Globalization and Businesses Today

Globalization is a multi dimensional term, use in number of different sense such as economical, social, cultural and political. It is defined as a process of rapid integration among different countries of the world by flows of information, ideas, trade, goods, services, capital, finance and investment.

Globalization is not a new phenomenon, it is used by economists and social scientist since 1981. The era of globalization started after First World War during 19^th century, based on rapid growth of international trade and investment between the European imperial powers, European colonies, and the United States. After World War II, globalization was restarted due to major advances in technology, which led to lower communication and trading costs.

Globalization a business Phenomenon

Globalization became a business phenomenon in 17^th century when the Dutch East India Company, also known as first multinational corporation was established. High risks involved in international trade, so the Dutch East India Company became the first company in the world to share risk and give concept of joint ownership by issuing shares. Today, corporate business becomes more global, foreign investors start utilizing their management resources, personnel, capital, and technology information to promote corporations between different countries of the world. The migration of trained workers from different countries is also beneficial for domestic economy of a country by transferring their technology and management techniques.

The business environment of any country matters a lot for foreign investor in decision making before investing huge amount of capital. Here business environment includes a country's economical, political, social cultural, technological development, business opportunities, and possibilities, tax and trade policies and country's legal system.