Globalization process in the world economy in the form of free trade of goods and services across nations, international movements of finance, capital and labour migration has been strengthened, particularly after the revolution of information technology and concerned global actions to initiate the process of policy reforms based on trade liberalization, technological collaboration and participation of foreign equity and portfolio investment in different parts of the world. The emergence of WTO at the conclusion of the Uruguay Round of trade negotiations of the GATT has marked the beginning of the multilateral surveillance of the trading agreements that are evolving under the new global order.
Further, the globalization has been the catchword for international political economy discourses in the 1990s. In other words, this term connotes a process of free trade in commodities and services across the nations coupled with greater mobility of factors of production between nations such that economies of different nations tend to get integrated in practice. This would involve gradual dismantling of artificial restrictions on trade and investment in different parts of the world. This would also logically require devising of new rulers of the game being evolved at the multilateral level to coordinate the increased flows of trade and investment.