The influence of the world economy has been quite expansionary for Australia over the past year, most notably in the form of a 28% increase in exports. This has been the result of both strong volume growth and rising prices.
iii)  Competition: With the ever increasing pace and extent of globalisation of the Indian economy and the systematic opening up of the Indian banking system to global competition, banks need to equip themselves to operate in the increasingly competitive environment. This will make it imperative for banks to enhance their systems and procedures to international standards and also simultaneously fortify their financial positions.