How is globalization defined in the context of economics?

Globalization in the context of economics is best defined as the process of increasing economic interdependence among countries. This concept encompasses the integration of markets, trade, and investment on a global scale, facilitating a more interconnected world economy. Through globalization, countries engage in the exchange of goods and services, capital flows, and the movement of labor, leading to a multitude of benefits such as access to larger markets, enhanced efficiencies, and the sharing of technology and innovations.

This increased interdependence can result in countries relying on each other for resources, markets for their exports, and essential goods, fostering cooperative relationships and boosting economic growth internationally. As such, globalization promotes international trade and economic collaboration rather than isolation or limitation, which aligns with the definition provided in the correct answer.