Business Environment, 4th Edition by Pearson

560 | Chapter 20

CONCEPT AND MEANING

The phenomenon of globalization seems to have occurred in the late 19th century.

The share of export in the gross domestic product (GDP) of 16 major industrialised

countries rose from 18.2 per cent in 1900 to 21.2 per cent in 1913. If we consider

the period from 1950 to 1999, the world exports rose from US$61 billion in 1950 to

US$5,460 billion in 1999. In addition, the trade in commercial services amounted

to US$1,340 billion in 1999. Over this period, the share of world exports to world

output grew from 6 per cent to 16 per cent; likewise, FDI flows increased to a record

of US$855 billion in 1999.

While three-fourths ...