Discuss some of the factors that led to the shift in the world economy over the past 30 years. Some conditions that lead to pressure for local responsiveness are: Declining barriers to the free flow of goods, services, and capital o Average tariffs are now at just 4% o More favorable environment for FDI o Facilitates global production Technological change o Microprocessors and telecommunications o Internet: information backbone of the global economy o Transportation technology The changing world output and world trade picture The changing nature of the multinational enterprise The changing world orders