The effects of globalization on Equity Bank in Kenya

Abstract

As international business developed many firms became successful and together international developments in science and technology brought about globalization. The drivers of globalization are Political; Technological; Market; Cost and Competition. The moving away from an economic system in which national markets are distinct entities isolated by trade barriers and barriers of distant, time and culture, and toward a system in which national markets are merging into one global marketplace. The objective of this study was to research the effects of globalization on Equity bank. Equity bank being an indigenous bank served as the study determinant and this allowed the researcher to interact with the fifteen (15) divisional directors (heads) in order to find the impact of globalization. Globalization is a move towards open economic policies lifting up the restriction imposed on the international economic flows that in turn leads to a sharp increase in the quantum of such flows. However, the literature on the subject interprets globalization in three different ways. First of all, the hyper-globalist school feels that globalization leads to a single global economy transcending and integrating the different economic regions. Supported by technological sophistications and market integration, globalization leads to denationalization of strategic economic activities. Others term globalization to be a curse but for Equity bank it can be termed as a blessing to have come into their mode of business style. The effects of globalization are very diverse and its repercussions are being felt in developing countries to a large extent. The study finds a positive influence of the effects of globalization on Equity bank. The study is in a position to conclude that whereas Equity bank operated in the same environment with the other banks during a highly competitive field and time it was able to define its target market and able to attract them as needed.