Reasons for International Banking Low Marginal Costs ● Knowledge Advantage a The foreign bank subsidiary can draw on the parent banks knowledge of personal contacts and credit investigations for use in that foreign market IrwuinMMMcGrau-Hill 6-# Copyright C 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. ⚫ Low Marginal Costs ⚫ Knowledge Advantage ◼ The foreign bank subsidiary can draw on the parent bank’s knowledge of personal contacts and credit investigations for use in that foreign market. Reasons for International Banking
Reasons for International Banking Low Marginal Costs ● Knowledge Advantage o Home nation information services Local firms in a foreign market may be able to obtain more complete information on trade and financial markets in the multinational bank 's home nation than is obtainable from foreign domestic banks IrwuinMMMcGrau-Hill 6-# Copyright C 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. ⚫ Low Marginal Costs ⚫ Knowledge Advantage ⚫ Home Nation Information Services ◼ Local firms in a foreign market may be able to obtain more complete information on trade and financial markets in the multinational bank’s home nation than is obtainable from foreign domestic banks. Reasons for International Banking
Reasons for International Banking Low Marginal Costs ● Knowledge Advantage o Home nation Information services ● Prestige Very large multinational banks have high perceived prestige, which can be attractive to new clients IrwinMMcGraw-Hill Copyright C 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. ⚫ Low Marginal Costs ⚫ Knowledge Advantage ⚫ Home Nation Information Services ⚫ Prestige ◼ Very large multinational banks have high perceived prestige, which can be attractive to new clients. Reasons for International Banking
Reasons for International Banking Low Marginal Costs ● Knowledge Advantage o Home nation Information services ● Prestige e regulatory advantage Multinational banks are often not subject to the same regulations as domestic banks IrwinMMcGraw-Hill Copyright C 2001 by The McGraw-Hill Commpanies, Inc. All rights
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. ⚫ Low Marginal Costs ⚫ Knowledge Advantage ⚫ Home Nation Information Services ⚫ Prestige ⚫ Regulatory Advantage ◼ Multinational banks are often not subject to the same regulations as domestic banks. Reasons for International Banking