Factors Affecting Business Globalization

Even during ancient times, globalization was already on the rise and it still is in existence, albeit conservatively because of the economy, today. What every entrepreneur must understand is the fundamental factors which drive globalization. According to the article by Michael Mussa, there are three factors: technology, tastes and public policy.

Any improvement on technology whether in communications
, travel or transportation has a great impact on globalization. People are intrinsically favorable to any improvements to their lifestyle. There is little to no aversion to change when it comes to the betterment of a somewhat backward technology. Those living in developing countries for example would want a similar technological advancement. This is great news for those who have businesses in the technology markets. There's a higher chance of business development if they will export their products and services to those who have not yet experienced the same technological advancements and even those who are looking for competitive products with the one that is available.

The second factor which is taste basically means that the chance for an enterprise to go global would be bolstered if the country they will be exporting their products and services to are looking for the same quality as they. In the article, an example for this was the export of spices to foreign countries. There was a desire from other countries to buy or trade for those spices even though it is expensive because of travel. Now this factor is also somehow related to the first factor which is technology.

The third factor is public policy. Basically, this factor is highly dependent on the issues a certain country is facing. It may be political, social or economic. These three factors are all interrelated and should be given much thought if you are thinking of conducting your business in an international scale.