What factor is widely considered a primary driver of globalization?

• A. Slow adoption of the internet
• B. Increase in tariffs
• C. Advances in transportation and communication technology
• D. Strict border controls

Answer: (C)

Globalization hinges on how freely markets, information, and people can move across borders. Advances in transportation and communication technology drive globalization by slashing the time and cost to move goods, services, and ideas around the world. With containerized shipping, efficient logistics, and widespread air travel, firms can source materials from distant regions and distribute products globally. Simultaneously, improvements in communication—telecom networks, the internet, and mobile technology—allow real-time coordination of production, finance, and management across multiple countries. This combination makes global production networks feasible and expands international trade and investment. Slower internet adoption, higher tariffs, or strict border controls would impede globalization by raising costs or creating barriers, rather than driving its growth.