P|P@History of Global Business


When did people start business across borders? They has been trading across borders from ancient times, however, I will define the start of global business is when the world first stock corporations, the East Asian companies were established in the United Kingdom 1600 and in Holland 1602. This is because the pursuit of profit using offshore resources has become popular. A.D. Chandler explained that English people introduced the system of a corporate firm to accelerate international trading and to promote colonies in the 16th century, and administer the public facilities in the 18th century. Due to the industrial revolution in the 19th century, railroads and telegrams, which are necessary for muss production and muss outflows developed dramatically in the Western countries. This broadened their market and made an original form of the modern multinational companies (Barlteet, Doz & Hedlund). As technology advanced, borderless business prospered in pursuit of profits and expansion of the companies. Barlteet, Doz & Hedlund also claimed international agreements that concluded around that time, such as GATT (General Agreement on Tariffs and Trade) or IMF (International Monetary Fund), eased restrictions on trade and played an important role to encourage business across countries. After the world war two, Asian countries, especially Japan could gradually join this trend of international trading. Now the 21st century, globalisation has spread all over the world, and many researchers study how companies should be in such a time.


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