What factors have increased globalization?
The phenomenon of globalization has made it possible for many industries to move beyond its fixed national boundaries to an international environment and present their products and services to an international Consumer market. There are many who believe that it might have gone too far as some companies may not be able to operate when international giants start to share their markets (Rodrik, 1997). This might be a fact but globalization has been gaining speed over the time and has increased rapidly.
Multiple factors may be influencing the rapid growth of globalization. Following are some of them.
- Removal of trade barriers: in the recent times, restrictions on international trade have been relaxed to a greater extant. This has contributed to the increase of globalization as organizations can move freely to seek out markets among international consumers.
- Efficient transportation: Transportation costs have been decreasing due to efficient ways of transportation being achieved. Especially the containerization has drastically decreased the transportation costs of products in the sea.
- Internet Growth: Internet has played an important role in the increase of globalization with a rapid speed. It has made communication process very easy cost effective and efficient. Companies can make website for their products and services and find partners, suppliers and buyers in the international market.
- Multinational Corporations: The growth of multinational corporations have contributed to the increase of globalization. Multinational Corporations is an organization that has its facilities in at least two countries including the country of its origin. Pepsi, Coca Cola and McDonalds are the prime examples of Multinational Corporations.
- Trade blocks: Trading blocks are formed among different countries to increase bilateral trade among these countries. These blocks facilitate the business organizations of the partner countries to move freely in the trade blocks and start business in it.