What is global finance and electronic banking?

Global finance tthe system of financial interactions, transactions, and activities

that take place on an international scale. It involves the movement of capital,
investments, currencies, and financial instruments across borders. Global finance
encompasses various aspects, including international trade, foreign exchange
markets, capital flows, investment banking, international lending, and more.

What Is Finance?
Finance is a term for matters regarding the management, creation, and study of
money and investments. It involves the use of credit and debt, securities, and
investment to finance current projects using future income flows. Because of this
temporal aspect, finance is closely linked to the time value of money, interest rates,
and other related topics.
Finance can be broadly divided into three categories:
 Public finance-refers to the management of government revenue,
expenditures, and debt. It encompasses the study of how governments at
various levels (local, regional, and national) raise funds, allocate those
funds to different programs and projects, and manage their financial
activities to achieve their economic and social goals.
 Corporate finance
 Personal finance

There are many other specific categories, such as behavioral finance, which seeks to
identify the cognitive (e.g., emotional, social, and psychological) reasons behind
financial decisions.
KEY TAKEAWAYS
 Finance is a term broadly describing the study and system of money,
investments, and other financial instruments.
 Finance can be divided broadly into three distinct categories: public finance,
corporate finance, and personal finance.
 More recent subcategories of finance include social finance and behavioral
finance.
 The history of finance and financial activities dates back to the dawn of
civilization
 While it has roots in scientific fields, such as statistics, economics, and
mathematics, finance also includes non-scientific elements that liken it to an
art.

WHAT IS THE MEANING OF MULTINATIONAL CORPORATION OR NMC'S?

A Multinational Corporation (MNC), also known as a Multinational Enterprise (MNE) or
Transnational Corporation (TNC), is a large business organization that operates in multiple
countries. These corporations have a significant presence in several nations, conducting
business activities such as production, marketing, sales, and distribution on a global scale.
Ang mga Multinational Corporations (MNCs) ay may malaking papel sa pagpapatakbo ng
financial system at ekonomiya sa mga bansa kung saan sila nag-ooperate. Ang kanilang mga
aktibidad sa pangangalakal at pamumuhunan ay may malawakang epekto sa mga aspeto ng
pampinansiyal na sistema at ekonomiya:
Investment and Capital Flows: Investment and Capital Flows" refers to the movement of funds
(capital) between different countries for the purpose of making investments. This can involve
various types of financial assets such as stocks, bonds, real estate, and direct investments in
businesses. Investment and capital flows play a significant role in global finance and have a
profound impact on the economies of both sending and receiving countries.
Ang MNCs ay nagdadala ng malalaking pamumuhunan at puhunan sa mga bansa kung saan sila
nag-ooperate. Ito ay maaaring magbukas ng mga trabaho, mapalago ang mga lokal na
industriya, at magdulot ng teknolohiya at kaalaman. Ang mga pamumuhunan na ito ay
nagdadala rin ng foreign direct investment (FDI), na nagpapalakas sa pampinansiyal na sistema
ng isang bansa.
Job Creation and Employment: Refers to the process by which economic activities, such as
business operations and investments, lead to the generation of job opportunities for individuals
within an economy. It is a crucial aspect of economic development and social welfare, as
employment provides individuals with a source of income, contributes to their well-being, and
drives overall economic growth.
Ang MNCs ay karaniwang malalaking employer sa mga lugar kung saan sila nagtayo ng
operasyon. Ang kanilang mga kumpanya ay nagbibigay ng trabaho sa mga lokal na
manggagawa, nagpapalakas sa ekonomiya ng bansa sa pamamagitan ng pagpapalakas ng
pambansang kita.
Technology Transfer: refers to the process of sharing or disseminating technological
knowledge, skills, methods, or innovations from one individual, organization, or country to
another. This transfer can occur through various means, such as collaborative research,
licensing agreements, partnerships, joint ventures, and investments. Technology transfer plays
a significant role in promoting economic development, innovation, and global progress.
Sa pamamagitan ng kanilang operasyon, ang MNCs ay nagdadala ng mga teknolohiya,
kaalaman, at best practices na maaaring mapakinabangan ng lokal na ekonomiya. Ito ay
nagpapalakas ng kakayahan ng mga lokal na kumpanya na makipagsabayan sa pandaigdigang
pamilihan.
Here are a few examples of technology transfer in various industries:
Pharmaceuticals and Healthcare:

A pharmaceutical company in one country licenses its patented drug formula to a manufacturer in
another country, allowing them to produce and distribute the medication locally.

