In 2014 the world has increasingly become a global society due to globalization. In this essay I will define globalization and describe the factors that lead to this phenomenon. I will look at some institutions related to trade and development on a global scale. I will also highlight the positive and negative aspects of globalization for industrialized countries and for 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's the concept of people working together and helping each other. Globalization affects every country in the world in one way or another, whether positively or negatively. Economies around the world have integrated through trade and financial flows. Globalization has helped the circulation of labor, knowledge and technology around the world (Rakesh). International trade has been around for a long time. Thirteenth-century countries, for example, traded spices. Since World War II there have been technological advances that have reduced the costs of trade (IMF). When advanced technology arrived, it introduced an easier way to trade and communicate across the world. The technology has seen rapid growth in international trade and investment. In the 20th century, globalization is no longer just a notion but a phenomenon, but the question is: is it a threat or an opportunity? Global companies like McDonald's have gone global. McDonald's started in the United States and is now present in countries around the world. McDonald's is just one of many companies that are taking their business global. Businesses expand internationally for many reasons. Some expand to reach a global market while others do so for cheap labor. There are many major factors that lead to the growth of globalization, one of them is 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, so they trade materials. The export of manufactured goods increased from 1971 to 1999 by 29% and continues to grow (Nicholas). It is easier for countries to trade than it was 20 years ago, one reason is that barriers to international trade have been lowered through the General Agreement on Tariffs and Trade (GATT). Another factor leading to globalization is financial flows..