Various countries throughout the world are undergoing a primary shift in the way they produce and market different products and services. The national economies that were achieving the goal of self-reliance are now growing dependent upon others for procuring and supplying different kinds of goods and services. Owing to this increase in cross border trade and investments, countries are not isolated anymore. The main reason behind this fundamental change is the growth of communication, technology, infrastructure etc. Cropping of new methods of communication and development of quicker and more well-organised means of transportation had brought nations closer to one another. Countries that were detached from one another owing to geographical distances and socio-economic differences that had now begun interacting with others. World Trade Organisation carried out by government of different countries are one of the major contributory factor to the increased interactions and business associations amongst the nations. In today's world with numerous obstacles to cross-border movement of goods and persons has significantly come down. The national economies are progressively becoming borderless and getting incorporated into the world economy and so is evident the world has today come to be known as a 'global village'. Gone are the days where business in the was restricted to boundaries of the domestic country. Many more firms are making entry into international business which presents them with several opportunities for growth and huge profits. India was trading with other countries for a long time, but it has recently quickened its process of integrating with the world economy and increasing its foreign trade and investments.