SOCIAL STUDIES - SEC 4 CHAPTER 2: SUSTAINING ECONOMIC DEVELOPMENTKey Driving Forces of Globalisation Factor Explanation Developments in 1. Since 1990s, enhancement in telecommunications and Information Technology (IT) has marked remarkable improvements in access of information and increase in economic activities. 10. Social Studies 10 By Julia, Jonathan, Eileen. Liberalisation:. Globalization can be defined as the free movement of goods, people, information, and technologies across national borders in an unimpeded manner. The term was first coined in the 1980’s. Before publishing your Article on this site, please read the following pages: 1. Globalization is driven by international trade and investment and aided by information technology. Corporations in developed nations can gain a competitive edge through globalization. With each passing year, the speed at which transactions take place and the spreading influence of cultural forces serve to integrate international societies. Why your go-to-market strategy should be industry focused it is the economic equivalent of a force of nature -- like wind or water." Globalization is driven by various new development and gradual changes in the world economy. So, let us now look at some of the driving forces behind globalisation. Discuss at least two dimensions of globalization—the economy, politics, culture, ecology, ideology—and their impact on East Asia. Why your go-to-market strategy should be industry focused 1 Introduction 2 Drivers of Globalization 3 Theories and Models of Gobalization and International Trade 3.1 From mercantilism to Smith and Ricardo 3.2 Ricardo to the next step: Factor Proportions Theory and the Leontief Paradox 3.3 Vernon Life-Cycle Theory 3.4 Porter’s Diamond Approach 3.5 Monopolistic Advantage Strategy 3.6 Eclectic Theory 4. Globalization and de-localization. The dynamism of the driving forces of globalization is determined by the contradiction between human needs, feelings, interests, demands, desires, ideas and their fulfilment, or between human qualities and feelings and their engagement in human conduct, or the contradiction between environmental conditions, natural disasters, epidemics, etc. Over the years, the relative success of globalisation is evident in terms of increased foreign trade and capital flows, acceleration of growth rates and rising real per capital GDP in the those countries that have opened up their economies more to the rest of the world than those that have preferred to follow a close economy model. TOS There are many types of market drivers, but they all hold in common a convergence of global trends and economic ecosystems. Efficient information and communication system so as to minimise the effect of uncertainties. External forces are the environmental forces of change and are beyond the control of an organization, but majorly influence an organization's change management strategy. This augmented interdependence has caused the dismantling of trade barriers and liberalization of markets. Privacy Policy3. globalization to its driving forces. throug… 5. The second driving forces is technological changes Manuel Castells (1996) has argued persuasively that in the last twenty years or so of the twentieth century, a new economy emerged around the world. "Globalization is not something we can hold off or turn off . Acts as a main driver to facilitate globalization. Such as cut-back of trade restrictions (e.g. Be sure to describe both positive and negative aspects, and explain what you imagine the future of the region will be as a result. Define globalization and explain the forces driving globalization. Over the years, with increase in the level of income and standard of living, the demand of consumers for various products has also increased. Copyright. The term sometimes refers to the elimination of barriers to international movement of goods, services, capital, technology, and people that influence the integration of world economies. Apart from this, the advancement in technology and improved communication network has facilitated the exchange of goods and services, resources, and ideas, irrespective of geographical location. Views on Globalization. The policy makers of a developing economy have to take an account of both credit and debit side of the phenomenon. 4. Globalization has become a way of life in 21st-century business, as transportation, communication and technology have decreased distances and have increased the speed of transactions across broad geographic areas. 102-105): market drivers Key Driving Forces of Globalisation [Notes] 1. Explain and discuss the key forces that drive globalization, and the characteristics of the next generation of multinational managers? Technology (usually culturally sterile) Transportation and Communication (The World is getting “smaller”…) Product development costs … It is a known fact that countries such as China, Korea, Mexico, Malaysia and Thailand have experienced faster growth in per capital real increase owing to their expanding external sector and liberalised approach towards globalisation than slowly global sing developing countries such as Ghana, India, Pakistan, and Sri Lanka among several others. 