Effects of globalization on economies in transition

Abstract

© 2016 by IGI Global. All rights reserved. The chapter covers ranges and effects of globalization on economies in transition, as well as possibilities and limits in raising their competitiveness. International business has increased its size in the 20th century, mostly owing to trade liberalization and investments and partly owing to a fact that doing the international businesses has generally become easier and simpler. With regard to liberalization, the General Agreement on Tariffs and Trade has led to trade liberalization, and it was continued with establishment of the World Trade Organization in 1995. At the same time, capital mobility was liberalized by most of the countries, especially with development of electronic money transfer. Besides, by introduction of a new European monetary unit - euro, in January 2002 has been exerted influence to international business. With regard to international business, two main forces are important: technological progress, which made global communications and transport relatively fast and comfortable, and economies in transition, which brought about opening new markets.