Business
What is Globalization?
Globalization is the growing interconnection of the world's economies, cultures, and populations through cross-border trade, investment, technology, and the movement of people and ideas — making distant markets and supply chains deeply interdependent.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains globalization.
Key things to understand
- 1Goods, services, capital, and information flow across borders more freely.
- 2It lowers costs and widens choice, but exposes local economies to global shocks.
- 3Technology and cheaper transport accelerated it dramatically.
- 4It spreads culture and ideas, raising both opportunity and friction.
Frequently asked questions
- What drives globalization?
- Trade agreements, cheaper transport and communication, technology, and companies seeking new markets and lower costs.
- What are the downsides of globalization?
- Job displacement in some regions, vulnerability to global shocks, and pressure on local cultures and industries.
- How does globalization affect prices?
- Access to cheaper production and wider competition often lowers prices for consumers.