causes of globalisation

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Causes of globalisation are the main factors that drive the closer connection between world economies:

  • Technological change: Advancements in transport, such as container shipping and air freight, combined with better communication like the internet, have made moving goods and information cheaper and faster.
  • Liberalisation of trade: Lowering tariffs, quotas, and other trade barriers through organizations like the World Trade Organization (WTO) has made international trade easier.
  • Foreign direct investment (FDI): Companies operate in more than one country to find new markets, cut costs, or access raw materials.
  • Financial market integration: Allowing money to flow freely across national borders helps businesses and investors find the best opportunities globally.
  • Policy decisions: Governments promote privatisation, deregulation, and market-oriented reforms to encourage businesses from other countries to invest locally.
  • Demographic shifts: As more people in emerging countries join the middle class, they buy more goods and services from around the world.