How does globalization typically affect local economies?

Globalization usually affects local economies by facilitating increased economic interactions across borders, which can stimulate growth. As local markets connect with global networks, they often gain access to larger markets for their products, potential foreign investments, and technological advancements. However, this integration can also lead to inequities. While some businesses and communities may prosper, others may struggle to compete, potentially exacerbating income disparities within the local economy.

This duality, where some benefit significantly and others might experience negative effects, underscores the complex nature of globalization. Economic resilience often varies depending on the capacity of local economies to adapt and compete. Moreover, the benefits of globalization might not be evenly distributed; for instance, wealthier areas might attract more foreign investment, while rural or disadvantaged communities might see little to no benefits.