Globalization is the increasing interconnection of people and places as a result of advances in transport, communication, and information technologies that causes political, economic, and cultural convergence.
Globalization can be found in five different areas: economic, cultural, political, religious, and social systems.
It should not be narrowly confused with economic globalization, which is only one aspect. While some scholars and observers of globalization stress convergence of patterns of production and consumption and a resulting homogenization of culture, power, stress,and hunger, others stress that globalization has the potential to take many diverse forms. In economics, Globalization is the convergence of prices, products, wages, rates of interest and profits. Globalization of the economy depends on the role of human migration, international trade, movement of capital, and integration of financial markets. The International Monetary Fund notes the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions, free international capital flows, and more rapid and widespread diffusion of technology. Theodore Levitt is usually credited with first using the term globalization in an economic context.