Individual portfolio on global enterprise Essay

Individual portfolio on global enterprise - Essay Example This progressive change provided the impetus for the formation of a global economy. To augment these efforts from the national governments, a side by side evolution in internet technology also facilitated the formation of a globalized world. This new internet technology enabled previously nation companies to expand their operations to new undiscovered markets. Thereby bring the concept of global demand into the business arena. Previously national companies started becoming global companies catering to the global demand of consumers. This led to the erosion of national sovereignty because in this situation national governments had little say in the countries trade and foreign policies. It was these global institutes which started to make or take extra interest in the countries economic, foreign and trade policies. Those countries who tried to resist the dominance of these global institutions, found themselves isolated from the international world. The most profound impact of this was on the exports of the country, which were not allowed to enter foreign land. This in turn had a drastic impact on the revenues of the country which heavily depend upon exports earnings. Having faced these problems, countries started to open their borders for international trade, liberalized their foreign and economic policies and started to avoid posturing. Literature Review: Introduction: Globalization is that phenomenon which has shifted individual economies towards a more integrated, independent and evolving world economy (Bhagwati, 2004),. Over the past several decades, the individual economies of the world have become increasingly linked together through an expansion in international trade services along with primary and manufactured goods, through portfolio investments directed towards international loans and purchases of stocks, and through foreign direct investment which is the medium used by multinational companies to make investment in foreign land (Stark, and Bloom, 1985) . During this period private capital has reduced the flow of foreign aid in the developing world. These linkages have a profound impact on the developing countries. Due to these linkages developing countries are importing and exporting more from each other. These countries have also started to import from and export to developed countries. Investment is being poured into these economies from the developed countries (Clayton, 2004). The term globalization is most frequently used when discussions about development, trade and international political economy is underway. As can be inferred from the word that globalization is a process by which economies of the world become more and more integrated. This economic integration in turn leads to global economic policy making, which is the domain area of global institutions like the World Trade Organization (WTO). The Global Culture: Globalization has also given rise to a global culture. This culture is characterized by people consuming goods and services which are similar across countries. English has become an internationally acclaimed language for business. These changes promote economic integration and fuel its continuous evolution (IMF Team., 2000). However, in its economic sense globalization refers to increased openness of