Of The Monetary Model Essay Example for Free

Of The Monetary Model Essay The exchange rate determination in UK is not an exception to the contemporaneous developments in econometric theory in economics field. This is because the economic world today is competitive and dynamic. This competition and dynamism that engulfs the economic arena of exchange rate require keen studies to establish the reliability and validity of monetary models used in determining the exchange rate. United Kingdom enjoys a relatively good and positive economy than other European counterparts. Evidently, sterling pound is strong against the euro and even the US dollar. This is because of the nature of economic structure and policies. In addition to that, UK attracts large quantity of foreign investors due to its open economy. Thus, in policies regarding to monetary policies especially exchange rate determination should be good enough to sustain and attract other foreign investors. It is in this line of thought that this dissertation chapter shall empirically examine exchange rate determination in UK. In order to do that effectively, the paper look forward to validate the monetary model in the determination of the sterling pound exchange rate by applying cointegration methodology. Introduction Exchange rate determination has a long history in the UK, this date back from Bretton wood era when exchange rate was fixed by agreement in relation to United States dollar from 1944 to 1971. However, after the United States government cancelled its undertaking to buy gold at a fixed rate the peg was abandoned. The new approach to exchange rate determination from 1971 was inevitable. United Kingdom and other countries were adopted a float to the currency, such that the price of sterling pound currency in terms of another currency was determined by foreign currency money market. But today, the exchange rate determination regime is based on the exchange rates being adjusted at a regulated rate (Davidson, 1998; Dawson Baillie 2007; Fredrick 1968). Thus, the concern of this dissertation chapter on methodology is concerned about the validity of this regulation of exchange rate. Therefore, the objective of this paper is to empirically assess the relationship between sterling exchange rate with other major currencies and a vector of explanatory variables in the monetary model of exchange rates in order to establish whether the behavior of this exchange rate lends support to the monetary model. This is an interesting area of study in relation to its importance to businessmen, academicians, investors and policy makers. In relation to the importance of the exchange rate determination, Rogoff and Maurice (1996), states that; issues relating to monetary approach to exchange rate is a core area and remains vital to bilateral trade involvement especial to Britain and other nations. In regard to exchange rate determination aspect, the oversight of exchange rate history since 1970s (Richardson1979: 215), there has been a decline in the nominal value and fluctuations of the UK sterling pound in the world market against other currencies like US dollar and Japanese yen. This was as a result of the abandonment of the fixed exchange rates which were applicable across all transaction counters. But during the late 1990s the pound gained strengths due the available trade deficits with its trading partners. In this connection, Laurence, (2005) states that monetary models of exchange rates are to help the economical conscious mind to establish whether there is a way by which exchange rates in the money market enhances support for the monetary models. Literature Review on methodology The monetary approach to exchange rates remains and continues to be a key area for spartial and temporary research in relation to field of international monetary and financial management. Due to this importance, the substantial contribution by xxxxemphasisis that exchange rate is a core area and remains key to bilateral trade involvement. Thus, econometrics scholars emphasize on the proposition of monetary exchange unit as a prerequisite to bilateral trade rather than the transaction between the two trading partners (Davidson, 1998; Fredrick 1968). Exchange rate determination as a monetary exchange unit policy has bearing on the impact of trade and business transaction that may likely to occur between the UK and other trading partners. Therefore as a consequence, various studies have been done that constructs a rich body of knowledge that about the empirical examination of the monetary model in relation to the exchange rate determination in UK. The monetary theory in regard to exchange rates suggests that the nominal exchange rate is determined by contemporaneous excess supplies of money between United Kingdom and the other trading nation. Nations that adopts and adhere to a relatively restrictive monetary policy usually experience an appreciation of their currencies against that of their trading partners, while the nations that adopt and adhere to a relatively expansionary monetary policy experience a depreciation of their currencies against that of their trading partners. Therefore, theory application in practical aspect of econometrics in relation to exchange rate determination helps to project the proportional relationship between the relative money supply and the