Globalization during the 20th and 21st centuries has been possible, and continues to expand its scope, due to the constant improvement in communication and transport technologies.
The globalization process has led to a global market integration, which has allowed consumers to have access to products manufactured all over the world. There is also a free movement of factors of production, labor is transferred to different countries, outsourcing practices, international investments, etc. Prices have dropped due to the forces of competition, as now firms compete with their counterparts not only in the national markets but in markets that have acquired a global size, including a larger number of participants. If firms want to survive in such an enviroment, they need to keep a high efficiency level.