Globalization refers to an increasing amount of global interconnection, especially in business and economic activity. Some important aspects of globalization are:
- Communication: Seamless instantaneous global communications in multiple modalities are a key element of the infrastructure of globalization. All other aspects of globalization depend on the ability of people to communicate around the world by means such as telephone, internet, fax, and broadcast media.
- Transportation: For goods to be shipped around the world, a transportation infrastructure, include land, sea, and air transport and accompanying logistical systems, is needed. Just-in-time manufacturing and complex supply chains make multinational companies especially reliant on logistics.
- Supply Chains: A globalized economy is one in which inputs and supply chains are sourced from around the world, taking advantage of low-cost producers and manufacturing in low-wage countries to reduce costs.
- Markets: In a globalized economy, many products and services are sold far from where they are produced.This allows for economies of scale in production and also creates greater consumer choice.