What does the concept of globalization of markets primarily refer to?

The concept of globalization of markets primarily refers to the interdependence of national economies and stakeholders. This idea emphasizes that markets are increasingly interconnected, meaning that economic activities in one nation can significantly affect those in another. As globalization advances, companies operate in multiple countries, leading to a heightened integration of both supply and demand factors across borders. This interconnectedness influences trade flows, investment patterns, and competition on a global scale.

Understanding globalization of markets also involves recognizing that consumers and businesses are no longer limited to domestic products and services; they now often have access to a variety of goods from around the world. This shift creates opportunities for economic growth and innovation, fostering closer relationships among nations and their economies.

The focus on interdependence captures the essence of how globalization reshapes the competitive landscape, as stakeholders across different countries must consider international dynamics in their decision-making processes.