Economic Globalization
Definition
Economic globalization refers to the increasing integration and interdependence of economies across national borders. It involves the flow of goods, services, capital, and information between countries.
Analogy
Think of economic globalization like a global shopping mall. Just as people from different countries can buy products from all over the world in a mall, economic globalization allows countries to trade and access goods and services from around the globe.
Related terms
International Trade: International trade refers to the exchange of goods and services between different countries.
Foreign Direct Investment (FDI): FDI is when a company invests in or establishes production facilities in another country.
Outsourcing: Outsourcing is when a company hires workers or gets work done from another country at lower costs.
"Economic Globalization" appears in:
Subjects (2)
Practice Questions (4)
How does economic globalization impact local economies?
Why does economic globalization often lead to an increase in income inequality within countries?
What is a significant consequence of economic globalization on local cultures?
Which outcome is a common result of economic globalization in developing countries?
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