Ace Your 2025 SQA National 5 Economics Exam – Unleash Your Inner Economist!

Globalization is best defined as the development of international influence by businesses, which captures the essence of how companies operate across borders and integrate into the global economy. As businesses expand their operations internationally, they not only enter new markets but also influence economies, cultures, and societies on a global scale. This phenomenon allows for increased trade, investment, and communication between countries, making it a central characteristic of modern economies.

While the other options touch on various aspects of economic activity, none fully encapsulate the concept of globalization. Expansion of a country's trade policies focuses solely on governmental actions rather than the broader multinational influence of businesses. The uniformity of national regulations across countries suggests a convergence in legal frameworks, which does not necessarily represent the essence of globalization, where diversity and adaptation to different environments are key. Lastly, the increase in domestic production capacities pertains to internal economic growth rather than the interconnectedness and international engagement that characterize globalization.