Causes of Increased Globalisation

Causes of Increased Globalisation

  • Technological advancement: Rapid innovation in technology, including communication and transportation systems, has been pivotal in enhancing globalisation. Digital interfaces and advanced logistics systems have simplified and accelerated the exchange of information and goods worldwide.

  • Trade liberalisation and international economic institutions: Organizations like the International Monetary Fund, World Trade Organization and World Bank have worked on policies to reduce trade barriers, including tariffs and quotas, encouraging global trade.

  • The emergence of transnational corporations (TNCs): With the ability to operate and distribute their products or services across borders, TNCs have been instrumental in driving globalisation. They often invest in foreign markets, expanding their international reach.

  • Reduced costs of transportation and communication: Reduced costs in these areas have made it economically viable for businesses to operate across geographies and enter new markets.

  • Deregulation and free trade agreements: Many countries have deregulated their economies and entered into free trade agreements with other nations, removing trade barriers and facilitating cross-border business activities.

  • Increase in consumer demand for foreign goods: The growth of middle-class consumers in emerging markets and their demand for a wider range of goods and services have driven businesses to expand their operations globally.

  • Political stability: Increasing political stability, especially in developing countries, has made it safer and more profitable for businesses to invest in these countries, fostering globalisation.

  • Cultural convergence: Greater cultural understanding and acceptance between different nations have paved the way for businesses to market their products and services across borders.

Make sure to understand these causes thoroughly, as they will enable you to discuss the reasons for increased globalisation convincingly.