From the point of view of international business globalization of the firm is very important. There have been a number of approaches to globalization of the firm which are given below:

The Globalization according to Levitt of Harvard Business School was referred to as an alleged consequence of markets in the world. It is the emergence of global markets for standardized consumer products enabling a firm to benefit from enormous economics of scale in production, distribution, marketing and management. The impact of technology would be toward further standardization. According to Levitt a successful globalized corporation does not abjure customerization or differentiation and for the requirements of markets that differ in product preferences, spending patterns and shopping preferences. Global Corporations accept these differences only reluctantly.

In the Japanese view as presented by Ohame Kenichi Globalization is understood as a ‘business chain’. A business chain comprises a firm’s main activities such as Research and Development, engineering, manufacturing, marketing and sales and services. He distinguishes five steps in globalization of a firm. Each of these steps involves the transfer of activities in the business chain to a foreign location. it is in reference to development in the 1980s. Since 1980s had been dominated by unprecedented flows of foreign direct investment as has been seen, mergers and acquisitions and strategic alliances as well as by ever-fiercer competition from