Critical Literature Review on Globalization

This report provides a critical literature review on globalization, discussing its positive and negative effects on developed and developing nations. It covers topics such as the impact on business management, culture, poverty reduction, job security, and foreign investment.

Running head: LITERATURE REVIEW ON GLOBALISATION
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Globalization

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Table of Contents
Introduction.................................................................................................................................................3
Critical literature review on Globalization...................................................................................................3
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

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Introduction
In current business scenario, the pace of globalization is enlarging because of different cause like
growth in ICT, expansion of social media channels, increasing capital mobility, rise of new
electronic payment system, development in complex monetary products, as well as emergence of
footloose multinational and transnational companies (Ruckert, Macdonald, and Proulx, 2017).
This report demonstrates the critical literature review on globalization. It also depicts the positive
and negative side of globalization in developed nations. This report also focuses on advantages
and disadvantages of globalization in developing nations.
Critical literature review on Globalization
According to Rogers et al. (2016), Globalization is the procedure of interaction and integration
amid corporations, people and government at worldwide. Globalization has increased because of
advanced communication technology and transportation. The global interaction may increase the
chances of international trading, ideas as well as culture.
In contrast to this, Watkins et al. (2015) stated that globalization is the assimilation of markets in
the global economy which leads to increase interconnectedness of national financial system.
Markets in which globalization is particularly affected is a financial market like money, capital
markets, insurance markets, credit markets, and commodity markets (Cerchione, Esposito, and
Spadaro, 2016).
In the view of Hietschold Reinhardt and Gurtner (2014), the globalization of entertainment and
sports is a key feature of late 20th and early 21st era. Globalization is referred as enduring
procedure where culture, societies, provincial markets become cohesive via global crossing
network of trading as well as communication (Cerchione, Esposito, and Spadaro, 2016).

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On the other hand, Ado and Su (2016) evaluated that the procedure of globalization entails the
several factors such as rapid technology development, which makes global communication
possible and political growth like fall of communication and development in transportation that
makes traveling faster and more frequent.
In support of this, Cooke Veenand Wood (2017) stated that rapid technology facilitates the
opportunity for the company for higher development with initiation of supplementary areas, and
permits higher customer synchronization. Globalization may increase the mutual cultural value
as well as facilitates a higher viable position, minimum operating expenses in other nations,
access to resources, new raw material and opportunities of investment (Ruckert, Macdonald, and
Proulx, 2017).
According to Pukall and Calabrò (2014), there are large numbers of emerging areas in developed
nations that are consequences of privatization in public-sector. There are different industries that
want to extend and expand their value chain at international level in order to increase the demand
of consumer (Massaro, et. al., 2016).
In contrast to this, Yaqub et al. (2014) stated that Globalization has an impact on the business
management, which can be demonstrated by the number of transaction across the borders.
Business is the ongoing procedure to develop a wide category of their footprint as it is used to
decline the expenses and increase the economies of scale (Ali, and Miller, 2017).
Wang Andre and Greenwood (2015) stated that multinational companies are a consequence of
globalization. It involves central role within the practices of globalization such as inflows of
international foreign direct investment. Within Europe, the company focuses on the western
economy as it leads to size constraints (Abed, Dwivedi, and Williams, 2015).

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On the other hand, Cama Jorge and Peña (2016) opined that due to globalization, the company
has needed to identify new geographical sector for a business deal such as competition in the
market. This strategy can be also beneficial to enlarge their market and increases economies of
scale as globalization provides compression of time-space, and competitive economies benefit at
all level as well as support to attract the investors (Garza-Reyes, 2015).
As per the view of Jasti and Kodali (2015), globalization is beneficial for a corporation as in
different parts of the globe, people make efforts to buy different products accessible in the
international marketplace. Highly wealthy and educated individual from different backgrounds
may communicate within a westernized area (Touzard, et. al., 2015).
In favor to this, Dubey et al. (2017) stated that western style is a symbol of power and wealth as
well as the elite embraces the western style of a pattern of behaviour and products in order to
impress others (Shahbaz, Bhattacharya, and Ahmed, 2015). In nowadays, the western pattern of
behaviour, culture, and language is considered in international business (Bezerra, and Gomes,
2016).
On the other hand, Yawar and Seuring (2017) described that competition is the visible favorable
effect of globalization that can enhance the product quality due to international competition.
There are two approaches that should be used by the company in order to enhance the product’s
quality named customer is the king approach and customer services (Fellnhofer, 2015).
According to Van Laar et al. (2017), domestic corporations fight with the foreign competition.
The company should make efforts to improve their standard in order to enhance the extent of
satisfaction among customers and survive in the market. When an international brand enters into
the nation then, it needs to improve their goodwill to sustain into the areas (Abeza, et. al., 2015).

