External trade contributes to globalization by facilitating the exchange of goods, services, and ideas across national borders. It refers to the buying and selling of goods and services between countries. Here's how external trade contributes to globalization:

1. Economic Integration:
- External trade allows countries to specialize in the production of certain goods and services based on their comparative advantage. This leads to increased efficiency and productivity.
- It promotes economic integration as countries engage in trade agreements and form regional blocs such as the European Union (EU) or the Association of Southeast Asian Nations (ASEAN).
- Trade agreements reduce trade barriers like tariffs and quotas, making it easier for countries to trade with each other. This encourages cross-border investments and economic cooperation.

2. Cultural Exchange:
- External trade facilitates cultural exchange as goods and services from different countries reach new markets. It exposes people to different cultures, traditions, and ideas.
- Through external trade, people can experience diverse cuisines, fashion, music, and art from around the world. This cultural exchange promotes understanding, tolerance, and appreciation of different cultures.

3. Technological Advancement:
- External trade promotes the transfer and diffusion of technology between countries. Developed countries often export advanced technology and machinery to developing nations.
- This transfer of technology helps developing countries improve their productivity, manufacturing processes, and overall economic development. It also fosters innovation and technological advancement globally.

4. Global Supply Chains:
- External trade has led to the emergence of global supply chains, where different countries specialize in different stages of production.
- Companies can source raw materials from one country, manufacture products in another, and sell them in multiple markets worldwide. This interconnectedness of supply chains enhances efficiency and reduces costs.

5. Interconnected Financial Systems:
- External trade has necessitated the development of interconnected financial systems to facilitate international transactions.
- Banks, financial institutions, and payment systems enable the smooth flow of money across borders, supporting international trade and investment.

In summary, external trade plays a vital role in globalization by promoting economic integration, cultural exchange, technological advancement, global supply chains, and interconnected financial systems. It connects countries and people, fostering mutual benefits and contributing to the global economy.