globalization

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

|Updated on: 14 Jun 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

That the root’s most valuable output comes from one of its smallest producing nations is a phenomenon of globalization.

— chuin-wei yap, WSJ, "Chinese Tariffs Take Root in American Ginseng," 25 Apr. 2018
The landscape illustrates the nexus of the shift from cars to trucks and SUVs and globalization.

— phoebe wall howard, Detroit Free Press, "New Ford Focus unveiled overseas, made in China, Germany," 10 Apr. 2018
Rather than address its shortcomings, this will only entrench the inferior form of globalization.

— dambisa moyo, Time, "The False Promises of Protectionism," 22 May 2018
Policymakers must understand that machine learning and automation's impact on the economy and job market will mirror that of globalization.

— john k. delaney, WIRED, "France, China, and the EU All Have an AI Strategy. Shouldn’t the US?," 20 May 2018
Still, Marine Le Pen made clear that a new name would in no way change the party’s anti-immigration, anti-European Union and anti-globalization platform.

— new york times, BostonGlobe.com, "New name proposed for French far-right party," 11 Mar. 2018
Like the anti-establishment Five Star Movement, which emerged the biggest single party in parliament, Salvini built the League’s best result ever by riding a surge of anti-globalization, euroskeptic voter anger.

— Bloomberg.com, "Populist Salvini’s Provocations Drive His Appeal Across Italy," 5 Mar. 2018
The tariff actions week found Trump administration officials in Davos fighting back hard against global perceptions that the United States is anti-globalization and against free trade.

— Anchorage Daily News, "Republican lawmakers condemn Trump’s tariff move on eve of his arrival at Davos forum," 25 Jan. 2018
The globalization of the American lobster business has spurred fears within the industry that lobsters’ shells are getting weaker, but scientific evidence about the issue paints a complicated picture.

— Washington Post, "Lobster industry fears weaker shells, but evidence is mixed," 13 May 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