The drivers of globalisation

Market drivers Cost drivers

Per capita income converging among industrialised Continuing push for economies of scale
nations Accelerating technological innovation
Convergence of lifestyles and tastes Advances in transportation
Organisations beginning to behave as global customers
Emergence of newly industrialised countries with
Increasing travel creating global consumers productive capability and low labour costs.
Growth of global and regional channels Increasing cost of product development relative to
Establishment of world brands market life

Push to develop global advertising

Government drivers Competitive drivers
Reduction of tariff barriers Continuing increases in the level of world trade
Reduction of non-tariff barriers Increased ownership of corporations by foreign
acquirors
Creation of blocs
Decline in role of governments as producers and Rise of new competitors intent upon becoming global
competitors
customers
Privatisation in previously state-dominated economies Growth of global networks making countries
interdependent in particular industries
Shift to open market economies from closed communist
systems in eastern Europe More companies becoming globally centred rather than
nationally centred
Increasing participation of China and India in the global
economy Increased formation of global strategic alliances

Other drivers Globalisation of financial markets

Revolution in information and communication Improvements in business travel
 The drivers of globalisation
Market drivers Cost drivers
Per capita income converging among industrialised Continuing push for economies of scale
nations Accelerating technological innovation
Convergence of lifestyles and tastes Advances in transportation
Organisations beginning to behave as global customers
Emergence of newly industrialised countries with
Increasing travel creating global consumers productive capability and low labour costs.
Growth of global and regional channels Increasing cost of product development relative to
Establishment of world brands market life

Push to develop global advertising

Government drivers Competitive drivers
Reduction of tariff barriers Continuing increases in the level of world trade
Reduction of non-tariff barriers Increased ownership of corporations by foreign
acquirors
Creation of blocs
Decline in role of governments as producers and Rise of new competitors intent upon becoming global
competitors
customers
Privatisation in previously state-dominated economies Growth of global networks making countries
interdependent in particular industries
Shift to open market economies from closed communist
systems in eastern Europe More companies becoming globally centred rather than
nationally centred
Increasing participation of China and India in the global
economy Increased formation of global strategic alliances

Other drivers Globalisation of financial markets

Revolution in information and communication Improvements in business travel
 The drivers of globalisation
Market drivers Cost drivers
Per capita income converging among industrialised Continuing push for economies of scale
nations Accelerating technological innovation
Convergence of lifestyles and tastes Advances in transportation
Organisations beginning to behave as global customers
Emergence of newly industrialised countries with
Increasing travel creating global consumers productive capability and low labour costs.
Growth of global and regional channels Increasing cost of product development relative to
Establishment of world brands market life

Push to develop global advertising

Government drivers Competitive drivers
Reduction of tariff barriers Continuing increases in the level of world trade
Reduction of non-tariff barriers Increased ownership of corporations by foreign
acquirors
Creation of blocs
Decline in role of governments as producers and Rise of new competitors intent upon becoming global
competitors
customers
Privatisation in previously state-dominated economies Growth of global networks making countries
interdependent in particular industries
Shift to open market economies from closed communist
systems in eastern Europe More companies becoming globally centred rather than
nationally centred
Increasing participation of China and India in the global
economy Increased formation of global strategic alliances

Other drivers Globalisation of financial markets

Revolution in information and communication Improvements in business travel
 The drivers of globalisation
Market drivers Cost drivers
Per capita income converging among industrialised Continuing push for economies of scale
nations Accelerating technological innovation
Convergence of lifestyles and tastes Advances in transportation
Organisations beginning to behave as global customers
Emergence of newly industrialised countries with
Increasing travel creating global consumers productive capability and low labour costs.
Growth of global and regional channels Increasing cost of product development relative to
Establishment of world brands market life

Push to develop global advertising

Government drivers Competitive drivers
Reduction of tariff barriers Continuing increases in the level of world trade
Reduction of non-tariff barriers Increased ownership of corporations by foreign
acquirors
Creation of blocs
Decline in role of governments as producers and Rise of new competitors intent upon becoming global
competitors
customers
Privatisation in previously state-dominated economies Growth of global networks making countries
interdependent in particular industries
Shift to open market economies from closed communist
systems in eastern Europe More companies becoming globally centred rather than
nationally centred
Increasing participation of China and India in the global
economy Increased formation of global strategic alliances

Other drivers Globalisation of financial markets

Revolution in information and communication Improvements in business travel
 The drivers of globalisation
Market drivers Cost drivers
Per capita income converging among industrialised Continuing push for economies of scale
nations Accelerating technological innovation
Convergence of lifestyles and tastes Advances in transportation
Organisations beginning to behave as global customers
Emergence of newly industrialised countries with
Increasing travel creating global consumers productive capability and low labour costs.
Growth of global and regional channels Increasing cost of product development relative to
Establishment of world brands market life

Push to develop global advertising

Government drivers Competitive drivers
Reduction of tariff barriers Continuing increases in the level of world trade
Reduction of non-tariff barriers Increased ownership of corporations by foreign
acquirors
Creation of blocs
Decline in role of governments as producers and Rise of new competitors intent upon becoming global
competitors
customers
Privatisation in previously state-dominated economies Growth of global networks making countries
interdependent in particular industries
Shift to open market economies from closed communist
systems in eastern Europe More companies becoming globally centred rather than
nationally centred
Increasing participation of China and India in the global
economy Increased formation of global strategic alliances

Other drivers Globalisation of financial markets

Revolution in information and communication Improvements in business travel
 The drivers of globalisation
Market drivers Cost drivers
Per capita income converging among industrialised Continuing push for economies of scale
nations Accelerating technological innovation
Convergence of lifestyles and tastes Advances in transportation
Organisations beginning to behave as global customers
Emergence of newly industrialised countries with
Increasing travel creating global consumers productive capability and low labour costs.
Growth of global and regional channels Increasing cost of product development relative to
Establishment of world brands market life

Push to develop global advertising

Government drivers Competitive drivers
Reduction of tariff barriers Continuing increases in the level of world trade
Reduction of non-tariff barriers Increased ownership of corporations by foreign
acquirors
Creation of blocs
Decline in role of governments as producers and Rise of new competitors intent upon becoming global
competitors
customers
Privatisation in previously state-dominated economies Growth of global networks making countries
interdependent in particular industries
Shift to open market economies from closed communist
systems in eastern Europe More companies becoming globally centred rather than
nationally centred
Increasing participation of China and India in the global
economy Increased formation of global strategic alliances

Other drivers Globalisation of financial markets

Revolution in information and communication Improvements in business travel