Globalization specifically refers to economic integration of local economies with an international system. It aims to erase the national boundaries and governs international trade by comparative advantage. The concept of globalization became popular in the late 1980s and 1990s. Globalization began with Portuguese adventurers and navigators who established a chain of fortresses, key strong points and coastal areas to create a chain of economy and culture which was global in nature.
Modern globalization began after World War II as economists, corporations and politicians recognized the negative aspects of protectionism. They saw the advantages of international economic integration. Several international institutions like the International Monetary Fund and World Bank were created to reduce the costs of trade and remove restrictions on free trade. Since then many barriers to international trade have been lowered. The World Trade Organization was established to promote free trade and reduce tariffs. It also called for the recognition of intellectual property restrictions. Globalization remains a unique phenomenon because of the rapid spread of technology, economic trade and foreign investment in many parts of the world. There are many affects of globalization which point out that we live in a globalized world (Friedman 56, 2005).
The impact of globalization can be measured by the goods and services which form the proportion of national incomes. It can also be measured by the net migration rates and direct investment that comes inside a country by foreign organizations. Finally the impact of international research and development and the proportion of populations using modern technologies like the cell phone, internet, and motorcar on a country can measure the affect of globalization for a particular country. In addition to the economic measurement of globalization, it can also be measured by social and political factors. Globalization has changed the world in many different ways. It has heralded the advent of worldwide production markets which provide more access to foreign products for consumers and companies.
Global financial markets have emerged in different parts of the world which provide better access to external financing for corporations and local borrowers. The creations of world organizations which regulate the relationships between nations and protect their rights have sprung up due to globalization. China is an amazing success story of globalization because of its tremendous economic growth rate. In recent years China's economy has rapidly grown. This rapid growth of economy is the important point in the field of economic development which has been acknowledged by the international community. The UN says that China is the backbone of Asia's economic development. This statement is enough to tell that China is playing an active role in contributing to the world economy. China's rapid economic growth has made a huge impact on the world's economy in stabilizing and recovery it. China is the globe's best commodity market (Ankerl 36, 2000).
Chinese products are found all over the world. During the period of 1990-2001 China's export growth rate was 14.9% and the import growth rate was 15.5%. China's good and cheap exported products have benefited many consumers globally. American buyers of goods and products have saved about US$15 billion annually. China's rapid import growth rate has created various job opportunities globally. The foreign trade of China has enabled free flow and minimum utilization of