What is globalization in terms of economy

globalization

Term for the increasing emergence of global markets for goods, capital and services as well as the associated international interdependence of economies. The globalization process of the markets is mainly driven by new technologies in communication, information and transport as well as newly developed organizational forms of operational production processes. Worldwide data networks, satellite communication, computer-aided logistics and highly developed means of transport separate work and production, products and services from national locations and enable companies to select the most favorable production and delivery locations for them and to coordinate their activities worldwide. Increasingly, this means that supply and demand from all over the world are being combined and pricing is being standardized.

The main actors in globalization are multinational companies (see there), which increasingly determine the character and forms of international trade with their investment, production and product strategies. On the financial markets, not only are the stock exchanges of different locations from different countries joining together, but global trading in securities has also increased enormously in recent years. Suppliers and buyers can get prices and information about securities e.g. B. Compare with each other on the global stock markets.

For some years now, globalization has also been arousing fear and criticism. In particular, non-governmental organizations (see there) such as Attac (see there) point to the negative consequences of predominantly economic globalization. The financial market crisis (see there) since the end of 2007 made the downsides of an inadequately regulated world economy abundantly clear and presented governments with major challenges in combating the new world economic crisis.

Duden Wirtschaft from A to Z: Basic knowledge for school and study, work and everyday life. 6th edition. Mannheim: Bibliographisches Institut 2016. Licensed edition Bonn: Federal Agency for Civic Education 2016.