exchange rates between the bilateral trading nations for a specific period of time. The aspect of the theory that enables it to project the proportional relationship between the relative money supply and the exchange rates between trading partners of Britain, is important and has tangible and intangible implications at levels of policy, empirical and theoretical. For instance, at theoretical level the monetary approach is the basis foundation for United Kingdom open economy. The theory of open economy was adopted from work of Lucas (1982) of open economy quantity theory. While at policy level, the theory has impact on the structural adjustment programs. These structural adjustment programmes are sponsored by IMF, World Bank and exchange rate misalignment in monetary unions that UK is a partner like EMU (European Monetary Union). Due to this domestic and global implication of the monetary model, it has not only been widely accepted, but also widely tested model for exchange rates in econometrics. Rich body knowledge has been contributed by empirical Research conducted by other researchers like Wilford (1980); Haynes and Stone (1981); and Rogoff (1983), in their studies during the period of floating exchange rates to establish support for the model was not in favor of the model, since their evidence did not support the monetary model. While other category of researchers by Frankel, (1976); Billson, (1978); and Downburst, (1979). In their studies during the period of interwar and the periods of flexible exchange rates, the outcome of their results was largely supportive of the monetary mode. In an attempt to explain the reason for poor performance of the model, Rogoff and Meese, (1983); hypothesized that the reasons for poor performance of the model was due to the constraints imposed on relative monies, assumptions of purchasing power parity, incomes, exogeneity of money supply, uncovered interest rate parity, interest rates, and the statistical problems were some of the hindrance that were pointed out. However the new approach to the model that incorporated the use and the development of the cointegration and error-correction statistical technique awakened the research into empirical examination of the monetary model. Despite the renewed anxiety and drive for research to determine the validity of the model, there was mixed results coming from different researchers. For instance, research by Engle and Granger (1987); through employing a two-step cointegration methodology came up with negative response in support for a long-run relationship between exchange rates and the set of monetary variables as projected by standard monetary model. These results by Engle and Granger resulted to a low morale and discouragement for further research. Hoper was found by the research that was conducted by Taylor and MacDonald in 1994, which they used multivariate method of Johansen and Juselius. The results of studies of Taylor and MacDonald supported that the model determine with precision the stylized facts of recent float because the residuals were I (0) (Gardner 2007; Huston 1969; Jonson 1999; James, 2008) and the point estimates are close to their a priori values. In regard to recent work on the model was that which was conducted in the year 1998 by Diamandis. Diamandis employed relatively a more sophisticated approach to the study by using multivariate unit root test, cointegration test and panel unit root test that found a tangible support for the monetary model of exchange rates. Furthermore, Diamandis suggested that unrestricted monetary model is and should be a valid framework for explaining the long-run movements of exchange rates. To elaborate on the literature review, a lot has been covered by various scholars on the monetary model of the exchange rate in the UK and Europe at large. Ranging from empirical studies during the flexible exchange rate periods, during the inter war periods (1970s) in Europe was done by Fredrick (1968) and Huston (1969). While the study and research on floating exchange rates during the post war period was done by Davidson, (1998) and Granger, (2002). Who found that there were constraints imposed (Taylor, Lucio 2003) on relative interest rates, monies and incomes, in addition to assumptions of interest rate and purchasing power parity and exogeneity of money supply within Europe and UK included that lead to the unworthy performance of monetary models in relation to exchange rates determination. Up to the recent work by Diamandis that gave life to the monetary model through his supportive research outcome. The main reason for the high and intensity engagement in the research on the empirical test is all because the empirical monetary model of exchange rate is the most tested propositions in the country’s economic undertakings. Evidently, many scholars have had their take on the empirical determination of the exchange rate determination of which they have coming up with different and mixed empirical results. This paper shall seek to empirically investigate the efficiency, effectiveness, validity and reliability of the monetary model for the bilateral exchange rate between the UK sterling pound and other currencies like US dollar. In order to do this examination effectively, the methodological approach is the use of the Gregory and Hansen (1996); cointegration test.