1.2 Process of Globalization: Process of globalization is mutual actions and act amoung people, government, companies and nations around the world motivated by international trade and investments and influenced by information technology. The frequent increase in competition in the domestic market compels organizations to go global. Market forces are competitive pressures in a free market that impact prices and output levels. This study has several contributions to the existing literature of globalization. Regional Economic Agreements (e.g, EU, NAFTA…) Market needs & wants, and creation of markets. Driving force #6: acceleration (or running faster to stay in the same place) Each of these five forces of commoditization, digitization, social mediaization, globalization, and turbulence is a strategically decisive issue that’s central to everything that … The effects of globalization on multinational businesses can be good or bad, depending on the nature of the corporation in question. Globalization gives businesses access to markets that would have been difficult to reach in the past. There are many types of market drivers, but they all hold in common a convergence of global trends and economic ecosystems. Globalisation is not a novel phenomenon. This will make it imperative for most companies to succeed in emerging markets. First, Chapter 1 1. FORCES DRIVING GLOBALIZATION. The forces for global integration, also called industry globalisation drivers, can be divided into four categories (Yip 1989; Bartlett/Beamish 2014, pp. Many organizations have achieved larger global market shares through mergers and acquisitions, strategic alliances, and joint ventures. globalization to its driving forces. Explain the forces driving and evaluate the impact of globalization (CLO: 1) Analyze the effects of culture, politics and economic systems in the context of … Driving force #6: acceleration (or running faster to stay in the same place) Each of these five forces of commoditization, digitization, social mediaization, globalization, and turbulence is a strategically decisive issue that’s central to everything that … The key driving forces of Globalization includes Economic, Political and Technological factors, establishment of WTO, emergence and growth of regional integration, decline in trade barriers, decline in investment barriers, technological changes, increase in FDI and growth of MNC’s. During the last decades we saw a rapid increase of economic globalization. Welcome to EconomicsDiscussion.net! 2.0 The Forces Driving Globalisation: • Increase in and expansion of technology It represents one of the most influential forces in determining the future course of business. Governments also have reductions in barriers for trade and have established international agreements to promote trade in goods and services. Emerging markets, with populations that are young and growing, will increasingly become not only the focus of rising consumption and production but also major providers of capital, talent, and innovation. Every- country restricts the movement of goods and services across its border. Through this process, a cultural understanding takes place which drives globalisation. 3. All the articles you read in this site are contributed by users like you, with a single vision to liberate knowledge. Globalization is the widening set of interdependent relationships among people from different parts of a world divided into nations. New technology under IT revolution has created distribution channel, which is difficult to be blocked under the protectionist trade policy. It represents one of the most influential forces in determining the future course of business. Faster and cheaper technology in the digital global economy of the Internet era has broken the national barrier of time and space, thus, integration of national markets have been facilitated with ease. Globalization affects the environment, culture, political systems and economic development and prosperity, as well … The primary drivers of globalization are rapid advancements in technology, culture, economics and politics. It imposes tariffs and quotas on the goods and services imported in its country. Share Your Word File What are the Major Problems and Issues of Globalisation? What are the Driving Forces of Globalisation? Removal of trade barriers time and again has facilitated a rising growth rate of the world trade over the years. Thus, various organizations enter other countries (for selling goods and services) to expand their market share. 2. 1.2 Process of Globalization: Process of globalization is mutual actions and act amoung people, government, companies and nations around the world motivated by international trade and investments and influenced by information technology. Social Studies 10 By Julia, Jonathan, Eileen. Globalization can be defined as the free movement of goods, people, information, and technologies across national borders in an unimpeded manner. The term sometimes refers to the elimination of barriers to international movement of goods, services, capital, technology, and people that influence the integration of world economies. One of the major forces of globalization is the expansion of communication systems. Apart from this, nowadays, consumers are well aware about products and services available in other countries, which impel many organizations to work in association with foreign players for catering to the needs of the domestic market. He characterizes it as a new brand of capitalism that has three fundamental features: This last idea runs through a lot of the discussion of globalization. Globalization is the spread of products, technology, information, and jobs across nations. An organization generally strives hard to grain competitive edge in the market. In a global industry, a firm's competitive position in one country is strongly affected by its position in other countries. The most prominent driver of this trend is the advancement of technology. Such practices