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It also generates rivalry at the marketplace and aids to adjust into the global scenario (Bonal, and
Fontdevila, 2017).
On the other side, Hatemi et al. (2015) stated that globalization creates the favorable effect on
culture. The world that an individual living in today’s era is an outcome of different culture
meeting. An individual of one culture demonstrates the effects of their culture as well as focuses
on cultures that are feasible (Zimmermann, DF Ferreira, and Carrizo Moreira, 2016).
In the view of Carter et al. (2015), societies have become superior as they have welcomed
individual of other backgrounds and civilization as well as generate an entirely new culture of
their own. Due to globalization, language, cooking styles, customs, and language has improved.
It is same in the form of movies, musical style and other art (Pike, and Page, 2014). Due to
globalization, business moves from one nation to another hence they should learn the notion of a
culture of other nation (Audulv, et. al., 2016).
As per the view of Hu et al. (2015), an individual has job security in developed nations. It is
stated that an individual lose their jobs as developed nations have outsourced the industrialized
and white collar jobs. It is also evaluated that there is less job for people in developed nations
(Campos, et. al., 2014). Since, manufacturing act is outsourced to nations in which cost of
producing goods with pays are low as compared to their nations. Company can outsource the
business function in developing nations such as India and China during globalisation
(Dominguez, et. al., 2015).
In contrast to this, Miller McAdam and McAdam (2018) stated that there are different kinds of
people such as programmer, accountants, scientists, and editors and they have lost their jobs
because of outsourcing to an inexpensive location like India. At the same time, globalization
considers the misuse of labour (Adamson, et. al., 2017).

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According to Perri and Peruffo (2016), safety standard can be disregarded to manufacture the
inexpensive products. In practices, the current practice in Latin America is open-handed
multinational that moves their operations to South East Asia and China because of market and
cost considerations (Asongu, 2015).
In opposed to this, Horwitz (2015) discussed that globalization may lead to disparity in prices.
Due to enhancement in the rivalry, developed nations are forced for declining price of products
because other nations such as China manufacture products at the lower expenses, which makes
products at inexpensive as compared to ones manufactured in developed nations (Amighini, et.
al., 2015). Company forces to decline price of their goods in order to maintain their customers in
developed nations (Phillips and Moutinho, 2014). It is disadvantageous to the company as it may
decline the ability to sustain social welfare in their nations.
According to Waterval et al. (2015), globalization plays an imperative role in poverty reduction
in developing nations. Poverty is reduced in percentage of their active below poverty line such as
fast-developing nations like Vietnam, India, as well as China. Along with this, other nations such
as Sub-Saharan Africa are registered as opposite trend (Harrison, 2015).
In support of this, Jasti and Kodali (2015) evaluated that due to globalization, an individual from
diverse nations such as offered different job opportunities within the worldwide. It has generated
the aspect of outsourcing. Developed nation offers work to developing nations in which costs are
inexpensive (Harrison, 2015).
In contrast to this, Tummers (2016) stated that there are different kinds of works like accounting,
marketing, insurance, customer support and software development are provided in developing
nations such as India. Hence, the nation that is provided the work may enjoy getting the jobs
(SpasojevicLohmann, and Scott, 2018).

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Van Helden and Uddin (2016) opined that company has provided an opportunity in order to
capitalise in emerging nation as well as acquire talent, which is accessible here. In the
developing nation, there is inadequate wealth, which may delay the development of domestic
corporations as well as employment (Law, et. al., 2015). Because of global nature of businesses,
people of developing nations can acquire profitable employment opportunity (Spasojevic,
Lohmann, and Scott, 2018).
On the other hand, Campos et al. (2018) stated that technology is a powerful force that drives the
world with regards to congregate commonality. It is used to make effective communication,
travel, and transport during globalization. An individual from different areas want the things that
they have heard, realized and experienced via technology (Wiethe-Körprich, et. al., 2017).
Organization via management can capture the information from a different place on the globe
that can be practiced at the workplace (Samantra, et. al., 2016).
As per the view of Martin (2016), television and media play an effective role to influence the
insight of globe from a comparatively small national settlement as well as realism into
international concern and global area. Furthermore, multinational company can develop the
subsidiary in new areas and develop the understanding regarding how to transfer from parent to
local operations (Wiethe-Körprich, et. al., 2017). Knowledge can also flow from one division to
another as a entire organization may get advantageous from development sectors (Samantra, et.
al., 2016).
In contrast to this, Quinones Nicholson and Heeks (2015) stated that one of the ways that an
organization can use in transferring knowledge is a movement of personnel that takes place
within multinationals. It can develop the bank of understanding regarding working in different
circumstances and people from diverse cultures (Cheng, Johansen, and Hu, 2015).