The Ju-Wasi Experience :: essays research papers

My visit to the Ju/wasi area of Botswana was an eye-opening experience. At first sight, I could not believe they lead an able way of life. The entire society is built around waterholes, and they herd cattle. The idea of a modern village or town does not exist. They do not process their food, and their water is very scarce and unsanitary. Nevertheless, the living conditions of the Ju/wasi rarely inflict any diseases upon them. Rather, it is the Western world that has brought in viruses and bacteria that affect the health of the Ju/wasi the most. Out of all the noticeable problems that afflict the Ju/wasi, however, this was the least visible. The lack of organization among tribesmen, a constant food staple, and a stable economic model are the issues the Botswana government needs to address. In this regard, I agree almost fully with the previous panel that suggested improvements in several of the key areas. First and foremost, organization is key. The government needs to help the Ju/wasi build several villages. This will bring an element of government into the tribe, which will help the Ju/wasi make central decisions about the tribe’s actions. Digging the wells is not essential because a water supply already exists; yet it fits in well with the overall plan of improving the Ju/wasi living conditions. In order to provide a constant staple, the government need not distribute domesticated animals. Instead, they should institute an economic model and integrate tribesmen with Botswana’s job market. The Ju/wasi can then use their new income to finance a food supply or a cash crop. The key is to spend money as efficiently as possible in order to help the Ju/wasi, and my slightly modified plan accomplishes that purpose. Following these guidelines does not guarantee the Ju/wasi a carefree life.

Patent Nonuse and the Role of Public Interest as a Deterrent to Technology Suppression Essay

Patents are contracts between the society and the inventor to encourage development in the field of science and technology. It helps the society by enabling them to utilize this technology, and the inventor by protecting his rights and rewarding him appropriately for this intellectual efforts and innovations. Once a patent is given by the patent office, the inventor has to work the invention by himself or through somebody else by means of an assignment or a license. The patent office does not look at the potential commercial value of the invention whilst giving the patent. The invention should have a specific use and should fulfill what it is meant to do. Many inventions given patents have turned to be commercial failures. However, there are several instances in which neither the patentee has worked the invention by himself, nor has he allowed others interested to do so. This is a very serious situation, because it goes against the very intention of granting the patent. The patent system grants patents only to those inventors who are willing to reveal their invention with others, so that it can benefit society. Some patentees may not work their invention due to several reasons, one of which may be to wrongfully hide or suppress technology from the public. One of the first such cases was the Continental Paper Bag Co. v. Eastern Paper Bag Co. case of 1908. In this case, the patentee had invented a machine that could make a folded paper bag with a rectangular bottom. However, he had not made his invention available to the public, thus preventing others from working the invention. At that time, this invention was a breakthrough, and many people felt bad, because the very intention of giving a patent was not fulfilled. No concrete rules regarding nonuse of patents and compulsory licenses were existent at that time, and everything was left at the mercy of the patent holder. Lower courts also found that the patentee was unreasonable. They in fact tried to draw a line between ‘reasonable nonuse policy’ (inventor unable to use his invention because or some understandable problems) and ‘unreasonable nonuse policy’ (purposefully suppressing technology). However, as no concrete rules existed at that time, the higher court had to give its decision in favor of the rightful owner of the invention. Many breakthrough technologies exist which are being currently suppressed from the public. A plastic that is strong, long-lasting, and can be utilized to make houses that last forever, was granted patents, but not accessible to the public by the owner. New rubber for tires is invented which does not blow up. If this technology could be utilized currently, the lives of many people who die in road accidents could be saved. A new material has been invented for use in toothpastes, which protects the teeth from developing cavities. These technologies are being suppressed due to the anticompetitive intentions of their owners. Some patentees may not use or license their technology so that others may be forced to infringe up on their patents. Lawsuits for infringements could be filed, which could give them earning in millions. An instance of this is a case between Minolta and Honeywell’s, in which Minolta had to pay $127 million to Honeywell for infringing their auto-focus camera patent, although the owners were not using their patent. The patent office should come up with strict rules such that all the patentees have to give an annual report of how their patent is being worked commercially, and in case it is not being worked, the reasons for the same. In case the inventor does not respond, the patent should be revoked. Instances of patent nonuse can be used as evidence in the court, against individuals who indulge in