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==Economic globalization== {{Main|Economic globalization}} [[File:Globalization over 5 centuries, OWID.svg|thumb|The ''trade openness index'' over 5 centuries. This index is defined as the sum of world exports and imports, divided by world GDP. Each series corresponds to a different source.]] [[File:Brno, Nákupní centrum Královo Pole (7239).jpg|thumb|Dividends worth CZK 289 billion were paid to the [[Foreign ownership|foreign owners]] of [[Czech Republic|Czech]] companies in 2016.<ref>"[http://www.radio.cz/en/section/business/czech-foreign-owned-companies-take-second-biggest-dividend-yield-in-2017report Czech foreign owned companies take second biggest dividend yield in 2017:report]". ''[[Radio Prague]].'' 7 March 2018.</ref>]] Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-[[border]] movement of goods, services, technology, and capital.<ref name="Joshi, Rakesh Mohan 2009">Joshi, Rakesh Mohan, (2009) International Business, Oxford University Press, New Delhi and New York {{ISBN|0-19-568909-7}}.</ref> Whereas the globalization of business is centered around the diminution of international trade regulations as well as [[tariff]]s, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing [[economic integration]] between countries, leading to the emergence of a global marketplace or a single world market.<ref>Riley, T: "Year 12 Economics", p. 9. Tim Riley Publications, 2005</ref> Depending on the paradigm, economic globalization can be viewed as either a positive or a negative phenomenon. Economic globalization comprises: globalization of production; which refers to the obtainment of goods and services from a particular source from locations around the globe to benefit from difference in cost and quality. Likewise, it also comprises globalization of markets; which is defined as the union of different and separate markets into a massive global marketplace. Economic globalization also includes<ref>{{Cite book|title=International business: competing in the global marketplace|last=Hill|first=Charles W.L.|publisher=McGraw-Hill|year=2014|isbn=978-0-07-811277-5|edition= 10th|location=New York|oclc=864808614}}</ref> competition, technology, and corporations and industries.<ref name="Joshi, Rakesh Mohan 2009"/> Current globalization trends can be largely accounted for by developed economies integrating with less developed economies by means of [[foreign direct investment]], the reduction of trade barriers as well as other economic reforms, and, in many cases, immigration.<ref>{{Cite web|title=What Is Globalization?|url=https://www.piie.com/microsites/globalization/what-is-globalization|date=29 October 2018|website=PIIE|language=en|access-date=25 May 2020}}</ref> [[File:1 singapore city skyline dusk panorama 2011.jpg|thumb|left|[[Singapore]] is the top country in the [[Global Enabling Trade Report|Enabling Trade Index]] {{as of|2016|lc=y}}.]] [[International standard]]s have made trade in goods and services more efficient. An example of such standard is the [[intermodal container]]. [[Containerization]] dramatically reduced the costs of transportation, supported the post-war boom in [[international trade]], and was a major element in globalization.<ref name="Levinson">{{cite web|url=http://press.princeton.edu/chapters/s9383.html|title=Sample Chapter for Levinson, M.: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger.|last=Levinson|first=Marc|work=[[The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger]]|publisher=Princeton University Press|access-date=17 February 2013|archive-url=https://web.archive.org/web/20130122131825/http://press.princeton.edu/chapters/s9383.html|archive-date=22 January 2013}}</ref> International standards are set by the [[International Organization for Standardization]], which is composed of representatives from various national [[standards organizations]]. A [[multinational corporation]], or worldwide enterprise,<ref name="pitelis">{{cite book|url={{google books|id=mXjeiQYR088C|plainurl=yes}}|title=The nature of the transnational firm|last=Pitelis|first=Christos|author2=Roger Sugden|publisher=Routledge|year=2000|isbn=978-0-415-16787-1|page=H72}}</ref> is an organization that owns or controls the production of goods or services in one or more countries other than their home country.