Business, 26.11.2019 05:31 NFMZombie

Abank may establish a multinational operation for the reason of low marginal costs. the underlying rationale being that
a) banks follow their multinational customers abroad to prevent the erosion of their clientele to foreign banks seeking to service the multinational's foreign subsidiaries.
b) multinational banking operations a bank prevent the erosion of its traveler's check, tourist, and foreign business markets from foreign bank competition.
c) managerial and marketing knowledge developed at home can be used abroad with low marginal costs.
d) the foreign bank subsidiary can draw on the parent bank's knowledge of personal contacts and credit investigations for use in that foreign market.

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