FORCES DRIVING GLOBALIZATION

1.
2.
3.
4.
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6.
7.
8.

Regional Economic Agreements (e.g, EU, NAFTA)

Market needs & wants, and creation of markets
Technology (usually culturally sterile)
Transportation and Communication (The World is getting
smaller)
Product development costs (require very large markets to break
even)
Quality (Foreign competition stimulates quality)
World economic needs (growing countries. Also deregulation and
privatization)
Leverage ( advantages of a company going global)
- Transfers of experience and know-how (both ways)
- Economies of scale (e.g, one plant to supply the world)
- Resource utilization (location of raw material sources)
- Global Strategy (take advantage of opportunities wherever
they appear)

FORCES RESTRAINING GLOBALIZATION

1. Management Myopia (primarily Ethnocentrism)
2. Subsidiary Culture
3. National Controls (e.g, Tariff and non-Tariff)