According to the Peterson Institute For International International Economics, "Globalization describes the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Countries have built economic partnerships to facilitate these movements over many centuries. The term gained popularity after the Cold War in the early 1990s, as these cooperative arrangements shaped modern everyday life. This guide focuses on international trade and investment flows, emphasising advanced economies, especially the United States.

The wide-ranging effects of globalization are complex and controversial. As with major technological advances, globalization has benefited the world’s societies but has been the target of criticism for allegedly harming certain groups and aggravating inflation, supply chain disruptions, trade disputes, and national security concerns. Understanding the relative costs and benefits can pave the way for alleviating problems while sustaining the wider payoffs."