Drivers of Globalisation

Definition of globalisation

“It can be described as a process by which the people of the world are unified into a single society. This process is a combination of economic, technological, sociocultural and political forces” – Wikipedia Benefits to business of economies of scale and drivers influenced by technology, politics and socioeconomic factors leading to integration of International markets.


Technological Drivers
• Improved communications (Internet, mobile communications, satellite communications) • Digital technology developments (cheaper, more powerful technology) • Information availability and transferability • Knowledge economies

Business drivers
• Economies of Scale – cheaper • Competitive advantage • New market development

Drivers (Cont)

Political – free trade benefits and agenda Cultural tendencies that benefit businesses (US consumer market; Asian labour market, US/Japan Knowledge economy) Developed countries leveraging cheap labour markets in developing countries

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