Terms of reference
This study will compare the degree of internationalization between Citibank and Bank of China (BOC) in banking industry.
This essay will use qualitative and quantitative methods to compare the degree of internationalization between Citibank and Bank of China. Then combine actual Chinese conditions with BOC. Data collection will use by internet. It will takes secondary research method.
This essay was written because of two reasons: the first one is that I am interested in the difference of banking internationalization between in developing countries and in developed countries on motives, depth, and prospects; the other is the occurrence of this world-wide financial crisis originated bank respectively in China and the United states. I find out that there is a large gap between Bank of China and Citibank in internationalization. Citibank has a more ambitious global strategy for future. All the same, they are the same in that both of them have achieved the initial goal of banking internationalization.
Introduction & Background
Citibank and Bank of China is one of the biggest commercial bank around the world. It is worth to compare these two companies.
In economics, internationalization has been viewed as a process of increasing involvement of enterprises in international markets. (Czinkota, 1989)
The United Sates subprime mortgage crisis was a set of events and conditions that led to a financial crisis and subsequent recession that began in 2008. It created the worst economic recession after World WarⅡ. Every country tries to prevent economic recession by injecting capital into banks, implementing active fiscal policy and loosing monetary policy.
China and the United States belong to developing and developed countries respectively. These two countries also are the most influential economies in the world. Both of their banks have the internationalization behavior; however they have different...