Globalization is the process in which businesses starts integrating and interacting between countries and engage in the global business.
In this process businesses move outside the national and domestic markets to other markets around the world in different countries and region. The integration can be among the companies, government of different nations or the people. Globalization is the process of our age in which we live. It affects all aspects, from companies, people and consumers to corporate world and cultural relationships like world views, ideas and other aspects of culture. (Stanley J. Paliwoda 2009).
It also includes some other aspects like advances in transportation, telecommunication, infrastructure, telegraph and its breed the internet.
Globalisation removes trade barriers and allows free trade in this electronic age which brings reduction in government’s restrictions covering international trade and also increases communication speed. The four phases in the phase model of globalization are, exporting, cooperative contracts, strategic alliances and wholly owned affiliates. (McWilliams 2010)
The word export means shipping the goods and services anywhere out of the boundaries of a country. The one who ships the item is known as ‘exporter’ and the overseas buyer is known as an ‘importer’.
Exporting is been increasing ever since globalization began. It is estimated that in today’s globalized world the value of global trade in form of exports and imports is expected to be more that $12 trillion. World trade has grown at more rapid rate than world productivity. (BusinessVictoria 2008).
There are many advantages of exporting, two of them are it increases sales and profit. Removing the trade barriers allows a company, organisation or an individual to serve their goods and services to a wider reach in different nations. Expand Life Cycle of Product.