What is globalization?

Globalization refers to the process by which businesses and other organizations develop international influence and operate on an international scale. This concept encompasses the increased interconnection and interdependence of markets and economies across the globe, allowing companies to expand their reach beyond their domestic markets. As a result, businesses are able to source raw materials, leverage labor, and sell products in various countries, thus influencing and being influenced by international markets.

The importance of globalization lies in its ability to facilitate trade, promote cultural exchange, and enhance economic growth by allowing businesses to tap into new consumer bases and enhance their competitive edge on a global stage. This process often leads to innovation, increased efficiency, and access to a wider range of products for consumers.

The other options do not capture the full definition of globalization. Merging local businesses may be a strategy that occurs in certain contexts but does not represent the broader concept of globalization. Focusing solely on domestic trade overlooks the international aspect that is central to globalization. Meanwhile, government regulation of foreign companies does not encapsulate the proactive and expansive nature of globalization as a whole, which fundamentally involves the global integration of economic activities rather than merely regulation.