To be literal, globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale.

In today's world, globalization is the trend of increasing interaction between people on a worldwide scale due to advances in transportation and communication technology.

In simple economic terms, globalization refers to the process of integration of world into one huge market.

And at the company level, globalization means two things:

• the company commits itself heavily with several manufacturing locations around the world and offers products in several diversified industries and
• it also means ability to compete in domestic markets with foreign competitors.

The global company views the world as one market minimizing the importance of national boundaries.

Globalization has three primary attributes on the basis of which we can characterize it:

• It is a conglomerate of multiple units located in different parts of the globe but all linked with common ownership.
• Multiple units draw a common pool of resources such as money, credit, patents, trade name, etc.
• The units respond to common strategy.