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Chapter 1: Introduction to International Banking (GROUP MEMBERS: …

- - - - Drives economic growth :<3:
      - Recruits more qualified workforce :<3:
      - Creates a competitive economy in global market :<3:
  - - - For wholesale and retail distribution is by increasing the speed of operations such as order fulfilment, lowest the cost of both fixed and working capital :check:
      - In purchasing by bulk buying of materials through long-term contracts :check:
      - In managerial by increasing the specialization of M&A :check:
      - In financial by obtaining lower interest charges when borrowing from banks and having access to a greater range of financial instruments :check:
      - In marketing, spreading the cause of advertising over a greater range of output in media market :check:
      - In technological, by taking advantage of returns to scale in the production function :check:
    - - Economies that arise from increases in the production of individual products are called product-specific economies of scale
      - Economies associated with increases in all of a firm's outputs are referred to as overall economies of scale
- - - - industrialized operations
        
        As with previous economic downturns, some management teams have doubled down on cost reduction to protect margin. :tada:
      - asset protection
        
        When all bank management have clear SOP, their bank move to a normal business rather than isolated regulatory responses. :tada:
      - delivery transformation
        
        It can be seen a number of initiative done among banks/mobile network operators/technology firms/innovators. Banks may consider investing in mobile payments. :tada:
      - return on capital
        
        Many banks have spent the last decade in acquiring assets. It is considered timely to do M&A which will reshape the competitive landscape. : :tada:
  - - - Important to see the difference between joint production and separate production
      - Occurs when total costs of joint production of all product are less than sum of costs of producing each product indepently
    - - It arises from the joint production of a particular product with other products
      - This scope exist when production efficiency can increase by adding particular product to given product mix