What is globalization?

Globalization is fundamentally understood as the process by which businesses or other organizations develop international influence or operate on an international scale. This encompasses a wide range of activities, including trade, investment, and cultural exchange, leading to increased interconnectivity among countries.

The significance of this answer lies in its broad scope, capturing the economic, political, and cultural dimensions of globalization. Businesses expanding their markets beyond national borders, for example, exemplify how globalization allows for the exchange of goods, services, and ideas, thereby influencing local and global economies.

The other choices, while related to aspects of globalization, do not fully encapsulate its essence. Cultural exchange and integration is indeed a component of globalization, but it doesn’t encompass the complete economic and organizational dynamics involved. Free trade agreements are a specific element of globalization but cannot define the entire process. Similarly, while urbanization contributes to global population increases, it is only indirectly related to the broader concept of globalization. The correct choice accurately reflects globalization as a comprehensive and multi-faceted process.