anticompetitive practices. Such practices are strictly considered unlawful under the US Antitrust Laws. The Sherman Act was one of the first such as to protect against unfair trade practices. According to this act, any individual monopolizing or attempting to monopolize, or combines with other people or with other nations to monopolize any trade business in the US, shall be held guilty of an offense under the act. Patent is a monopoly granted to the owner, but they are also contracts between the owner and the public, to permit the later to access the technology. Patent laws are likely to be misused. The exclusionary right (to prevent others from using or making the invention without the license of the owner) is limited and should be more meaningful. The patent system does not give absolute monopoly to the owners. In the case Pfizer V. Government of India [434 US 308 (1978)], the US permitted foreign nations to sue under the Section 4 of the Clayton Act. The Government of India was asking Pfizer to grant licenses for certain broad spectrum antibiotics. However, the company refused to give reasonable licenses. Several antitrust violations such as price-fixing, fraud, market-division, etc were being imposed by the Indian Government against Pfizer and group. The respondents also said that petitioners were trying to limit and monopolize the production, sale and distribution of their patents. The respondents also said that these practices had destroyed businesses. The Company said that the Indian Government could not bring this case forward, as they belonged to another nation. However, the court went on to say that foreign nations could also claim under antitrust laws. The court said that the case was similar to having a citizen having his rights under the antitrust laws being violated. In the case Remington Products V. North American Philips corporation [107 FRD 642, 1985], Remington alleged that the company Philips, a leading Dutch MNC, was indulging in anticompetitive behavior by not disclosing information needed to work the discovery. The defendant claimed that certain clauses in a Dutch statue did not permit disclosure. However, the US court granted the case in favor of Remington saying that the defendant wrongfully withheld information regarding the discovery. The plaintiff had previously approached the defendant to provide information regarding the discovery. However, the defendant refused to give this information needed saying that the information was irrelevant. In the Chevron Research Company’s patent [1970; RPC, 580], the court said that the patentee has to disclose full and relevant information regarding the patent. In the Image Technical Services V. Eastman Kodak Co. [504 U. S. 51 (1992)] provides an association between the antitrust laws and the intellectual property rights regime. Kodak Company had a patent for a photographic device. The case was alleged by companies that serviced Kodak’s products. In this case, a distinction is being made between ‘attempting monopolization’ and ‘attaining monopolizing by exploiting’. The court had to study the market situation to determine if the company was trying to control prices or destroy competition. Kodak in fact monopolized manufacture of components of its photographic equipment and even monopolized servicing of its equipment. The court had said that both patents and copyrights did not come under antitrust laws. An inventor had the right to license or refuse license of his invention. However, a patent owner may be held for developing practices against the antitrust laws (that could destroy competition). The extent to which antitrust laws could be applied to patent laws had to be determined by studying the market situation. The plaintiffs had gathered enough proof that Kodak were trying to monopolize their market situation by limiting the availability of its components to the service companies Nowadays, exclusive license holders may also try to misuse their rights by monopolizing their licensed to make or use the patent. This can be demonstrated in the Medtronic Sofamor Danek, Inc. v. Michelson case. Dr. Michelson had invented a new spinal treatment device and had given a license to Medtronic which manufactured medical equipment. However, the company did not promote his treatment device, and hence the doctor had to grant licenses to other companies that would compete with the original license holder. The company filed a case in the court claiming that the patent holder breached clauses of the contract. However, the Court felt that the company had adopted certain anticompetitive principles that did not promote the patent. Patent holders are trying to maximize their monopoly, by indulging in anticompetitive acts. Often there is a clash between patent laws and antitrust laws. Patent laws provide the holder with rights to eliminate competition, whereas antitrust laws enable protection of healthy business competition practices. A clear border line has to be drawn between these two conflicting legal regimes. In the case Illinois Tools Works V. Independent Ink, the question of the manufacturer having a market power over a patented product or process could be presumed whilst granting the patent, was being asked. A patent holder may hold so much of powers in the market such that he/she may dominate the scene. A patent holder will usually violate antirust laws if he or she feels that they are in a situation to dominate the market. In this case, Illinois printers invented a printing device and had prohibited the customers from using non-patented ink. The defendant felt that such terms were against the true spirits of competition, and were under the impression that Illinois