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Economics glossary · The global economy

Globalisation

What globalisation means in economics, with an example and a question to test yourself.

Definition
Globalisation
Globalisation is the expanding cultural, political and economic connections between people around the world, such as trade and flows of financial capital.
Not to be confused with: Protectionism
Protectionism is government policy to reduce or block imports, often to shield domestic producers and workers from foreign competition.
Test yourself

What is the difference between globalisation and protectionism?

Learn it properly: the module

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