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.
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).
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).
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). 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).
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).
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).
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 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. 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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First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
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Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download