Globalization is a shift towards integrated and interdependent market and production systems operating worldwide, this leads to a widespread diffusion of products, technology and knowledge regardless of where it is from.

A core principle behind globalization is the need to promote international trade by reducing barriers to trade, these creates a variety of opportunities for international business. Globalization is one of the driving forces behind the growth of international business; this is because globalization gives international businesses access to benefit from technology, specialization of labor that other countries offer.

Globalization also leads to a rise in competition in terms of quality and price of products, technology involved and their manufacturing system. International businesses that have developed a comparative edge in those areas are able to thrive in the international markets.