globalization

noun glob·al·i·za·tion \ ˌglō-bə-lə-ˈzā-shən \

|Updated on: 9 Aug 2018

Definition of globalization

: the act or process of globalizing : the state of being globalized; especially : the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets

Recent Examples of globalization from the Web

Even some workers directly helped by globalization have focused on loss.

— neil irwin, New York Times, "Two Words That Could Shape the Politics of the Trade War: Loss Aversion," 13 July 2018
Swiss documentary director Daniel Zimmermann makes a formally impressive feature debut with his take on nature and globalization in 13 tableaux that all pan right for 360 degress.

— boyd van hoeij, The Hollywood Reporter, "'Walden': Film Review | Karlovy Vary 2018," 12 July 2018
Read more: Some highlights from the study results: Automotive globalization: Vehicles are now made in 25 countries for the U.S. market, which is 11 mote than five years ago.

— eric d. lawrence, Detroit Free Press, "Korean brands top J.D. Power quality; Ford, GM and FCA make strides," 20 June 2018
Migrants like Gassama are part of a world system that, though marked in so many ways by globalization and interdependence, throws up barriers to their dreams.

— ishaan tharoor, Washington Post, "For migrants, it takes extraordinary acts to earn normal lives," 31 May 2018
The president’s proposed tariffs on a variety of imports are aimed at fulfilling a campaign promise to protect domestic industries slammed by globalization.

— Bloomberg.com, "Republicans Warn Trump a Trade War Risks Party’s Chances in November," 5 Apr. 2018
In reality, the job losses in industries like logging and mining that have devastated many rural communities are due to macroeconomic forces like depleted resources, globalization, and technological advances.

— peter s. alagona, Outside Online, "The Endangered Species Act Needs a Reboot," 9 July 2018
Many international economists predicted that globalization would lead to higher revenues because of private sector growth.

— nita rudra, Washington Post, "India just retaliated with new tariffs on U.S. goods. Here’s why developing economies like tariffs.," 28 June 2018
But when globalization destroyed hundreds of thousands of U.S. manufacturing jobs, few elite policymakers batted an eyelash.

— david dayen, The New Republic, "Ban Targeted Advertising," 10 Apr. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'globalization.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of globalization

see ¹globe

NEW! Time Traveler

First Known Use: 1930

in the meaning defined above

See Words from the same year

Other Economics Terms

actuary, compound interest, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of GLOBALIZATION

globalization

noun

What It Is

Globalization is the integration of national economies through trade, investment, capital flow, labor migration, and technology.

How It Works

Globalization results from the removal of barriers between national economies to encourage the flow of goods, services, capital, and labor. While the lowering or removal of tariffs and quotas (see General Agreement on Trade and Tariffs, or GATT) that restrict free and open trade among nations has helped globalize the world economy, transportation and communication technologies have had the strongest impact on accelerating the pace of globalization.

Thomas L. Friedman describes the "flattening" of the world economy through globalized trade, outsourcing, supply-chaining and political liberalization. The use of technologies allows businesses, such as large multi-national corporations, to maintain customers, suppliers and even competitors on a world-wide basis. The breakdown of businesses into components along its value-chain creates opportunities for multiple businesses located at various spots on the globe to participate in the production of a single good or service. This global network, even for a single enterprise, is part of globalization.

Several organizations have either been created or have evolved into key roles in the process of globalization. The World Bank and the International Monetary Fund, for instance, deal primarily with issues of free trade in developing economies and with international monetary policy, including debt and trade balances between dbieloping and industrialized countries. The World Trade Organization, along with the General Agreement on Trade and Tariffs (GATT), has been involved with removing trade barriers and reducing the cost of trading.

Why It Matters

Increasingly, businesses must recognize that their success depends on efficiency and scalability – being able to The definition of globalization on InvestingAnswers quickly mobilize global resources and reach world markets. Globalization is the key to growing businesses in the 21st Century.

At the same time, globalization has led economic decision-making away from local control. As a result, decisions about a company's plans, including expansions, relocations, or closings are increasingly made independently of the considerations of local markets or local managers.

Source: Investing Answers