The concept of globalisation has received a great deal of popular attention in
recent years. However, the term is often used quite loosely. When defined to
mean closer international economic integration, the evidence shows that the
extent of globalisation may easily be exaggerated. This article examines the
evidence and assesses the benefits from, and costs of, globalisation. It goes on to discuss how the costs might be mitigated, and briefly examines the role of the principal international trade and financial institutions.