The key driving forces of Globalization includes Economic, Political and Technological factors, establishment of WTO, emergence and growth of regional integration, decline in trade barriers, decline in investment barriers, technological changes, increase in FDI and growth of MNC’s.

The phenomenon seems to be driven by three major forces: the globalization of all product and financial markets, technology, and deregulation.

Capitalism is the driving force of globalization and the growth of supra-territorial domains. By its very nature, capital drives beyond national boundaries to expand its markets to the whole world. Material forces have played a central role in terms of the structures of global production.

Factors That Have Contributed to Globalisation

• Containerisation. The costs of ocean shipping have come down, due to containerisation, bulk shipping, and other efficiencies.
• Technological change.
• Economies of scale.
• Differences in tax systems.
• Less protectionism.
• Growth Strategies of Transnational and Multinational Companies.

The impetus, power, or energy behind something in motion, as in He was clearly the driving force in the new administration. This term transfers the force that sets in motion an engine or vehicle to other enterprises.

Explanation: Broadly speaking, economic, financial, political, technological and social factors have paved the way to globalization. Economic factors mainly include lower trade and investment barriers. Expansion of financial sector is also considered an important force of glo- balization.

Technological advancements reduce costs of transportation and communication across nations and thereby facilitate global sourcing of raw materials and other inputs. Patented technology encourages globalization as the firm owning the patent can exploit foreign markets without much competition.

Answer: The main drivers of globalization include technological advancement, international trade, and international investment.

The drivers of globalization are the reduction of barriers to international trade, increased consumer demand, lowered costs of shipping and production, and technological advancements in communication and transportation.

The Twelve DRIVING FORCES

• KNOWLEDGE. Instinctive. People who are driven by utilizing past experiences, intuition and seeking specific knowledge when necessary.
• UTILITY. Selfless.
• SURROUNDINGS. Objective.
• OTHERS. Intentional.
• POWER. Collaborative.
• METHODOLOGIES. Receptive.

Driving Forces Of Globalisation. There are three driving forces of globalization. Firstly, Improvements in technology has made communications among people in different locations faster and more convenient. People across the globe can communicate with tools such as telephone, electronic mail, fax and video conferencing.

One more invention that pushes globalization forward is Skype. As a result, information technology has become a driving factor behind globalization. In case companies succeed in combining all IT advancements, together they will definitely create a powerful and reliable global market.

However, globalisation is not without challenges. In fact, it has its own pitfalls. For instance, according to some analysists as cited in Saval (2017), local workers in some countries had endured a major fall in the real value of their wages, which dropped by more than 20% because of globalisation.

Globalisation: The Development of a Country According to IMF (1997) ‘Globalization refers to the economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology’.