Question

Discuss how technology drivers Cost drivers and market drivers contributes to globalization

Answer 1

1. Technology drivers

Discuss about Technology drivers contributes to Globalization in first Technology become in mind that is Transformation technology, Which shape the world, and make easier to Import and export, because of this International Trade start and really Start globalization., Cause in Transportation Technology drivers Included such as Commercial Jet Aircraft Innovated in 1970 to 1980 and It is Innovation for transportation technology and it really contribute to Globalization as A Technology Drives.,

Another important technological Drivers is innovation of computers this also make things easier and fast for Globalization, within a second work can done and help to grow business, also another important Technology drivers Microprocessors or micro chip innovation, because of the technology drivers now we can move or transfer Technologies where we want because of its small size, and it is really innovative things for Globalization., Expanding in less time cause after that we can use this microprocessors or microchips in aircraft, computers, satellite or other Electric Machines, which is Created Global business and e-commerce Fast and contribute to globalisation really,

2. Cost Drivers -

Cost drivers also play vital role for Globalization, expansion and contribute Really,

Every business or organisation is depend on their labour, raw material and land.

Because of cost drivers most of the developed countries, Work can Be Done from developing country's labour, Use their raw material and land Cause of low cost for manufacturing.,

In developed Countries they have to pay more to their labours for Manufacturing products, also have to paid more On raw material and land for project, for manufacturing same product in developing countries they have to spend Less on labour cost, raw material cost and land for project, that's why most of the organisations or companies do this from developed countries, and always use outside resources, because cost drivers effect on manufacturing and production.,

For example -

Nike shoe Company is worldwide famous company from Unites States, Provide $8 to 10000 salary to their employees, that why Nike get Production done from developing countries such as China, India, and spend around $1000 for 1 employees so here they save on wages costing or costing drivers and same Production Produces in low Cost.

Because of Globalization is growing an expansion of globalisation is increased day to day because of cost drivers, it help to organisations for making more profit compared to their own countries , that’s why cost drivers contribute Globalization

3. Market Driver -

Market drivers is also important part of Globalization, because domestic markets always sutured, for expansion of business, and it is not increase the demand of product in domestic market year by year, which affect on organisation and organisation growth, if any organisation export their production or product globally then demand of product increases and organisation make more profits that's why market drivers play a vital role in Globalization and because of market driver organisations import and export their product for expansion of organisation and increase sales of product and result of that increase in Globalization, market drivers contribute to Globalization

Most of the countries charge less tariff on import to increase Globalization and export their product same countries with less Tariff, it help to countries gain new economy, and also help to increase GDP of country, because of market drivers countries allowed to foreign direct investment it help to Globalization definitely,

For example -

Japan Toyota company sales there vehicles, up to 70% worldwide, and only 30% Toyota company vehicles sold in Japan, it happened because of only market drivers if they sold only 30% vehicles in Japan then they make few profit, but because of 70% sold in world so they generate huge revenue, and also it help to expansion of Toyota company and help to organisation growth of Toyota it happen because of only market driver, and it contribute to Globalization