Medical device companies collaborate with research institutions to develop and share new surgical
techniques, equipment, and treatment protocols.

Automotive Industry:

An automotive manufacturer licenses its hybrid engine technology to another company, allowing them
to use and integrate the technology into their own vehicles.

Joint ventures between carmakers from different countries lead to the exchange of engineering
expertise and manufacturing practices.

Agriculture:

A research institution develops drought-resistant crop varieties and shares the seeds and cultivation
methods with farmers in other countries.
Agricultural machinery manufacturers license their technology for precision farming equipment to
improve crop yields and resource efficiency.

Renewable Energy:

Solar panel manufacturers share their manufacturing processes and technological improvements with
partners in other countries to accelerate the adoption of renewable energy sources.

Wind turbine technology companies collaborate with local firms to establish manufacturing facilities in
other regions, transferring expertise and creating jobs.

Information Technology:

Technology companies license software solutions to other businesses in different countries to improve
their operational efficiency and software capabilities.

Open-source software projects allow developers from around the world to contribute and benefit from
shared codebases and innovative features.

Manufacturing and Industrial Processes:

Companies implement lean manufacturing techniques and quality control methods developed in one
country to improve production processes in foreign facilities.

Manufacturers collaborate to develop and share new materials, such as advanced composites or
lightweight alloys.

Textile Industry:

Fashion brands collaborate with textile manufacturers in different countries to adopt sustainable and
eco-friendly production practices.

Clothing manufacturers use dyeing and printing technologies developed abroad to enhance their
product offerings.

Telecommunications:

Telecommunications companies collaborate on the development and implementation of 5G technology,

sharing expertise to create a global standard for communication networks.

Satellite communication technology companies provide services and equipment to countries lacking
their own infrastructure.

These examples highlight the diverse ways technology transfer occurs across various sectors. Whether
through licensing, partnerships, research collaborations, or other means, technology transfer helps
accelerate innovation and progress by sharing knowledge and expertise across borders.

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Export and Import Activities: also known as international trade, refer to the buying and selling
of goods and services across national borders. This economic exchange plays a crucial role in
global commerce and the interconnectedness of economies. Export activities involve selling
goods and services to foreign markets, while import activities involve buying goods and services
from foreign markets.
Ang MNCs ay may kakayahang mag-import ng mga raw materials mula sa ibang bansa at mag-
export ng kanilang mga produkto at serbisyo. Ito ay nagbubukas ng mga oportunidad para sa
international trade at nakaapekto sa balance of trade ng mga bansa.
EXAMPLE OF IMPORT EXPORT ACTIVITIES:

Automotive Industry:

Export: An automobile manufacturer in Country A produces cars and ships them to dealerships and
markets in Country B, where they are sold to consumers.

Import: An individual or company in Country A purchases auto parts from a manufacturer in Country B
to assemble vehicles domestically.

Fashion and Apparel:

Export: A clothing brand in Country A manufactures garments and exports them to retailers in Country
B, where they are sold to consumers.

Import: A fashion boutique in Country A imports designer clothing from Country B to offer unique
products to its customers.

Technology and Electronics:

Export: A tech company in Country A ships smartphones and electronic devices to distributors in
Country B, where they are sold to consumers.

Import: A retailer in Country A imports laptops and gadgets from Country B to meet local demand for
the latest technology.

Agriculture:

Export: A fruit grower in Country A ships fresh produce like bananas and mangoes to supermarkets in
Country B for sale to consumers.

Import: A grocery store in Country A imports exotic spices and coffee beans from Country B to diversify
its product offerings.

Energy and Resources:

Export: An oil-producing nation in Country A sells crude oil to refineries in Country B, which process it
into petroleum products for local and global markets.

Import: An energy company in Country A imports solar panels from Country B to support the growth of
renewable energy sources.

