Analysis of Globalisation and its Effects on Different Countries and Sectors

Running head: ANALYSIS OF GLOBALISATION
ANALYSIS OF GLOBALISATION
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ANALYSIS OF GLOBALISATION
Executive Summary
This report is based on the analysis of globalisation and its effects on different countries and
sectors. The two countries which have been considered for the analysis are Australia and
India. The industrial sector which has been considered in the report is retail. The analysis has
been able to depict that globalisation is able to affect the countries and sectors in both
positive and negative manner. The trade based effects of globalisation have also been
analysed in the report based on the two countries. The report has been concluded by stating
that globalisation has an immense impact on the developed and developing countries.

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Table of Contents
Introduction....................................................................................................................3
Effects of globalisation on different countries...............................................................4
Positive effects of globalisation.................................................................................5
Negative effects of globalisation..............................................................................11
Trade based effects of globalisation.............................................................................13
Areas where trade has increased due to globalisation..............................................14
Areas where trade has decreased due to globalisation.............................................16
Factors affecting trade relationship based on countries and industries....................17
Conclusion....................................................................................................................17
References....................................................................................................................19

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Introduction
Globalisation is considered to be a process which is based on the integration and
interaction between the companies, people and the governments all over the world. The
growth of globalisation has mainly taken place with the help of advances in communication
based technology and transportation. Increase in global interactions is mainly based on the
ways by which international trade, culture and ideas have shown immense growth. For
example, the world’s thirteenth largest economy Australia has shown a growth of 2% in
import and export based operations. Globalisation is thereby considered to be an economic
process which is based on the integration and interaction of the cultural and social aspects in
an effective manner (Ahn, Minshall and Mortara 2015).
Diplomacy and conflicts are important negative aspects of globalisation. The process
of globalisation thereby involves various aspects including, services, goods, economic
resources based on capital and many more. The four basic aspects of globalisation were
thereby identified in an effective manner with the help of International Monetary Fund which
include, investment and capital movements, transactions and trade, dissemination of the
knowledge and the movement and migration of people (Auer, Borio and Filardo 2017). The
work organizations and businesses are thereby affected in a huge manner by the globalisation
processes. The major challenges which have been created due to globalisation in different
countries include, air pollution, global warming, cross-boundary water, over-fishing and
many more (Altomonte, Zaurino and Colantone 2015).
The report will be mainly based on the ways by which globalisation is able to affect
different developed and developing countries as well. The positive and the negative cases
related to globalisation will be analysed in the report with the help of different facts. The
changes which have taken place in trade based relationships between different countries will
be studied in the report as well. The trade based transactions which have taken place in

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between different countries like, Australia, Japan, China, US, UK, Germany, Indonesia,
Korea will be a part of this analysis related to globalisation (Bayne 2017).
Effects of globalisation on different countries
Globalisation mainly aims at providing a competitive position to the organizations
which operate in different countries all over the world. The major areas which have been
affected in a huge manner by globalisation based activities include, the technological
advancements, environmental developments, socioeconomic developments and many more.
For example, the entry of global organizations like, Aldi in the retail sector of Australia has
brought in new technologies. The companies of different countries which operate in a global
environment are thereby able to gain a lot from greater number of products, consumers and
services as well. The major approach to competition is mainly gained with the help of proper
globalisation based activities (Belyi 2016).
The process of diversification of the resources is also facilitated in an effective
manner by the globalisation in different areas of the world. The major components that form
an important part of globalisation include, industrialization, GDP of gross domestic product,
human development index. However, the globalisation based activities have different effects
on the developed and the developing countries all over the world. The levels of recognition
that are brought with the help of globalisation are effective at the national, international and
the sub-national levels as well (Bende-Nabende 2017).
The capitalist social and economic relations of different nations are also affected by
globalisation based activities that have taken place. The positive and negative effects of
globalisation on different countries will be discussed further. The analysis of globalisation
will be analysed with the help of the analysis of two countries Australia and India and sector

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that will be considered in the report is retail industry of the countries (Bryant and Javalgi
2016).
Figure 1 – Source - (Bryant and Javalgi 2016)
Positive effects of globalisation
The process of management of business organizations has become easier due to
various globalisation related activities. The different positive effects of globalisation are as
follows,
Global markets – The emerging markets which exist in various developed
countries are mainly based on the privatisation related steps that have been
taken by the global companies. The companies are thereby aiming at
increasing their revenues with the help of expansion to the other countries or
areas. The increase that has been experienced in the transactions that take
place across the border is an important factor (Butt 2017). Globalisation has
also played an important role in increasing the levels of competitiveness
among the organizations which operate within an industry. For example, the