The Effects of Diversification and Globalization in the Bahamas Diversification and globalization are important to the wellbeing and financial stability of any country. These traits are valuable to both individual and group strengths. Understanding these modules can affect the way people or corporations manage their business affairs. To understand the importance of both diversification and globalization we must first understand their individual importance. Let’s first look at diversification.
Most individuals growing up in the country of The Bahamas have already in some part become infused with diversity from their elders. “Don’t put your eggs in one basket”, this is an old saying that we have all grown up with and have become accustomed to. We can look at diversity in this very simple manner. The more one spreads their resources out the more he/she increases their chance for reward. For the average investor this is “key” in optimizing their investment portfolio. The financial sector is made up of various markets; some of these markets weather storms much better than narrowly focused ones. For example; if you place a portion of your funds in multiple companies such as BTC and Commonwealth Bank as opposed to just one single corporation such as Verizon cellular, then it matters not that greatly if one of your investments does not pan out because you would have others that are bringing in some tasty bacon. Keep in mind that diversification is a key tool in business and its main focus is to smooth out the negative performance of some investments with the positive neutralization of others.
Since the beginning of time “Man” has always made strides to improve his way of life. Take for example the discovery of fire and the wheel; these simple discoveries have contributed to creation of devices such as automobiles and the light bulb. By sharing their discoveries with other tribes our great ancestors improved hunting techniques and social behaviors. By integrating inventions, ideas and resources, societies have become more globalized through communication, political and religious beliefs. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital; service and labor, although considerable barriers remain to the flow of labor. Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the First World War until the third quarter of the twentieth century. This slowdown can be attributed to the inward-looking policies pursued by a number of countries in order to protect their respective industries, however, the pace of globalization picked up rapidly during the fourth quarter of the twentieth century. (Feels like there should be an explanation here).
Diversification and Globalization
The Bahamas is well known worldwide for its beautiful beaches, friendly people and great Caribbean food. Advertisement outlets such as radio, video and internet have played a strong role in our country’s publicity. With a strong influence of black-slave descendants, the Bahamas has become one of the wealthiest Black countries in the world. However with the world around us moving at cyber speed investors and consumers want goods and services at break-neck Nano speeds. For example internet consumers want data plans that are affordable and reliable. Therefore corporations such as BTC have to keep up with new technology, services and strategies. Let’s take for example the farmer on Ragged Island; he may want to compete with farmers in New Providence; through advances in technology he would be able to display his products via internet outlets. Outlets such as websites, social- media, video phone and also smartphone services would help propel the farmer’s products on a more global level. Whether we want to or not, globalization...
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