1. How many stages of globalization?

-> There have been three great eras of globalization :

- Globalization 1.0 (from 1492 to 1800 is related to countries: the beginning of “ global
arbitrage “ , era metaphorically shrunk the world from a “size large” to a “size medium” and
the dynamic force striving globalization in that era tended to be governments and countries.

- Globalization 2.0 (from 1800 to 2000) is related to companies: shrunk the world from a
“size medium” to a “size small” and that era was spearheaded by companies globalizing for
markets and labor.

- Globalization 3.0 ( from 2000 to the present) is a type of Thomas Friedman globalization in
which technology is accessible around the world: It is shrinking the world from a “size small”
to “size tiny” and “flattening the competitive playing field” at the same time. UNIQUE: the
dynamic element of this era of globalization is individuals and small groups. The
convergence of multitasking machines then increased to three billion more participants in the
market, and new business needs for supporting technology which allow people to
collaborate and compete in real-time. Intellectual work can now be dissected, distributed,
returned, and re-assembled in minutes via email.

2. Drivers of globalization:
- Decline trade and Investment Barriers -> free flow of goods, services, and capital.
+ International Trade
+ Foreign direct investment
- The technological changes:
+ Microprocessor: advance
+ Telecommunication: sends information over distance
+ Internet : Converging consumer tastes and preferences, create e-business and
e-commerce -> easily purchase + sale anything in the world
+ Transportation Technology -> accelerate the globalization activities + decline in
transportation cost + less time needed to travel from one place to another
- Other Drivers:
+ Market Drivers: many consumers of goods and services are now universally available
-> easily purchase any brand product.
+ Cost Drivers: Sourcing efficiency + cost differ country to country -> take advantages
+ Competitive Drivers: inter-firm competition increase -> organization are force to play
international -> make his product different and more reliable as compare to other
+ Political Drivers: lower tariffs + allow foreign direct investment in almost all over the
world.