ABSTRACT
Globalization in its economic form, envisages an interdependent world economic system dominated by global corporations not identified with any individual country. Apart from economic activity, globalization encompasses other aspects of life. Globalization is perhaps most usually connected with the rise and power of global markets, economies, and multinationals. Globalization is mainly used to describe the increase in international trade and financial flows that have taken place since 1960, but more so in the post-1980 period. The core of the concept of globalization is that the world displays a strong tendency to become one entity. Economic globalization is based on liberalization of international trade, goods and services and the free market. Foreign Direct Investment can play a key role in improving the capacity of the host country to respond to the opportunities offered by global economic integration a goal increasingly recognized as one of the key aims of any development strategy.
