Globalization - in a literal sense is international integration. It can be described as a process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, sociocultural and political forces.
1. The main drivers of Globalization.
-Cost factors.
Looking for cheaper labour and manufacturing costs
Outsource to other countries to find lower cost
-Market factors.
The BRICs could dominate world trade in 21st century
It is dangerous to stand aside as competitors merge and make alliances
-Technology factors.
Development of new technologies
Communication
Software tools on company intranet
-Global business cycle.
• Recovery
• Growth
• Recession
• Depression
In every turn of the cycle, the pace of globalization is likely to increase.
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