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As per the view of Costa Soares and de Sousa (2016), an organization can use of transferring
knowledge in the movement of personnel that takes place at the multinationals. It develops the
bank of understanding regarding working in diverse circumstances with people from diverse
culture (Silvius, and Schipper, 2014). It demonstrates the stock of understanding that could be
developed and used to provide the benefits to the organization (Khan, and Azeem, 2014).
In favor of this, Aljuwaiber (2016) discussed that foreign investment is a direct outcome of
globalization. Foreign investment always focused by an organization as it facilitates the capital,
resources, and technology to a nation that will aid the economic development of the host nation
(Hardy, and Tolhurst, 2014). It may enhance the employment in both direct and indirect manner
(Fredriksson, and Liljestrand, 2015).
On the other hand Brown and Mason (2017), state that export may increase in a nation and also
enhances the current account and also provides support in repayment of external debt. But, there
is certain criticism to lead the foreign control (Mahut, et al., 2017).
According to Figueroa-Domecq et al. (2015), developing nation can practice general or particular
industrial and trade policies to promote the foreign direct investment, foreign tourist services,
and capital. It can indirectly or directly contribute to their economic activities in global level
(Narayanan, 2015).
In opposed to this, Restall and Conrad (2015) stated that globalization is accountable for
unemployment circumstance in the world but, at the same time, it provides some job opportunity.
Despite the facts that it provides job opportunity to the globe but it is still accountable for the
current issue (Lupton, 2014). It is demonstrated that global integration and increased travel may
gain the competitiveness at the enterprise and national levels (Eagle, Jones, and Greig, 2017). It

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also forces the producers to address the ways in order to decline the costs, enhance efficiency
and increase the productivity (Boussebaa, 2015).
According to Sartor et al. (2014), the key factor is to decline the level of employment from 1980
to 2000 from national to regional macroeconomic policies that were executed and sustained.
Along with this, those nations with liberal macroeconomic may reform and pursue the politics to
endorse the flexible labor markets and employment practices (Kosmützky, and Putty, 2016).
These nations also focus on judicious enforcement of labor and decentralized industrial relations
systems (Garner, Conroyand Bader, 2015).
In contrast to this, Oliver Lorenc and Innvær (2014) discussed that nations which highly engaged
with employment regulations, laws with policies may experience a higher level of employment
as companies are not competent to influence and retain to employees in jobs (Dey, and 2016).
According to Buenechea-Elberdin (2017), the average traffic rate is continually increasing in
developing nations such as some nations have currently executed to trade reform. Furthermore,
trade policy is a significant concept during globalization and in the lower income developing
nations (Morley, et. al., 2015).
In contrast to this, Haynes (2017) discussed that introduction of the internet, widespread use of
computers, faxes and mobile phones, e-commerce, and cheaper transportation facilities are
provided in the developing nation as it can provide a different opportunity to the company
(Charlton, et. al., 2016). However, in certain circumstance, there is a gap between traditional
industries and global firms as globalization has provided new opportunities for developing
nations in terms of generating the jobs and expanding the exports (Sigler, 2016).
According to Bayulken and Huisingh (2015), different developing nations competing for foreign
investors due to longer tax holidays, several incentives, and costly subsidies for multinationals.

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The rivalry between developing nations may decline the favorable net effect of globalization
(Hemmerling, Hamm, and Spiller, 2015).
Conclusion
From the above analysis, it can be concluded that globalization is the procedure of interaction
and integration amid corporations, people and government at worldwide. It can be also
summarized that globalization can both positive and negative impact on business management in
developed nations such as decline transactions cost, identify new geographical sector for a
business deal, and viable competitions are the positive side of globalization. It can be also
summarized that job security, safety standard and variation in prices is the negative side of
globalization in a developed nation. It can be also summarized that poverty reduction, different
job opportunities, technology, foreign investment are the positive side of globalization in
developing nations. It can be concluded that unemployment and trade is the negative side of
globalization in developing nations.

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