How electronic banking has contributed to globalisation
Answers
Deregulation of banking allowed capital to flow to where it could gain the most return back in the 1980s. This was the macro version where companies and investment banks financed factories in China for example, and in some case actually dissembled factories here and moved them to other countries where labor was cheaper.
Digital banking emerged with the internet. It’s the micro version where I go to eBay and buy a camera lens from someone in Japan. PayPal debits my bank account but also insures that the lens is delivered before the money is disbursed.
Computers, mortgage loans, virtually any commodity can now be purchased online but that has merely supplanted the retail sector. Big box stores were always warehouses with shiny display cases. Now they’re distribution centers.
That’s not really globalization.
Answer:
Explanation Electronic banking contribute the globalization is essential in that it brings new technology which help improve banking services and infrastructure hence reduce fraudulent activities, new risk management techniques and increased confidence in the banking sector.