tool works were trying to dominate the market situation. It may be difficult in such a case to determine the party that would carry the burden of proof. The patent holder had tried to extend his patent. In this manner, they had created both, primary and secondary market rivals. The primary rivals included other manufacturers of printers, and the secondary rivals included other manufacturers of printer inks. The court gave its decision in favor of Independent Ink, citing that patents could not be extended to non-patentable areas. A patent had only specific boundaries, and crossing such boundaries constituted infringement. In another case, Schering-Plough held a patent for a drug. A company that manufactured a generic version of the same drug felt that the original company’s patent was invalid. They wanted to file for a patent opposition, but Schering-Plough decided to pay the generic drug manufacturers to withdraw the case and also stay out of the market for some period. Federal Trade Commission filed a case before the Supreme Court, saying that Schering-Plough was trying to destroy all competition in the market by wrongfully preserving its invalid monopoly. The Court felt that the agreement between Schering-Plough and the generic manufacturers was invalid and was executed to destroy competition in the market. Patent laws should make it easier to obtain a compulsory license in case the patentee wrongfully suppresses the invetion from the public. A compulsory license should be given to anybody in case:- The patentee is unable to meet the reasonable requirements of the public with relation to his patented process or product. †¢ The patentee does not make the invention available to the public at an affordable cost. †¢ The invention is not being worked in the jurisdiction of the patent office. †¢ Special considerations should be given to inventions that relate to public health and nutrition, and emergency situations. Compulsory license should be a sanction (for the patentee) and a remedy (for the public); in case the patentee indulges in anticompetitive practices. The concept of compulsory licenses developed following the African AIDS crisis situation. The continent was in a crisis situation with the HIV/AIDS pandemic. A few companies such as Glaxo, Merck, etc held a patent for an antiretroviral drug which could be life-saving for people suffering from HIV/AIDS. However, these companies had indulged in several anticompetitive practices. The cost of treating each AIDS patients in Africa was exceedingly high (US$ 10,000 per patient per year). Hence, the drugs were inaccessible for many poor patients who belonged to underdeveloped nations. Cipla, an Indian pharmaceutical company volunteered to supply the drug at a fraction of the overall costs the other companies were offering (US $ 350 per year per patient). Some of the African Nations had to modify its trade laws so that parallel imports and compulsory licenses could exist. However, the original companies that held the patents for antiviral drugs began to sue for infringement. These companies had to later withdraw their infringement cases, as there was a worldwide agitation against the anti-public health policies adopted by the patent holders. Later, at the WTO conference in Doha, a comprehensive agreement to protect public health issues was adopted to prevent unhealthy practices by the patent holders (through compulsory licenses). Some people feel that the patent system can create an obstruction in the development of science and technology, as instances of nonuse often arise. Once a patent is granted, it may even prevent others from inventing around a particular invention or inventive concept. This will seriously hinder the developments in that particular field. Inventors, who tend to sit on their inventions by refusing access to the public, should be henceforth refused patents.

Study And Overview Of Multinational Banking - Free Essay Example

Sample details Pages: 7 Words: 2000 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Introduction : Banks have always been a topic of great discussion as well as great importance. The Banks have been an integral part of the whole economy of the country and hence add greater value to its existence. However, the past suggests that the banks have broken their domestic shackles and entered different markets in foreign countries. Don’t waste time! Our writers will create an original "Study And Overview Of Multinational Banking" essay for you Create order Global banking has then emerged as one the most important and biggest industry in the world. This was primarily because of the assessments made by bank management on the growth and profits associated with globalization. In the current scenario, almost every bank internationalizes its operation sooner or later and hence makes it even more important to understand the associated concepts in globalization policy. The research is to propose a well scrutinized description of its determinants and risks associated with it. A further emphasis is given in regards to the risks of multinational banking as the past decades have experienced a lot of banking crises which many regard as an adverse effect created by diversification of banks. Studies in the past have more been on the FDI made by Multinational corporations in trade industry however less has been written about FDI in banking industry even though they have been neck and neck with the other industries in terms of globalization with banks such as HSBC, ICICI, JP Morgan, Citibank, Royal Bank of Scotland and Barclays heading the way. The massive banking industry makes it very difficult to conduct a complete study of all its aspects and