Joyce S认为，全球化是一种相互依存的关系，是来自不同国家、全世界的人之间的关系。然而，这一术语可能指的是世界经济一体化，贸易、资本、技术和人员流动障碍的减少。许多企业家认为，全球化利益的公司很大程度上是通过证明他们具有显著的机会，提供更好的质量和更低的价格（barkema et al.，2006）。换句话说，国际业务由两个或多个国家之间的商业交易（Ramaswami说，2012）。同时，企业专注于获取最大利润，但政府的业务并没有受到利润的驱使。
According to Joyce S, globalization is in – boarding set of interdependent relationship, among people from different nations, all across the world. However, the concerned term might refer to the integration of world economics, decrease in the barriers of movement of trade, capital, technology, and people. Many of the entrepreneurs believe that globalization benefits the companies to a large extent through proving them with significant opportunities to offer better quality and lower price (Barkema et al., 2006). In other words, international business consists of all commercial transactions between two or more countries (Ramaswami, 2012). Simultaneously, the businesses are focused on making maximal profits, however the government business are not motivated by profits.
Product cycle theory and division of labor theories illustrate that several companies locate their manufacturing functions overseas, especially within developing counties, to minimize the production costs and to offset the loss of technology advantages in home countries as products mature (Reuber and Fisher, 2013). This is highly advantageous for the companies, in the context of standardized products on an international scale, a huge worldwide labor pool, modern transportation and communication technology, and fragmentation of production (Robert, 2007). Many of the studies are found focused on the technology from headquarters to subsidiaries in other countries. However, there are still a few researches associated with the emergence of R&D overseas (Sara and Newhouse, 2005). With time, more and more studies showed that multi – national business are establishing R&D overseas significantly to attain a competitive advantage, especially those large firms that are based in smaller developed counties, for example Switzerland and Netherlands (Root, 2014). These researches concentrate on investigation of centripetal and centrifugal and examine the reasons of establishing R&D overseas (Young et al., 2009). In mid-1990s, “many dimensions and missions of expatriates R&D were highlighted, and issues of the management and coordination within a global network became more important”.