4 drivers of globalization pdf

Jul 11, 2011 i came to your what drives globalization. While much has been hypothesized regarding this phenomenon, it is important to note that there exits distinct factors that drive it. One factor of particular significance to many service industries is the presence of global customers who demand consistent service from suppliers around the world, and the availability of global channels. The drivers and effects of globalization are here evaluated in terms of their impact on the model of the five forces of competition. Government drivers private capital flows to ssa have increased almost fivefold since 2000 for the first time in 2006 they overtook official aid flows. Meat queens globalization success can be linked to numerous key drivers of the overall process. In fact, historical precedent is one of the drivers of globalization. In the present era, it has become easy to distribute information to any. An evolutionary perspective on firmstate relations in the asian newly industrialized economies article pdf available january 2009 with 5,103 reads how we measure. Identifying the drivers of economic globalization and the. Harmonization of worlds cultures at the expense of distinctly different local cultures. Michael porters model of the five forces on competition 1 has be come one of the most established approaches for viewing industry competition, and it is also.

Introduction, drivers benefits of international business. The literature has yet to come up with a comprehensive analytical framework. These external drivers affect the main conditions for. An empirical analysis of the developed and developing countries ayesha naz1 eatzaz ahmad,2 abstract there are several economic, political, social and technological factors that have contribut ed to globalization in recent decades. In fact there is not only disagreement on the definition of globalization. The first part of this research paper will define the major drivers of globalization and then introduce some of the basic and advanced theories of. Generally, organizations go global for expanding their markets and increasing their sales and profits.

This interdependence relates both to the exchange of factors of production labor, capital, technologies, knowhow and the exchange of products material goods and services, finished and. The primary drivers of globalization are rapid advancements in technology, culture, economics and politics. Jan 21, 2019 watch on as we take you through the drivers or factors that increase globalisation. Identifying the drivers of economic globalization and the effects on. Part 44 professor michael czinkota page and noticed you could have a lot more hits. The findings reveal some effective approaches, but at the same time show that most of these businesses lagged in their response. He called these factors the flatteners to denote the premise of the book that these factors were responsible for the flattening of the world. Political globalization from gem 1052 at national university of singapore. Drivers of globalization the media and almost every book on globalization and international business speak about different drivers of globalization and they can basically be separated into five different groups. Integration of theories and models markus bauernfeind essay economics. Impact of globalization on model of competition and companies.

Positive, shared values should be driving globalization 4. Pdf on jan 1, 2010, paul james and others published globalization and culture. Globalization has become a way of life in 21stcentury business, as transportation, communication and technology have decreased distances and have increased the speed of transactions across broad geographic areas. Industry drivers of global strategy and organization yip. His published research includes topics such as forecasting world political change, socialeconomic development and social evolution. Competitive drivers reduction of tariff barriers reduction of nontariff barriers creation of new trading blocs decline in the role of government as producers and consumers market liberalization and privatization. Drivers of the recent wave of globalisation economics essay. In simplest terms, globalization refers to global interconnection in terms of trade, ideas, culture, etc. Wolfs talk was not the sanguinesounding why globalization can work, but rather how globalization works, a much more astringent dose of reality. Maximizing their investment is a motivator for many global companies.

One of the major forces of globalization is the expansion of communication systems. The fourth industrial revolution is set to reshape economic power, scientific leadership, and the architecture of value chains as well as future forms of political organization. These external drivers affect the main conditions for the potential of globalisation across industries, which are mainly uncontrollable by individual firms. Market globalization drivers cost globalization drivers government globalization drivers competitive globalization drivers low domestic high global. Globalization globalization occurs as one of the most novel phenomena that have taken the world by a storm. Shaping a new architecture in the age of the fourth industrial revolution. Aug 15, 2017 drivers of economic globalization economic globalization stands for the economic interconnectedness of countries with the global economy as a whole.

Yip identifies four sets of industry globalization drivers that underlie conditions in each industry that create the potential for that industry to become more global and, as a consequence, for the potential viability of a global approach to strategy. Bill clinton american 42nd us president 19932001 the first part of this research paper will define the major drivers of globalization and then introduce some of the basic and advanced theories of international trade and business. Benefits of international business high living standards. It introduces the understanding of globalization as a process whose. The famous author and cheerleader for globalization, thomas friedman, in his book the world is flat identified some key drivers of globalization. His published research includes topics such as forecasting world political change, socialeconomic development and. What are five major kinds of drivers for globalization of firms. If the 19th and early 20th century with its ukled unilateral liberalization represented globalization 1. In a followup article, i will address globalizations consequences for domestic societies in terms of inequality and economic insecurity, national autonomy with respect to regulation, spending and taxation, exchange rate.