Consumer Goods:

Export: A toy manufacturer in Country A exports toys to retailers in Country B for distribution and sale
during the holiday season.
Import: A department store in Country A imports home appliances from Country B to stock its shelves
with popular brands.

Food and Beverages:

Export: A winery in Country A exports bottles of wine to restaurants and consumers in Country B, where
they are enjoyed as imported delicacies.

Import: A specialty food store in Country A imports cheeses and chocolates from Country B to offer
gourmet options to its customers.

Medical Equipment:

Export: A medical device company in Country A exports advanced medical equipment to hospitals and
clinics in Country B to enhance patient care.

Import: A healthcare facility in Country A imports specialized surgical instruments from Country B to
improve medical procedures.

Tourism and Travel Services:

Export: A travel agency in Country A offers tour packages to tourists from Country B, providing
accommodations, transportation, and guided experiences.

Import: A hotel chain in Country A partners with a hospitality service provider in Country B to enhance
guest services and amenities.

Entertainment and Media:

Export: A film production studio in Country A exports movies to theaters in Country B, where audiences
enjoy international cinematic releases.

Import: A music streaming platform in Country A licenses songs and albums from artists in Country B to
expand its music library.

These examples illustrate the diverse range of goods and services that are exchanged through import-
export activities, contributing to economic growth, cultural exchange, and the satisfaction of consumer
demands in different parts of the world.

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窗体底端

Market Competition: refers to the rivalry and contest among businesses operating within the
same industry or sector to attract customers, gain market share, and achieve competitive
advantages. Competition drives innovation, efficiency, and improvement in products and
services as companies strive to outperform their rivals.
Ang pagkakaroon ng MNCs sa isang bansa ay nagdadala ng mas mataas na antas ng
kompetisyon sa mga lokal na merkado. Ito ay maaaring magpababa ng presyo at magpataas ng
kalidad ng mga produkto at serbisyo na makikinabang ang mga mamimili.

Tax Revenue: refers to the income that a government collects from individuals, businesses, and
other entities through various types of taxes. These funds are used to finance public services,
infrastructure, social programs, defense, and other government activities. Tax revenue is a
primary source of income for governments and is essential for funding public expenditures and
maintaining the functioning of a country.
Ang MNCs ay nagbabayad ng buwis sa mga bansa kung saan sila nag-ooperate. Ito ay
nagdudulot ng karagdagang kita para sa pamahalaan na maaaring gamitin sa mga
pampublikong proyekto at serbisyo.
Economic Growth: refers to the increase in the production and consumption of goods and
services in an economy over time. It is measured by changes in Gross Domestic Product (GDP),
which is the total value of all goods and services produced within a country's borders during a
specific period. Economic growth is a key indicator of a country's overall economic health and
development.
Ang mga aktibidad ng MNCs ay maaaring mag-ambag sa pangkalahatang paglago ng ekonomiya
ng isang bansa. Ito ay maaaring maging sanhi ng mas mataas na produksiyon, kita, at
kontribusyon sa Gross Domestic Product (GDP).

Some examples of economic growth scenarios:

Real GDP Growth: A country's GDP increases from $1 trillion to $1.2 trillion over a year, indicating a
growth rate of 20%. This growth signifies an expansion in the overall economic activity of the country.

Employment Growth: Over a period, a country's unemployment rate decreases from 8% to 5% as new
businesses open, existing businesses expand, and job opportunities increase across various sectors.

Industrial Sector Growth: The manufacturing sector experiences substantial growth as new technologies
and automation are adopted, leading to increased production output, higher exports, and job creation.

Technological Advancements: A country's information technology sector experiences rapid growth due
to increased investment in research and development, leading to the creation of innovative products
and services.

Infrastructure Development: A country invests in major infrastructure projects, such as building new
highways, bridges, and transportation systems. This investment stimulates economic activity in
construction and related sectors.

Export-Led Growth: A country's exports of manufactured goods and services increase significantly due
to improved competitiveness and market access. This growth boosts economic output and job creation.

Tourism Expansion: A country's tourism industry experiences growth as it attracts more international
visitors. This leads to increased spending on accommodations, restaurants, transportation, and other
tourism-related services.

Agricultural Productivity Increase: Technological advancements and improved farming practices lead to
higher agricultural yields. This growth not only boosts rural economies but also provides food security.

