Factors that Contributed to globalization

Factors that Contributed to globalization

International Business Management
Identify the factors which you believe may have contributed to globalization and state how they have impacted business practices in the Caribbean.

Globalization can be said to be the process where geographical and cultural barriers are reduced or removed to facilitate trade in a global market place.
Factors that have contributed to globalization are:
 Technological advancement - This facilitates a platform for easier communication, transport and data processing over vast differences which aid in multi-national corporations. This has impacted Caribbean business practices in the sense that information and communication is just a click or phone call away. Businesses within the Caribbean have learned how to access the latest technological advancement available to them in an effort to keep a brisk of the ever changing global market which affects their businesses significantly. One such example is the ability of Caribbean businesses to purchase raw online from a supplier all the in Europe.

Global competition – This has impacted on Caribbean businesses in the sense that they are no longer competing in a local market with Local firms alone any more because they are now in the a global market place. Therefore, this has allowed them to compete globally for a share of the global market while at the same time competing for their limited local domestic market as well. What this really means is that the quality of goods being produced and also the products that will be produced must be that of industry standards or better if they want to remain competitive within these markets.

Governmental roles – Over the last 20 years or more slowly but surely there has been a significant reduction of trade barriers globally. Within the Caribbean there has been a continued effort to create a single market which allows Caribbean countries to trade between each other with less restriction in the global market place. This helps to facilitate trade...

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