The driving forces of Globalization includes Economic, Political and Technological factors, establishment of WTO, emergence and growth of regional integration, decline in trade barriers, decline in investment barriers, technological changes, increase in FDI and growth of MNC’s.

    As per V K Bhalla and S. Shiva Ramu the major drivers or factors of Globalization are –

    1. Economic

    Establishment of a new monetary system, the Bretton woods system in 1940

    Establishment of GATT in 1947

    Establishment of CMEA by Soviet Union in 1949-91

    Major currencies become convertible in 1958 to 64

    Establishment of OPEC in 1960

    Development of EuroDollar Market (International Liquidity)

    GATT 6th round at Kennedy

    Elimination of last customs duties within EC in 1968

    GATT Tokyo round 1973-79

    Rise of Asian newly developed  or industrialised countries

    China’s economic reform in 1978-80

    Indian Economic Reforms in 1991

    Establishment of NAFTA in 1994

    Asian Financial Crisis in 1997

    Establishment of WTO 1995

    Uruguay Round in 1986-94

    Adoption of Euro by 11 european countries in 1999

    Dotcom crisis 2001

    China Joins WTO in 2001

    2. Political 

    Establishment of United Nations in 1945

    Start of a European Recovery Programme, the Marshall Plan in 1948-57

    China Becomes a socialist republic in 1949

    Korean war in 1950-53

    Suez Crisis 1956

    Decolonization in Africa 1958 to 62

    Yom Kippur War helps to trigger oil price hike 1973

    EU enlargement to 9 members in 1973 and then to 12

    Fall of Berlin Wall 1989

    Dissolution of soviet union to form 13 independent states in 1991

    EU enlargement to 27 members

    3. Technological

    Expansion of Plastics and fibre products in 1940

    Discovery of large oil fields in middle east (Saudi Arabia) in 1948

    Increased use of oil in Europe and Japan

    Toyota implemented JIT

    Increased use of Jet Engines in air transport1957-72

    Commercialization of Integrated circuits in 1961

    1960s onwards: Green Revolution

    High speed train in Japan 1964

    Mont Blanc Road Tunnel 1965

    First single chip microprocessor Intel 4004in 1971

    First PC by IBM in 1981

    Microsoft Windows in 1985

    invention of www (World Wide Web) by Tim Berners Lee 1989

    Fist Website 1991

    Number of Internet users rises to 300 million by 2000 and 500 million in 2005


    Eurotunnel opens 1994

    Launch and use 2G network (GSM) and increase in no. mobiles 1991



    First person on Moon Neil Armstrong 1969