1. FACTORS CONTRIBUTING TO GLOBALIZATION & EFFECTS OF GLOBALIZATION ON BUSINESS

2. Factors which have contributed to globalization Factors contributing to globalization Explain how Technological change More powerful computers and internet have allowed the easy transfer of data, which plays an important role in speeding up the globalization. The reduction of transportation costs Air transportation and telephone costs have improved the developing environment for globalization. Consumer taste change More and more consumers today are willing to buy foreign or new products for fashion or new styles. The growth of new markets New markets have been opened up in countries like former Eastern European countries and China. The growth of new markets has increased the trend of globalization. Competition More and more fierce competition has forced businesses to seek opportunities in the world markets. To compete successfully, businesses today must develop a global strategy. Globalization and Business - Globalization and Business -Factors affecting globalization

3. Effects of globalization on businesses Please try to explain how Increasing competition More and more foreign businesses have entered local markets so the competition has been intensified. Meeting consumer needs in more effective ways Consumers have choices for products and services. They can buy the best products for the best prices. Being able to enjoy economies of scale Businesses can enjoy as large scale of production in the whole world. Their production costs can thus be reduced. Affecting the choice of location Businesses can choose the most favorable place for production or business operation. The production of Motorola company in China can reduce the production costs of labor and eliminate the tariff restrictions of exports. Increasing mergers or joint- development opportunities in the world market Businesses have more partners worldwide. They can join together to produce goods and services or to penetrate foreign markets. Globalization and Business -The effects of globalization on businesses