What is Scotiabank doing and how can I relate to it?

I remember discussing Scotiabank’s expansion into China in our lecture; therefore, I found it noteworthy to see Scotiabank in the news yet again. This time, the company is buying 51% stake in Colombia’s Banco Colpatria. ScotiaBank had been part of the Latin American market for 6 years, so why has it decided to buy such a huge share in a Colombian bank now? Well, the answer is quite obvious, while the economy is on a downturn; it is actually an opportunity for stable businesses to invest for the future. I think this is great strategic move in order to establish a global market for Scotiabank because it keeps the business “safe” in developed economies and grows the business in developing economies. I also believe that Colombia is a better option because it has less strict government control in comparison to China. Before Scotiabank made this decision, the company must have gone through a process of analyzing the issue, recognizing the opportunity, weighing the risks, calculating a break-even analysis, etc. So, I connected this decision to our case studies and finally realized how our knowledge will be applicable in the future.

Article: “Scotiabank to buy 51 per cent stake in Colombian bank for $1B“