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IAI Actuarial Core Principles · Business Economics · Globalisation and multinational business

Which development is the most direct example of technological change driving globalisation in financial services?

Cloud-based platforms enabling an Indian insurer to serve overseas clients in real time are the clearest technological driver of globalisation. Lower communication and coordination costs make cross-border service delivery feasible, whereas tariffs, exchange controls, rate changes and nationalisation are not technology-led.

  1. AAn increase in the import tariff on gold
  2. BIntroduction of exchange controls on dividends
  3. CCloud-based platforms that let an Indian insurer's actuaries and back-office staff serve overseas clients in real timeCorrect
  4. DA rise in the domestic repo rate
  5. Nationalisation of a domestic bank

Explanation

Improved communications and computing cut the cost of coordinating activity across borders, enabling offshoring and global service delivery. The other options are protectionist, monetary or ownership changes, not technological drivers.

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