Identifying the Drivers of Economic Globalization and the Effects on Companies’ Competitive Situation

Abstract : Globalization has changed the world. Thispaper aims to contribute to the understanding of how companies’ competitive situation is affected by globalization. The paper identifies the main drivers of economic globalization and categorizes the effects into size effects, location effects and pressure effects. Size relates to the magnitude of the potential competition. Location relates to the potential impact on a company’s activities in terms of what to do where and by whom. Pressure effects are the ones that are related to competitive pressure.