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Major Drivers of Globalization & Institutions that Shaped the Process

Major Drivers of Globalization & Institutions that Shaped the Process
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  • 0:01 Globalization
  • 0:35 Major Drivers of Globalization
  • 2:10 International…
  • 4:08 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
There are many factors that are responsible for the flourishing of globalization. In this lesson, we will discuss the technological changes and institutions that have driven the process. In the end, you will take a quiz to challenge your knowledge on the subject.

Globalization

Meat Queen is the supreme ruler of fast food restaurants around the globe. How did they do it? They embraced globalization, or the integrating of economies across the globe through the process of procuring goods, services, and capital across the world.

We are going to study the major drivers of the globalization process and the international financial and trade institutions that have shaped this process in recent decades. Our story begins with the examination of Meat Queen's globalization adoption.

Major Drivers of Globalization

Meat Queen's globalization success can be linked to numerous key drivers of the overall process. The first factor is the benefit of technological innovation, which has allowed Meat Queen to rapidly globalize their restaurants. The company has been able to manage, reproduce, and standardize their food across the world with local sourcing of ingredients coordinated by technology, such as video conferencing and emailing with suppliers. It is also easy to communicate with employees worldwide to ensure coordinated global efforts for topics such as training.

Another major driver of globalization for Meat Queen has been the development of their transportation systems, which allow quick, affordable migration of their products across the globe. The company utilizes freight trains, ships, and even planes to transfer products to their restaurants. For example, new roads in India have allowed the company to open restaurants in that country. Previously, Meat Queen was limited by small dirt roads that did not support their trucks.

Social and political reforms have also affected the globalization of Meat Queen's business. The enormous growth in population and consumerism of countries, such as China, Japan, and India, has created opportunities for new customers globally. And the collapse of communism in Central and Eastern Europe has created even more new markets and business partnerships for Meat Queen to establish their restaurant business.

All of these drivers have allowed Meat Queen to quickly establish restaurants globally with minimal effort. Many institutions have also been responsible for corporate globalization. Let's take a look.

International Financial and Trade Institutions

International commerce, a key part of globalization, requires extensive support. The World Bank (WB), International Monetary Fund (or IMF), and World Trade Organization (or WTO) are the three institutions that establish the boundaries by which international commerce is transacted.

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