MODULE 14 – Emerging Trends
In this Module, we will discuss regional economic agreements such as the North American Free Trade
Agreement (NAFTA) for furthering international trade in relation to the IB system.
We will touch upon
the roles of investment, technological innovation and the Internet in the future of the IB system in
relation to globalization.
We will discuss the cultural and ideological differences that create
challenges for economic cohesiveness among nations, thus globalization.
We will elaborate on the
future of the IB system and the new tools it needs to employ in order to stimulate the international
capital market, hence globalization.
Finally, we will discuss the future survivability of international
banks and the services that they offer for the future needs of the international financial market.
Upon successful completion of this module, the student should be able to:
• Elaborate on regional economic agreements such as NAFTA.
• Elaborate on variables such as investment in technology and the Internet, and their
impact in achieving future financial possibilities of the IB system.
• Examine ideological and cultural differences and their hindrances toward globalization,
hence operation of the IB system.
• Discuss the future of the IB system and new strategies that it needs to employ in light
of globalization in order to be successful.
• Discuss the future financial services compatible with the needs of international
clientele offered by the IB system.
dvancements in telecommunications (Internet), an increase in interdependencies for resource
allocation, and regional pacts amongst nations, such as the North American Free Trade
Agreement (NAFTA), are bringing people of the planet together as if we are all living in the
However, isolationism, protectionism, patriotism, nationalism, and
fanaticism that are embedded into the different ideologies are major obstacles for the eventual
cohesiveness that is needed for globalization of human affairs to come to fruition.
At the end of
the day, the ripple effect of these obstacles may hinder the operation of the financial market and
economic system, hence IB.
Economies of scale, as a result of technological innovation,
increases competitiveness in any industry, especially banking, and there are issues that the
banking system needs to contemplate in order to survive in the globalization process.
bottom line is that any industry in today’s world needs to be prepared for the future trends in the
fields of finance and economics as a result of rapid globalization.
NAFTA could be a very good example of how many differences have to be overcome by three