Final answer:
Globalization is the increasing interconnectedness of societies, economies, and businesses worldwide, propelled by international trade, advancements in technology, and cultural exchanges. This process has intensified competition and expanded market reach, influencing both local and global economic dynamics.
Step-by-step explanation:
The term globalization refers to the process by which businesses, technologies, and societies become more interconnected across international borders. This trend has led to an increase in international trade and financial capital flows. Moreover, advancements in communications and information technology have fostered this interconnectedness, permitting consumers and businesses to interact and transact on a global scale, thereby intensifying competition and changing how markets are defined.
Globalization has had a significant impact on local and international markets, providing opportunities for businesses to expand but also introducing greater competition from firms in other regions and countries. With the proliferation of the internet and e-commerce platforms, such as business-to-business websites, companies can now source and sell products and services worldwide, which has both expanded market reach and increased competitive pressures.
The interconnectedness of markets can be either an opportunity or a threat to a country, largely contingent on its ability to adapt and compete in the international marketplace.