Globalization is a complex phenomenon that has been driven by a variety of factors. Here are some of the driving forces behind globalization, as identified by the search results:
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Improved transportation: The world has become a "global village" due to improved transportation systems, such as airlines, ships, and large vehicles, which have improved the delivery time of products to and from abroad.
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Low barriers to trade: Many of the world trades are currently done through free trade, bilateral, and multilateral agreements. Countries that were once hostile to foreign investment are now inviting other countries for inward foreign direct investment.
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Technological changes: Technological advancements, such as telecommunication, computers, and the internet, have greatly facilitated the growth of globalization. E-business, e-commerce, and e-banking are serving as the engine of globalization.
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Liberalization of trade and resources: Companies mainly opt for international markets to avoid domestic competition and to exploit competitive potential from the international market. In many cases, companies explore new foreign markets to sell their products as there is tougher competition in their domestic market.
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Rapid technology change: Firms have moved towards globalization to reap advantages of the economics of scale. Technological advancements have further accelerated the efficiency of business deals, international delivery, and performance of firms.
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Labour availability: The availability of labour in different parts of the world has contributed to globalization. Companies can take advantage of lower labour costs in other countries.
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Natural resources: The availability of natural resources in different parts of the world has also contributed to globalization. Companies can take advantage of lower resource costs in other countries.
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Consumer pressures: Consumers are increasingly demanding products and services from around the world, which has driven companies to expand their operations globally.
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Increased competition: Companies are defending their home markets from competition by expanding into new markets.
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Market drivers: Common customer needs and transferable marketing have enabled corporations to cater to demands in new markets with existing products.
In summary, globalization has been driven by a combination of factors, including improved transportation, low barriers to trade, technological changes, labour availability, natural resources, consumer pressures, increased competition, and market drivers.