Role of governments in international trade

The governments of different countries play an important role in international trade. These governments are responsible to make trade and corporate laws which govern international trade in terms of exports and imports. Governments of different countries set together to form multinational trade agreements that facilitate the organizations of these countries to do business abroad, in countries with whom the trade agreements are made. With multinational trade agreements, local businesses may feel threatened from the foreign companies as they might take their market share away. Therefore, governments make sure that the trade agreements do not harm the local businesses.

Cultural adaptation and globalization

The phenomenon of globalization is causing the spread of means of faster and efficient means of communications in the form of mobile phones, satellite TV and internet. As soon as countries start to connect to the outside world they start to get culturally influenced by the outside countries. Many see it’s a bad sign for the local cultures. There are many who think that it promotes cultural diversity and adaptation that could contribute, one day, to a common multinational culture in most of the countries which could bring people from around the globe closer to each other.

Multinational organizations and globalization

Multinational organizations are taking full advantage of globalization. These multinational companies e.g. Coca Cola, Pepsi and many more are exploring their opportunities in foreign countries and expanding their business rapidly. These companies are contributing to local lifestyles and bringing changes to them. For example many countries did not have a high consumption of fast food a few decades ago, but now, due to multinational fast food chains, fast food is becoming popular in these countries and become an important factor of their daily diet.