Globalization, as generally understood, involves the increasing interaction of the world's peoples through their national economic systems. Necessarily, these economic systems are reasonably compatible and, at least in some important respects, market-oriented. Over the last half century, barriers to trade and financial flows have generally fallen, resulting in a significant expansion of world markets. Expanding markets, in turn, have strengthened competition and fueled what Joseph Schumpeter called “creative destruction,” the continued demolition of old technologies to make way for new ones. Standards of living rise because depreciation and other cash flows from industries employing older and increasingly obsolete technologies are used, along with new savings, to finance the production of capital goods that almost always incorporate cutting-edge technologies. This is the process by which wealth is created step by step. It presupposes a continuous renewal of an economy in which the new replaces the old. The process is particularly evident among those nations that have opened their borders to greater competition. Through its effect on economic growth, globalization has been a powerful force that has acted to raise living standards. The most open economies recorded the best growth performances; in contrast, countries with inward-oriented policies performed less well. Importantly, as real incomes have increased on average, the incidence of poverty has decreased. However, technological progress and globalization are challenging those who once thrived in technologically cutting-edge industries but have since become increasingly uncompetitive. ..... middle of paper ...... Globalization, however, is deeply controversial. Supporters of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization argue that the creation of an unrestricted free international market has benefited multinational corporations in the Western world to to the detriment of local businesses. , local cultures and common people. Resistance to globalization has therefore taken shape at both the popular and governmental levels as people and governments seek to manage the flow of capital, labor, goods and ideas that constitute the current wave of globalization. Finding the right balance between the benefits and costs associated with globalization, citizens of all nations must understand how globalization works and the political choices facing them and their societies.