Likely find greater success in the local or domestic setting; however, the market for automobiles, computers, and hotels, fast food chains can be high on the global scale (University of Kentucky, n.Cost drivers are also drivers for globalization and include elements which relate to global-sized economies, including source efficiencies, production differences, high production development costs, as well as rapidly shifting technologies (Jager, 2009). The Science Initiative Group Institute for Advanced Study (2007) discusses that globalization is driven by cost which is largely based on the economic conditions of organizations. The persistent pressures on the “economies of scale, advances in technology, and increasing cost of product development are factors that are relevant in this grouping” (Summers, 2005, p.
The emergence of innovations adapted by those involved in the hospitality industry determines the costs incurred, and thereby impacts significantly on the call for globalization. In this case, advances in the manner of doing business, including internet availability and advertisements impact on trade costs, prompting other businessmen in the hospitality industry to consider these same innovations (Whitla, Walters, and Davies, 2007). The actions of these drivers are based on other competitors (Summers, 2005).
Elements which include increased world trade, new global markets, growth of global economies, and the increased number of competitors all impact on this driver, triggering considerations of globalization (Summers, 2005). Increasing competition among corporations and businesses in the hope of winning over customer consumption preferences has also prompted many corporations to improve the marketability of their products. Current trends in most products include the digitalization trends, where most products have now shifted towards digital versions – digital cameras, online reservations, virtual tours, online advertisements, and similar online transactions (Summers, 2005).
As such, businesses who have not been able to adapt to these digital features have found themselves failing in their businesses. Finally, government drivers have mostly been based on the rules of businesses in the workplace. Lower tariff rates, non-prohibitive country entry, trade blocs, privatization of state-owned businesses, and a general application of open markets have all been considered elements which have encouraged the application of globalization
Please type your essay title, choose your document type, enter your email and we send you essay samples