CASE 2-3: HSBC HOLDINGS

Case 2-3: HSBC Holdings



Case 2-3: HSBC Holdings

Answer No. 1

HSBC's Core Competencies & International Competitive Strategy

Internationalization of financed emerging market governments

HSBC is considered as the first bank to internationalize the financed emerging market governments, which helped the bank in having good reputation in the market. However, the key reason of HSBC's success is efficient management of HSBC, which leads to the effective organization and control of the business activities. These business activities include the acquisition of different banks like Mercantile Bank, Hang Seng Bank and Midland Bank etc. as the HSBC's acquisitions were based on proper analysis, due to which the bank got success in the financed emerging market (Khanna & Lane, 2008, 138-155).

International Trade

Another core competency of HSBC is that the bank promoted the international trade activities through different offerings, which further stimulated more business activities in the market. In addition to this, through international trade bank got the benefit of having different currencies by dealing in transactions of different currencies that helped the HSBC in raising its profits (Khanna & Lane, 2008, 138-155).

International trade is important because of trade relations, which is developed between different countries thus maintaining a balance in the world economy when the economy improves there are more opportunities to make a difference in major economies and society. Through the efforts of HSBC, it can be said that international trade is a discipline of economics, which, together with the study of the international financial system, so the discipline of international economics. Many factors can be used as motivation for achievement of international trade, just to analyze the various existing, and even with all conditions favorable or contrary, this will not be an impediment to trade, because this can be done regardless of any logical motivation, often for commercial reasons, others for political reasons, international interest in the product, etc.

The bank that is HSBC promoted the international trade because the bank knows the importance of relationships transcends the material reasons, possibly due to commercial reasons that the purchase and sale of goods may be part of a more comprehensive set of contacts and actions among countries. The political importance is also relevant in commercial transactions, which may determine the turnover between the countries. Improved quality can be a determining factor in trade relations, as an opening of borders may help guide domestic production by international competition, as this can determine important changes in the production of national industry. Moreover, additional economic activity is another extremely important factor that the management of HSBC considered, since the inter-relationship between deepening international economies, running a country as a complement to another, especially with the concept of global products. For that reason, it can be said that an increased activity of HSBC in relation to international trade is an important and imperative element.

With reference to HSBC, International trade is also driven by relationships between countries, which need to exchange goods for various reasons, and they may not be related to the abundance or lack of resources, climate, capital, ...