Economic globalization impacts local governance by shifting decision-making and power dynamics. As businesses operate across borders, local authorities may find themselves pressured to adapt policies to attract foreign investment. This can lead to an erosion of local autonomy as governments prioritize export-driven growth over community needs. Additionally, globalization can amplify inequality within regions, resulting in disparities in public services. Local governments must balance global economic demands with the needs of their constituents, necessitating innovative governance approaches that can address both local and global challenges.