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Globalization

Explore globalization — the process of increasing interconnection between the world's economies, cultures, and populations through trade, technology, and migration.

Globalization — the increasing integration of the world's economies, cultures, and populations — is not a new phenomenon, but it accelerated dramatically in the late 20th century. The collapse of the Soviet Union, the rise of free trade agreements, the container shipping revolution, and the internet created a world more interconnected than at any point in human history.

The economic dimensions are staggering. Global trade increased from $2 trillion in 1970 to over $25 trillion by 2020. Multinational corporations built supply chains spanning dozens of countries. Hundreds of millions of people in China, India, and Southeast Asia were lifted from poverty as manufacturing shifted to lower-cost economies. Financial markets became globally integrated, meaning a crisis in one country could cascade worldwide — as the 2008 financial meltdown demonstrated.

Globalization's benefits have been unevenly distributed. While it created new opportunities in developing countries, it also displaced workers in developed nations, widened inequality, and homogenized cultures. The backlash against globalization has fueled populist movements, trade wars, and demands for economic nationalism. The COVID-19 pandemic exposed the fragility of global supply chains. Whether globalization continues, retreats, or transforms into something new is one of the central questions of the 21st century.

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