International business is the total of all business transactions that cross the borders of two or more nations. Consumers, companies, financial institutions, and governments are all important to international business activity. Globalization is the process by which national economies are becoming more integrated with each other. Global products are products marketed in all countries essentially without any changes. Sometimes small modifications are made to suit local tastes.
Technology allows any product to be made practically anywhere it is cheapest to do so.
Governments offer firms various incentives so as to attract factories to countries or regions with lower wages. Increased investment in countries with lower cost resources is increasing both their shares of world output and merchandise exports. Two main forces are spurring the globalization of markets and production. Lower Trade and Investment Barriers GATT is an international treaty setting specific rules for international trade designed to pry open national markets. Nations are integrating their economies as never before.