Globalization can be described broadly as the increasing interaction between the integration of activities. This mainly affects the economic activities of human societies around the world. However, more realistically, globalization refers to the growing economic interdependence of countries or states internationally through the increasing quantity and variety of cross-border relationships and transactions in goods and services and the flow of global capital. It is also through the more rapid and widespread diffusion of technology. In this case therefore globalization involves both a description and a prescription. This article examines the economic and political dimensions of globalization and seeks to link them with development and underdevelopment in first and third world countries respectively. Outlines the role of multinationals, international trade and tax agreements in the globalization process. The description of globalization lies in the expansion of international flows of trade, finance and information into a single integrated global market, while on the other hand the prescription is carried in the sense of liberalizing national and global markets in the belief that the free flow of trade and information will be a reason to produce the best results of human growth, interests and well-being. Furthermore, the most important aspects of economic globalization are the breaking down of national economic obstacles and barriers, the international expansion of trade, monetary and productive activities, and the emerging power of multinationals and international financial institutions in these processes. The popularity of globalization was the result of two main reasons. The first of these reasons is that ra...... middle of paper ...... has much to gain from globalization if it positions itself appropriately. However, integration into the world economy is not the panacea for fiscal problems, but economic growth is based on responsible institutions and infrastructure development. The prospects and ambitions of third world countries in the global economy should depend on their local and national policies, as well as on developments internationally. Works Cited Kleniewski, Nancy. Cities, change and conflict: a political economy of urban life. New York.Wadsworth Publishing Company, 2010.Print.Martinez, Elizabeth & Garcia, Arnoldo. What is neoliberalism? A brief definition. CorpWatch, 2001. Print.The new rulers of the world. Dir. Alan Lowery and John Pilger. Perf. Susan George, George Manboit, Vandana Shiva and Dita Sari. Carlton Television, 2001. Film.