Study on Globalization and the International Business.docVIP

Study on Globalization and the International Business 　　Ⅰ.Introduction 　　Globalization is the increasing economic integration of the world，which can be defined as a mixture of processes by which products，people，companies，money and information are able to move quickly around the world as decision-makers desire（Janet Morrison，2011）.Obviously，globalization includes all the processes that reflect the independent movements acted by different players instead of a single process worldwide. 　　Ⅱ.Globalization process 　　There are two fundamental themes of globalization processes，namely，interconnectedness and interdependence. 　　A.Interconnectedness 　　1.Transport advances： Transportation is the guarantee and prerequisite for the development of national economy. 　　2.Internet and computing： With the development of Internet and computing，the transmission mode of financial information has undergone enormous changes in the field of financial market. 　　3.Global financial flows 　　Globalization of investment and financing，in which investors and financiers can select the most suitable financial institutions and instruments，provokes the globalization of capital flows. 　　Since 1980s，the international capital flows represent ceaseless accelerating and expanding trend.Especially since the 90’s，an unprecedented number of international capital with startling speed and dramatic changing forms promote the rapid expansion of global capital.We can conclude that from the financing scale of international bond market，including financing value of bank loans，notes financing and bond issuance that increased from $ 62.2 billion in 1973 to $ 145 billion in 1979 with an average annual increase of 15%.While after the 90’s，the value increased from $427.6 billion in 1990 to $1513.9 billion in 1996，which showed an average annual increase up to 23.5%.On the international stock markets，the total average annual in and outflows of capital of developed countries amounted at $47.6 billion from 1976 to