Final answer:
With increased globalization, transportation costs may rise due to higher shipping frequencies, reaching new markets with higher costs, and logistical challenges associated with physical goods.
Step-by-step explanation:
As the degree of globalization increases, those industries and businesses engaging in global trade may experience an increase in transportation costs. Even though advancements in shipping and air cargo have historically driven down these costs, the sheer volume and geographic reach of global trading activities can lead to a greater frequency of shipping, thus raising the total cost.
Moreover, as companies penetrate new markets, they may encounter situations where the existing infrastructure is less efficient or more expensive to use, contributing to higher transportation costs. Additionally, the transportation of physical goods, as opposed to digital products, inherently involves logistical challenges, including fuel costs, tariffs, and the maintenance of vehicles and equipment.