This visual trace shows how 'this' behaves inside arrow functions in JavaScript. When an arrow function is created inside an object, it does not get its own 'this'. Instead, it uses 'this' from the outer scope, which is usually the global or module scope. So, when calling obj.greet(), the arrow function's 'this' is not the object, but the outer scope. This causes 'this.name' to be undefined. If we used a regular function instead, 'this' would refer to the object, and 'this.name' would be 'Alice'. This difference is important to understand when choosing between arrow functions and regular functions.