Main drivers of globalization

Globalization has been shaped and driven by many factors over the last few decades. Some of the drivers of globalization that have helped it shape are international financial institutions, international trade agreements and multinational organizations.

International financial institutions like IMF or International Monitory Fund has heavily influenced globalization as it has made it possible for different countries to adopt to international financial standards in return for its financial assistance provided to these countries.

Multinational organizations have also driven globalization with the effective use of technologies. Multinational companies go to different countries and establish their business over there. The primary goal of these companies may be to increase their wealth and get a monopoly for their products and services but they also help the world to come closer. These companies have employees from different racial backgrounds who may interact with each other.

International trade agreements are made between two or more countries to facilitate their businessmen to start doing business across borders of their own countries. These agreement have been seen as drivers of foreign direct investment in developing countries by the developed world (Büthe & Milner, 2008). Trade agreement help make strong economic ties between nations and also help bring the people of these countries come closer.