HC3031 - Globalization Trends: Mini-Literature Review Report

This report presents a mini-literature review analyzing the current state of globalization, particularly in the context of business and economics. It examines how globalization has been shaped by factors such as policy threats, tariff disputes, and economic fundamentals, especially after events like Brexit and the Trump administration's policies. The review incorporates various perspectives on globalization's impact, including its effects on economic growth, government policies, and corporate strategies. It highlights the importance of strategic management for businesses navigating the challenges posed by political and economic instability, emphasizing the need for adaptability and informed decision-making to sustain growth and maintain a competitive edge in the global market. The report concludes that despite challenges, globalization continues to evolve, requiring companies to adopt strategic approaches to overcome obstacles and achieve long-term goals.

Running head: STATE OF GLOBALIZATION
STATE OF GLOBALIZATION
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Body...........................................................................................................................................2
General.......................................................................................................................................3
Discussion..................................................................................................................................4
Conclusion..................................................................................................................................6

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Introduction
Globalization has become a phenomenon in the recent times paving way for
international business. It marks the growth and development of a business. International
integration is the main aspect of globalization. Globalization has encouraged companies to
expand and grow their business in a foreign market. However companies have been facing
obstacles because of political situations that are being shaped by policy threats, tariff tiffs and
economic fundamentals. This is somehow not affecting and marking an end to globalization
rather compelling the companies to make strategic changes to overcome the problems and
issues that arise and affect an organization. However, an interrogative parameter can be
attached to the strategic approach of the companies and organizations towards stabilizing
their business amidst such turmoil.
Body
In the article Ghemawat and Altman have stated that altercations between the United
States of America and their biggest trading partners had led to the increase in tariff as a result
of the dispute in their trading relations. Grossman and Helpman state the importance of
globalization and their impacts on economic growth stating all the positive points that suggest
that economy of the countries are growing because of globalization and it is important to
expand businesses in different countries to not only generate revenues but also to create a
brand name that people can resonate with which later may help in brand loyalty. Owen and
Quinn state that globalization highly affects the policies of the government. They also state
that the impact of trade on the preferences of the masses will mostly depend when there is
enough exposure of trade to the citizens of a country. According to Amavilah, Asongu and
Andrés, they state that globalization is a key aspect and influences stability through the
government of the country (Amavilah, Asongu and Andrés2017). Paris, Marochi and Rubin

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on the contrary state that though globalization has a lot of positive impacts but the policies
that are made because of the disputes somehow have a negative impact on the companies.
The increase in the operational costs that happens after countries put tariffs on the products it
can be seen that the costs go high and the company has to bare a fair amount of the costs.
Khoury and Prasad agree to the fact that the company faces negative impact among the
turmoil moreover, businesses that expand in developing countries also have a different effect.
The labor and the people of the developing country face difficulties when policies are
introduced that may threat an organization as people in the developing countries highly
depend on globalization as it benefits the country that brings foreign investment which is
beneficial for the countries as well as provides job opportunities for the people. Longhurst
states that it very important for businesses to have a strategic approach so that they can
effectively solve problems and continue to grow the business. It is important for every
business to have a strategic management plan and have leaders who are good and efficient at
making effective decisions that align with the goals and help in the development of the
country.
General
Globalization has resulted in the expansion of the business in a foreign country to
make profits and dominate the global market. Many political problems that arise in the
countries pave way for policy threats and increase in tariffs that affect the economy of the
companies and even the country. This has somehow not led to the end of the globalization
period rather has seen the adaptability of the organizations in such crucial situations that has
been proved in the reports by the DHL Global Connectedness that has stated that in 2017 the
world had finished in a more globalized manner or way even after the post effects of Trump
and Brexit. Disputes between different countries affect the economy of the countries and thus
there have been cases where for revenge countries have increased tariffs. The continuous