impose limits on international business activities. There are several forces driving globalization, including the global economy and multinational corporations that control assets, sales, production, and employment (United Nations 1973). Globalization' is both an historical fact and a political football says Toulmin (1999). It is the process of interaction and integration among the people, companies and governments of different nations, states Globalization 101, a website of the Levin Institute. Many of the activities that previously involved face-to-face interaction, or that were local, are now conducted across great distances. Globalisation essentially implies much closer integration of the world economy that has assured many hopes as well as fears. In addition, the random changes in the regulations create a chaos in global business environment. Generally, organizations go global for expanding their markets and increasing their sales and profits. Cultural exchange has been one of the biggest drivers of globalisation. Dec. 2, 2020. Discussion of Theories and Drivers 4.1 Ricardo-Mill and outsourcing 4.2 Dunning, Can… Content Guidelines 2. Define globalization and explain the forces driving globalization. . Explain the forces driving and evaluate the impact of globalization. Topic: The impact of forces of globalization on East Asia. The two most important driving forces of globalization is the decline in barriers between nations meaning the increase level of export/import and sharing between nations and countries around the world. . Emergence of knowledge workers and knowledge management. 1. Learning Outcomes: Explain the forces driving and evaluate the impact of globalization (CLO: 1.3) Analyze the effects of culture, politics and economic systems in the context of international business (CLO: 1.9, 2.1) People travel to different countries and share their cultural beliefs and practices with each other. Chapter 1 1. Faced with increasingly sophisticated clients, market globalization, and evolving technology, professional services firms must evaluate their business models to ensure they can delivery the greatest value to every client on every project. 2.0 The Forces Driving Globalisation: • Increase in and expansion of technology Before publishing your Articles on this site, please read the following pages: 1. Strong wave of liberalisation induced by the World Trade Organisation (WTO) as well as unilateral negotiations and decisions undertaken by the countries world over. PreserveArticles.com is an online article publishing site that helps you to submit your knowledge so that it may be preserved for eternity. Expert Answer Ques-The driving forces behindgloballizationprocess - Cultural exchange: Cultural exchange has beenone amongstthe largestdrivers ofeconomic process.individualsvisitcompletely diffe view the full answer TOS4. Privacy Policy Wolf’s talk was not the sanguine-sounding "Why Globalization Can Work," but rather "How Globalization Works," a much more astringent dose of reality! This advancement in technologies has led to the growth of various sectors of economies throughout the world. Globalization is the widening set of interdependent relationships among people from different parts of a world divided into nations. Globalization has become a way of life in 21st-century business, as transportation, communication and technology have decreased distances and have increased the speed of transactions across broad geographic areas. Our mission is to liberate knowledge. The key driving forces of Globalization includes Economic, Political and Technological factors, establishment of WTO, emergence and growth of regional integration, decline in trade barriers, decline in investment barriers, technological changes, increase in FDI and growth of MNC’s. Content Guidelines Drivers of economic globalization . The driving forces behind globalisation. Blog. Disclaimer Copyright, Share Your Knowledge They export goods in foreign markets where the price of goods and services are relatively high. Globalisation is a fairly broad term that describes the phenomena of the ‘local’ turning into the ‘global’, or the coming together of different aspects of the world into a single and identifiable state. One of the major forces of globalization is the expansion of communication systems. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. The term was first coined in the 1980’s. Views on Globalization Conversation is a very powerful tool when used correctly. Globalization and World Economic Forum at Davos Forces Driving Globalization Globalization has resulted in enhanced interdependencies among thenations of unprecedented scale. During the past twenty years, many governments adopted free-market economic systems to increasing productive potential and creating new opportunities for international trade activities. Driving forces from NGO Government or corporate policies which opened economies domestically and internationally are another driver force of globalization. Cosmopolitanism uses the basis of conversation as a root to solving conflicts, and learning to live in a multicultural society successfully. In this way, advanced technologies have led to economic globalization. In the Internet Age, capital has become internationally more mobile. Furthermore, the empirical investigation of the contribution of each factor of globalization in developed and developing countries will enlighten the role of significant factors. Share Your PDF File Blog. For example, French government’s restriction on American films tends to be futile when these are shown through satellite or Internet (Economist, 1999). Strong wave of liberalisation induced by the World Trade Organisation (WTO) as well as unilateral... 