International Business: The New Realities, 5th Edition

Driving Forces of Globalization

1. 2.2 Learn the driving forces of globalization.

Various trends have converged in recent years as causes of globalization. The following are particularly notable:

• Worldwide reduction in barriers to trade and investment. The tendency of national governments to reduce trade and investment barriers has accelerated global economic integration. For example, tariffs on the import of industrial and medical equipment and countless other products have declined nearly to zero in many countries, encouraging freer international exchange of goods and services. Falling trade barriers are facilitated by the WTO. After joining the WTO in 2001, China has made its market increasingly more accessible to foreign firms. The decrease ...