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The driving forces behind globalization
Before we attempt to examine the advantages and disadvantages of globali-
zation, it is helpful to summarize the main influences that have been the 
driving forces behind it. It must be stressed that there is no firm agreement 
about how to measure the increase in globalization accurately. However, 
those listed in Figure 11.1 are generally accepted as the main driving forces.
Decline in trade barriers – deregulation
Increased access to markets
Drive to secure competitive advantage
Access to different markets
Increased diversity and greater distributive risk
Expansion of English as an international language
Developments in electronic communication
Figure 11.1 Globalization: driving forces

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212 Cross-Cultural Communication
The decline in trade barriers and the deregulation of markets, with the 
resultant liberalization of trade and reduction of cross- border regulations 
with less bureaucracy, have made it easier to move goods, services, labour 
and finance across borders. International boundaries have therefore 
become less relevant as regional groupings have been set up to promote 
trade, such as the EU and NAFTA. There is also the possibility of the estab-
lishment of a large free- trade zone of 21 Asia- Pacific countries, to include 
China and Japan, by 2020.
The increased access to markets involves increased competition, together 
with consumer pressure and greater consumer spending power. Access 
to new and wider markets offers the opportunity to trade a wider range 
of products. Firms can locate facilities wherever it is most advantageous, 
coordinate activities between facilities and transport their products to 
customers worldwide.
The desire to gain competitive advantage: in the current globalized mar-
ketplace, there is intense pressure to find cheaper labour and establish 
control over scarce resources, particularly raw materials required for 
production, including rare earth metals such as lithium, lanthanum and 
cerium used in fibre optics, mobile phones and laptops.
Access to different markets offering the opportunity to sell a wider range 
of goods. Economies of scale have been achieved by the rationaliza-
tion and standardization of product ranges. Countries have special-
ized in the production of goods and services that are produced most 
efficiently.
Advances in technology, for example, the increased use of automation, 
robotics and containerization, have improved both production and dis-
tribution. Improved communications have included electronic financial 
transactions, computer networks, the rapid interchange of information 
and ideas, and speedier decision making.
Greater distributed risk, especially increased international diversity, as 
financial risk can be distributed across different markets with a wider 
range of products.
The spread of English as the major international language, especially in 
advertising, the media and on the Internet.
IT developments, including expansion of the Internet,
e- commerce 
and social media sites, which have spread awareness of global brands 
and products. Developments in information processing and com-
munication have reduced the costs of managing a global production 
system.
As a result of these, the traditional barriers to
cross- border trade and 
investment, including time zones, distance, language, different national 
government regulations and business practices, have become much less 
significant.
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Globalization and its Effect on Culture 213