Globalization or globalisation is the trend of increasing interaction between people on a

worldwide scale due to advances in transportation and communication technology, nominally

beginning with the steamship and the telegraph in the early to mid-1800s. With increased
interactions between nation-states and individuals came the growth of international trade, ideas,
and culture. Globalization is primarily an economic process of integration that has social and
cultural aspects, but conflicts and diplomacy are also large parts of the history of globalization.
In a simple word globalization can defined as the process by which businesses or other
organizations develop international influence or start operating on an international scale.
Globalization represents the global integration of international trade, investment,
information technology (IT), and cultures. It is driven by government policies designed to open
up economies domestically and internationally to boost development in poorer countries
and raise standards of living for their people. However, the international free market that has
been created as a result of these policies has mainly benefited multinational corporations in the
Western world to the detriment of smaller businesses, cultures and common people.

Through globalization, corporations can gain a competitive advantage from lower

operating costs and access to new raw materials and additional markets. In
addition, multinational corporations can manufacture, buy and sell goods worldwide. For
example, a car manufacturer based in Japan can manufacture auto parts in several different
developing countries, ship the parts to another country for assembly, and then sell the finished
cars to any nation. Globalization is not a new concept. In ancient times, traders traveled vast
distances to buy rare commodities such as salt, spices and gold, which they would then sell in
their home countries. The Industrial Revolution of the 19th century brought advances in
communication and transportation that have removed borders and increased cross-border
trade. In the last few decades, globalization has occurred at an unprecedented pace.

Public policy and technology are the two main driving factors behind the current
globalization boom. Over the past 20 years, governments worldwide have integrated a free
market economic system through fiscal policies and trade agreements. This evolution of
economic systems has increased industrialization and financial opportunities abroad.
Governments now focus on removing barriers to trade and promoting international commerce.
Technology is a major contributor to globalization. Advancements in IT and the flow of
information across borders have increased the awareness among populations of economic
trends and investment opportunities. Technological advancement such as digitalization has
simplified and accelerated the transfer of financial assets between countries.

In economics, internationalization is the process of increasing involvement of enterprises

in international markets, although there is no agreed definition of internationalization. Those
entrepreneurs who are interested in the field of internationalization of business need to possess
the ability to think globally and have an understanding of international cultures. By appreciating
and understanding different beliefs, values, behaviors and business strategies of a variety of
companies within other countries, entrepreneurs will be able to internationalize successfully.
Entrepreneurs must also have an ongoing concern for innovation, maintaining a high level of
quality, be committed to corporate social responsibility, and continue to strive to provide the best
business strategies and either goods or services possible while adapting to different countries
and cultures.

Internationalization is the designing of a product in such a way that it will meet the needs
of users in many countries or can be easily adapted to do so. In the context of economics,
internationalization can refer to a company that takes steps to increase its footprint or client
base outside of its country of domicile and into international markets. The global corporate trend
toward internationalization has helped push the world economy into a state of globalization,
where economies throughout the world are highly interconnected due to cross-border
commerce. As such, they are greatly impacted by each others' activities and economic well-
being.

Economic internationalization can often lead to product internationalization since

products sold by multi-national companies are often used in multiple countries. As of 2017, over
50% of the revenue earned by companies in the U.S S&P 500 Index came from sources outside
of the United States. This is a clear sign that large U.S. companies are conducting a large
amount of their business internationally. When a company produces products for a wide range
of clients in different countries, the products that are internationalized often must be localized to
fit the needs of that country's users. For example, an internationalized software program would
need to be localized to display the date as November 14 for use in the United States and as 14
November for use in England. A company that makes hair dryers or other beauty appliances will
need to ensure that their products are compatible with the different wattages used in client
countries' outlets and appropriate plug fixtures can be affixed to their products.

There are many differences between globalization and internationalization, starting with
the time they began to occur. Internationalization started as part of the Industrial Revolution
between 1870 and 1914, whereas globalization is a post 1960’s phenomenon. Other differences
between these two terms include their impact on firms, on global trade, and on society and
culture. First of all, while globalization is often used to describe the change in the world
economy to a more liberal and interdependent system, internationalization refers more narrowly
to the activity of firms on an international scale and the resulting impact of their decisions.
Internationalization is, for example, a European firm trying to export its product overseas, and
the causes and the consequences of this act. A firm trying to standardize its products on an
international scale is also considered as internationalization. Secondly, many recent advances
in technological fields such as communication and transportation have helped globalization
increase worldwide trade and investment. The beginning of this ‘free-trade’ era started when the
Soviet Union was defeated by the United States, and the end of the Cold War. On another hand,
internationalization did not really globalize the economy but rather promoted the activity of a
nation and its companies internationally. A typical example would be signing a trade or
investment contract with another country (or countries) to install good economic relations
between them.