Globalization

Globalization has accelerated over recent decades because of lower transport and communication costs, the reduction of trade barriers, the spread of the internet and the integration of large economies, such as China and India, into world markets.

Its economic effects include more international trade, global supply chains in which products are made in several countries, increased foreign investment and the spread of technology. For example, a smartphone may be designed in one country, use components from many others and be assembled in yet another.

Supporters argue globalization has lowered prices for consumers, raised productivity and helped lift hundreds of millions of people out of poverty, particularly in Asia. Critics point to job losses in some industries and regions, pressure on wages, environmental damage, the spread of financial crises and the power of multinational companies.

Since around 2008, and especially after the COVID-19 pandemic and rising geopolitical tensions, some commentators have described a slowdown or partial reversal of globalization, as countries focus on resilience, reshoring production and protecting strategic industries.