Globalization is an economic and cultural process in which countries are increasingly integrated through economic and political connections. Globalization began to grow after World War II, when falling TARIFFs and more efficient means of air travel promoted both an expansion and a reliance on world trade. In the immediate postwar era, TRADE BARRIERS were eased through international agreements, such as the General Agreement on Tariffs and Trade (GATT, 1947), as part of an effort by industrialized nations to reinvigorate the world economy. More recently, technological advances have linked financial markets, and today financial transactions can occur in an instant from across the world. As global markets have been established and become profitable, new open markets continue to emerge in countries that have formerly been closed and highly regulated. Globalization has had many effects on the world economy. There has been an increase in the number of regional trade agreements, such as the EUROPEAN UNION (EU), the NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA), and the Asia-Pacific Economic Cooperation (APEC). These agreements serve to enhance international economic opportunities for their member nations by easing economic barriers to international trade and business operations. In 1994 the WORLD TRADE ORGANIZATION (WTO) was created out of GATT negotiations. With over 130 participating countries, the WTO is currently the most prominent international organization responsible for setting and enforcing globaltrade rules intended to lower trade barriers, institute international product standards, and provide a forum to settle international trade disputes. With globalization there has been an increase in foreign direct investment by MULTINATIONAL CORPORATIONs, large companies with operations in more than one country. These CORPORATIONs take advantage of economic opportunities by utilizing variations in local conditions, such as lower wages, to promote a competitive advantage in the PRODUCTION, distribution, and marketing of their PRODUCTs. Some labor organizations have feared that globalization will allow corporations to exploit unequal standards of workers’ rights in less developed countries and EMERGING MARKETS. For example, if workers were to strike in the United Kingdom or France, employers could move their operations to countries where workers have lower expectations. This has caused some labor organizations to be resistant to globalization forces. Concerns over the negative impact of globalization have increased in recent years. A 1999 WTO Conference in Seattle, Washington, was met with thousands of protesters who claimed that the WTO should leverage trade sanctions against nations with poor labor or environmental practices. In 2001 similar protests were made at the meeting of the Group of Eight industrialized nations in Genoa, Italy, where over 100,000 antiglobalization demonstrators congregated and one was killed in clashes with police. On the other hand, many developing countries have resisted the demonstrators’ efforts, claiming that eased trade restrictions bring much-needed FOREIGN INVESTMENT to poorer countries, and that strict environmental and labor regulations would be prohibitively expensive for less-developed countries. CONSUMER BEHAVIOR has also been influenced by globalization. The growth of the mass media and an increase in international travel has heightened cultural exchanges, which in many cases has made it easier for companies to operate and train personnel abroad. Many multinational corporations have developed brand awareness with consumers worldwide; for example, McDonald’s, Coca-Cola, Fosters Lager, and Marks and Spencer have products that are sold in numerous countries. The INTERNET has also permitted some consumers to purchase products from other countries on-line. As the world becomes smaller through international coalitions, electronic exchanges from across the globe in a matter of seconds, the development of E-COMMERCE and E-BUSINESS, the proliferation of mass media, and the development of worldwide consumer tastes, globalization will continue to shape the world economy and culture in the years to come. Margaret C. Dunlap