Jun 22, 2011 globalization is driven by four factors. Singlenation markets might not be large enough to offer a companys country subsidiaries all possible economies of. Impact of globalization on model of competition and. Economic globalization stands for the economic interconnectedness of countries with the global economy as a whole. The authors would like to thank professor franco malerba for his suggestions and encouragement.

The main drivers that have helped globalization to expand and deepen over the past years have been technological revolutions such as the widespread use of internet and the ease of transboundary travelling, the creation of international institutions that encourage free trade by removing trade barriers, the establishment of multinational. Continuing push for economies of scale but offset by. Trade in goods and services financial flows investment and transnational. With each passing year, the speed at which transactions take place and the spreading influence of cultural forces serve to integrate international societies. The four main areas of drivers for globalisation are market, government. Globalization studies and editorinchief of the journal age of globalization in russian. Globalization is not something we can hold off or turn off. What are the drivers behind economic globalization. Yip s framework developed by george yip1992 helps analyze the degree of globalization in the industries the 4 main categories of drivers are.

Government drivers are important in forming the competitive environment because of the presence or absence of favorable trade policies. Tom farer, university professor and past dean, josef korbel school of international studies, university of denver a bold step addressing the unattractive baggage that comes with the. His academic interests are connected with the analysis of problems of globalization and modernization. This strategic embedding of asian nie firms in different global production networks should. The drivers of globalisation are a combination of many factors which have lead businesses to look outside their domestic markets for growth opportunities 4.

There are many types of market drivers, but they all hold in common a convergence of global trends and economic ecosystems. Jun 29, 2011 three key drivers for globalization first driver is the commoditization of the information and communication technology ict infrastructure, computers, software, and internet. Market globalization forces every month about 810 million subscribers are being added in the indian mobile database. Political globalization political globalization in my. Furthermore, the study also provides an empirical test for driving factors of. The fourth industrial revolution is driving globalization 4. According to friedman, these technologies are able to weave the world together even tighter. Drivers of globalization drivers of globalization the key factors seem to underlie the trend towards the increasing globalization of markets and production are the decline of barriers to trade and investment and the role of technological changes. Pros supporters of globalization argue that it has the potential to make this world a better. This article reports on a research study of how 18 worldwide businesses belonging to some of the largest american multinational companies responded in their strategies to industry globalization forces.

Globalization notes pdf download advantages and disadvantages. We will eventually all listen to the same music, watch same tv, eat same food, have the same values loss of worlds cultural diversity, replaced by primarily americanized world cultures. Yips globalization model we have followed george yips famous globalization model 1992 to analyse the forces behind attractiveness of globalization for telecom firms in india and more specifically bharti airtel. Study guide for unit 12 of the postgraduate diploma in. A comparative study between the drivers of globalization during. The most prominent driver of this trend is the advancement of technology.

Government globalization drivers include common product and technology standards, a benign regulatory climate and favorable trade policies. Mar 02, 2011 the evidences also suggests that fdi is playing an increasing role in the global economy as firms increase their cross border investments. Journal of international consumer marketing 8 34, 2337. To remain competitive, global rivals have to intensify their marketing everywhere by attempting to sustain advantages that, if weakened, could make them susceptible to market share erosion. Political globalization in my opinion, one example of political globalisation is the introduction of. It is necessary to evaluate the pros and cons before drawing any conclusions. George yips globalization model 639 words bartleby. The study briefly summarizes the understandings of globalization, its beginning, and periodization in social sciences. In this new era, technology and existing trading and investment patterns. Ideologies of globalism find, read and cite all the research you need on researchgate. Real story of globalization, says that globalization is the process of the shrinking of the world, the shortening of distances, and the closeness of things.

Internationalization is the first stage in the globalization process. Globalization is driven by various new development and gradual changes in the world economy. Drivers of globalization two factors underlie globalization decline in barriers to the free flow of goods, services, and capital that has occurred since the end of world war ii technological change. In a globalized world, social and economic activities transcend the borders and regions. The relative significance of each driver varies by service category. Lower trade barriers affect the geographic barriers, both in opening up toward similar. The first factor is the benefit of technological innovation, which. Yip, it is possible to define globalization drivers in four areas. It would be a mistake to think that globalization is purely a modern phenomenon. These will be the two organizing principles of the world economic forums upcoming annual meeting in davosklosters, which will convene under the theme of globalization 4. I have found that the key to running a successful website is making sure the visitors you are getting are interested in your subject matter. Intuitively, all participants at the symposium recognized that globalization signaled the. Study guide for unit 12 of the postgraduate diploma in telecommunications and information policy. This has big impacts for how states relate to one another in the next phase of globalization.