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Custom Drivers of Globalization essay paper sample

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There are basically four broad sets of globalization drivers- cost, government, market and competition. Together, all this four drivers cover all the major vital industry settings and conditions that impact the prospective for globalization. Globalization drivers are principally uncontrollable by the world business. Every industry has a given level of globalization prosperity that is greatly determined by these external drivers.

Ferleger & Mandlev (2000) defines globalization as a mechanism of economic integration of the whole world through removal of blockades to capital mobility and free trade, as well as the dissemination of information and knowledge.  It is a chronological process which is moving at unusual speeds in many countries and in diverse sectors. One of the outcome is that industry, whose productivity was in the past limited  by the size and the volume  of their domestic market, now have the possibility of reaping a greater advantage from economies of scale enjoyed   by "being global." Global industries mostly depend on technological innovation and advancement to improve their capabilities. In this judgment, technology has proven to be both driven by and is a driver of globalization, so that it is very vital to speak on the new "technologically driven spirit" of the global economy (Ferleger & Mandlev, 2000)

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The economic or Market globalization drivers are: combination of taste and lifestyles, Increased traveling which create global consumers, expansion of global and regional trade mediums, thrust to develop global advertising, reduction of product life cycle, development of new world brands, and continuous press for economies of scale, Speeding technological innovation, improvement in transportation, and Increasing the general cost of product discovery and development.

 

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The competitive or Government globalization are: cutback of tariff barriers, formation of trading blocks, decrease in role of government, change in open market economies, upgrade  in level of world trade, decrease in non-tariff barriers, Increased arrangement of global strategic partnership, businesses becoming globally centered and Globalization of financial markets .

The main significance note is that the globalization drivers are endlessly creating a new competitive environment. Globalization enhance  greater competition among firms and in the establishment of new industry  and firm structures, for instance modern GVCs are more incorporated and technology-advanced than those in the past, this has greatly forced firms and business to be enhance creativity in terms of strategies and reaction to deal with the new emerging scenarios. The ultimate objective is to compete extensively, gain advantage and if by any chance get rid of the competition in the industry and dominate the market, this will lead to emergence of both winners and losers in the process (Marquardt & Michael, 1998).The former have to rapidly to reinvent itself, however this is possible through merging with other firms and industries, undertaking forceful marketing campaigns and coming up with totally new products

Those firms and business that grab new opportunities and benefits, on the other side, are greatly profitable and generate value, as well as coming up with new products, services, and even industries. The market structure rewards them with additional profits, economic power and more resources. The vanishing of some firms and the appearance of others inescapably leads to changes in the form of competition. The significant points to stress are, first, that this is an iterative and dynamic method which is taking place persistently; and second, that the entire process is, in general, a positive game for the world, reflecting the overall drivers of globalization (Marquardt & Michael, 1998).

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