What does the term 'globalization' refer to?

The term 'globalization' relates specifically to the process of increased interconnectedness and interdependence among countries. This phenomenon encompasses various dimensions, including economic, social, political, and cultural aspects, leading to a more integrated and interlinked world. Through globalization, trade barriers are lowered, leading to the expansion of international trade and investment, as well as the flow of information, technology, and cultural exchanges across borders.

Additionally, globalization fosters relationships among nations that reshape political alliances and cultural interactions—ultimately bringing people closer together, regardless of geographic distances. Examples of this can be seen in multinational corporations operating across several countries, the prevalence of international agreements, or the widespread sharing of media and cultural practices.

In contrast, the other options mischaracterize the nature of globalization. For instance, isolation of economies, a decrease in international trade, and cultural exchanges highlight a retreat from interconnectedness rather than the essence of globalization. Also, while international governing bodies play a role in managing cooperation between nations, they do not encapsulate the broader and more dynamic process of globalization itself.