allows differentiation in the services provided by the banks.
2. Low cost technologies - Banks adopt low cost technologies as a result of increased competition. Thus they expand to reap competitive advantage.
3. Lowering of Communication cost has made operations easy - This has significantly contributed to the growth of banking.
4. Marketing techniques- Marketing and management techniques have contributed to low costof operating and thus have contributed to growth of banking.
5. Increased leverage of equity- High debt against the investment by the shareholders allows for expansion.
6. To avoid strict rules and regulations and minimise risks the banks operate abroad in regions with flexible norms.