Landler, 2005). Such a backlash is possible only because key policy makers believe that investment banks play a key role in the international economy.
As illustrated below, Yip identifies four drivers that affect the level of globalization that takes is associated with an industry: market, cost, government and competitive (Stonehouse et al, 2000). With regard to market drivers, global customers and global channels with transferable marketing drive the move toward globalization. The telecommunications revolution of the twentieth century and the decreased regulations that allows capital to flow freely across borders enhances the market drivers in this industry.
Cost drivers include a rapid level of technological change, and a product or service that is not perishable. The investment banking industry is characterized by rapid technological change, and there is no pressing need for investment bankers to be physically located near their customers. Technological innovation, including air travel, the
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