Examples of cost drivers in globalization free#
The second positive effect of globalization is that it promotes international trade and growth of wealth as a result of economic integration and free trade among countries. Its first positive effect is that it makes it possible for different countries to exchange their products. Globalization is associated with both positive and negative effects. The fourth factor that drives globalization is market, which covers ordinary needs of customers, channels of world markets and marketing techniques that can be transferred to different regions.
The third factor that drives globalization is cost.Ĭost in globalization deals with efficiency in sourcing activities, world economies and emerging technological trends. The government drives globalization through regulation of marketing activities, provision of technical standards that are compatible and elimination of restrictions imposed on trade and investment procedures. The second factor that drives globalization is the government. The first factor that drives globalization is competitiveness in the market, which focuses on aspects such as global competitors, interdependence among countries and high two-way trade. Drivers of Globalizationįor globalization to take place, it must be driven by certain factors. Some of the traditional international theories of globalization include Ricardian theory of international trade, Heckscher-Ohlin model and Adam Smith’s model (Scholte, 2005). It entails political, technological, cultural and political exchanges which are facilitated by infrastructure, transport and communication. Globalization is defined as interaction among different countries in order to develop global economy.
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