What does the term "globalization" refer to?

The term "globalization" most accurately refers to the growing interconnectedness and interdependence of markets. This concept encompasses the way goods, services, information, and capital flow across borders, leading to economic and cultural exchanges on a global scale. Globalization fosters relationships between countries and regions, enabling businesses to operate internationally and consumers to access products from diverse sources.

As markets become more interdependent, decisions made in one part of the world can have significant implications in others. For instance, a change in trade policies in one country can affect supply chains and economic conditions globally. This interconnectedness also promotes shared cultural experiences and international collaboration, highlighting the influence of globalization on modern economies and societies.

The other options do not capture the essence of globalization as effectively. While increasing competition among nations and the rise of national economies may occur alongside globalization, they do not define the concept itself. Isolation of local markets is contrary to the principle of globalization, which inherently promotes engagement and interaction across borders.