Foreign Banks and Globalization Essay

1398 Words 6 Pages
1. Introduction
In recent years, foreign banks accelerate their processes of globalisation, especially the entry in emerging market (J Cardenas, JP Graf & P O’Dogherty 2005), so does the Australian banks.
The Australia and New Zealand Banking Group Limited (ANZ) is the 3rd largest bank in Australia and the top 13 bank in the world based on the market capitalization in 2013 (the ANZ Annual report 2013; Banksdaily March 2013). The Global Finance Magazine (May 2013) awards the Australian Best Bank to ANZ Group in 2013. Till 2013, the ANZ already operates among thirty countries and has a quickly and successful expansion in Asian market (ANZ Annual Report 2013). In 21st century, Asia and Latin America are perceived as representatives of the
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The high business sophistication indicates attractiveness to the rest of world. Vesal et al. (2013) thought “the business sophistication leads the high productivity in production of produce and service”. This high business sophistication is embodied in Brazilian banking system as well. For example, just in 2011, around 180 banks and their 16,800 branches had primary sources and involved in short-term credit (Ernst& Young 2011). As a leading corporation in Australian financial service, ANZ would not be satisfied with its existing market. In last thirty year, ANZ already created its markets in Asian successfully. Nowadays, ANZ needs a more ambition to its global expansion and considers entering into Brazilian market would a first step to start.

3. Analysis of Business Environment
In order to get comprehensive information about overall business environment in Brazil, the following five environments would be analyzed separately at country level and industry level.
3.1 Political and legal environment
Generally, understanding local political and legal system would help much for company to operate or provide service easily. Figure 3.1.1 The most problematic factors for doing business in Brazil
Source: The Global Competitive Report 2013-2014, pp 134.

From the above figure 3.1.1 we can see, in the top 6 problematic factors for doing business in

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