Globalization of Markets and the Internationalization of the Company

Drivers of Globalization
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Drivers of Globalization
Globalization is a term that best describes the mutuality between world economies, the different cultures, and the population spread out globally, thanks to the numerous driving forces that have been in revolution over the past few centuries. The economic, political, and cultural interdependence witnessed across the globe is the perfect representation of the term globalization in every aspect (Walsham, 2017). Until the 19th century, the idea of globalization took shape to substitute the concept of colonization that the Europeans had undertaken for centuries. Different scholars have identified several driving forces for globalization, but technological advancement, trade liberalization, and global financial integration have been at the forefront. Also, globalization has had both negative and positive impacts on the global environment.
Technological advancement in the recent past has had a massive impact on the various aspects that facilitate globalization. Information technology at the heart of technological advancement enables global entities to have instantaneous communication and has transformed the way businesses produce and sell products globally. Innovative technologies are also credited for the development of steamships, railroads, and electric telegraphy that were influential in pioneering global commerce. The recent past has witnessed a rapid transformation in the transport and telecommunication sector, manufacturing, and industrialization that are fundamental in the global economy, thanks to the technological advancement in the various industry sectors (Birajdar & Hattekar, 2020). E-commerce has been the major focus of global enterprises. It has been made possible by advancing information technologies and related technologies such as the internet and the World Wide Web. It is therefore evident that advancement in technology has been a major driving force for globalization.
Trade liberalization among major global economies is the other major driving force for globalization. Liberalization refers to the leniency or removal of trade barriers that impede free trade among different nations, mainly tariffs. In recent decades, both the emerging and leading economies have embraced the idea that international trade and the global economy are vital in promoting economic growth, development, and reducing poverty. The notion propelled the world into adopting trade policies that enhance free trade across the globe (Melchior, 2018). Currently, there are several multilateral trade agreements across the globe that the World Trade Organisation (WTO) has been mandated to oversee to facilitate free trade and ensure bearable trade tariffs.
The third most influential aspect of globalization is the concept of financial integration. Financial integration is a term used to refer to the process where count...