Drivers of Globalization

Globalization has been driven by five major factors: political, technological, market, cost, and competitive. Businesses have fueled and have ultimately been the beneficiaries of these trends. Understanding these trends helps businesses develop strategies and tactics to accelerate their growth and international expansion.

Understanding globalization trends helps businesses identify opportunities and threats in their environment. Understanding these trends will also make the changes much more manageable and predictable. International businesses have greater flexibility, more options, and a broader scope to consider globalization of production and globalization of markets.

For each driving force listed, click and drag the correct description and match it with its implication for business.

Driving Force

Growth in services due to data processing speed increase

Exporting or producing overseas, or outsourcing

Lower cost of goods sold

Explosive growth of high$-$power, low$-$cost computing

Explosive growth in international business

Preferential trading arrangements and privatization of industries

New opportunities and markets to sell goods and services

Creating new markets

Increased opportunities for trade and investment

High competition in world markets

Political Drivers

Cost Drivers

Technological Drivers

Market Drivers

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