Two factors contributing to the process of Globalization
Technological advancement in the process of a supply chain, transportation of goods and services and in the process of commutation around the world, played an important role. It also promotes the globalization. Technology is growing day by day, with this technological advancement, the way of doing business or trading is also improving for example; it is the technology that helps the countries to build roads, air plans, watercrafts so that, they can be able to trade their goods and services around the world.
With the help of technology like mobiles phones, laptops, software, applications etc. people can communicate with each other around the world. It is due to the technology revolutionized the business as well as the social life of people around the world. The Internet allows people to connect with each other and share their ideas, views and thoughts with each other. With the help of the internet, people can do their business deals by emailing and doing conference call etc.
Business people are using aircraft to transfer their goods and services to the other countries of the world. People can travel around the world using aircraft so that they can find out a new market in the other countries and can start a new business. It is the technology that now people can transfer money to another country in return for trading goods and services. Moreover, due to technology, companies are bringing in innovation in their products, for example, mobile phone computers automobiles extra (STEVER & MUROYAMA, 2015).
Moreover, the capital flow of movement contributes its role in the globalization. Now business people can travel around the world o seek the potential market so that they can nest money in that country and to earn profits. For example; Apple Inc. is making their products in the China because Apple after the research find that the labor force cost in China is less than the USA and so they planted their manufacturing process in China where they are manufacturing their iphones on paying low labor cost.
Financial markets also contributing its role in the process of Globalization. Now people around the world can buy the share of any company listed on the stock exchange of a country. In short, financial markets around the world have given access to the companies so that they can improve the economy of the country as well as the economy of the world (Cetorelli & Goldberg, 2012). In short, it contributes to increasing the GDP rate of a country and contributes/ helps to decrease the global economic crises (dgff.unctad, 2016).
Cetorelli, N., & Goldberg, L. S. (2012). Banking Globalization and Monetary Transmission. Journal of Finance , 1811-1843.
dgff.unctad. (2016, April 6,). GLOBAL CAPITAL FLOW TRENDS. Retrieved May 5, 2016, from dgff.unctad.org: http://dgff.unctad.org/chapter1/1.2.html
STEVER, H. G., & MUROYAMA, J. H. (2015, September 26,). Globalization of Technology: International Perspectives. Retrieved May 5, 2016, from nap.edu: http://www.nap.edu/read/1101/chapter/2