Analysis of Current Drivers of Globalisation and Business Impacts

This essay examines the current drivers of globalisation, focusing on technological advancements, international trade, and international investment. It defines globalisation as the integration of economies and explores how technological advancements in transportation and telecommunication facilitate this process. The essay highlights the role of international trade policies in reducing barriers and the impact of international investments like FDI on economic development. Furthermore, it justifies the positive impacts of these drivers on businesses, including cost reduction, technological improvements, and increased income sources, leading to business expansion. The conclusion emphasizes the importance of businesses understanding the impacts of these drivers for success.

Current Drivers of
Globalisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Current Drivers of Globalisation.................................................................................................1
Justification.................................................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Globalisation can be defined as the process by which different economies of the world
integrate freely with each other and become inter dependent (What is Globalisation?, 2018). The
integration may be in the speeding of technology, products, jobs opportunities, informations and
many more across the borders. In this assignment also, the discussion will be made about the
current drivers of globalisation. In addition to this, the assignment will also cover impact of those
drivers over the businesses.
MAIN BODY
Current Drivers of Globalisation
Driver can be defined as the factor which contributes towards the change, change in the
sense of growth and development (Søndergaard, Oehmen and Ahmed-Kristensen, 2016). In the
main drivers of globalisation technological advancement, international trade and international
investments are included. The discussion of these drivers is provided as under:
Technological Advancement: The following factor drives globalisation as the technological
advancements in the transportation could help in moving the goods from one country or place to
another place or country within a short period of time in an easy, simpler and quick way.
Likewise the advancements in telecommunication technology also drives globalisation such as
high speed internet makes the communication process easy, needed information could be
gathered in a short period of time (Ivanov and Ivanova, 2016).
International Trade: This factor also enhances the trade relation as well as the mutual relation
in between two or more countries. As any single nation is not having all the needful materials
with itself and it is important for them to import or export some goods or products or materials to
other countries. This process of export and import impacts upon the relationship in between two
countries. Due to this, some countries have also adopted International Trade Policies in order to
reduce the trade barriers and restrictions on the foreign investment.
International Investment: This factor impacts upon globalisation by integrating the economies.
For example, the FDI (Foreign Direct Investment), FII (Foreign Institutional Investment) and FPI
(Foreign Portfolio Investment). Many countries have encouraged international investment to
increase their sources of income as new jobs are created, economic development is also
enhanced (Oberlander, Disdier and Etilé, 2017).
1

Justification
The above discussed drivers of globalisation impacts positively upon the businesses.
There are many benefits which an organisation can derive by making use of globalisation (Potter
and Urquhart, 2017). For companies, the drivers of globalisation provides various benefits such
as reduction in costs, improvement in technology, increased sources of income and many more.
Due to these benefits from the drivers of globalisation, companies are expanding their businesses
to other countries more quickly and easily (Grayson and Hodges, 2017). Not only the countries
but also the companies have become aware about the impacts of globalisation that has foster the
development of economies at a faster rate than ever.
CONCLUSION
From the above assignment it has been concluded it is important for the companies to be
aware about the impacts of drivers of globalisation. As all the drivers could not impact equally,
so it will be beneficial for the companies to assess first and then work to get the highest level of
success possible.
2

REFERENCES
Books and Journals
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Ivanov, S. and Ivanova, M., 2016. Do hotel chains stimulate globalisation?. Tourism
Management Perspectives. 19. pp.102-108.
Oberlander, L., Disdier, A. C. and Etilé, F., 2017. Globalisation and national trends in nutrition
and health: A grouped fixed‐effects approach to intercountry heterogeneity. Health
economics. 26(9). pp.1146-1161.
Potter, C. and Urquhart, J., 2017. Tree disease and pest epidemics in the Anthropocene: A review
of the drivers, impacts and policy responses in the UK. Forest Policy and Economics.
79. pp.61-68.
Søndergaard, E., Oehmen, J. and Ahmed-Kristensen, S., 2016. Extension of internationalisation
models: drivers and processes for the globalisation of product development–a
comparison of Danish and Chinese engineering firms. Production Planning & Control.
27(13). pp.1112-1123.
Online
What is Globalisation?. 2018. [Online]. Available Through:
<https://www.tutor2u.net/business/reference/what-is-globalisation>
3