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change in the policies has been making companies take decisions mainly on their short term
goals to recover from the decisions and policies introduced as a result of globalization
policies or some rift between countries and their different big trading partners. According to
scholars it is important for companies to research properly about the countries where an
organization wants to expand their business in to make sure there are no factors that may
hinder or affect the business that may lead the business to run in loss and affect negatively.
Scholars have argued that companies should make strategic decisions and always have a
strategic approach that will help the companies to protect them from the negative policies or
the threat that can hamper the revenue of an organization.
Discussion
Post the effects of the shocks that were given by Trump to the nation and Brexit had a
huge impact on the policies that affected global organizations. Globalization has paved way
for business in the international market. It has given opportunities to organizations to set up
businesses in countries that were suitable for them to make extra profits and generate
revenues and help the companies in dominating the global market. However disputes among
the big countries and their trading partners have had major effects on the organizations and
the employees of the organizations. The disputes among the countries have affected
globalization as the results of the disputes are increase in tariffs, unavailability of the goods
and services, localization and problems in immigration. Among all these problems it was
expected that the era of globalization was coming to an end. However it has been seen that
globalization grew amongst all this turbulence and turmoil that countries were facing because
of the policy threats and many more. Companies and organizations had adapted to the change
and had made strategic measures to overcome the problems in a short period of time so that
their business did not affect negatively. It is important to have efficient people in an
organization who are able to be calm in such difficult times and take decisions in a limited

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time to resolve the problems then and there. However these situations are giving birth to new
problems that are hampering the growth of the organizations. Each organization has a
mission, a vision and a goal that the company works hard to achieve that is making profits
and generating revenues in ethical and sustainable way and ensure the wellbeing of the
employees who are a huge part of the organization. Because of the continuous problems like
new policies that do no align with the organization’s goals and vision, other policies that
hamper the growth of the organization and problems that are becoming obstacles for the
organizations to function properly are becoming a barrier for the organization to develop.
These obstacles make the organization work for the short term goals as they are busy fighting
to overcome from the policies that are impacting the operations and the sales of the
organization. This is becoming a problem as it is becoming difficult for organizations to work
for the long term goals of the organization that will help the company to acquire a positive
position in the market, make profits and make a good reputation in the market. The
companies instead are working and operating to sustain in the market so that they do not face
any loss because of the policies and the tariffs that are having negative effects on the
organization. Authors argue that when a company or a firm decides to expand in a foreign
market they should not localize themselves in the market that does not make them different
from the local companies that are already present in the market. It is important for
organizations to make different strategies that gives them a competitive advantage in the
market and helps organizations to generate sufficient revenues. Big corporates and companies
always need to make a research and check while trading and making investments in other
countries. The introduction of the policies and new variables that threat an organization is
increasing and it is important for companies to always be aware and make effective measures
to overcome any unwanted issue that rises that may hinder the performance of the company
however it is extremely difficult to adapt to sudden changes that may be detrimental for the

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organizations. It is important for companies to have a fair amount of time in order to make
strategic measures. In times of these problems companies need to have a positive strategic
approach that will help the company to be unaffected and retain the position that the company
already enjoys and help the company to prepare and develop for their long term goals.
Conclusion
Strategy management is a necessity in recent times and it is important for businesses
to have strategic approach towards any problem that arises within or outside the firm in order
to help organizations to sustain during the crisis. With the advent of so many new problems it
is necessary for companies to be prepared of the negative aspects and make a strategic
approach to solve the problem efficiently and sustain in the market. Strategic approach has
been beneficial for the companies as they have helped the companies to stabilize in political
as well as economic turmoil that has been detrimental to the society, companies and also the
economy of the world.

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Reference
Amavilah, V., Asongu, S.A. and Andrés, A.R., 2017. Effects of globalization on peace and
stability: Implications for governance and the knowledge economy of African
countries. Technological Forecasting and Social Change, 122, pp.91-103.
Grossman, G.M. and Helpman, E., 2015. Globalization and growth. American Economic
Review, 105(5), pp.100-104.
Khoury, T.A. and Prasad, A., 2016. Entrepreneurship amid concurrent institutional
constraints in less developed countries. Business & Society, 55(7), pp.934-969.
Longhurst, K., 2018. On strategic culture. In Germany and the use of force. Manchester
University Press.
Owen, E. and Quinn, D.P., 2016. Does economic globalization influence the US policy
mood?: A study of US public sentiment, 1956–2011. British Journal of Political
Science, 46(1), pp.95-125.
Paris, C.M., Marochi, B. and Rubin, S., 2017. Tourism development in Kuwait: examining
the political-economic challenges in a unique rentier economy. International Journal of
Diplomacy and Economy, 3(4), pp.301-315.