Question Responses Essay Example | Topics and Well Written Essays - 1000 words

Question Responses - Essay Example The implication was that a country would export one set of industries and export another. In the traditional theory the location decisions are influenced by local inputs and demand as well as transferred inputs and outside demand. Thus this theory supports globalization as it focuses on resource endowments. The traditional theory further suggests rural areas are not very well endowed with human and physical capital and hence opportunities for them are less (Leichenko & Silva, n.d.). Since they have high skilled labor ratio, they are able to compete in manufacturing industries where economies of scale are met. In doing so, the aim of exchange of goods promotes share of economic activity and opens the world market to everybody. It also provides a platform for the developing nations to market their products in regions beyond borders and which could ultimately alleviate them from poverty. These principles are what gave rise to the concept of globalization. 2. The major drivers of globalization include social-demographic (regional, cultural), technological, which includes telecommunications, internet and transportation, economic factors like foreign direct investment, profit motives and market share, ecological and environmental factors like pollution and green laws, and political-legal factors like falling trade barriers, political stability and intellectual property. There is a connection between poverty and globalization and it is generally believed that without globalization inequality would have increased. Free trade would make the world prosperous and assist the poorer nations in coming up. Technological upgradation takes place in developing nations but evidence also suggests that technological change increases inequality between highly skilled workers and the unskilled workers (Singer). Trade and politics should be independent of each