Global Banking and Finance Lesson 4 Activities
Global Banking Lesson 4 Introduction to Global Financial Integration

Time: 30 minutes
Skills: Holistic Thinking
Objective 1
Related Resources:
- Banking Lesson 4 Powerpoint.
- Globalization of Capital. (2011, November 30). Youtube. Retrieved from: http://www.youtube.com/watch?v=VSKLCz5Z_to 
- Häusler, Gerd. (2002). The Globalization of Finance. Finance and Development, Vol. 39, No. 1. Retrieved from: http://www.imf.org/external/pubs/ft/fandd/2002/03/hausler.htm
- Introduction. (n.d.) Globalization101. Retrieved from: http://www.globalization101.org/category/issues-in-depth/investment/
 -  Lecture Notes Lesson 4 
- Taylor, Alan. (March 2004). Global Finance: past and present. Finance and Development, pp. 28-31. Retrieved from http://www.imf.org/external/pubs/ft/fandd/2004/03/pdf/taylor.pdf

Introduce the topic of global financial integration.

First, show the first three minutes of the “Globalization of Capital” video to spark student interest and get them interested in the topic. Then introduce global financial integration using the PowerPoint slide presentation.

The instructor introduces the topic using the lecture notes and the PowerPoint.

Discussion Questions:

  1. What is the significance of the fact that people/companies/governments can buy/sell financial products (stocks, bonds, currency, etc.) from companies/governments/banks outside their borders?  Try to get the student to think about the implications of how the world might be if one could only trade financial products within the borders of their country.  How does that change the amount of money available to government/companies to invest and carry out their mission? (Slide 1)
  2. How did the telegraph and European settlements worldwide helped develop global financial markets (as compared to national)? (Slide 2)
  3. What technologies help advance present-day, global financial markets? (Slides 2 and 3)
  4. How and why does a global supply chain impact global financial markets? (Slide 6)
  5. What are the advantages and disadvantages of having a small number of rules for foreign financial companies to enter a domestic market? (Slide 7)
  6. What is the big deal if non-financial companies get involved offering financial services (Slide 8)
  7. What are the drawback and risks of global financial integration? (Slide 9)
Global Banking Lesson 4 Ethical Issue Question Activity

Time: 30 minutes
Skills: Holistic Thinking and Technology Skills
Objective 3
Related Resources: n/a

The instructor identifies an industry that interests the students and that has a number of major companies. Potential examples include energy, automobile, banking, and consumer electronics. With the students, the instructor visits the websites of three firms in that industry and together they as much as possible about their stances regarding ethical conduct and social responsibility. The instructor asks the students to identify commonalities and differences across the three firms and develop observations about the likely effectiveness of firms’ effort to promote ethical conduct and social responsibilities based on the websites. Finally, the instructor asks the following questions:

  • Symbolically, what potential role does the Internet serve in helping to promote ethical conduct and social responsibility as evidenced by the websites you visited?
  • What role does financial globalization help in promoting ethical conduct and social responsibility of these firms?
  • How do the websites affect your view of each company from the standpoint of a potential investor? What if you were an investor from a poor country like Haiti?