ABSTRACT
With globalization the world has become more integrated through movements of goods, capital, labor and ideas (Bloom, 2002). How it can be transmitted into domestic economy is manifested in many ways, but the usual avenue is via trade and investment liberalization. With decreasing trade barriers countries can now increase exchange of goods and services among them. This process has been sped up by the fast pace of development in information and communication technology. In this new world, fresh ideas are quickly brought to practice, new technologies developed and applied faster than at any other time in history. More important than any other time in the past, knowledge now has become an increasingly important determinant of wealth of nations.
