What does the term "globalization" refer to?

The term "globalization" specifically refers to the process by which businesses develop international influence or operate on a global scale. This phenomenon involves the integration of economies, cultures, and societies across the world, driven largely by advancements in communication, trade, and technology. As businesses seek new markets and resources, they increasingly collaborate and compete on an international level, leading to a more interconnected global economy. This connection enhances the flow of goods, services, capital, and information, consequently fostering economic growth and cultural exchange.

In contrast, the other options don't accurately capture the essence of globalization. The expansion of local businesses may be a part of globalization, but it does not encompass the broader international interactions and influences that define the term. The increase of cultural diversity can be a byproduct of globalization, as global interactions expose different cultures to one another, but it is not the central concept. The decline of international trade contradicts the notion of globalization itself, which is characterized by an increase in trade across borders rather than a decrease.