Political Science

The global economy has significantly transformed the social, economic, political and educational landscape of the modern generation of the twenty-first century in an indelible and a profound manner. This change is brought about by numerous interactive forces which include globalization, information and communication technology and trade liberalization.

The ending global financial crisis for instance is a good lesson that banks should learn of their inadequate and inefficient levels of their managerial provision. This is not only alleged to the banks solely but to the wider financial market that comprises of non-bank financial intermediaries, mortgage lending institutions and others. Basically, the ending subprime mortgage crisis that plunged the entire world into a misfit of financial distress was one important regulatory attribute that put the complex world of the banking industry in a complex state of managerial inquiry. However, the banks were to learn from their mistakes over the sub-optimal scopes of performance in terms of their management. Following various modes and models of their managerial process, they plunged themselves into subprime lending where the borrowers had no capacity to get financial loans from the banks.

It is in the view of many economists that banks in the future will be working with more equity, less leverage ratio and tougher liquidity authorities. This has been one of the responsive prospects that are seen as important conceptions to address the prevalent managerial problems that arise to banks from sub-optimal level of liquidity, equity and leverage levels. They have constantly hedged towards equivocal proximities of their jurisdiction, and thus coming up with inadequate methods of lending, evaluation of their balance sheets, effect on the existing shareholder value and more important in partial influence of their competitive levels within the market, p.38. Pursuant to such optimal levels of jurisdiction therefore, they are bound to more efficient and focused process which limit the chances of financial mismanagement and controls. The new global economy is heavily built on a tradition of innovations which involves the coming up of new economic ideas, novel technologies and wholly new initiatives which are required for a dynamic generation with ever demanding needs of effectiveness in all circles. The growth and development of economy in the changing global economy has been followed by multifaceted structural rearrangement of collective business enterprises, investment streams, the implementation of a market approach niche and the production process transformation. The global economic landscape has necessitated the effective integration of the modern technologies in the domain of communication and access to information which has as a result enhanced competition in international trade forum. All the factors combined have led the complete reorganization of the economic society.

It is fundamental to recognize the role of innovations in acting as a catalyst for driving the engine of economic growth of states in the new global economy. The new methods of operating business which have resulted from the changes in globalization can be linked to the changes we see in the modern generation. For instance, the traditional way of accounting was fast replaced by the use of computer software which made work of accounting to be much easier. In a nutshell, it can rightly be said that the global economic landscape which has, in large part, been caused by the changing trends of business operation and globalization, has made much transformations in the modern generation.