Effects of Globalization in Developed and Developing Worlds Globalization is a concept often used to refer to the ??˜shrinking’ of the world and the increased consciousness of the world as a whole. It describes change in the world economy and societies mostly because of investments, cultural exchange and cross-border trade. Economic globalization refers to increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital. It is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market Economic globalization comprises the globalization of production, markets, competition, technology, and corporations and industries (Lindert Et al, 2001)