Globalization in Daily Life Assignment Example | Topics and Well Written Essays - 2250 words

Globalization in Daily Life - Assignment Example Many scholars and economist have tried to explain the term globalization as per their own view and opinions. For example, Jos Berghman commented that â€Å"globalization refers to a growing global interconnectedness† (Berghman, 2005, p.6). The term, ‘interconnectedness’ itself explains the core essence of the globalization. The UK Department for International Development (DFID) has given a broad definition of globalization. DFID has identified that the â€Å"increased flows of goods, services, capital, people and information† are the major determinants of globalization which is â€Å"driven by technological advances and reductions in the cost of international transaction† (Zajda, 2005, p.294).  Therefore, primarily, international trade and technological advancements have facilitated the process of globalization and this has developed medium for exchanging ideas, views, tangible & intangible capital, factors of productions etc. This process has crea ted a better scope for the development of economic, social, cultural and international relation. In our every step of daily life, we can feel of the presence of this development encouraged by globalization.  For example, the product developed using Japanese technologies like Japanese cars is dominating in the global automobile sectors. On the other hand, Italian cuisine like ‘Pizza’ is one of the popular food items of the people living in American and Asian countries. Moreover, Chinese cost-effective production process has led to encouraging many manufacturers like Nike to expand their business in China, and many multinational corporations are trying to enter in emerging marketing like India, Taiwan, China etc. These examples are a proper reflection as an outcome of globalization. In order to facilitate the process of international trade, the trade agreement between and/or among different countries have played a very significant role as it helps to grow a country with significant amount of foreign direct investments (FDI) which creates industrialization causing growth in aggregate demand and supply, and an economy can achieve equilibrium growth. Recently, U.S. and Korea have entered into free trade agreement known as KORUS FTA, according to which the U.S. MNCs can have greater accesses in the Korean market, and Korean automobile manufacturer can enjoy a significantly reduced tariff in U.S. automobile market (U.S. International Trade Commission, 2011). The U.S. automobile sector is already crowded with a number of domestic and foreign automobile companies. However, as per this agreement, the Korean companies can have better access to the automobile market as they are able to offer cars at much-reduced cost increasing the competition. The competition is one of the healthy sign for economic development.