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Dutch companies
They organized to open shipping routes to the East -
The British East Indıa Company
A newly formed trading firm, established foreign branches throughout Asia -
Dutch companies joined together to form the Dutch East India Company
They also opened branch offices in Asia -
Various inventions expanded interests in and opportunities for international business
These discoveries included the cotton gin, steam engine, and the telephone. The inventions from this period improved communication, distribution, and production, and helped to create new global industries. -
First phase of globalization
The import of raw material by colonial empires from their colonies and exporting finished goods to their overseas possessions was the main reason for the sharp increase in the trade during this phase. -
Barriers to trade
Various governments initiated and imposed a number of barriers to trade to protect their domestic production. Advanced countries experienced severe setbacks as a result of the imposition of trade barriers, as they produced in excess of domestic demand and experienced a decline in the volume of
international trade. -
Creation of International Monetary Fund and the World Bank
World nations felt the need for international cooperation in global trade and balance of payments affairs, as a result, these two institutions were created. -
General Agreement on Trade and Tariffs (GATT)
23 countries conducted negotiations in order to prevent further protectionist policies and to revive the economies from recession, wanting to create an International Trade Organization. This attempt by the advanced countries ended with the General Agreement on Trade and Tariffs (GATT) -
Multinational companies
The multinational companies, were producing the products in their home countries and marketing them in various foreign countries -
Globalization of business
The efforts of THE IMF, World Bank, and WTO along with the efforts of individual countries due to economic limitations of the closed economies led to the globalization of business. Globalization boosted international business. -
Collapse of communism
The collapse of communism and the industrialization of developing markets led to significant increases in global commerce. The internationalization of North American, Western European, and Japanese firms had contributed to an upsurge of commercial activities in developing world markets -
World Trade Organization (WTO) replaced GATT
The World Trade Organization replaced GATT, envisaging trade liberalizations.