A fundamental shift is taking place in the world economy. We are rapidly moving away from a world in which national economies were relatively self-contained entities, isolated from each other by barriers to cross-border trade and investment; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems. Now we are moving towards a world in which barriers to cross-border trade and investment are tumbling; perceived distance is shrinking due to advances in transportation and telecommunications technology; material culture is starting to look similar the world over; and national economies are merging into an interdependent global economic system. This process is commonly referred to as globalization. Globalization has made the world smaller. It has affected trade, finance, production, communications, technological change and our everyday life in many ways. Even a domestic business cannot escape the impact of globalization. Having understood the importance of the subject, a sincere effort has been made to encompass all the aspects of globalization in this book. It would certainly prove to be a good resource book for all the MBA programmes in Indian and foreign universities.