Critical Literature Review on Globalization

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).