Economic globalization can be defined as the process of increasing
economic integrationEconomic integration is a term used to describe how different aspects between economies are integrated. The basics of this theory were written by the Hungarian Economist Béla Balassa in the 1960s. As economic integration increases, the barriers of trade between markets diminishes...
between two countries, leading to the emergence of a global marketplace or a single world market. Depending on the paradigm, globalization can be viewed as both a positive and a negative phenomenon.
Whilst economic globalization has been occurring for the last several thousand years (since the emergence of
trans-national tradeInternational trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product . While international trade has been present throughout much of history , its economic, social, and political...
), it has begun to occur at an increased rate over the last 20-30 years.
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Economic globalization can be defined as the process of increasing
economic integrationEconomic integration is a term used to describe how different aspects between economies are integrated. The basics of this theory were written by the Hungarian Economist Béla Balassa in the 1960s. As economic integration increases, the barriers of trade between markets diminishes...
between two countries, leading to the emergence of a global marketplace or a single world market. Depending on the paradigm, globalization can be viewed as both a positive and a negative phenomenon.
Whilst economic globalization has been occurring for the last several thousand years (since the emergence of
trans-national tradeInternational trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product . While international trade has been present throughout much of history , its economic, social, and political...
), it has begun to occur at an increased rate over the last 20-30 years. This recent boom has been largely accounted by
developed economiesThe term developed country is used to describe countries that have a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue and there is fierce debate about this. Economic criteria have tended to dominate...
integrating with
less developed economiesDeveloping country is a term generally used to describe a nation with a low level of material well being. There is no single internationally-recognized definition of developed country, and the levels of development may vary widely within so-called developing countries, with some developing...
, by means of
foreign direct investmentForeign direct investment in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. Its definition can be extended to include investments made to acquire lasting...
, the reduction of
trade barrierA trade barrier is a general term that describes any government policy or regulation that restricts international trade. The barriers can take many forms, including the following terms that include many restrictions in international trade within multiple countries that import and export any items...
s, and the modernization of these developing cultures.