Determinants of Globalisation and Their Effect on the Economy of the Republic of Serbia

Abstract

Throughout history, the world has gone through several waves of globalisation, and each of them was represented by various characteristic drivers. At the beginning of the 21st century, globalisation is characterised by the use of information and communication technologies (ICT) in business and the growth of transnational companies’ influence. Intensive use of ICT in the operations of transnational companies enables them to reach consumers around the world and organise business in branches far from their home country. Through the branches, they control a large part of the international movement of capital, technology transfer, innovation, knowledge, marketing, and management skills. The paper will analyse ICT, transnational companies and foreign direct investments (FDI) that are the main determinants of the globalisation process. In addition, a special attention will be paid to the effect of these factors on the economy of the Republic of Serbia.