Capital Budgeting

At a worldwide level, globalization refers to the growing economic interdependence among countries as reflected in increasing cross-border flows of goods, services, capital and knowledge. For instance, world trade has increased considerably over the recent years. World exports which stood at $61 billion in 1950 rose to $ 315 billion in 1970, $ 3,447 billion in 1990 and further to $7,480 billion in 2003. During this entire period, the growth in world trade was significantly higher than the growth in world output. As a result an increasing proportion of world output entered into world trade (Mishra & Puri, 2007).

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