FRANCISCO, SHARMAINE M.

INT BUS | SEC 2 T/F 7:30 AM – 9:00 AM

What are the Drivers of Globalization?

A driver is a contributing factor of change. The terms is most commonly used to describe factors
associated with some type of growth. The main drivers of globalization include:

1. Technological Advancement
It drives globalization by making it easier for people, goods, and ideas to move across borders.
For example, advancements in transportation have made it possible to move vast amounts of people
and product around the world in just a short amount of time. Advancements in telecommunications
have allowed people to send messages and information to each other in seconds as opposed to days,
weeks or even months. And advancements in automation have made it possible to increase the
production and flow of goods and services.

2. International Trade
It drives globalization because it encourages and strengthens interdependence between
countries. It is very difficult for any nation to be self-sufficient. They must import goods, services, and
capital to maintain a certain standard of living for their citizens. As a result, many countries and
international organizations have enacted economic policies that fuel globalization. For example, the
elimination of trade barriers and the reduction of foreign investment restrictions has helped to create
a global marketplace.

3. International Investment
It drives globalization by increasing economic integration. In recent years, there has been an
uptick in international investment, including commercial loans, foreign direct investment (FDI), and
foreign portfolio investment (FPI). Many countries have encouraged this to reap the benefits of
international investment, which include the creation of productive enterprises, jobs, and new sources
of income.

https://www.enotes.com/homework-help/what-four-drivers-globalisation-362631
ROTAO, Hannah Grace G.
INT BUS | SEC 2 T/F 7:30 AM – 9:00 AM

What are the Drivers of Globalization?

A driver is a contributing factor of change. The terms is most commonly used to describe factors associated
with some type of growth. The main drivers of globalization include:

1. Technological Advancement
2. International Trade
3. International Investment

Technological Advancement

It drives globalization by making it easier for people, goods, and ideas to move across borders.
Advancements in telecommunications have allowed people to send messages and information to each other
in seconds as opposed to days, weeks or even months. And advancements in automation have made it
possible to increase the production and flow of goods and services.

International Trade

It drives globalization because it encourages and strengthens interdependence between countries. It is very
difficult for any nation to be self-sufficient. They must import goods, services, and capital to maintain a
certain standard of living for their citizens. As a result, many countries and international organizations have
enacted economic policies that fuel globalization.

International Investment

It drives globalization by increasing economic integration. In recent years, there has been an uptick in
international investment, including commercial loans, foreign direct investment (FDI), and foreign portfolio
investment (FPI). Many countries have encouraged this to reap the benefits of international investment,
which include the creation of productive enterprises, jobs, and new sources of income.

Source:

https://www.enotes.com/homework-help/what-four-drivers-globalisation-362631