Globalisation can be defined as a process in which geographic distance becomes a factor of diminishing importance in the establishment and maintenance of cross-border economic, political and sociocultural relations.

Globalisation can be defined as a process in which geographic distance becomes a factor of diminishing importance in the establishment and maintenance of cross-border economic, political and sociocultural relations.

Due to globalisation certain benchmarks are apparent;

• World trade has increased by 20 times since the 1950s,
• Global production has increased by 6.5 times,
• Between the 1990s and 2000s the Foreign Direct Investment (FDI) increased by 5 times, trade by 2 times and the world output by 0.2 times.

Consider that 60,000 parent companies operated away from their home markets through 820,000 subsidiaries or affiliates. These, in turn produced US$14 trillion in global sales, which was twice the value of global exports.

As a result of this, US, Japanese, and Western European companies were the major investors in the rest of Europe, Asia, and North America.