An Analysis of Factors Driving Globalisation in Global Business

This report examines the key factors driving globalization in the modern business environment. It identifies the reduction in trade tariffs through multilateral international trade as a significant factor, promoting production and sales by lowering tax barriers and encouraging technological development. The role of technological changes, particularly innovation, is highlighted for increasing efficiency and reducing production costs. The World Trade Organization (WTO) is discussed as an international body that facilitates smoother business operations across countries. Additionally, the impact of trading blocs, such as the European Union, is analyzed for their role in reducing trade barriers and fostering effective business activities. Desklib offers a wide range of solved assignments and past papers to aid students in their academic pursuits.

GLOBAL BUSINESS ASPECTS
Factor behind the
globalisation
Globalisation is complex
mechanism which affects
economic, political and
social aspect of business
market and ensure business
idea, capital asset, technique
and information shared.
There are main several
factors behind increasing
globalisation in modern
states .
Reduction in trade
tariffs
Due to increase in
multilateral form of
international business trade
helps in reducing trade
tariff to promote the
production and sale of the
products. It reduces tax
barriers and helps in trading
the business. It encourages
development of new
technology and consumers
to purchase the goods at
comparatively lower prices.
Role of
Technological
changes
It is one of the main factor
behind globalisation because
innovation and technology is
a key of economic growth.
New technology increase
efficiency and reduce the
cost of production. It is a
machinery tool that
overcome the hurdles arises
in the process of business.
Role of WTO
The World trade
organisation is an
international organisation
which smoothen the
method of doing business
in other countries. The
business environment is
uncertain and complex to
determine the changes that
take place according to the
changes in need and
demand of the consumer.
The effects of
Trading blocs
The trading bloc important
role in highly influencing
the global trade. It is
mechanism that makes free
trade between the countries.
It is mode through which
certain barriers can be
reduced to make effective
business activities. The
suitable example of trading
bloc is European Union.