Globalization aided by information technology is driving greater interaction and integration among people, companies and governments across national borders. While international trade and investment have occurred for millennia, globalization is now proceeding farther, faster, cheaper and deeper due to technologies compressing time and space. However, this brings challenges like a growing digital divide where many lack internet access. It also raises issues around intellectual property as copyright laws struggle to keep pace online, and how governments can collect tariffs and taxes on cross-border e-commerce as these revenues are threatened. Addressing the digital divide and clarifying policies on duties and levies will help developing countries deal with the implications of the increasingly globalized digital economy.