Drivers of Globalization

Since World War II$2,$ globalization has been driven by two major factors: the decline in barriers to the free flow of goods, services, and capital, and technological change. Business has fueled these trends as well as has been the beneficiary of these trends. Understanding these trends helps businesses develop strategies and tactics to accelerate these trends.

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

Match the driving force to the correct description and implication for business.

Advances in communication technology Declining trade barriers Advances in transportation technology Declining investment barriers

Match each of the options above to the items below.

Political and social regulations can limit the ability of a company to export goods to a foreign country

No answer

With their removal, a company can base production at the optimal location for that activity

No answer

The microprocessor enabled the explosive growth of high$-$power, low$-$cost computing

No answer

Containerization has brought down the cost of shipping goods significantly