Globalization is driven mainly by advances in technology.
The fundamental changes that have accelerated international exchanges are the falling costs of communications and transportation. Since 1945, average ocean freight charges have fallen by 50 percent, air transportation costs by 80 percent and transatlantic telephone calling charges by 99 percent. The explosion of computing power and communications has created the global financial markets. The implication is that the trends we call globalization will continue and in fact accelerate, as the global communications revolution is still in its early stages. Global markets in foreign exchange, commodities and manufactured goods will continue to grow but not fundamentally change the world's economic landscape in the next 25 years.