What is the definition of globalization in the context of international business?

The definition of globalization in the context of international business centers around the process by which businesses develop international influence or operate on an international scale. This concept encapsulates the growing interconnectedness of economies, cultures, and populations across borders. It highlights how companies expand their reach beyond domestic markets, engaging in trade, investment, and collaboration with various international partners.

Globalization encourages firms to take advantage of opportunities presented in foreign markets, such as exploring new customer bases, sourcing materials, and optimizing production processes. This can lead to increased efficiency and potentially higher profits as businesses integrate into global supply chains and adapt to diverse market demands.

In contrast, other options focus on narrower or incorrect interpretations. Restricting operations to domestic markets does not align with globalization, as it emphasizes limits rather than expansion. The accumulation of wealth through national borders does not capture the essence of globalization but rather suggests a static perspective on economic gains. Lastly, increasing tariffs on imported goods describes a protectionist approach, which runs counter to the principles of globalization that advocate for free trade and open markets. Thus, the correct answer accurately reflects the dynamic and expansive nature of globalization within international business.