In 2014, the world has become more of a global society due to globalization. In this essay, I will define globalization and describe the factors that lead to this phenomenon. I will examine some institutions related to global trade and development. I will also highlight the positive and negative aspects of globalization for industrialized and underdeveloped countries around the world. Globalization is the expansion and intensification of connections and flows of people, goods, capital, ideas and cultures across borders (Rakesh). It is the concept of people working together and helping each other. Globalization affects every country in the world in one way or another, whether positive or negative. Economies around the world have become integrated through trade and financial flows. Globalization has promoted the movement of labor, knowledge and technology across the world (Rakesh). International trade has been around for a long time. Countries in the 13th century, for example, traded spices. Since World War II, technological advances have reduced trade costs (IMF). When advanced technology emerged, it brought an easier way to trade and communicate across the world. Technology has seen rapid growth in international trade and investment. In the 20th century, globalization is no longer just a notion, it is a phenomenon, but the question is: is it a threat or an opportunity? Companies around the world such as McDonald's have gone global. McDonald's started in the United States and is now present all over the world. McDonald's is just one of many companies expanding their operations globally. Businesses expand internationally for many reasons. Some expand to reach a global market, while others do so to obtain cheaper labor. There are many main factors leading to the growth of globalization, one of them being trade. For centuries, countries have engaged in trade. One country can produce a material that another cannot produce or simply cannot produce as well as the other, which is why they trade materials. Exports of manufactured goods increased by 29% between 1971 and 1999 and continue to grow (Nicholas). It is easier for countries to trade than it was 20 years ago, in part because barriers to international trade have been lowered thanks to the General Agreement on Tariffs and Trade (GATT). Another factor that leads to globalization are financial flows..