Unless otherwise defined, internationalization in the financial world refers to – the degree of global orientation of a portfolio or – the activities of a domestic bank abroad (cross-border financial services); it can be empirically proven that, in the domestic market, profitable banks are more active in international business than less profitable institutions. – In macroeconomic terms, internationalization refers to the integration of the domestic economy with the world economy, and assesses this primarily on the basis of the following characteristics: – development of direct investment, – growth in export and import volumes, and sometimes also – increase in employment at domestic companies abroad. There is no all-encompassing, convincing ratio or formula for measuring internationalization. – See agglomeration effect, foreign headcount, foreign enterprise units, foreign branch, cross-border business, decoupling thesis, globalization, international business company, market entry costs. – Cf. Deutsche Bundesbank Monthly Report of January 2005, pp. 34 et seq. (information relating to German banks), Deutsche Bundesbank Monthly Report of September 2006, pp. 45 et seq. (global direct investment in its impact on the domestic economy; with overviews and calculation models), ECB Monthly Report of October 2011, pp. 81 et seq. (internationalization of financing), ECB Monthly Report of February 2012, pp. 117 ff. (cross-border capital flows in the euro area; detailed presentation; many overviews), Deutsche Bundesbank Monthly Report of March 2014, pp. 49 ff. (relationship between direct investment and domestic investment activity; overview; references), Deutsche Bundesbank Monthly Report of July 2014, p. 65 (German direct investment worldwide: overview).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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