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International Business: by Charles W.L. Hill
International Business: by Charles W.L. Hill
Business 7e
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1
Globalization
1. What Is Globalization?
Globalization is the process of interaction and mixing of the
people, organizations and governments of different nations with
each other’s. It is a shift toward a more integrated and
interdependent world economy. Globalization is not a new concept
but it appear in the dictionary in 1951. In ancient times,
traders traveled large distances to buy rare products such as salt,
date, silk, gold and then sell in their home countries. The Industrial
Revolution of the 19th century brought advances in
communication and transportation that have removed borders and
increased cross-border trade. In the last few decades, globalization
has occurred at fast speed and the term is commonly used in
business. Simply it is the interaction of people & govt of different
nations.
Public policy and technology are the two main factors behind the
current globalization boom.
The Broader Meaning of Globalization
Cont..
In 1960, the United States accounted for over 40% of world
economic activity
By 2006, the United States accounted for less than 20% of world
economic activity
A similar trend occurred in other developed countries
The share of world output accounted for by developing nations is
rising and is expected to account for more than 60% of world
economic activity by 2020
The Changing Foreign Direct
Investment Picture