FACTORS THAT LED TO GLOBALIZATION

FACTORS THAT LED TO GLOBALIZATION

1               1.  Open-economy system of the states

Open-economy system means that people in a country can do business or trade their goods or services to another countries in worldwide communities. This can be one of characteristics of globalization and also can be one of factors of globalization. Why it is also included as one of the factors? Because the presence of the open-economy can indirectly enforce each country in the world to compete to another countries, so they won’t be left behind. From that competing, which is did by each individual or country, can force us to a change (globalization). For instance, in trade field, where the production and financial investment force countries to accept and market their products to all nations without any protection from their country so later the products from another countries will be easily obtained. From there, it can be created as the dependency between countries in production and distribution until the marketing and from that dependency it self, the globalization can be made.

                 2. The rise of the more advanced people mindset.

Globalization also can be happened because of societies asked for it. Society seems to have a change that they actually never felt before. Globalization is something that cause society whether they want or do not want they should have to follow it so they will try to change everything in all fields from the smallest up to the biggest. They feel challenged to make something new, unique, and sophisticated. For instance, society no longer feels bothered or hard while doing anything because they’ve created a change creatively. And also their mindset constantly wants to raise or gain the knowledge. Because they already gained the knowledge, they can develop the world into globalization. Not forget to mention that the work ethics of people, which are more productive, dare to compete, responsible, and dare to bear the risk, are also considered as the drivers of globalization.

                 3. The rapid growth of information technology

This can be one of the effects and also can be categorized as the catalyst of globalization process. The rapid growth of information technology can be happened because of the development of the knowledge that can produce the communication and transportation tools. Those kinds of tools can cause the mobility in many aspects in human life and can lead us to the global connectivity, and of course can cause globalization.

                 4. The encouragement of the inter-state transfer

The encouragement of the inter-state transfer is also categorized that can encourage globalization. Since the presence of this displacement, the associated countries can perform an interaction and that at the first we only know the environment that we live but finally because of the overseas travel, we can add the connection with another country and also improve our knowledge about that country. For example, if we wind some people who want to travel to the other country because they have some business out there or another purposes it can invite the investors from another country or maybe from developed countries to invest their funds in developing countries and maybe they can help the developing countries becoming more awakened. So they can influence the developing countries to raise globalization

           5. Integration of the world economy

States also requires the integration of the world economy in which they can exchange profits. Current economic activity leads to a weightless economy, one of which is the exchange of information. Knowledge-based economy also driven the state of globalization in which they are required to continue to create the potential to compete with other countries because many aspects of the current economic working through networks that cross national borders.

Reference: http://kitaindiy.blogspot.com/search?q=faktor+pendorong+globalisasi