Drivers Of Globalization

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Globalization

The growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology.

International Monetary Fund
Globalization today is an inexorable reality and is being built into the process of economic reforms in almost all the nations of the world. It is the process of international integration of products, technologies, human resources, capital, cultures and information. It refers to the increasing integration of economies around the world particularly through trade and financial flows. As such, it is characterized by increasing social and economic openness and growing interdependence between the countries of the world. In economic contexts, it refers to trade liberalization or free trade. There are several global issues and concerns like poverty, bio-diversity, environmental protection, sustainable development and international security and cooperation which require global action and solution. All such issues instigate different countries to come closer to one another.

Drivers of Globalization
In general, globalization represents the increasing integration of the world economy, based on five interrelated drivers of change:
International trade (lower trade barriers and more competition)
• Financial flows (foreign direct investment, technology transfers/licensing, portfolio
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