estate––called direct foreign investment––was 20 times greater in 1990 than in 1970. Gross
transactions of long-term U.S. government securities by foreigners rose from $144 billion in 1978 to
$5.6 trillion in 1991. Since 1950, the costs of international transportation and communication have
been drastically reduced, making it easier to conduct business across borders. The economies of
many countries have become more closely tied together than ever before (Gonnelli, 1993).
The global economy is projected to grow about 3 percent annually during the next decade, slowing
to 2.2 percent annually during the next 40 years. The global economy will double in size by 2040, and
triple by 2060. The value of trade worldwide rose from under $2 trillion in 1960 to $25 trillion in
2009 (adjusted to constant 2009 dollars); strong growth will continue through the next 50 years
(Adams, 2010).