Distribution) and the cross-border networking of companies (for example through joint ventures

and the sharing of assets).” The most obvious manifestations of this process are the facts that the

Annual rate of growth in international trade has been consistently higher than that of world production,

While multinational corporations have continued to extend their operations. However,

Globalization no longer necessarily requires a physical presence in other countries, or even exports

And imports; for instance, activity can be shifted abroad by licensing, which only needs information

And finance to cross borders. Although not new, the pace of globalization has accelerated in

The post-Second World War period, facilitated by improvements in transport and communications,

The promotion of deregulation in different sectors, the removal of trade restrictions and exchange

Controls (General Agreement on Tariffs and Trade). The motives for globalization include

Lower labour costs and other favourable factor endowments abroad and the circumvention of remaining

Tariff and non-tariff barriers to trade. Concern has been expressed that economic activity

And employment in the advanced countries will drain away to the developing countries, but the

Theory of international trade and past experience suggest that all nations in the globalization process