<ref>{{cite web|url=https://www2.econ.iastate.edu/classes/econ355/choi/mul.htm|title=Multinational Corporations|access-date=23 December 2016|archive-url=https://web.archive.org/web/20180414082055/http://www2.econ.iastate.edu/classes/econ355/choi/mul.htm|archive-date=14 April 2018}}</ref> It can also be referred to as an international corporation, a transnational corporation, or a stateless corporation.<ref>Roy D. Voorhees, Emerson L. Seim, and John I. Coppett, "Global Logistics and Stateless Corporations", ''Transportation Practitioners Journal'' 59, 2 (Winter 1992): 144–51.</ref> A [[free-trade area]] is the region encompassing a [[trade bloc]] whose member countries have signed a [[free-trade]] agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers{{snd}} [[import quota]]s and [[tariff]]s{{snd}} and to increase trade of [[goods]] and services with each other.<ref>{{cite book| last1 = O'Sullivan| first1 = Arthur| author-link = Arthur O'Sullivan (economist)| first2 = Steven M. | last2 = Sheffrin| title = Economics: Principles in Action| publisher = Pearson Prentice Hall| year = 2003| location = Upper Saddle River, NJ| page = 453| isbn = 978-0-13-063085-8}}</ref> If people are also free to move between the countries, in addition to a free-trade agreement, it would also be considered an [[open border]]. Arguably, the most significant free-trade area in the world is the [[European Union]], a [[Political union|politico]]-[[economic union]] of [[Member state of the European Union|{{EUnum}} member states]] that are primarily located in [[Europe]]. The [[EU]] has developed [[European Single Market]] through a standardized system of laws that apply in all member states. EU policies aim to ensure the [[Single market|free movement of people, goods, services, and capital]] within the internal market,<ref name="Europa Internal Market">{{cite web |title=The EU Single Market: Fewer barriers, more opportunities |publisher=Europa web portal |author=European Commission |url=http://ec.europa.eu/internal_market/index_en.htm |access-date=27 September 2007 |archive-url=https://web.archive.org/web/20071001122551/http://ec.europa.eu/internal_market/index_en.htm |archive-date=1 October 2007 }}<br />{{cite web |title=Activities of the European Union: Internal Market |publisher=Europa web portal |url=http://europa.eu/pol/singl/index_en.htm |access-date=29 June 2007 |archive-url=https://web.archive.org/web/20070625121825/http://europa.eu/pol/singl/index_en.htm |archive-date=25 June 2007 |url-status=live }}</ref> [[Trade facilitation]] looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximize efficiency while safeguarding legitimate regulatory objectives. Global trade in services is also significant. For example, in India, [[business process outsourcing]] has been described as the "primary engine of the country's development over the next few decades, contributing broadly to [[GDP]] growth, employment growth, and poverty alleviation".<ref name="Kuruvilla 2008 39–72">{{cite journal|last1=Kuruvilla |first1=Sarosh |last2=Ranganathan |first2=Aruna |title=Economic Development Strategies And Macro- And Micro-Level Human Resource Policies: The Case Of India's "Outsourcing" Industry|journal=Industrial & Labor Relations Review|date=October 2008|volume=62|issue=1|pages=39–72|doi=10.1177/001979390806200103|citeseerx=10.1.1.662.425 |s2cid=12104735 }}</ref><ref>{{cite news|url=http://www.economist.com/node/15777592?story_id=E1_TVSSSVJN|access-date=16 April 2011|title=Outsourcing to Africa: The world economy calls | The Economist|date=16 April 2011|archive-url=https://web.archive.org/web/20110511114732/http://www.economist.com/node/15777592?story_id=E1_TVSSSVJN|archive-date=11 May 2011|url-status=live}}</ref> [[William I. Robinson]]'s theoretical approach to globalization is a critique of Wallerstein's World Systems Theory. He believes that the global capital experienced today is due to a new and distinct form of globalization which began in the 1980s. Robinson argues not only are economic activities expanded across national boundaries but also there is a transnational fragmentation of these activities.<ref>{{Cite journal|last=Robinson|first=William I.|title=Globalization and the sociology of Immanuel Wallerstein: A critical appraisal|journal=International Sociology|volume=1–23}}</ref> One important aspect of Robinson's globalization theory is that production of goods are increasingly global. This means that one pair of shoes can be produced by six countries, each contributing to a part of the production process. {{Clear}}
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