GLOBALIZATION. INTRODUCTION. The aim of this report is explain the impacts that has had the globalization in the economy. Firstly is important to know what means globalization`s concept, straightway which is the effect in developed countries. Later on, it will cite the most important advantages and disadvantages of the globalization. Finally will be expound the conclusion. WHAT MEANS GLOBALIZATION? Globalization is primally an economic process of integration that has social and cultural aspects. It involves goods and services, and the economic resources of capital, technology and data. Besides is the increasing interaction of people, states or countries through the growth of the international flow of money and culture. COUNTRIES WHERE THE EFFECT IS LARGEST. Globalization does not favour to countries in the process of developing. The reason of that is that companies need a low cost of their products for complete in developed countries and is some complicated for them. While developed countries seek cheap labour in those countries. ADVANTAGES AND DISADVANTAGES. On the one hand the benefits include reduced costs of production and therefore products are offered at lower prices. Moreover, greater accessibillity to goods that previously could not be obtained in undevelopment countries. In addition, exist a increase competitiveness among entrepreneurs and rise the quality of product. On the other hand, the disadvantages it can mention are: Degradation of the enviroment by explotation countries, furthermore create economic inequality between developed and undeveloped countries due to capital concentration in developed countries. And finally, less opportunity to complete with large multinational companies. CONCLUSION. In conclusion, it is demostrated that Globalization is good for developed countries because they increase external relations and benefits from increased competition and lower prices, but is not well for developing countries because it is difficult for them to be part of a global world and large entreprises go to them to seek cheap labor costs.