How is globalization best defined?

The essence of globalization lies in the process of businesses operating internationally. This phenomenon encompasses the growth of economic, cultural, technological, and political interactions that transcend national boundaries. As businesses expand their operations beyond their home countries, they engage in the global market, which leads to a complex web of trade, investment, and collaboration across various regions. This interaction fosters economic interdependence among countries, impacting not just the economies but also the cultures and societies involved.

The other options reflect aspects that can be influenced by globalization but do not encapsulate its defining characteristics. For example, while the rise of nationalism in politics can occur in response to globalization, it is not a defining aspect of the process itself. Similarly, the development of local markets and the increase in local traditions represent responses or adaptations to globalization rather than the concept itself. Thus, the correct choice effectively captures the core idea of globalization as an international business phenomenon.