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Causes of Globalization

 Improvements in transportation including containerisation


 the reduced cost of shipping different good and services around
the world
 Technological change
 reducing massively the cost of transmitting and communicating
information helps trade in products over internet. Advances in
transport technology have lowered the costs, increased the
speed and reliability of transporting goods and people.
 De-regulation of global financial markets (trade liberalisation)
 Reduces trade barriers and therefore opens up of capital markets
in developed and developing countries.
 Differences in tax systems
 The desire of multi-national corporations to benefit from lower
labour costs and therefore develop and exploit fresh
comparative advantages in production
 Avoidance of import protection
 Many businesses are influenced by a desire to avoid trade tariff
barriers erected by regional trading blocs.
 Economies of scale
 The process of mass-production in which each unit
manufactured is cheaper due to the high volumes made.

 Improvements in transportation including containerisation


 the reduced cost of shipping different good and services around
the world
 Technological change
 reducing massively the cost of transmitting and communicating
information helps trade in products over internet. Advances in
transport technology have lowered the costs, increased the
speed and reliability of transporting goods and people.
 De-regulation of global financial markets (trade liberalisation)
 Reduces trade barriers and therefore opens up of capital markets
in developed and developing countries.
 Differences in tax systems
 The desire of multi-national corporations to benefit from lower
labour costs and therefore develop and exploit fresh
comparative advantages in production
 Avoidance of import protection
 Many businesses are influenced by a desire to avoid trade tariff
barriers erected by regional trading blocs.
 Economies of scale
 The process of mass-production in which each unit
manufactured is cheaper due to the high volumes made.