Key factors driving global trade and impact of digital technology on globalization

GLOBAL BUSINESS
ENVIRONMENT

Key factors of cost, market, environment
and competition that drive global trade
Globalization is the procedure of interaction and combining between people, firms and government
worldwide. It is considered be some as kind of capitalist expansion which allows the integration of localized and
nationalized economies into international unstructured market economy. Due to advances in transportation and
communication technology, globalization has grown. Increasing the international interaction comes the growth of
global trade, thoughts and culture. There are four factors which are driven globalization such as:
 Cost
 Market
 Competition
 Environment

Impact of digital technology upon globalization
 Technology development is the main force of driving the globalization. It is to become international through raising
the economies of scale and market size needed to break even.
 Advancement of technologies decrease costs and transportation and communication across countries. Therefore, it
facilitates global sourcing of raw material and other inputs to CAMECO.
 Globalization is encouraged through patented technology as the company owning the patent which can effort
international markets without more competitions.