Globalization as commonly understood involves the increasing interaction of the world's people through their national economic systems. These economic systems are necessarily reasonably compatible and, at least in some important respects, market-oriented. Over the past half century, barriers to trade and financial flows have generally been removed, leading to a significant expansion of global markets. The expansion of markets, in turn, increased competition and fueled what Joseph Schumpeter called “creative destruction,” the continued abandonment 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 mobilized, along with new savings, to finance the production of fixed assets that almost always embody cutting-edge technologies. It is the process by which wealth is created step by step. This presupposes a continuous upheaval of an economy in which the new replaces the old. This process is particularly evident among nations that have opened their borders to increased competition. Through its effect on economic growth, globalization has been a powerful force for improving living standards. The most open economies recorded the best growth performance; in contrast, countries with inward-looking policies performed less well. It is important to note that as real incomes have increased on average, the incidence of poverty has decreased. Nonetheless, technological progress and globalization worry those who once thrived in industries that were cutting edge 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 unfettered international free market has benefited multinational corporations in the Western world to the detriment of local businesses. , local cultures and ordinary people. Resistance to globalization has therefore taken shape at both the popular and governmental level, as people and governments attempt to manage the flows of capital, labor, goods and ideas that constitute the current wave of globalization. Finding the right balance between profit and profit. costs associated with globalization, citizens of all nations must understand how globalization works and the policy choices they and their societies face.