'The process by which businesses or other organizations develop international influence or start operating on an international scale.'
During this weeks seminar, Richard Hu discussed the drivers of globalisation, as well as the effects that it has on our cities.
So what are the key drivers?
Technological drivers - Technology has shaped and set the foundation for modern globalisation. Innovation in a range of technology areas (such as transportation) have revolutionised the industry and increased competitiveness all over the world. Inventions in the area of telecommunications have enabled highly effective computing and communication at a low-cost for the public and industries. This has resulted in rapid growth of the Internet, the latest technological driver that has created global e-business and e-commerce.
Political drivers - Liberalised trading rules and deregulated markets have lead to lower tariffs and allowed for direct foreign investments almost all over the world. Encouraging international trade through deregulation has encouraged major corporations to take advantage of the importing and exporting of goods and services internationally.
Market drivers - Global expansion is a way of more organisations overcoming the situation of saturation. Common customer needs and the opportunity to use global marketing channels and transfer marketing are incentives for businesses to choose to trade internationally.
Cost and competition - Global firms can take advantage of the fact that sourcing efficiency and costs vary from country to country. Firms also want to be as competitive as possible in the market so increasing their sales internationally in a cost effective way may be beneficial.
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