examples of cost drivers in globalization

Outsourcing, on the other hand, is another advantage of globalization, being the other side of the coin that sets the developed countries as the rulers of the third world countries maintaining them in poverty through the sweatshops like activities, because outsourcing allows the less developed countries to develop their economy and to achieve know-how, making them more competitive on the global market. The paper shows that while globalization has its challenges and also its negative effects of maintaining less developed countries or third world countries in poverty, there are also advantages that can count as business opportunities for enhancing companies’ performances and global competition, such as the global talent pool or the global technological advancements. The paper investigates how the economy became global and what are the implications of a global economy for domestic industries, for consumers and for companies activating in various countries and competing with very diverse rivals. As such, this paper discusses the main drivers of globalization and what specific factors determined the shift towards a global economy. The shift towards globalization was induced by social, economic, political and technological realities of a changing world.

Examples of cost drivers in globalization