globalization

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

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

Examples of globalization in a Sentence

Recent Examples on the Web

Anti-globalization isn’t on the table – in fact, Chinese officials have been trying to maintain a friendly image towards global opportunities by continuing to attract foreign investors in their free trade zones. Ling Chen, Washington Post, "How this trade war could backfire — in China’s favor," 25 June 2018 As with disease, poverty is being eradicated not through technological miracles but basic rules of growth: Invest more in your human and physical capital, open yourself to markets and trade—that’s right, globalization is good—and incomes will rise. Greg Ip, WSJ, "The World Is Getting Quietly, Relentlessly Better," 2 Jan. 2019 Australia is enjoying a 27-year run of economic growth, but stagnant wage growth, inflationary pressures, job losses and a backlash against globalization have stoked voter unease. Rachel Pannett, WSJ, "Australia Ousts Another Prime Minister as Ruling Party Shifts Right," 24 Aug. 2018 Rodrik’s latest book, Straight Talk on Trade: Ideas for a Sane World Economy, highlights what the proponents of globalization got wrong and how to move forward. Emily Heller, Vox, "The economist appeared on The Ezra Klein Show to discuss Trump’s trade war.," 19 July 2018 The globalization of trade has opened up opportunity and lifted billions out of poverty around the world. Matthew Yglesias, Vox, "Elizabeth Warren wants to outflank Trump on trade," 29 Nov. 2018 Protectionism and anti-globalization sentiments are on the rise. Annabelle Liang, The Seattle Times, "Southeast Asian-centered trade deal set for further delays," 14 Nov. 2018 Gray first started showing in London when the globalization of the fashion industry was hitting and with it the pressure—always unrealistic—on young designers to become mass sellers to retailers all over the world. Sarah Mower, Vogue, "Louise Gray: A Totemic Comeback for a Scottish Original," 16 Sep. 2018 There are no longer enough free traders in either party to push globalization forward; the question is whether there are enough to keep it from sliding backward. Greg Ip, WSJ, "Bush’s Economic Legacy, Little Appreciated Then, Reverberates Today," 3 Dec. 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.

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First Known Use of globalization

1930, in the meaning defined above

History and Etymology for globalization

see globe entry 1

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Last Updated

8 Feb 2019

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The first known use of globalization was in 1930

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More Definitions for globalization

globalization

noun

Financial Definition of globalization

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 developing 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 InvestingAnswersquickly 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

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