In geography it refers to the speed of transportation making places
"closer" together in terms of social distance. The theory is literally
that the compression of speed has compressed the space between any two
points on the globe.
The classic example is that people generally are willing to commute 20
minutes from home to work. In the Medieval city this meant working
within a 20 minute walk of your home, or less than a mile. In today's
city, figuring 60 mph, it can mean 20 miles.
Another classic example is in the transport of goods. When it took 5
months to import something from China to the USA, the item was a rare
commodity. Silk may have been a luxury item, but it wasn't part of the
culture. Today it takes days to get a product from China to the USA, so
China's products are a part of our everyday culture.
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