The Drivers of Globalization Term Paper by Nicky
A look at the causes behind the growth of international business.
# 150067 | 729 words | 6 sources | APA | 2012 |
Published on Jan 24, 2012 in Business (International) , Economics (Globalization)
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The paper discusses seven globalization drivers: an increase in and expansion of technology; liberalization of cross-border trade and resource movements; development of services that support international business, growing consumer pressures, increased global competition, changing political situations, and expanded cross-national cooperation. The paper explains how all these factors have made global business an imperative in today's economy.
From the Paper:"Technology fuels globalization in several ways. In the past, mostly goods were traded across international borders. As such, multinationals focused on low-cost access to unskilled labor used in manufacturing these goods. But technology has changed this scenario. In particular, the Internet and advancements in communications technology are credited with making services the fastest-growing portion of international trade (Schifferes, 2007). Now, access to cheap professional labor that provide business processing outsourcing services such as information technology, accounting and payroll processing are highly sought after by multinationals. For example, India currently exported $25 billion per year of these services in 2006 and this figure is expected to reach $60 billion by 2010 (Schifferes, 2007). Further, communication improvements increase global awareness of the availability of international goods and better, lower-cost transportation makes it feasible to supply these goods anywhere in the world (Daniels, Radebaugh, and Sullivan, 2007).
"Previously, one of the major drivers to multinationals was the need to locate to other countries to escape paying trade tariffs that would make them uncompetitive in local markets. Today, however, tariff avoidance has become far less important because trade liberalization has facilitated extensive shipments of goods among international countries unhindered by government imposed restrictions. At the same time, trade liberalization is fueling multinationals because firms are able to more easily pick and choose among competing countries, locating their commercial activities where regulations and their enforcement are the most favorable to the business (Spar and Yoffee, 2000)."
Sample of Sources Used:
- Comparative advantage and absolute advantage. EconomicsInteractive.com. Retrieved from http://www.unc.edu/depts/econ/byrns_web/Economicae/Essays/ABS_Comp_Adv.htm
- Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2007) International business: Environments and operations. Upper Saddle River, NJ: Pearson/Prentice Hall. ISBN: 0131869426
- Fergusson, I. F. (2007, May 9). The World Trade Organization: Background and issues. http://www.nationalaglawcenter.org/assets/crs/98-928.pdf
- Globalization. http://bovination.com/cbs/globalization.jsp
- Schifferes, S. (2007, January 24). Multinationals lead India's IT revolution. BBC News. http://news.bbc.co.uk/2/hi/business/6288247.stm
Cite this Term Paper:
The Drivers of Globalization (2012, January 24) Retrieved June 06, 2023, from https://www.academon.com/term-paper/the-drivers-of-globalization-150067/
"The Drivers of Globalization" 24 January 2012. Web. 06 June. 2023. <https://www.academon.com/term-paper/the-drivers-of-globalization-150067/>