Globalization and International Business

Running head : Globalization

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Introduction

For the last three decades , the world has experienced an increase in globalization which has led to creation of one large world economy . As a result , international trade and business has increased and this is evident in most countries . Globalization refers to the process through which individuals from all over the world are unified leading to formation of a single society that functions together . It entails combination of technological , economic , political and sociocultural forces . In most cases

, the term globalization is used to mean economic globalization which refers to the integration or coming together of national economies to form a large international economy via foreign direct investment , migration , trade , capital flows and exchange of technology (He , et al , 2006

Globalization and international business

For the past thirty years , there has been a great and noticeable shift in the world economy . The world economy is comprised of various factors with the most vital factor being the gross domestic product (GDP ) of all countries . GDP is influenced by the performance of each country and it is related to the trade level , government spending and investment spending . For the last thirty years , world economy has really grown and expanded a move brought about by an increase in economic integration and international trade expansion . In the early 1970s , it is the industrial countries that were major players in the world economy and they produced approximately 59 of the total world gross domestic product . There world...