Investment Inflows: Foreign direct investment (FDI) inflows increase as multinational corporations
establish new operations in a country. These investments contribute to job creation, technology
transfer, and overall economic growth.
Service Sector Growth: A country's service sector, including finance, education, healthcare, and
entertainment, expands due to rising demand for these services, leading to increased economic activity
and job opportunities.

It's important to note that economic growth can manifest in various ways, and its impact can be felt
across different sectors of the economy. While economic growth is generally seen as a positive indicator,
its effects may vary depending on factors such as the distribution of wealth, environmental
sustainability, and the quality of life improvements for citizens.

窗体底端

Global Financial Interconnectedness: refers to the interdependence and interconnected nature of

financial markets, institutions, and economies across the world. It describes how economic and financial
events in one country or region can have far-reaching effects on other countries and regions due to the
complex network of relationships and transactions within the global financial system.

Dahil sa kanilang presensya sa iba't ibang bansa, ang MNCs ay nagdaragdag ng

interconnectedness ng mga pampinansiyal na sistema ng iba't ibang ekonomiya. Ito ay
maaaring magdulot ng paglipat ng pondo, kasanayan, at teknolohiya sa pagitan ng mga bansa.
Gayunpaman, mahalagang tandaan na habang may mga positibong epekto ang mga MNCs sa
mga ekonomiya, may mga potensyal ding negatibong epekto ito. Maaring itong magdulot ng
pag-aalisan ng pondo mula sa bansa kapag nire-remittance ito pabalik sa kumpanyang ina sa
ibang bansa. Maari rin nitong mabawasan ang lokal na kultura at tradisyon sa pagtaguyod ng
globalized na produkto at serbisyo. Kaya't ang papel ng mga MNCs sa pampinansiyal na sistema
at ekonomiya ay may mga aspeto ng pagkakabalanse at pag-aalala na kinakailangang tingnan ng
mga pamahalaan at mga stakeholders.

Multinational corporations play a significant role in the global economy by facilitating the
movement of goods, services, capital, and technology across borders. However, their
activities can also raise complex ethical, social, and economic issues, and their impact on
various countries and communities can be the subject of debate and scrutiny.

Example of MNcs
There are numerous examples of multinational corporations (MNCs) that operate across
multiple countries and have a significant global presence. Here are a few well-known examples:

Apple Inc.: Apple is a technology company based in the United States that designs,
manufactures, and markets consumer electronics, software, and services. Its products like the
iPhone, iPad, and MacBook are popular worldwide.

The Coca-Cola Company: Coca-Cola is a multinational beverage corporation headquartered in

the United States. It is known for its iconic soft drink brands, including Coca-Cola, Diet Coke,
and Sprite.
Toyota Motor Corporation: Toyota is a Japanese automaker that is one of the largest
automobile manufacturers in the world. It produces a wide range of vehicles and has a strong
global presence.

Samsung Electronics: Samsung is a South Korean conglomerate that operates in various

sectors, including electronics, semiconductors, and telecommunications. It is a leading
manufacturer of smartphones, televisions, and other consumer electronics.

Microsoft Corporation: Microsoft, based in the United States, is a technology company known
for its software products like the Windows operating system, Microsoft Office suite, and cloud
services like Azure.

Nestlé S.A.: Nestlé is a Swiss multinational food and beverage company. It produces a wide
range of products, including coffee, bottled water, dairy products, and confectionery.

McDonald's Corporation: McDonald's is an American fast-food company with a global

presence. It is famous for its hamburgers, french fries, and other fast-food items.

Procter & Gamble (P&G): P&G is a multinational consumer goods corporation based in the
United States. It manufactures and markets a diverse range of products, including household
cleaning products, personal care items, and beauty products.

Unilever: Unilever is a British-Dutch multinational company that produces a wide range of

consumer goods, including food, beverages, cleaning agents, and personal care products.

Amazon.com: Amazon, based in the United States, is a multinational technology and e-

commerce company. It started as an online bookstore and has expanded to offer a vast array of
products and services, including e-commerce, cloud computing, and digital streaming.

