Industrialisation is characterised by the reduction of international trade restrictions and by the increase in economic inter-dependences. Financial integration of the 1970s and international linkages through foreign direct investment by multinational corporations and by technological alliances is commonly known as globalisation. In general applications, globalisation is reflected in the increasing acceptance of free markets as the main mechanism for the development of economic activities. Today, globalisation, regional convergence, and disintegration are the three major trends in the world's economic development. Globalisation has provoked passionate reactions from both enthusiasts and opponents alike.
Proponents emphasise the economic benefits of globalisation.
They point out that it will bring about economic prosperity, political security, social and cultural homogeneity to the world community. Opponents argue that there is a lot of economic, political, social and cultural cost associated with globalisation. Politically, globalisation will make less development nations more dependent on industrial nations, and will increase unemployment, immigration, and violence in these countries. The shift in the geopolitical landscape, which followed the collapse of communism, has meant that the scope for moving goods, capital and ideas across borders has become truly global. What has really turned the spotlight on globalisation is the way economic integration and technological progresses have become attached to, and reinforced, a fundamental change in economic policy.