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POLISH SCIENCE JOURNAL № 36 1 (web) 1

«POLISH SCIENCE JOURNAL» 
SCIENCECENTRUM.PL 
ISSUE 3(36) PART 1 
ISBN 978-83-949403-4-8 
314
organizations essential to advancement towards a close-knit global economy and global 
financial system, such as the World Bank, the International Monetary Fund, and the 
International Trade Organization. 
As an example, Chinese economic reform began to open China to globalization in the 
1980s. Scholars find that China has attained a degree of openness that is unprecedented 
among large and populous nations, with competition from foreign goods in almost every sector 
of the economy. Foreign investment helped to greatly increase product quality and knowledge 
and standards, especially in heavy industry. China's experience supports the assertion that 
globalization greatly increases wealth for poor countries. As of 2005–2007, the Port of 
Shanghai holds the title as the world's busiest port.  
In India, business process outsourcing has been described as the "primary engine of 
the country's development over the next few decades, contributing broadly to GDP growth, 
employment growth, and poverty alleviation" 
With improvements in transportation and communication, international business grew 
rapidly after the beginning of the 20 th century. International business
includes all commercial transactions (private sales, investments, logistics and 
transportation) that take place between two or more regions, countries and nations beyond 
their political boundaries. Such international diversification is tied with firm performance 
and innovation, positively in the case of the former and often negatively in the case of the 
latter. Usually, private companies undertake such transactions for profit. These business 
transactions involve economic resources such as capital, natural and human resourcesused for 
international production of physical goods and services such as finance, banking, insurance, 
construction and other productive activities.
International business arrangements have led to the formation of multinational 
enterprises (MNE), companies that have a worldwide approach to markets and production or 
one with operations in more than one country. A MNE may also be called a multinational 
corporation (MNC) or transnational company (TNC). 
Economic globalization refers to the increasing interdependence of world economies as 
a result of the growing scale of cross-border trade of commodities and services, flow of 
international capital and wide and rapid spread of technologies. It reflects the continuing 
expansion and mutual integration of market frontiers, and is an irreversible trend for the 
economic development in the whole world at the turn of the millennium. The rapid growing 
significance of information in all types of productive activities and marketization are the two 
major driving forces for economic globalization. In other words, the fast globalization of the 
world’s economies in recent years is largely based on the rapid development of science and 
technologies, has resulted from the environment in which market economic system has been 
fast spreading throughout the world, and has developed on the basis of increasing cross-border 
division of labor that has been penetrating down to the level of production chains within 
enterprises of different countries. 
The participation of developing countries in the globalization process can enable them 
to better utilize their comparative advantages, introduce advanced technologies, foreign capital 
and management experience. It is also favorable for eliminating monopolistic behaviors and 



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