These examples illustrate the diversity of industries and sectors in which multinational
corporations operate. They have a global impact on economies, markets, and consumer
behavior, and they often play a significant role in shaping various aspects of modern life.
Electronic banking, often referred to as e-banking or online banking, is a subset of global
finance that involves the use of electronic channels, such as the internet and mobile devices, to
conduct various financial transactions and manage banking services remotely. It allows
customers to access and manage their bank accounts, conduct transactions, and perform
various financial activities without the need to visit a physical bank branch.
Electronic banking services include:
Online Banking: Customers can access their bank accounts through a secure website or mobile
app. They can check account balances, view transaction history, transfer funds between
accounts, pay bills, and manage other banking activities online.
Mobile Banking: This allows customers to access banking services through mobile apps on
smartphones and tablets. Mobile banking apps provide similar functionalities as online banking,
enabling users to perform transactions on the go.
ATM Services: Automated Teller Machines (ATMs) allow customers to withdraw cash, deposit
funds, transfer money, and perform other transactions outside of traditional banking hours.
Electronic Funds Transfers (EFTs): EFTs enable the electronic transfer of funds between
different bank accounts, often used for salary deposits, bill payments, and money transfers.
Mobile Wallets and Payment Apps: Mobile payment apps, like PayPal, Venmo, and mobile
wallets offered by tech companies and financial institutions, enable users to send and receive
money electronically.
Online Investments: Many brokerage firms offer online trading platforms that allow investors to
buy and sell stocks, bonds, and other securities electronically.
Digital Remittances: Individuals can send money internationally to family and friends using
digital remittance services, which often have lower fees compared to traditional money transfer
methods.
Cryptocurrency and Blockchain Technology: These technologies have introduced new forms of
electronic finance, allowing for peer-to-peer transactions and the creation of decentralized
financial systems.
Cryptocurrency and blockchain technology are closely related concepts that have gained
significant attention and impact in the world of finance and technology.

Cryptocurrency: A cryptocurrency is a digital or virtual form of currency that uses cryptography

for security. It operates on decentralized networks based on blockchain technology. Unlike
traditional currencies issued by governments (such as the US Dollar or Euro), cryptocurrencies
are typically not controlled by any central authority. Instead, they rely on cryptographic
techniques to secure transactions and control the creation of new units.
The most well-known cryptocurrency is Bitcoin, but there are thousands of other
cryptocurrencies with varying features and purposes. Cryptocurrencies can be used for various
purposes, including as a medium of exchange, a store of value, and a unit of account. They can
also be used for online purchases, investment, remittances, and other financial activities.
Blockchain Technology: Blockchain is a foundational technology that underlies many
cryptocurrencies, but its applications extend far beyond digital currencies. At its core, a
blockchain is a decentralized and distributed digital ledger that records transactions in a secure
and transparent manner. It consists of a chain of blocks, each containing a set of transactions.
Once a block is added to the chain, it is extremely difficult to alter the data within it, providing a
high degree of immutability and security.
Key characteristics of blockchain technology include:
Decentralization: A blockchain operates on a decentralized network of computers (nodes),
removing the need for a central authority to validate transactions.
Transparency: All transactions recorded on the blockchain are visible to participants in the
network, enhancing transparency and accountability.
Security: Cryptographic techniques secure the data in each block, making it tamper-resistant.
Transactions must be agreed upon by consensus before they are added to the blockchain.
Immutability: Once data is recorded on a block, it is nearly impossible to alter or delete without
consensus from the network, providing a high level of trust.
Smart Contracts: Blockchain can also facilitate the creation of self-executing contracts called
smart contracts, which automatically execute and enforce predefined rules when certain
conditions are met.
Blockchain technology has applications beyond cryptocurrencies, including supply chain
management, identity verification, voting systems, real estate transactions, healthcare records,
and more. It has the potential to revolutionize various industries by enhancing efficiency,
reducing fraud, and enabling new forms of collaboration and innovation.
In summary, cryptocurrency is a digital form of currency that uses cryptography for security,
while blockchain is a technology that enables secure and transparent recording of transactions.
Both concepts have had a significant impact on the financial and technological landscape, with
implications for various industries and societal functions.

Overall, electronic banking has transformed the way individuals and businesses manage their
finances, providing convenience, accessibility, and efficiency in conducting various financial
activities on a global scale.