History of International Business started with the evolution of Human Civilization. This article mainly focuses on the evolution and history of International business. This also covers major historical events of internationalisation.
History of International Business
The integration and Growth of economies and Societies was the main reason for the first phase of International Business and Globalization.
Let’s try to understand major incidences happened during evolution of International Business or Internationalization
19th Century: The broader concept of the integration of economies and societies evolved
1870: Began first phase of Globalization
1913: GDP was 22.1
After 1913: Increased Trade Barriers to Protect Domestic Production
1919: World War I:
End of the first phase of Globalization, the Industrial Revolution in the UK, Germany and the USA
A sharp increase in the trade with import and export by colonial empires
1930’s: Declined Trade Ratio, GDP was 9.1
After the 1930s: World Nations felt the need for International Co-operation in global trade and balance of payments affairs
- Establishment of IMF and IBRD (World Bank)
- IMF: International Monetary Fund
- IBRD: International Bank for Reconstruction and Development
1947: 23 countries conducted negotiations in order to prevent the protectionist policies and to revive the economies from recession aiming at the establishment of the World Trade organization
1947: Establishment of GATT (General Agreement on Trade and Tariffs)
The 1980s: efforts to convert GATT into WTO
1995: GATT was replaced by WTO (World Trade Organization) on Jan 1, 1995
1990 – 2000: The Term International Business (IB) has emerged from the term International Marketing.
Two Phases of the Evolution of International Business
There are two Phases of the evolution of the term International Business
- International Trade to International Marketing
2. International Marketing to International Business
After 1990: Rapid Internationalization add globalization
Today: Interpreting the PESTIN factors of International Trade environment more clearly.