AMERICAN BANKS AND THE GLOBALIZATION
Globalization of business activity has been closely followed by an increasing globalization of financial markets (Ferling, 1993, pp. 61-62). The increasing globalization of business activities by American companies has increased the requirements of these firms for the availability of a wide variety of financial services in an equally wide variety of geographical locations around the world (Love, 1994, pp. 32-33). These corporate demands have placed American banks in a position wherein they must be able to provide financial services on a global scale or lose valuable customers (Rogers, 1994, pp. 42 46).
Technology is facilitating the globalization of financial services, while investment banking is providing the principal venue for these changes (Bryan, 1993, pp. 59-71; Mullin, 1993, pp. 54-83). These two phenomenon are explored in greater detail in the discussions that follow.
Computer technology was introduced into the financial markets initially to perform number crunching activities associated primarily with recording and reporting market operations. These initial applications were valuable, and continue to be valuable. The introduction of new technology is one of the means by which productivity may be increased (Wright, 1989, pp. 65-69). New technology tends to lower production costs and increase profitability over the long-term, and is, thus, indispensable in the context of growth. The introduction of computer technology into the financial markets has facilitated a more productive utilization of available human capital (Vosti, 1989, P. 11). Computer technology, is, in effect, assisting the financial markets to eliminate limits to growth.
The applications of computer technology in the financial markets have progressed well beyond number crunching activities. one of the most significant of the current applications is decision-making (Clark, 1989, p. 36). It is often held...