What are the push factors that drive economic globalization?

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Economic globalization can be looked at through the lense of labor migration. Push factors are the reasons that make people leave their countries for greener pastures elsewhere. They include lack of job opportunities in their home country, political instability, and environmental issues.

In many cases, you will find people moving from developing countries to developed nations because they want to have a better lifestyle. In many developing countries, the job opportunities are not enough to sustain the ever increasing population. Furthermore, the few jobs that are available either pay less or are acquired through corrupt means. Due to the frustration, many educated citizens migrate to countries with better employment opportunities. Political instability refers to civil wars. An example is Syria. Ever since the war began, millions of Syrians have been forced to seek a better living in Europe and America. Environmental issues refer to natural disasters. Following the devastating earthquake that rocked Haiti in 2010, thousands of Haitians were forced to move to the US because their homes had been ruined.

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When we are talking about a phenomenon like globalization, we can generally say that there are "push" and "pull" factors.  Push factors, in the context of globalization, are negative factors that cause globalization to occur.  They are things that push firms away from wanting to do business in just one country.  This is in contrast to pull factors that attract firms to countries other than their own.

The main push factors in globalization are factors that create an unstable or unpromising business environment in the firm's home country.  A firm in the United States, for example, may feel that labor costs in that country are too high and may be "pushed" to globalize.  A firm in Greece might feel that the country's debt problems make its economy too fragile and may seek to globalize as a way to hedge against a collapse of the Greek economy.

In ways like these, the business environment in a country may push firms in that country to globalize.  Factors that make a country's business environment bad will cause firms to look to expand to places with better environments.

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