Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.
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Transcript of Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.
![Page 1: Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649dbc5503460f94aae518/html5/thumbnails/1.jpg)
![Page 2: Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649dbc5503460f94aae518/html5/thumbnails/2.jpg)
Chapter 12
‘Making the World Go Round’:
Advanced Business Services — Especially
Finance
![Page 3: Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649dbc5503460f94aae518/html5/thumbnails/3.jpg)
Review• Concepts to Review– Information and communciations
technologies, knowledge networks, global cities, state/TNC relationships, regulation and deregulation
• Key Words– Advanced business services, ‘casino
capitalism’, global 24-hour trading, ‘headhunting’
![Page 4: Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649dbc5503460f94aae518/html5/thumbnails/4.jpg)
Advanced Business Services: Definition and Structure• Definitions
– Financial services– Banks– ‘Casino capitalism’
• Current trends– Concentration, consolidation, diversification
• Drivers behind ABS– Market saturation– Disintermediation – Deregulation– Internationalization
![Page 5: Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649dbc5503460f94aae518/html5/thumbnails/5.jpg)
ABS and Information• Information and ABS
– Electronic communications– securitization and derivatives– Risk becomes delocalized and outsourced
• Impact of IT on ABS– Global 24-hour trading?– Collapse of space and time, instantaneous
financial transactions worldwide– Most ABS depend on having a direct
presence within their markets
![Page 6: Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649dbc5503460f94aae518/html5/thumbnails/6.jpg)
Regulation and Deregulation• Deregulation– Trend to increasing deregulation until 2008
crisis– Deregulatory pressures
• Regulation– Historically the most tightly regulated
industry– Regulations are of two types:
• Governing the relationshipp between different financial activities
• Governing entry of firms
– Reintervention of the state post-2008
![Page 7: Chapter 12 ‘ Making the World Go Round’: Advanced Business Services — Especially Finance.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649dbc5503460f94aae518/html5/thumbnails/7.jpg)
Geographies of ABS• Deterritorialization of ABS?
– ABS are not tied to raw material locations– However it also makes geography more, not less
important• Role of the global city
– Attractions of the global city– The potential for other cities to develop as
financial centres is limited• Decentralization of ABS
– ‘Back-office’ functions decentralized– Offshore financial centres