The Drivers of Trade and Globalization

The Drivers of Trade and Globalization

Four major drivers support the process of globalization by setting common standards about how to undertake commercial activities:

  • Economic integration. The setting of regulatory chains allows for the harmonization of regulatory regimes, particularly through trade agreements.
  • Production. The setting of global value chains, particularly through offshoring allows for networked forms of global production.
  • Transportation. The setting of transport chains supported by containerization enables the potential to move large quantities of goods over long distances.
  • Transactions. The setting of information chains through information and communication technologies allow investments and capital to be transferred.