Market: Homogenization of customer needs is often-cited as a need for globalization. A typical trait of the global consumer is the centralized purchase of materials for a decentralized use.

Growth in number of MNCs

Cost: The scale economies are the most apparent drivers of global supply chains. Further due to liberalized government policies the consumers are not restricted to the local suppliers and are free to select them from any global player.

Government: Favorable trade policies like GATT and WTO have promoted international trade.

International freight and logistics: The growth and development of international freight and logistics has helped add capacity and reduce the real cost per unit.

Global communications and IT: The introduction of global communications and the widespread adoption at low cost has helped accelerate commerce in developing economies.

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* Contributed by -
Krishnakanth K. K. & Pankaj Ghai,
PGP Students.
IIM Lucknow.