Globalization refers to the increasing integration of economies, societies, and cultures through international trade, investment, technology, and movement of people. In the global economy, globalization enables countries to specialize in goods and services where they have a comparative advantage, leading to efficient resource allocation and economic growth. It promotes foreign direct investment, expands markets for businesses, and enhances access to technology and capital. However, globalization can also widen income inequality, expose economies to global financial crises, and challenge domestic industries. Overall, globalization plays a significant role in shaping interconnected global economic systems.