Since World War II, globalization has been driven by two major factors: the decline in barriers to the free flow of goods, services, and capital, and technology change. Business has fueled these trends and has been the beneficiary of these trends. Understanding globalization trends helps businesses identify opportunities and threats in their environment. Understanding these trends will also make the changes much more manageable. International businesses have greater flexibility, more options, and a broader scope to consider globalization of production and globalization of markets. Click on the items on the left to read a description. Then, drag each item to the correct implication for business in the chart. Political and social regulations can limit the ability of a company to export goods to a foreign country

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Better ability to export goods - Enhanced transportation technologies.

Enchanced transportation technologies such as bigger and larger ships (most of the international trade is carried through the seas), cheaper fligh costs, and faster trains help businesses export more goods, of higher quality, and in shorter periods of time.

Lowered distance between countries - Declining trade barriers.

When countries are geographically close, the motiviation to reduce trade barriers is greater than if the countries are far apart. For example, The United States has had a free trade agreement with its neighbors Canada and Mexico for several decades, and most of the European Countries are under a customs Union where there are not any trade barriers.

Better ability to optimize location economies - Declining investment barriers.

When a particular place becomes competitive in specific areas, it can attract investment from all over the world. For example, in 1980, the Chinese government established the city of Shenzhen as a special economic zone. Investment barriers in Shenzhen were removed, and the city began to grow. Now, it is a booming city that rivals Hong Kong.

Growth in e-commerce - Enhanced Communication Technologies

Communication technology, specially the internet, has led to a revolution of e-commerce all over the world. Amazon is the most significant example of this: founded in the 1990s, and having become the largest retailer in the United States recently.

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