Which term describes the increasing integration of the world economy?

• A. Globalization
• B. Internationalization
• C. Localization
• D. Regionalism

Answer: (A)

Globalization captures the growing economic interconnectedness of countries through trade, investment, technology, and cross-border flows of goods, services, capital, and ideas. As markets link more deeply, production and supply chains span many nations, and consumers access products from around the world—this is the essence of the world economy becoming more integrated.

Internationalization refers more to firms operating in foreign markets, which is about expansion rather than the depth of cross-border integration. Localization emphasizes tailoring to local markets and often implies less cross-border integration. Regionalism focuses on integration within a specific region rather than globally. Among these, globalization best describes the broader trend of increasing global economic integration.