5 Major Drivers Of Globalization Definition
Are the factors, and forces that impact the speed of globalization industrials. Drives of the market consider the key to understand customer demand, and the form of consumption .There are five market globalization drives. Gerardo R. Ungson،Yim-Yu Wong(2008)
1-Common customer need
Customers across different countries have the same desire in product, and service category. that determine an industry. Because there are many factors influence, such as culture, climate, infrastructure,and the preference of consumers. Consider the high level of harmonies between the groups of consumers, the high standardized product will be admitting by them.
However, as long as the demand of consumers are common, the spread of globalization will be faster.
2-Global customers
There are many companies that buy particular item in large amount behalf of whole organization, and distribute them to subsidiaries. They generate the demand for high quantity of standardized product. For example, the retailers such as IKEA, and Wal-Mart. They purchase items in large quantity then they get benefit from low price.
3-Global market channel
Indicate the distribution of certain type of product using worldwide way, will reduce cost of handle different distribution requirement. However, supply chain around the world have been created to take the benefit of source opportunities, and establish distribution channel. IKEA found a channel that is close to them, and it becomes world
What Are Drivers Of Globalization
As a determinant of globalization (Bang & Markeset, 2011; Bauernfeind, 2006; Ritzer, 2011; World Bank, 2002). Moreover, cost driver shows the variation in cost and effi-ciency across countries that push national firms to become global (Bauernfeind, 2006). Another major cause of globalization which is attached to lower transportation. INFORMATION – The power of this driver grows stronger every year as the technology for collecting and sharing information becomes more wide spread, easier to use, and less expensive. Information, much like money, is a very useful commodity because it can be applied directly to enhance the performance of the other four supply chain drivers. Explain each of the five major kinds of drivers of globalization using an international company as an example. Drivers of globalization are political, technological, market, cost, and competitive. A-Research-Paper.com is committed to deliver a custom paper/essay which is 100% original and deliver it within the deadline. One of the five major kinds of drivers of globalization; two aspects of this trend are contributing to the globalization of business operations: (1) the progressive reduction of barriers to trade and foreign investment by most governments, which is hastening the opening of new markets by international firms that are both exporting to them and building production facilities in them, and (2) the.