DRIVERS OF

GLOBALIZATION https://www.google.com/url?sa=i&url=https%3A%2F%2Fdribbble.com%2Fshots%2F4
961806-Around-The-
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Prepared by: Mr. Marben B. Adova, LPT

TECHNOLOGICAL
DRIVERS

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 Technology shaped and set the foundation for modern
globalization.
 Innovations in the transportation technology revolutionized the
industry.
 Inventions in the area of microprocessors and telecommunications
enabled highly effective computing and communication at a low-
cost level.
 Finally the rapid growth of the Internet is the latest technological
driver that created global e-business and e-commerce.
POLITICAL
DRIVERS

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 Liberalized trading rules and deregulated markets lead to lowered
tariffs and allowed foreign direct investments in almost all over the
world.
 Theinstitution of GATT (General Agreement on Tariffs and Trade)
1947 and the WTO (World Trade Organization) 1995 as well as the
ongoing opening and privatization in Eastern Europe are only
some examples of latest developments.
MARKET
DRIVERS

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reports%2F2439405%2Fasset-backed-securities-market-2020-2027-global-industry-
analysis-and-opportunity-
assessment%2F&psig=AOvVaw1uEpV6bnmvZDGDoVfe5KmG&ust=1602295057852000&
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 Asdomestic markets become more and more saturated, the
opportunities for growth are limited and global expanding is a way
most organizations choose to overcome this situation.
 Common customer needs and the opportunity to use global
marketing channels and transfer marketing to some extent are also
incentives to choose internationalization. (Ferrier, 2004)
 COST
DRIVERS

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 Sourcing
efficiency and costs vary from country to country
and global firms can take advantage of this fact.
 Other cost drivers to globalization are the opportunity to
build global scale economies and the high product
development costs nowadays. (Ferrier, 2004)
COMPETIVIVE
DRIVERS

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 With the global market, global inter-firm competition
increases and organizations are forced to “play”
international.
 Strong interdependences among countries and high two-
way trades and FDI actions also support this driver.
 ORIGINS OF
GLOBALIZATION

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Phases of Globalization

HISTORICAL ORIGIN
First
Phase: Germinal Phase-
Europe (1400-1750)

Enlightenment

HISTORICAL ORIGIN
Second Phase: Incipient Phase-
Europe (1750-1825)

Homogenous, Unitary State

HISTORICAL ORIGIN
ThirdPhase: Take-off Phase
(1875-1925)

World War I, League of Nations

HISTORICAL ORIGIN
FourthPhase: Domination
Phase(1926-1969)

Holocaust, World War II,

United Nations

HISTORICAL ORIGIN
FifthPhase: Uncertainty Phase
(1969-1992)

Space Exploration, World

Community

HISTORICAL ORIGIN
 Accumulation or meeting of
power thru an international
government.
UN, Diplomatic Global Village,
Conflict

POLITICAL ORIGIN
Merging of economy all over
the world with free flow of
capital, products, technology
and expertise.
International Monetary Fund
(IMF)

ECONOMIC ORIGIN
Exchange of ideas, culture, tradition,
and values all over the world in such a
way that there is expanding and
maintaining of public relations.
Values, Shared Norms and Knowledge,
Alienation

SOCIO-CULTURAL ORIGIN
INSTITUTIONS OF
GLOBALIZATION
GOVERNMENT

SCHOOL

MASS MEDIA
MULTINATIONAL CORPORATION
NGO

INTERNATIONAL ORGANIZATION
 References:
 https://www.grin.com/document/57026