Globalization has been driven by a variety of factors, including:
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Increased international trade and investment: The rapid increase in international trade and investment has been a major source of economic growth and rise in living standards globally in the postwar period. This has been facilitated by the reduction of trade barriers and the emergence of new technologies that allow for the rapid movement of goods, services, and capital across borders.
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Improved technology: Improved technology, such as the internet and global communication, has played a significant role in helping globalization. It has allowed for increased interdependence of companies and countries, making it easier to conduct business across borders.
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Growth of multinational companies: The growth of multinational companies with a global presence in many different economies has also contributed to increased globalization. These companies have been able to take advantage of economies of scale and gain increased specialization.
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Reduced tariff barriers: The reduction of tariff barriers has encouraged global trade. This has occurred through the support of organizations like the World Trade Organization (WTO).
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Increased competition: Globalization has increased competition among businesses, which has driven innovation and efficiency, leading to increased productivity.
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Spread of new technologies and knowledge: Globalization has facilitated the spread of new technologies and knowledge across borders, allowing countries to learn from one another and adopt best practices.
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Trade agreements: Organizations like the WTO have encouraged free trade through the reduction of tariffs.
Overall, globalization has been driven by a combination of economic, technological, and political factors. While it has led to increases in standards of living around the world, it has also had negative effects for some people.