hence the key aspects of its globalization have been considered and researched. The involvement of the author in a research related to the study of multinational banking is caused because of the following reasons: Firstly, banking industry has been a key sector in the economy of any country and the success of a country has at times also depended on the functioning of its banks. Secondly, the author has immense interest in the banking field and has always been fascinated by the activities and operations of banks across the globe. Lastly, the personal interests of the author in the globalization field as how and when have firms entered foreign markets. Hence, the investigation of cross country banking industry has made the study very appealing The primary objective of thi s study is to investigate and highlight the determinants for the growth of multinational banks and to develop an integrated approach to explain the phenomenon of multi nationalization of the banking industry. Also, to intricate the risk associated with multi nationalizing of banking operations. The primary consideration underlying the study is the fact that most of the research and resulting hypothesis are confined to manufacturing and extractive industries. Indeed, lack of empirical studies on multinational banking was also highlighted by Aliber (1984) in the only survey of the literature on this subject. The following are the specific questions that have been dealt and explained in the research study: What are the key determinants behind a bank opting for globalization of its activities? Why do some banks and not others adopt this policy? Why is foreign rather than domestic operation advantageous in serving foreign markets? What are the risks associated with globalizin g of banking activities? What are the key considerations in terms of which host country to invest and globalize activities in? The research strategy, design and methodology provide the reader with an in depth view into the framework of the research process undertaken for this study. A separate section has been created called Research Methodology which analyses all the various techniques used in the research such as a research design, difference between the various types of research and the ethod adopted. Also, it highlights the sample used for conducting the primary research and also the research method adopted to collect the primary data. The primary data to brief it up has been collected through a qualitative in depth interview covering a sample of five management level interviewees from banks of UK as well . This chapter starts of with the significance of the commencement of the study highlighting the key reasons behind the selection of the topic and includes a backgroun d to the study as well as the personal interests of the researcher which further motivated the specific research. Also, the chapter lays down the aims and objectives of the research with a brief introduction to all chapters included in the study. This chapter has been further divided into two chapters. Chapter 2A stresses on the multinational banking industry as a whole and lays down the definitions and the key characteristics of international banking. Also, it highlights the various entry method options available to a bank in entering specific foreign markets. Chapter 2B then emphasizes on the growth of this industry and reasons behind its outburst. Determinants and risks associated with global banking are discussed in the next section. The chapter ends with a schematic conceptual model developed by the researcher to diagrammatically explain the multinational banking phenomenon. This chapter has been prepared to give insight to the way the whole research has been conducted. T he chapter starts of with a strategy of adopting the form of research design and then follows a pattern of discussing, differentiating and selecting among the various options available in conducting the research such as qualitative or quantitative, primary or secondary, questionnaire or interview. The chapter then lays down the difficulties faced by the researcher in his research. Before this chapter, the research has been primarily been related to collecting secondary data from literature resources and primary data from the sample selected for the survey. However, this chapter deals with the analysis and interpretations of the collected data. Hence, the chapter becomes even more important for the correct interpretation of all the data collected. This chapter has been divided into several sections putting light into all aspects discussed in the research method. Also, this chapter explains the information collected from the survey which is then compared and contradicted with the l iterature. This chapter then explains the conceptual model shown in the literature review chapter. The chapter summarizes the whole research process by laying down the key findings. It further highlights the answers suggested in the study for the aims and objectives laid in the introduction. The chapter further suggests how this study could be used in the banking field and how this research could be enhanced by the future researchers. To conclude the researcher expresses few recommendations to the management in the way the globalization of banking is conducted in the modern era. The key contents of the study have been laid down in this chapter to give an idea of what the study has been conducted for. The aims and objectives of the research have been briefly explained. Also, the research has been more of a personal interest as the study topic has been captivating for the researcher. The second chapter now focuses on the literature in the field of global banking