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1) Technological drivers
Technology shaped and set the foundation for modern globalization. Innovations in the
transportation technology revolutionized the industry. The most important developments
among these are the commercial jet aircraft and the concept of containerisation in the late
1970s and 1980s. Inventions in the area of microprocessors and telecommunications enabled highly effective computing and communication at a low-cost level. Finally the rapid
growth of the Internet is the latest technological driver that created global business and ecommerce.
2) Political drivers
Liberalized trading rules and deregulated markets lead to lowered tariffs and allowed
foreign direct investments in almost all over the world. The institution of GATT (General
Agreement on Tariffs and Trade) 1947 and the WTO (World Trade Organization) 1995 as
well as the ongoing opening and privatization in Eastern Europe are only some examples
of latest developments.
3) Market drivers
As domestic markets become more and more saturated, the opportunities for growth are
limited and global expanding is a way most organizations choose to overcome this
situation. Common customer needs and the opportunity to use global marketing channels
and transfer marketing to some extent are also incentives to choose internationalization.
(Ferrier, 2004)
4) Cost drivers
Sourcing efficiency and costs vary from country to country and global firms can take
advantage of this fact. Other cost drivers to globalization are the opportunity to build global
scale economies and the high product development costs nowadays. (Ferrier, 2004) 5)
Competitive drivers
Titany answered the question on November 24, 2021 at 12:30
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