chapter  11
14 Pages

Globalization

As business becomes increasingly internationalized and a global economy develops, issues that affect business in the international arena arise out of the changes taking place all over the world because of increased globalization. When countries trade with each other and when they are open for foreign investment and technology, they are also more open to outside infl uences that may cause them problems. The increased magnitude of international trade and investment that has taken place over the past several decades has led to greater interdependence among individual national economies. These economies have become linked together to form a truly global economy, and companies competing in this arena are engaging in a process of cultural and institutional change that is somewhat unprecedented.