Introduction
Brief history
Since ancient times, nations and other societies relied on importing and exporting goods to meet their needs. The early nineteen century saw an increase in globalization and increasing the amount of goods and population migrating across borders. Most of the migration across national frontiers included flow of foreign capital and labor in large quantities. Moreover, the late nineteen century gave birth to the increase in leaving standard due to growth created by the economic cooperation and development. As a consequence, some Europeans countries tended to grow faster than others. Indeed, poor countries around the European periphery tended to grow faster than the rich industrial leaders in central Europe and often faster than the labor scarce countries in the new world. Following this rapid growth African countries also were left behind. The increase in trade and migration is given credit for the rapid growth of these European countries. The implication of the economic growth of European countries was that firms were now able to access foreign markets that seem impossible to access. This ambition to conquer foreign markets is what has driven firm to venture in new market. It is the basis of international trade through which powerful nations become wealthier. As one economist and entrepreneur addressed the matter:
” there is no longer any such thing as a purely national economy. The rest of the world is just too big to ignore as a market or as a competitor. If business schools do nothing other than to train their students to think international, they would have accomplished an important task “John Young, CEO, Hewlett-Packard
The impact of Europeanization is that the European firms were now able to access cheap labor. Since a nation won’t be able to produce all the goods for its market, countries around the world now have to incorporate