Economic Globalization

Definition

Economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.

Related terms

Trade Liberalization: This refers to the removal or reduction of restrictions or barriers on the free exchange of goods between nations. It includes things like tariffs and quotas.

Foreign Direct Investment (FDI): This is an investment made by a firm or individual in one country into business interests located in another country.

Multinational Corporations (MNCs): These are large companies that operate in several countries. They play a significant role in globalization.