Driving Forces Of Globalization Analysis

Definition of Globalization

Globalization is the interaction of economies, industries, markets, cultures, and politics aroung the Planet. (Financial Times Lexicon and Karl Moore, Associate Professor, Desautels Faculty of Management of McGill University)

It is a process that enables national and regional economies, societies, and cultures to interact through the Free Market Network in trade, communication, immigration and transportation.

In the past years the concept was limited only to its economic aspect rather than the rest, such as trade, Foreign Direct Investments (FDI), capital flows, and only the past 20 years it has expanded in the areas of culture, media, know-how, societal, political, and even biological factors such as climate change

With this great expansion businesses and Interpersonal Relationships have become more resilient. “Today we see a world much more Interlinked than in the Past.”

Driving Forces of Globalization

1. Technology

Technology has become more available over the countries of the World, facilitating the ease of space and time barriers so as for international markets to interact in a more straightforward way.

2. Liberalization

The great wave of Liberalism proposed by the World Trade Organization as well as one-sided negotiations and decision making processes that countries are involved in.

3. Trade Flows

The lifting of the aforementioned barriers in trade and migration has made easier an increasing growth in world trade over the past 20 years where the huge and numerous effects of globalization have taken place and are being exposed. This was also facilitated by the IT Revolution that made distribution channels, difficult to block, under the Protectionist Trade Policy.

4. Capital Flows

In the era of the World Wide Web, capital has become more mobile and accessible to people in any area of the

In developing economies such as Africa population rates remain still at large. The difference in the population rates depicts the correspondence in economic growth rates and this is depicted in growing income inequality and migration procedures and trends. UCANs have seen an increase in recorded net migration since the early 1990s compared with the three preceding decades. For industrialized economies . the adding official net migration counted for 64 million people for the period that the chart above depicts. Important migration patterns can be observed in any direction of the compass, with positive effects in terms of economics but it is also an issue at large of integrating these migrating waves into the culture of their host country. One of the most realizable impacts is the increase in worker remittances. These have been estimated to be in the order of USD $400 billion in 2006, exceeding by far the official development assistance of OECD countries to developing