In the era of globalization, organizations have expanded their operations beyond national borders, embracing increased competition, enhanced manufacturing processes, technological advancements, and the free flow of goods, services, and investments. As Sagagi (2007) noted, nations across the development spectrum have opened their economies to foster international trade and foreign investments. This interconnectedness has led to a situation where businesses are no longer confined to their home countries; they operate globally, reach diverse markets, leverage international technology, and face competition from worldwide enterprises.

This global integration has effectively transformed the world into a closely-knit village where geographical distances diminish, and international interactions thrive. Consequently, markets have expanded, and the global economy has experienced remarkable growth. While the impacts of globalization on nations and businesses are undeniable, the precise nature and extent of these effects remain a subject of debate among analysts.