ABSTRACT
This chapter deals with the two most important international economic developments. They are related to each other: globalisation and the expansion of emerging markets. The chapter is concerned with the background causes of globalisation and with the globalisation debate. The economic relations that a country has with other countries are reflected in its balance of payments. From an analysis of the balance of payments an entrepreneur can draw important conclusions about the economy of the country concerned. Proponents of globalisation usually base their arguments on the theory of comparative costs. This theory states that if countries specialise and trade in goods in which they have a comparative advantage, global prosperity will increase. At the global level, two main economic trends are becoming evident. One of the main global economic trends is globalisation, which can be described as the process of world-wide integration of economies caused by the rapid increase in trade and cross-border investments.
