The growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods

and services and of international capital flows and also through the more speedy way and widespread diffusion of technology

Get technology and managerial proficiency Setup overseas plants to reduce high transportation cost Domestic markets are no longer satisfactory rich Creation of World Trade Organization Various developments

Business freedom Facilities Government support Resources Competitiveness Orientation

Licensing and franchising Contract manufacturing Management contracting Turnkey contract Joint Ventures Third country location

Reduction of tariffs Compete in international market Inflow of FDI and FII More employment opportunities Improve standard of living Increase growth rate of GDP Expand domestic product in global

Affects the development of domestic industries Loss of revenues to government Exploitation with high prices Causes devaluation of money Unwanted goods are flooded and dumped Unemployment and inequalities of income