The Effects of Globalization

The Effects of Diversification and Globalization in the Bahamas Diversification and globalization are important to the wellbeing and financial stability of any country. These traits are valuable to both individual and group strengths. Understanding these modules can affect the way people or corporations manage their business affairs. To understand the importance of both diversification and globalization we must first understand their individual importance. Let’s first look at diversification.

Diversification Most individuals growing up in the country of The Bahamas have already in some part become infused with diversity from their elders. “Don’t put your eggs in one basket”, this is an old saying that we have all grown up with and have become accustomed to. We can look at diversity in this very simple manner. The more one spreads their resources out the more he/she increases their chance for reward. For the average investor this is “key” in optimizing their investment portfolio. The financial sector is made up of various markets; some of these markets weather storms much better than narrowly focused ones. For example; if you place a portion of your funds in multiple companies such as BTC and Commonwealth Bank as opposed to just one single corporation such as Verizon cellular, then it matters not that greatly if one of your investments does not pan out because you would have others that are bringing in some tasty bacon. Keep in mind that diversification is a key tool in business and its main focus is to smooth out the negative performance of some investments with the positive neutralization of others.

Globalization

Since the beginning of time “Man” has always made strides to improve his way of life. Take for example the discovery of fire and the wheel; these simple discoveries have contributed to creation of devices such as automobiles and the light bulb. By sharing their discoveries with other tribes our great ancestors improved hunting techniques and