Globalization has accelerated since the 1980's and involves global rather than independent economies and business systems connected and interdependent for long-term profitability and competitive sustainment.

Globalization has risen as a world-wide mainstay and continues to expand primarily due to the spread of market-based economic systems, the decline of international trade barriers, foreign direct investment, and declining communication and transportation costs. Moreover, the accessibility of the internet which crosses national boundaries by a few clicks of the mouse, allows even the smallest of businesses to access immediate global commerce.

According to the World Trade Organization, volume of international merchandise trade has increased to almost 26-fold since 1970; foreign direct investment has exploded to a record $1.3 trillion in 2000. Additionally, global sales is estimated at $19 trillion. All of these factors coupled with the ease of entry into foreign markets through technological advances shows that globalization is reality.

Powerful countervailing forces such as protectionist countertrends (those against foreign outsourcing), nationalism (strong sociocultural values), differing consumer behavior and business systems are some of the examples constraining the pace of globalization. Additionally, the global economic and business commerce is not without its challenges such as wars, terrorism, SARS, and political unrest.

Many businesses are expanding across borders and participating in multinational enterprise, that is, businesses that have production activities in two or more countries. Many products and services such as Starbuck's coffee, Coca-Cola, and FedEx services are universally appealing in international markets. Expanding into receptive international markets, utilizing economies of scale to boost foreign production volume, and reaping the benefits of foreign economies and assets (skilled labor and economic location) are all incentive for businesses to tap into foreign opportunity.

The basic decision-making managerial functions of planning, organizing, controlling, and leading must still be applied in the international arena. Some managerial decision challenges include deciding whether to specifically customize products or services in foreign markets or use global standardization strategies. Additionally, partnership strategy decisions (joint ventures and franchising) are also considered.