Globalization plays a key role for the economic growth and economic development and global business is a chief dimension of globalization. Historians and business experts who have conducted studies in the shipment of goods across global borders are of the opinion that the world’s economy has become bigger and the world has become smaller due to the shipping container. Moreover, it has been said by one of authors that containerization and modern transportation in the recent world history of technology is the major technological change which has resulted in the globalization of the entire world economy.
One of the key aspects in which the progress of the economy has made itself more tangible is transportation. A significant role is played by the efficient global transport system in the economic development and global trade. Over the period of time when companies are seeking out low land costs and wages to achieve low cost of production, international manufacture is coming increasingly common and this adds up to the reason why there is a development in the global trade. But, the result of the same is requirement of long-distance global transport. The increase in the vertical specialization would have been encouraged due to the fall of the cost of transportation. There is a higher cost of transportation when the process of production is broken into stages as compared to when the production is conducted in only a single place. It is impractical to ship parts when cost of transportation is high. Thus, the advancement in transportation especially in containerization has reduced the cost and has led to the development of the global trade.