Drivers of Globalization

Since World War II$,$ 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 and has been the beneficiary of 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.

Roll over the items on the left to read a description. Then, drag each item to the correct implication for business in the chart.

Driving Force

Declin$$ng trade barriers countries

better ability to optimize location economies

Implication for Business

lowered distance between countries

Declining investment barriers

Advances in communication technology

Advances in transportation technology