The networked business world Globalization and shares. Accompanying booklet for the special exhibition

Transcription

1 The networked business world Globalization and shares Accompanying booklet for the special exhibition

2 The networked business world Without stock exchanges there Index of contents The movement of capital 4 Communications 10 Value-added chain 16 Consumer culture 22

3 I can order almost anything on the Internet. I do my banking online. An hour of television includes around 18.5 advertising spots. would be no Starbucks in Europe, either. Without container ships there would be no bananas in the shops. World trade requires worldwide capital.

4 4 The movement of capital Today, the financial world is globally networked. This makes it easier for companies to transfer funds, but it also entails high risks. Online banking The financial industry was always a trailblazer in the use of new communications technology such as stock market tickers, telegraph, telephones, or nowadays high-speed trading via fiber-optic networks. With the spread of the Internet since the 1990s, banks have also developed electronic payment solutions for their customers. However, online banking security is still an important issue, because the more people use this opportunity, the more fraudsters will attempt to enrich themselves illegally. Should I invest my money with a big bank or a regional bank? Would the global economy function without stock markets? International brands Many start-up companies find that going public is the only way they can obtain enough money to expand internationally. Starbucks became a joint stock company in 1992 and opened its first foreign branch in Established brand-name companies need access to the capital market if they are to invest throughout the world. They often expand into a market by buying up small local companies.

5 The networked business world The movement of capital 5 Why did the Lehman Brothers collapse in the USA affect my assets in Switzerland? Should big banks receive government support? World trade A globally active company needs money in a wide variety of different currencies in order to purchase raw materials and pay its factory workers wages, as well as meet the cost of transport, administration and much more. They need loans in these currencies, they trade on commodity exchanges and they have to be able to transfer funds at short notice across continents and time zones. If the global capital market stops functioning during a financial crisis, companies suffer too.

6 6 The Bank of America Credit cards enable us to buy things anywhere in the world without using cash. Visa is one of the most widely accepted credit cards. It originated in the Bank of America, which brought the world s first credit card the BankAmericard into circulation in 1959, changing its name to Visa in The Visa card s colors reflect the blue skies and golden hills of the US state of California, where the Bank of America was founded in Today it is the USA s biggest bank and one of the most powerful financial institutions. American Express Company The American Express Company played a pioneering role in cashless payment transactions. In 1850 Henry Wells, William Fargo and John Butterfield formed the corporation of this name to deliver letters and parcels, and also to transport money for numerous banks. In 1890 American Express was the first company to issue traveler s checks, thus entering the credit business. Today, American Express is one of the biggest credit card providers. The London Stock Exchange Global financial flows and thus the global economy are directed through the world s major stock exchanges. The London Stock Exchange is one of the oldest and most important financial centers. In the 17th and 18th centuries, stock trading still took place in a coffee house (Jonathan s Coffee House) in London, whereas goods were traded at the Royal Exchange. Eventually, in 1801, the London Stock Exchange was formally founded in its own building.