Factors that contribute to the process of the globalization

There are many factors which are contributing in the process of the globalization. Although it is the most basic economic activity and it has influenced by several factors of the society. This discuss about the major two factors which have great impact on the globalization.  These all factors can be affected to the globalization in both way positively and negatively.  It means these factors can increase or decrease the globalization for any organization. These factors are the; Technological change, Economies of scales.

Technological change

The cost of communicating the information and transmitting can be reduced by sustained and rapid technological change. This is also known as commonly “the death of the distance” For getting knowledge about the products the technological change is playing the role of the key factors and it also considered as the major part of the globalization. The technological changes are affecting positively on the organization by providing the accurate and latest information related to the products for providing the awareness about the products. This has negative impact on the globalization due to few of these barriers such as; restriction for licensing, Restrictions for foreign exchange and the restrictions for investment. Technological change has transformed in the ways to business goes. It includes as B2C businesses, E-money, B2B business and E-banking which have played a central role to speeding up the globalization. The selling and buying of the stocks for transferring funds can take place instantly.       (Baylis, (2017).).

Economies of scales

The cost for the values and goods for the consumers and end user can be determined by the movement of the value addition and goods. The economies of the scales for over all industries have important factors for a globalization. It is the predicted by several economists the increment in the minimum efficient scale which is linked with few industries. By raising the minimum efficient scale it is observed that the domestic market is decreasing which is used for the satisfaction of the selling needs of the few of industries.

All the emerging countries are following their own transitional corporations. The economic theory discuss about eth economies’ of the scales as the natural consequences for the division of labor and specialization. It’s also considering as the major driver foe the growth economy. Whereas the in the perpetuity; the firms cannot be realized the economies of scale. It also provides the extreme level of the output for any inputs. It also includes all operations which can be extended too far which become the reasons of the diseconomies of the scale. Economies scales are include the various standards which are used to measuring the economy of any country such as dollar rate, cartel prices and gold rate (Ristovska Katerina1, 2014). 

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