factors contributing to globalisation

Globalisation

The increasing inter connectedness of economies,cultures and markets worldwide

Trade liberalisation

Removal/ reduction of trade barriers (tariffs and quotas) to encourage free trade between countries

Why reduce barriers?

Encourages greater internationals trade. By making it easier four business to operate across boarders

Political change

Shift in goverment,policies,leadership or political systems that impact a country’s governance

How does it influence globalisation grwoth?

Lead to negotiation of more free trade agreements and create Ann attractive enviroment for foregin investors

Reduced transportation costs

Make it cheaper and easier to move goods and people across boarder accelerating globalisation

Lower transport costs enable business to ship goods cheaply allowing competitive pricing globally and easier entry into markets

Easier for people to fly across world

Communication technology

Enables easier global connections,supporting international trade and business expansion

Enable more remote work

Strengthens global partnerships

Increased global companies

MNCS- operate in multiple countries

Increase FDI expand global sales, creates employment opputnities and contribute to economic growth and GDP

Migration

Movement of people from one place to another

• for work

• Education

• Better living condition

Expands global workforce- often lowing labour costs

Promotes cultural exchange

Increases demand