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The origin of globalization

According to Daniels, Radebaugh and Sullivan (2007) factors influencing the increased growth in globalization in the recent decades are:

1. 
   Increase and expansion of technology.
   
2. 
   Liberalization of cross-border trade and resource movements.
   
3. 
   Development of services that support international business
   
4. 
   Growing consumer pressures.
   
5. 
   Increased global competition.
   
6. 
   Changing political situations.
   
7. 
   Expanded cross-national cooperation. These factors are often interrelated.
   

Technology is expanding especially in transportation and communications. Governments are removing international restrictions. Institutions provide services to ease the conducts of international business. Consumers know and want foreign goods and services. Competition has become more global. Political relationships have improved among some major economic powers. Countries cooperate more on transnational issues (Daniels, Radebaugh, Sullivan, 2007). Stohl (2004) says that six dynamic and interdependent processes of globalization are embedded virtually in all theories of globalization:

1. 
   The dramatic increase in economic interdependence worldwide
   
2. 
   The intensification and deepening of material, political, and cultural exchanges
   
3. 
   The global and rapid diffusion of ideas and knowledge enabled through new information technologies
   
4. 
   The compression of time and space
   
5. 
   The disembedding of events and institutions which permits new realignments and restructuring of social interaction across time and space
   
6. 
   Increases in global consciousness through processes of reflexivity
   

Mead and Andrews (2010) state that high globalization has specific historic and cultural roots that can be located precisely in time. This aspect of globalization arose from:

• 
  internationalization of finance,
  
• 
  internationalization of production,
  
• 
  development of information technologies.
  

The internationalization of finance means, first, that business people everywhere should be able to move capital around the world almost instantaneously and without hindrance from national governments. In practice, American influence over the international regulatory authorities gives American companies a leading edge. Second, the drive towards globalization has been led by the financial industries and other service companies; with the exception of the oil producers, most business that sells a manufactured product has been outstripped.
The globalization of production was facilitated by the globalization of finance. The breakdown of localized exchange controls meant that capital could be moved across national borders to purchase new plant and materials, hire a new workforce, or acquire a competitor. Both aspects of globalization did more what makes adjustment to the prevailing economic system; they introduced major structural changes and they were made possible by a third factor, the development of information technologies.
Mittelman (2000) comments that with new technologies, especially space- shrinking systems of transport and communication the sites of manufacturing are increasingly independent of geographical distance. Now, capital does not only search for fresh markets, but also seeks to incorporate new groups into the labor force.