Accelerating technological innovation, Advances in transportation, Emergence of NIC and?Increasing cost of product development (Dunning, 1997). #Examples of cost drivers in globalization drivers#Drivers are primarily uncontrollable by the worldwide business.Įach industry has a level of Globalization potential that is determined by these external drivers.The Market Drivers Cost or Economic drivers are:?Convergence of lifestyles & taste, Increased travel creating global consumer,?Growth of global and regional channels, Establishment of world brands, Push to develop global advertising, Shortening product life cycle, Continuing push for economies of scale. Together, these four sets of drivers cover all the major critical industry conditions that affect the potential for globalization. Analysis There are four broad groups of industry globalization drivers - market, cost, Government and competition. #Examples of cost drivers in globalization driver#In this sense, technology is both driven by and is a driver of globalization, so that it is possible to speak of the new technologically driven character of the global economy (Donald, 1994). Global firms rely on technological innovation to enhance their capabilities. One of the results is that firms, whose output was previously significantly more limited by the size of their domestic market, now have the chance to reap greater advantages from economies of scale by going global. It is a historical process moving at different speeds in different countries and in different sectors (Held 2000). Globalization can be attributed to other causes, including cost drivers, such as.ĭrivers of Globalization Drivers of Globalization Drivers of Globalization Introduction Globalization is defined as a process of economic integration of the entire world through the removal of barriers to free trade and capital mobility, as well as through the diffusion of knowledge and information. One of the primary drivers of globalization has been in respect to market forces. Other cost drivers to globalization are the opportunity to build global scale economies and the high product development costs nowadays. 4) Cost drivers Sourcing efficiency and costs vary from country to country and global firms can take advantage of this fact.
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