Globalisation is referring to the growing economic independence among countries as reflected in the increasing cross-boarder flows of goods, services and capital. As a company, globalisation refers to the extend to which a business has expanded its sales and assets across countries and is involved in international flows of capital, goods and services.

A business can expand by exporting, allowing the business to get their products overseas or sell them directly to overseas buyers. Foreign direct investment allows a business to buy an existing business overseas partly or completely, for example, joint ventures involving partnership of another business or strategic alliance where agreements are between two or more businesses with a common business objective. Reallocation of production in order to get closer to consumers, reduce the costs and get around trade barriers of a business. Licensing is an agreement where a firm sells another firm the right to...