As an economic phenomenon, globalization is a shift from distinct national economies to a global economy. It is virtually trade without borders. In this system multinational corporations wield vast power, while anonymous investors can foster material prosperity or cause devastating depression in any part of the world.
Globalization is both a cause and a result of the modern information revolution.
It is driven by dramatic improvements in telecommunications, incredible increases in computing power, and the development of information networks, such as the Internet. These technologies are helping to overcome the barriers of physical distance. According to its proponents, globalization can be a whirlwind of trade and investment that builds economies and spurs development in even the world's poorest countries. For example, during the 1990's alone, foreign investors have poured one trillion dollars into developing economies. This phenomenal increase in international investment has made the building of roads, airports, and factories possible in poorer nations.