The increasing economic interdependence in cross-border movement of goods, services, technology and capital.
Multinational corporations have played a leading role in this globalization, establishing multiple links between the economies of various countries. Using capital from developed countries, MNCs establish factories and plants in developing countries, where they can access raw materials and labour more cheaply. The finished products are then shipped back to wealthy countries where there is a consumer market.
These multiple links lead to an increasing economic integration between various economies, resulting in the emergence of a global marketplace or a single world market.