Political forces around the world are also serving to open up trade between nations and facilitate cooperative development of commercial opportunities. Discussion of Theories and Drivers 4. Inventions in the area of microprocessors and telecommunications enabled highly effective computing and communication at a low-cost level.
Digital technology allows for distribution of information content around the world, so European music or American films can reach remote villages in Asia and Africa within minutes.
This advancing technology allows for commercial opportunities on broader market scales as well as exchanges of cultural elements to an unprecedented degree.
Other cost drivers to globalization are the opportunity to build global scale economies and the high product development costs nowadays.
In more recent times, the advancement of technology has accelerated the trend of globalization. As a result, children growing up anywhere in the world can experience the same culture and pursue the same economic opportunities as they mature.
Advancements in transportation technology enabled intercontinental trade, and this led to the exchange of goods, ideas and cultural influences over large portions of the planet. Full Answer On a large time scale, the world has been on a gradual, but accelerating, track of globalization for the last thousand years.
Innovations in the transportation technology revolutionized the industry. Ferrier, 4 Cost drivers Sourcing efficiency and costs vary from country to country and global firms can take advantage of this fact.
Common customer needs and the opportunity to use global marketing channels and transfer marketing to some extent are also incentives to choose internationalization.
Finally the rapid growth of the Internet is the latest technological driver that created global e-business and e-commerce.
With this foundations it will then try to integrate theories and drivers and compare them to the actual situation and discuss if they are appropriately describing what we are seeing today. By the 17th century, explorers and merchants were capable of circumnavigating the globe; this was the first time the world became a single, contained system of politics and economics.
The most important developments among these are the commercial jet aircraft and the concept of containerisation in the late s and s. For instance, telecommunications technology allows for instantaneous exchange of information around the world in the form of telephone calls, emails and video conferences.
Strong interdependences among countries and high two-way trades and FDI actions also support this driver.The primary drivers of globalization are rapid advancements in technology, culture, economics and politics. With each passing year, the speed at which transactions take place and the spreading influence of cultural forces serve to integrate international societies.
The most prominent driver of this. Drivers and Consequences of Globalization Essay examples Words Apr 24th, 5 Pages The purpose of this paper is to analyze three drivers of globalization and how these drivers impact organizations, describe the risks associated with global investing and explain the importance of cultural sensitivity and ethics in global finance.
The global market focuses on economic globalization, a sub field of globalization which focuses on the improvement and changes that occur in the sector of trade and commerce. We will write a custom essay sample on The Drivers of Globalization specifically for you. ?The drivers of globalisation are those pressures or changes that have impelled both businesses and nations to adopt this approach.
There are four different drivers: 1. Cost drivers These seek out an advantage to a business from the possible lowering of the cost of the service or production, and would include: gaining economies of scale [ ].
Drivers of Globalization In today’s growth of technology companies can be based in one country and operate business on the other side of the world. Becoming a global organization has helped economies that would otherwise struggle. The drivers of globalization are: market globalization, Cost globalization, Government globalization and Competitive globalization.
Market Globalization Drivers are common customer needs, global customers, global market channels and transferable marketing.Download