Globalization: What Drives Globalization?

Geopolitical Changes

Geopolitical changes refer to changes in a country's boundaries, governments or government policies. These changes provided the opportunity for countries to open their local markets to international goods, invite new ideas and exchange cultural traditions. One example is the formation of the European Union in 1993. This union includes 27 member states with over 500 million citizens and a $16 trillion economy. This opening of internal borders facilitates the development of protocols that allow for the free flow of goods, people and capital among European member states.

Other countries are emerging markets. For example, China and India have over one third of the world's population. New economic development has provided for the development of market economies and free trade in both countries. This economic development has been allowed by changes in government policy that invites foreign investment.