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Examples of cost drivers are as follows: Direct labor.Explain what is meant by the term globalisation. It can also be used in activity-based costing analysis to determine the causes of overhead, which can be used to minimize overhead costs. The concept is most commonly used to assign overhead costs to the number of produced units. A cost driver triggers a change in the cost of an activity.Every day the world economy becomes more global. The opportunity for global scale or scope economics, experience effects, sourcing efficiencies reflecting differentials in costs between countries or regions, and technology. Other cost drivers to.Cost globalization drivers Scale or scope economics, experience effects, sourcing efficiencies, and technology advantages that shape the economics of an industry. 4) Cost drivers Sourcing efficiency and costs vary from country to country and global firms can take advantage of this fact. During the mid 1990’s the International Monetary Fund has defined globalisation as: ‘The growing interdependence of countries world-wide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology’ (Turner, 2006).8.Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License. This change clearly indicates how companies from all over the world interact with each other and form partnerships in response to the phenomenon of globalization.Cost Globalization Drivers. An indication of this has been the increase in the number of domestic and foreign strategic alliances by six times during the period 1989-1999 (Nam-Hoon Kang, Organisation for Economic Co-operation and Development, 2001). New conditions.Over the years, this interdependence of countries worldwide has increased dramatically. Many domestic companies have already felt on themselves negative consequences of this process.
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