Causes of globalisation

• Cotainerisation

The development of container shipping has made goods easier to transport. Containers are easy to unpack at dockyards => automation can occure => lowers costs of production for firms

• Improvements in communication technology

Information can be transmitted cheaply and quickly => reduces the diseconomies of scale that can occur from being a MNC

• Reductions in protectionism

(Quotas, tariffs, embargos (bans on trade), etc) The General Agreement on Tariffs and Trade (GATT) and WTO work to reduce trade…