How Businesses Operations of City Bank Impact on the Global Economy - Research Paper Example

How businesses operations of bank impact on the global economy Bank is an international bank, the services arm of the Citigroup and it is the third largest bank in terms of assets in the United States. Businesses of City Bank in the global environment has grown in leaps and bounds, the growth has largely been attributed to fierce technological advances of the financial services sector, the operations of Bank in the international scene has since been rapid. This supports technological and operational environment to rapidly expand their businesses into the international scene especially the use of automated systems. Despite business operations having an immense impact on the global economy, the economy as well can be said to have impacted on the businesses hence a two way affair. The global economy is surrounded by political, economic and social forces that must be highlighted in the bid to describe how the Bank’s business has influenced the economy (Starrett 2009). The free operation environments that have been advanced, environment that capital is freely movable and barriers to trade have also been eliminated hence free flow of finances. As a result of business operations and wellness in coordination, the global scene has realized a massive growth for businesses to become multinational corporations. Inventions and innovations as a result of idea generations globally have created a lot of new commodities. Moreover, management efficiency of the Bank due to businesses being in a position to attract highly qualified staff from every corner of the universe and in bulk. Labor cost in the global economy have also since reduced due to the unlimited supply of the labor itself as well as its mobility has made it easily accessible and readily available for most business ventures and the question which remains is its affordability. How businesses impact on international political decisions International political decisions, otherwise called foreign policies are highly dictated largely by world economic power houses. This power is achieved depending on the control that such countries posses in the world business arena, the US where the bank originates commands the bigger share of the world economy. In the past countries have been witnessed to collude and come together on the basis of their GDP. The so called G8 or G10 of the current is composed by the world economic forces and they influence all the decisions undertaken upon the surface of the earth. Such decisions are normally geared to only favor the bank and their operations (Starrett 2009). International wars and crimes have normally been propagated due to the fight of supremacy over the constrained global resources. So it is because of business operations and fight for resources that even caused the first and second wars, business operations are supported through funding from large world banks among which the City Bank falls. International political decisions such as those to impoverish developing and less developed countries have normally as well emanated from operations of businesses. Business operations of City Bank in the international scene have since also been affected by the exposure to risks that political decisions come along with. The risks come from both actions of the political elite and change that arrive from such; these have brought even the collapse of businesses due to constantly reduced profitability. International politically instigated policies around the world have at times created conflict between the world forces themselves in the fight to become superpowers when they realize their economic financial muscles are ever growing while limiting foreign funding by the bank. Business operations have impacted on political decisions have lead to grouping and regrouping of international businesses as the businesses move into suitable political unions. Policies such as those on oils prices and worldwide tax cuts have been as a result of the influences of political decisions (Starrett 2009). How business decisions have impacted on technological development Business operations and technology cannot be separated, for businesses to grow and expand; there is need for growth and development of technology to favor the specified aspects of the Banks operations. Most businesses result into development as a result of adopting most recent technological advancements. There is an improved way of handling business operations be it on the labor force, the capital efficiency and the skill management possessed by the current standards (Starrett 2009). The Bank has devised modern technological ways of trading in the financial markets. Development and improvement of technology has enhanced several business operations in sectors like transportation, communication and also busted production which is realized through the efficiency and effectiveness. Technological advancements have continued making the world to appear a global village given that most operations can be supervised and effected at the touch of buttons. The speed with which operations are effected is increased by technology. Business operations on the other hand impacted and still do so by directing a huge chunk of their budgets to support research on the new ways in which several operations can be done. This due to innovation have witnessed a bust in technological advances which enables implementation of system and techniques which allow for improved operation environments of businesses of City Bank (Starrett 2009). How business operations impact on global competition The subject to study the impact of business processes and how they interact with the highly competitive global well established Banking institutions most so those in the Switzerland is a very wide subject matter that discussing needs a widespread of analytical tools of information. Banking was also affected during the financial crush due to instabilities in the mortgage industry. Global competition is so stiff most so in the financial services sector and needs that businesses and their processes are well grounded without which collapse as has been witnessed for many firms is inevitable. Global operations of businesses takes place across a wide cultural divide and for businesses to survive it means they have impact on culture to create a fair platform for global competition of Banks. The banking sectors have influenced the guidelines for global banking operations through integrated approaches (Starret 2009). How business operations impact on rural areas Rural areas in most countries have been neglected for long and this applies even to the US. This is due to the demographic aspects that do not allow for vigorous business activity to take place. The little business activity and operations that have succeeded in taking place have highly busted in the general development and welfare of the rural areas. The Bank has created employment opportunities for the population of the areas. Through social responsibility programs of City Bank social aspects of the community have been adequately taken care of for smooth operations. Environmental awareness and infrastructural developments have also been facilitated by business operations through repair and construction of road network, electricity and telephone lines. This has taken place because of the policies established by the bank and the system that facilitate business activity (Starrett 2009). References Starrett, S. (2009). World Environmental and Water Resources Congress 2009 great rivers : proceedings of World Environmental and Water Resources Congress 2009, May 17-21, 2009, Kansas CIty, Missouri. Reston, Va.: American Society of Civil Engineers. Read More