3. But as a matter of fact, the development of globalization is not determined by any laws of nature. Several complex and sensitive issues are inherent in the process and proliferation of globalisation including the role of culture and political/social acceptance and alternation of the required attitudes towards the change and involvement of the people at large in the global arena. PreserveArticles.com is a free service that lets you to preserve your original articles for eternity. However, gradual relief in the cross-border trade restrictions by most governments induces free trade, which, in turn, increases the growth rate of an economy. This study has several contributions to the existing literature of globalization. What a difference a few words can make. What is the role of MNCs in the globalisation process? Generally, organizations go global for expanding their markets and increasing their sales and profits. We define globalization as the democratizing of access to local market knowledge, customer information, services, products, and capital across national, cultural, and linguistic boundaries. Patel (1998), identified the major ingredients of sustainable growth under globalisation process of a developing economy as under: 7. Constitutes an important driver for bringing about globalization. What is globalisation? The primary market forces in any market are supply and demand.Beyond this, there are 5 addition forces known as Porter's five forces that impact prices, quality and the output of markets. Economic globalization stands for the economic interconnectedness of countries with the global economy as a whole. Technology:. Sometimes it seems that the increase of cross-border exchange of goods, services, capital and other factors of production is inevitable. There has been a significant de-localizati… Government or corporate policies which opened economies domestically and internationally are another driver force of globalization. Controlling in Management # Meaning, Definition, Types, Process, Steps and Techniques. Refer to one of the critical forces of globalization. DRIVING FORCES. Dec. 2, 2020. Disclaimer Framework of efforts and rewards and division maker acceptable to the community at large. However, no more than 40 percent of executives at companies headquartered in developed economies expect a quarter or more of revenue… Mobility of individuals, information and knowledge, as agents of production and countries has smoothened the growth process of globalisation. This article presents a description regarding how both internal and external factors influence organizational change and its relative interdependence for helping an organization survive and grow. Some of the important forces behind globalization are shown in Figure-1: The different forces (as shown in Figure-1) are explained as follows: Refers to one of the crucial factors of globalization. Access to New Markets. Faster and cheaper technology in the digital global economy of the Internet era has broken the national... 2. So, these are the major factors that have contributed a lot in globalization and the growth of global economy. There are several forces driving globalization, including the global economy and multinational corporations that control assets, sales, production, and employment (United Nations 1973). This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Furthermore, the empirical investigation of the contribution of each factor of globalization in developed and developing countries will enlighten the role of significant factors. This fact is due to technological progress and different levels of scarcity of resources in individual countries. In the present era, it has become easy to distribute information to any part of the world through the Internet. PreserveArticles.com: Preserving Your Articles for Eternity, Short Essay on Globalisation and the Indian Economy, Short Essay on Globalisation and Micro-Economics, Brief Notes on Globalisation and Liberalism. During the past twenty years, many governments adopted free-market economic systems to increasing productive potential and creating new opportunities for international trade activities. Political decisions and institutions are central adjustment screws. and people's struggle to survive, or maintain or improve the quality of … Globalization is driven by various new development and gradual changes in the world economy. First, Globalization is a powerful result of the New World system. Share Your PPT File, Heckscher and Ohlin Theory – Modern Theory of International Trade. 9. 8. We define globalization as the democratizing of access to local market knowledge, customer information, services, products, and capital across national, cultural, and… Transport systems are the means by which people, materials, and Transportation and products are transferred from one place to another. Using conversation across cultures to solve issues and resolve conflict is something that Cosmopolitanism emphasizes in its ideology. Spatial and occupational mobility of productive resources (Five M’s: Manpower, machine power, material power, managerial power and money power). The degree to which these elements are present defines the strategy of sustainable development and growth of a developing economy under globalisation process. Yet, in the contemporary era, its approach tends to be fresh, new, mote friendly and warming. Cultural exchange. 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