Answer:
<u>Competitive Drivers </u>
Description
Explosive growth in international business
Implication for Business
Intense competition in world markets
Globalization has led to an explosive growth in international.business which has led to increased competition amongst companies because they now have to compete on a global scale against numerous companies in various locales.
<u>Political Drivers </u>
Description
Preferential trading arrangements and privatization of industries
Implications for Business
Increased opportunities for trade and investment
Some Countries offer great trading agreements this enabling companies to trade in other countries. This opportunity means that there are increased opportunities for trade by companies in the countries involved in the agreement.
<u>Cost Drivers</u>
Description
Exporting or producing Overseas
Implications for Business
Lower Cost of Goods sold
Globalization has enabled companies to be able to produce in cheaper markets for labor such as in Asia and Africa. This has led to a lower cost of goods sold and therefore higher profits.
<u>Technological Drivers </u>
Description
Explosive growth of high-power, low-cost computing
Implications for Business
Growth in Services.
Driving Globalization is an increased use of technology by human beings. The world is now connected by mere seconds which has enabled companies to derived clients all over the world this enabling them to offer more services.
<u>Market Drivers </u>
Description
Emergence of Global Customers
<u>Implications for Business</u>
New Opportunities and New Markets.
Another factor driving Globalization is the availability of new markets to sell their goods in in different territories. Companies can therefore have an increased demand base which will mean more Profitability.
