Key driving forces of globalization

1. Transport and communication

Transport

• Improvement in transportation technology has shrunk the

world significantly

• Less time needed to travel from one place to another

• E.g. 19th century: widespread use of steam engine, 20th

century: commercial jet aircraft, large ocean going vessels
& containerization.

LINK: Use of high-tech transport system has greatly

REDUCED travelling time, INCREASE EFFICIENCY of
transferring goods, BOOST globalization.

• Globalizing world = INCREASE in mobility of PEOPLE AND

GOODS.

• Countries build efficient, convenient, and integrated

transportation infrastructure.

• E.g. Airport, seaports, railways, highways, to accommodate

the globalization movements.

• People can travel easily too, e.g. a man who has a morning
meeting in Hong Kong can arrive in Singapore in the
evening by plane.

LINK: EFFICIENT transport system makes goods and people

easier to be transported around in a FASTER TIME, hence,
BOOST globalization.

Communications
• Improvement in technology has made communication faster
and more convenient

• E.g. people can communicate through telephone, e-mail, 3G

video conferencing easily

• Satellite technology also allows messages to be transmitted

simultaneously

• Invention of advanced communication technology e.g.

Internet has allowed consumers to access information about
new products and places easily, e.g. people can make
reservations for flight seats and hotel rooms without leaving
home.

LINK: This has greatly transformed how people work,

communicate, and BOOST globalization due to the
efficiency of communication technology, allowing TNCs
to control and monitor their worldwide activities easily.

2. Transnational Corporations (TNCs)

• They operate in many countries and have production

outside the country of origin.

• E.g. Toyota Motor Corporations & Microsoft Corporation

• Set up operation in different parts of the world to source for

new markets and raw materials that can lower the
production cost.

• Coordinated by the HQ in the country of origin,

• TNCs also source for raw materials from all parts of the
world to manufacture their final product to lower the
production cost.

LINK: Due to this, economies around the world has become

MORE INTEGRATED AND CONNECTED, which BOOSTS
globalization be cause of the good relations and benefits
available.