Drivers of globalisation

Drivers of globalisation

1. Trade liberalisation

   • Reduced barriers to trade- WTO- no NTBs

2. Rise of MNCs

   • Incr market power of global MNCs

3. Containerisation

   • lower costs + incr econ of scale

4. Improved transport infrastructure

   • Easier transport links, lower transport costs

5. Improved technology + communications

   • Global media presence

6. Economies of scale

   • Incr in MES in many industries

7. Increased joint ventures between host domestic firms + MNCS

8. End of Cold War/ fall of communism

   • Changes to econ + pol systems

9. Increased capital flows

10. Changes in competitive adv

    • Deindustrialisation, sectoral changes

11. Incr in power of trading blocs

12. Footloose companies

13. Changes in ER

    • currency wars, currency controls

14. Changes in natural factor endowment

    • e.g. discovery of commodities

15. Differences in tax systems

    • economies seek to attract inward FDI

16. Incr price competition from emerging econ

17. Incr ownership of domestic firms by foreign states/ companies

    • e.g. Qatar owns many firms in other countries