This aspect of the maritime transport industry has been discussed in the paper. Fragmentation of the production process is also highlighted as a major factor increasing the demand for transport.
Globalization is the process through which production, trade, governance and many other aspects of life have continued to be standardized across the world. Globalization has also led to interconnections of countries through various air, sea, road and rail networks, which have facilitated easy movement of people and goods. Manufacturers and service providers have spread their operations globally. They have shifted production from the industrialized countries to take advantage of cheap labor and the unexploited raw materials for production in the less developed nations. The services industry also expanded to provide services in the developing countries. All these global shifts in production led to globalization of services and manufacturing, which on the other hand affected the demand for transport as traders supplied the industrial products and services to markets away from the industries, locally and abroad. This paper presents a critique of how demand for transport has been affected by the globalization of services and manufacturing.
Developments in the transport sector of many countries have been facilitated by industrialization. Transport is significant for delivery of raw materials to industries as well as distribution of the finished products. Manufacturers focus on good transportation services in a country as one of the factors that are necessary for location of an industry. Economies are therefore compelled to ensure that the transport sector allows effective transportation of products to markets, transportation of labor and raw materials. Multinational corporations operating across borders need effective international transport for effective delivery of services. There has been increased