Globalization is referred to a number of economic processes within which there is integration of investment, marketing and production across all of the boundaries of countries. The opening up of platforms of market and the process of liberalization to the international economy has resulted in emergence of an individual market for information, services, technology, capital, goods and to a certain limit, labour (Allmendinger, 2002). Globalization is also known to be political and social process due to its effect over domestic policy, governance and culture. The process related to globalization is known to be a convergence, even though at a number of different speeds, of a number of cultural, social, economic, legal and institutional practices along with a number of processes in different borders across the nations.
The logic behind globalization seems to stay intact in expanding investment and trade in order to look for a number of different new markets along with more sites having competitive production (Taylor, 2007). Organizations can be making a choice where there is a need for location and individuals where they have been showing willingness for working and living, within the platform of international market. The present tendency of transnational organizations or multinational corporations for relocating geography and setting up the units of production in a number of different areas across the globe lies in availability of labour at cheaper amount of prices (Allmendinger, 2002).
There is a need for more leniencies in the requirements of safety as well as health, lower standards for the protection of environment and favourable laws of tax for maximizing the value of profits. The rise in the power of Multi-national Corporation has resulted to skew the distribution being done for gains in favour of the corporations that undermines the authority related to civil society and national government that erodes the rights of humans and protection of environment. This in turn also has the capability of impacting the proliferation of laws that govern investment and trade (Allmendinger, 2002).