Summary Note
Key concept recap
Introduction
Countries across the world are undergoing a fundamental shift in how they produce and market goods and services. National economies, which once pursued self-reliance, are now increasingly dependent on one another for procuring and supplying goods and services. Developments in communication, technology, and infrastructure have brought nations closer, reducing geographical and socio-economic barriers. The WTO and government reforms have further accelerated cross-border interactions, turning the world into a 'global village'.
India has also been integrating with the world economy, especially since the 1991 reforms triggered by the IMF's conditions for extending financial assistance during a balance of payments crisis. Since then, liberalisation has opened Indian markets to multinational corporations while enabling Indian firms to expand globally. International business is now recognised not merely as trade but as a broad set of activities involving movement of goods, services, capital, personnel, technology, and intellectual property across national frontiers.