What is considered a political driver of globalization?

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Prepare for your UCF GEB3375 Intro to International Business Exam 1. Utilize flashcards and multiple choice questions with explanations to ace your test. Get fully equipped!

A political driver of globalization refers to the actions and policies created by governments that encourage or facilitate international trade and investment. Policies that are more favorable toward trade and foreign direct investment create an environment where businesses can readily engage in cross-border transactions. These policies might include reducing trade barriers, signing trade agreements, or creating incentives for foreign investment, thereby fostering a more interconnected global economy.

The other options describe factors that influence globalization but do so from different angles. For example, a reduction in global transportation costs pertains to economic and logistical aspects, which can enhance trade but are not strictly political in nature. Increased tariffs on imported goods represent a political barrier to globalization, as they make international trade more costly and restrictive rather than facilitating it. Technological advancements in communication also play a critical role in enabling globalization by improving connectivity and information flow; however, they are not driven by political decisions, but rather by advancements in technology and business practices. Therefore, the friendly policies toward trade and foreign direct investment stand out as a clear political driver of globalization.