Before moving on, there is a dire need to define what globalization, in essence, is - globalization is a term which encompasses a number of difficult series of economic, social, technological, cultural and political changes that have been happening from time to time on the global front. These changes have seen some serious strides that have been made with regards to increasing interdependence as well as mergers and interacting units between people from different locations and companies with diversified interests. The term started to take form in the year 1944 but it was not before the year 1981 that the economists actually started using it. The main person responsible for coining the term globalization is considered to be Theodore Levitt.
Furthermore, in an economic zone, globalization plays a significant role in increasing trade on an international front which as compared to the global economy, is much faster and ahead of its time. In addition, one can predict an increase in the flow of capital that has been coming from the global regimes which might include the foreign direct investment as being one part of it. Moving on, there are the agreements which are signed on a global scale that eventually lead to world bodies like the World Trade Organization (WTO) and others. Global financial systems also come to light as their developmental work gets thumbs up. International transactions speed up as the world bodies like WTO, WIPO, IMF and the like play their role in a more coherent and active manner. Economic practices like global sourcing or outsourcing as we know of it, off-shoring and others increase courtesy the multinational concerns. Hence poverty-driven mechanisms are enacted but not followed to the extreme core, thus resulting in the poor masses which are spread in every nook and corner of the world today.