what is globalization 
globalization refers to the growing interconnection of nations economies it represents the flow of financial products goods technology information and jobs across national borders and cultures in economic terms it describes an interdependence of countries around the globe fostered through free trade alex dos diaz investopediaunderstanding globalizationcorporations gain a competitive advantage on multiple fronts from globalization they can reduce operating costs by manufacturing abroad buy raw materials more cheaply because of the reduction or removal of tariffs and most of all gain access to millions of new consumers globalization is a social cultural political and legal phenomenon on the one hand globalization has created new jobs and economic growth through the cross border flow of goods capital and labor on the other hand this growth and job creation are not distributed evenly across industries or countries specific industries in certain countries such as textile manufacturing in the united states or corn farming in mexico have suffered severe disruption or outright collapse as a result of increased international competition globalization s motives are idealistic as well as opportunistic but the development of a global free market has benefited large corporations based in the western world its impact remains mixed for workers cultures and small businesses around the globe in both developed and emerging nations globalization has grown at an unprecedented pace with public policy changes and communications technology innovations cited as the two main driving factors the history of globalizationglobalization is not a new concept traders traveled vast distances in ancient times to buy commodities that were rare and expensive for sale in their homelands the industrial revolution brought advances in transportation and communication in the 19th century that eased trade across borders the think tank peterson institute for international economics piie states globalization stalled after world war i nations moved toward protectionism as they launched import taxes to guard their industries in the aftermath of the conflict this trend continued through the great depression and world war ii until the u s took on an instrumental role in reviving international trade 1one of the critical steps in the path to globalization came with the north american free trade agreement nafta signed in 1993 2 one of nafta s many effects was to give american auto manufacturers the incentive to relocate a portion of their manufacturing to mexico where they could save on the costs of labor 3 nafta was replaced in 2020 by the united states mexico canada agreement usmc 4governments worldwide have integrated a free market economic system through fiscal policies and trade agreements in the 20th century the core of most trade agreements is the removal or reduction of tariffs this evolution of economic systems has increased industrialization and financial opportunities in many nations governments now focus on removing barriers to trade and promoting international commerce pros and cons of globalizationa larger market for goods and servicescheaper consumer pricesoutsourcing can benefit domestic firms and foreign laborincreased standard of livingconcentrates wealth in richer countriessome poorer countries can be left behindlabor and the physical and intellectual resources of poorer countries can be exploitedregions and cultures lose their uniqueness and products available around the world can become homogeneous