NON TRANSPORTATION INFRASTRUCTURE

Non Transportation Infrastructure



Importance of Non Transportation Infrastructure on Global Trade

Introduction

The benefits and importance of global trade are acknowledged, recognized known and profoundly documented. With the increase in global competition, there is growing emphasis on the quality of products and services having low prices. Now, goods and services produced in any part of the world can be easily accessed and make use of by the consumers. In the third world countries where the labor cost is cheap as compared to developed nations, they are provided the opportunity to come on parallel grounds through labor-intensive work. Once the third world or the poor nations gain efficiency, their power to purchase goods and services from other countries of the world will increase. (Sreenivas, 2006)

Banking and finance

One of the core parts of globalization is the financial services. This can be proven by the fact that there is growing integration of markets and economies on the one hand, while the worldwide banking institutions are playing the driving role in global trade and the globalization of the corporate world. There has been a freer flow of capital as a result of deregulation of capital markets in the 1990s, incorporating not only the developed countries but also the developing nations. As the significance of the flow of capital across countries and continents is growing, the need and state of global financial services is securing significant importance. Moreover, the major part of global economy is actually international banking. It is essential for the movement of capital around the globe through facilitation of loans, provision of financial advice, and contribution in securities markets. (Abu, 2005)

Global banking is not restricted to international banking which can be described in its simplest form as transferring and offering trade products and services to industries and business customers. The rise of globalization of financial sector has gained advancement and pace with the advancement in technologies, especially in information technology and communication. The advancement in technologies has not only reduced the cost and increased efficiency of financial transactions, but also plays a vital role in reducing burden in the financial services on a national level. The emergence of internet banking has broadened the scope of global banking. (Spence, 2003)

With the globalization taking place and gaining momentum, not only there is reformation of the banking sectors, there is a growing trend towards universal banking. Such banking institutions look to have funding through diverse sources and invest in the same way, mobilizing savings and earnings from each sector and making use of the resources through their deployment in various diverse activities. It provides credit and other services to all the industries. Globalization has made the modern banks more innovative, attracting and creating diversified portfolio of clients. The globalization of banking institutions does not mean giving up what is existent, but it involves providing momentum to the banking services from domestic to international, making the domestic condition more effective, providing means to ensure the growth of banking through extension and ...