highlighting the key findings and views made by the early researchers. LITERATURE REVIEW: Introduction to Multinational Banking This chapter explores critically the literature that has surrounded multinational banking for the past few decades. The literature has been divided into 2 parts. The first part (A) explores the multinational industry as a whole with a detailed explanation of its key characteristics and the modes of entry a bank can apply for it globalization. Whereas, part (B) highlights the background and the growth of multinational banking as a major industry in the world business followed by a scrutiny of its key determinations and risks. Concept of Multinational Banking This chapter emphasizes on the concept Multinational Banking and the various aspects related with it. The chapter is divided into four sections to make it simple and clear. The chapter begins with the basic meaning and definition of a multinational bank and the types of multinational banks. The second Section then highlights the key characteristics of MNB. The modes of entries for a MNB are then discussed illustrating the various ways in which a bank can internationalize. The chapter finishes with the concluding comments in fifth section. Definition of a Multinational Bank (MNB) à ¢Ã¢â€š ¬Ã…“Multinational banking involves the ownership of banking facilities in one country by the citizens of anotherà ¢Ã¢â€š ¬? [Baker and Bradford (1974), Baum (1974), Lees (1974 and 1976) and Robinson (1972)]. The definition of a MNB is subject to an array of interpretations and is also used interchangeably with terms such as International Bank or Transnational Bank. Broadly, a multinational bank can be classified as an institution through correspondent relationship, foreign direct investment or direct lending to customers from home offices that engages into cross country banking. In many instances, however, multinational bank is used to refer to a bank with physical presence outside its home country through a branch, an agency, a wholly or a majority owned subsidiary, or a bank formed by merger of two or more banks based in different countries and not the ones with a correspondent relationship or a representative office. Robinson (1972) defined Multinational banking as à ¢Ã¢â€š ¬Ã…“operating a bank in, and conducting banking operations that derive from, many different countries and national systemsà ¢Ã¢â€š ¬?. A multinational bank can be compared to a multinational company and can be classified as a financial multinational corporation as they enjoy similar advantages and disadvantages in host country. However, this theory can only be applied to commercial bank that engages in local banking activities in the host country and hence competes with the native banks. Whereas, a Multinational corporation can little be compared with the bank that operates in the super national markets such as Euromarkets as they do not compete with the local indigenous banks. (M.K Levis 1987). H. G Grubel (1977) was one of the first authors who offered a general theory to explain the existence of multinational banking. He argued that MNB had three different types, which needed different explanations. The first was the multinational retail banking, which entered for eign markets to serve local customers through the same local deposits and loans facilities as domestic banks in the host countries. The second category was the multinational service banking, which consisted of banks servicing the requirements of corporate clients and expatriates from its home economy in foreign markets. Lastly, the multinational wholesale banking, it involves taking large deposits, and the making of large loans and investment. It is worth mentioning that Hoschkaà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1993) similar definition of a multinational financial services corporation (MFSC) is confined to firms that provide banking services. In his view à ¢Ã¢â€š ¬Ã…“the fact of possession of a representative office in a given country does not imply that the owner of this office may be called an MFSC, as it merely serve a liaison function for a parent firm but cannot actively operate in the host marketà ¢Ã¢â€š ¬?. However, the definition the researcher has used for the multinational bank is of any bank which internationalizes it operation. (Jones. G) After we have discussed the related literature on multinational banking in the chapter two, this chapter discusses in depth the research strategy, design process and the methodology used for investigation. It provides the reader with an insight into the various methods and techniques used for this study. The main discussed issues are based on the proposed stages of the research process by Antonio as shown in the table below: 1. Problem Discovery and Definition 2. Research design 3. Sampling 4. Data collection 5. Data processing and analysis 6. Conclusion The stages of the research process Antonio à ¢Ã¢â€š ¬Ã…“Exploring Marketing Researchà ¢Ã¢â€š ¬?, USA: The Dryden Press Problem discovery and definition à ¢Ã¢â€š ¬Ã…“The formulation of the problem is often more essential than the solutionà ¢Ã¢â€š ¬?. Albert Einstein. According to Malhotra and Birks (2003), problem definition can be defined as the à ¢Ã¢â€š ¬Ã…“the general problem and the identification of the specific components of the marketing research problemà ¢Ã¢â€š ¬?. Problem discovery and definition is regarded as the primary method in any research and also one of the most important. Therefore, it is very important to understand the nature, scope and limitations of the problem in order to avoid any misinterpretation and to make it understandable to marketing decision makers and marketing researchers.