There are three driving forces of globalization.

Improvements in
technology, improvements in transportation and investments by
transnational corporations (TNCs)
Firstly, Improvements in technology has made communications
among people in different locations faster and more convenient.
People across the globe can communicate with tools such as
telephone, electronic mail, fax and video conferencing. Satellite
technology has enabled messages to be transmitted from one
location and received in another part of the world almost
simultaneously. Similarly, optical fiber systems have very large
carrying capacity and transmit information at very high speed. The
Internet has greatly transformed the way one communicates,
conducts business, obtain information and purchases goods and
services. It has enabled consumers to gather information on new
products and places. Hence, it is a significant driving force of
globalization.
Secondly, improvements in transportation have shrunk the world
considerably in terms of time taken to travel from on place to
another. Containerisation has reduced the time and money taken to
move goods over long distances. It has greatly simplified the
transferring of goods from one mode of transportation to another as
containers can be easily transferred from ships to trucks. In a
globalizing world, there is an increasing mobility of goods and
people. Countries have built efficient and integrated transportation
infrastructure to facilitate this movement. The efficient transport
network worldwide made it possible for goods to be moved across
the world. At the same time, it also meant that people could travel
easily. Hence, it is a significant driving force of globalization.
Lastly, investments by TNCs is a key driving force of globalization as
these are large global firms which based their headquarters in a
number of countries and set up businesses in different locations.
The TNCs coordinates and controls their worldwide activities via
advances in communication technology. The world becomes more
interdependent and interconnected as the TNCs control and source
for raw materials among the world before assembling their final
product in another country to lower production cost. For instance,
Boeing and Toyota Motors. TNCs operate in many countries. They
manufacture products in low-wage countries while their
headquarters remain in their country of origin. They may also source
for components from all over the world. The TNCs produce at low
cost and retains their market.
Advances in communication have made globalization possible as it
allows knowledge and ideas to be shared by people across the
globe.

Economic impact: Globalization leads to improvement of standard of

living, as many countries enjoy the increase of income due to
globalization. In return, the government makes use of the revenue
to help expand education, healthcare, housing and transportations.
As such, these countries enjoy higher standard of Living.
Globalization also leads to increased competition among nations.
Countries face intense competition and governments compete with
one another to attract TNCs to invest in their countries. With
globalization, people can easily move from a country to another for
employment. As a result, people with skills are highly demanded,
and this also presented workforces an opportunity to employ foreign
talents. However, globalization also leads to a widening income gap
between the rich and poor as developed countries are experiencing
rapid economic growth as they own most of the manufacturing
activities while developing countries may lack behind as they faces
trade restrictions and are unable to produce better quality goods.
TNCs are also able to draw investments, talents and raw materials
from poor countries and relocate to other region. Globalisation has
both negative and positive impacts. While there may be increased in
standard of living and competitiveness, there is also an widening of
income gap between rich and poor. Hence, globalization has an
economic impact on people.
Secondly, Social Impact. Globalisation leads to a lost of culture.
Global brands such as Starbucks and McDonalds dominates the
consumer markets in developing countries, creating a largely
homogeneous culture. Also, pop cultures are being spreaded across
the globe, causing youths to be negatively influenced and losing
interest in their own culture. However, Globalisation also helps
increase awareness of foreign culture. Globalisation has enabled
people to be more aware of different cultures as people can learn
about the rest of the world through travelling, the internet and by
watching foreign movies at home. Globalisation has a negative and
positive impact. While some people may lose interest in their
culture, others may gain knowledge on foreign cultures. Hence,
globalization has a social impact on people.
Lastly, Environmental Impact. Globalization can be a destructive
force to the environment. When TNCs set up factories in different
parts of the world, the environment suffers as the TNCs extracts and
uses resources from that part of the world. Deforestation is an

example of environmental degradation. Lands are cleared for

agriculture, transportation and industrialization. Hence,
deforestation is moving at a rapid rate. Global warming also worsens
the environment all over the world as green house gases are being
released into the atmosphere, resulting an increase in average
global temperature.
Globalization brings changes and damages to the environment. It
changes the climate all over the world and raises the global
temperature. Hence, globalization has an impact on the
environment.