Globalization

Globalization and International management

Assessment 1
Literature Review

Keele ID:14022808 Word count:1852

Content
1.Introduction 2
2. Literature Review 3
2.1 The definition of globalization 4
2.2 The history and development of globalization 4
2.3 The causes of globalization 5
2.4 The impacts of globalization 6
2.5 Evaluate the globalization 7
3. Conclusion 8
4.References 9

1. Introduction
For years, “Globalization” become one of the most popular word all around the world and covering a wide range of fields in the world, like economic, culture and even political. Globalization makes the world become smaller, it is a integration of economic, financial, communication, companies, government and trade of the word, it driven by the international investment and profit from information and communication technologies (Ietto-Gillies,Grazia,2011), it means the local and nationals start to have a opening perspective, the countries become interrelated and interdependent because of the free transfer of products,services and capitals. The globalization can be summarizing into three kinds: economic globalization; culture globalization and political globalization. Economic globalization has resulted in many businesses setting up or buying operations in other countries. Therefore, the transnational corporations (TNCs) become the most important role in the globalization precess.(Ietto-Gillies, Grazia,2011)The Importance of political globalization of an international organization is obviously growing, and these international organizations are a focus on their actions which without sacrificing national sovereignty.Cultural globalization is a process that can hybridize the global popular culture and makes the cultural differences flatten out (Held and McGrew,2003).
There are many researches that tried to study about the word of “Globalization”, they try to give a definition of globalisation; find the impacts of globalisation; find the way to make globalisation work and even argue the causation of associated of globalization. In this report, it will summarizes the arguments of some previous literatures,identify the key notions and explain them, assess the strengths and weakness through the comparison of these arguments, and try to give a brief evaluation from author’s own opinion.
2. Literature Review
In this report, the author had read several literatures and summarized their key notions into 4 main categories: the definition of globalization; the history and development of globalization; the causes of globalization and the impacts of globalization.These notions will be the list below.
2.1 The definition of globalization
There are many research results prove the identification of globalization, in Grazia’s opinion, globalization is a complicated phenomenon, it is both a process of expand the space and the increasing degree of interdependent and interrelated between groups. Governments in different countries of the world.(Ietto-Gillies, Grazia,2011) Globalization has a clearly characteristic and it possibly be identified as flows of capital, services, trade and people across the world; and it represents a significant transformation in the spatial reach of organizations and social relations towards the interregional or intercontinental scale.(Held, D. And McGrew, A. 2003) In Petras,James F’s book, they said that globalization is related to the liberalization of world markets and national in the belief that free trade, capital and information technology will produce the best result for growth and human social benefit. In addition, in Petras and James book, there also point that there has another view that globalization is globalization as a project rather than as an inevitable great process tend to see the alteration connected with it differently. To sum up, what all these research results have in common that a globalization is a realized myth, it opens up the international market and promote the interrelated relationship between companies, governments and people across the world.
2.2 The history and development of globalization
In Hirst and his colleagues’ literature in 2009, they put forward a figure of “The development of overall globalization,from 1970-2004”, the figure shows that there was always a rising trend of globalization during these years. There have four arguments in Hirst’ report and these arguments reflect the history and development of globalization. First, that the openness of trade and international integration level had increased from 1913 to 1984, and then a significant “global phenomenon” had appeared, which is migration. Since mid-1970s, more and more countries have been influenced by migration,and that migrants are become a wider range of social economic form than ever before, and this immigration boom had decreased until the two world wars.(Hirst; Thompson and Bromley,2009) The second argument is the governance mechanisms for the globalization and international economy during twentieth century,and the literature had give two examples:the International monetary and exchange rate regimes which in order to control and govern the international economy.(Hirst; Thompson and Bromley,2009) The third point of Hirst’ literature is also the third step of the development of globalization, which is argued that there are some new and different problems of economic mutuality had sprung up.The research has show some crisis that may occur of international financial integration, and give some practical proposal, like to concerned the offshore markets such as that Euro currencies; to focus on the asset prices of different countries’ financial system;and trying to determine the scope of the financial integration and to measure the actual resource flows.(Hirst; Thompson and Bromley,2009)Finally, there has appeared some governance operating to traced the trajectory of “national economic autonomy” in late 1990s.
To summarized, Hirst and his colleges consider that the development of globalization or international economy had undergone four stages: the appearance; then in the twentieth century some governance mechanisms for the international economy had set up to control and manage the globalization; and then with the development of international economy, there are some different and new problems had appeared; finally, the authors believed that the trajectory of national economy autonomy need be traced by some regimes of governance operating.
2.3 The causes of globalization
The development of globalization process has accelerated during recent decades,this is due to variety of causes,but the most important ones are the emergence of more and more transnational corporations(TNCs) and the improved information and communication technologies(ICTs).(Ietto-Gillies, Grazia,2011) Grazia et al.(2011) to argue the caused of globalization and has shown many ideas of this argument, the TNCs are the key factors of globalization and the accelerator of its growth and efficiency. The TNCs are very important to globalization, because its activities have a large contribution to the society and world economy, and it plays a very important role in the development of globalization.(Ietto-Gillies, Grazia,2011) However, some previous researches show that TNCs only one of the dominant causes of the development of globalization, another one is the information communication technologies(ICTs).Improved information communication technology which makes it easier to communicate and share the information across the world, and the development of this technology, especially the life sciences, has greatly increased the production capacity.(Ietto-Gillies, Grazia,2011) Therefore, the notion of Ietto-Gillies and Grazia is that the TNCs and the ICTs are the dominant causes of globalization.
To give a conclusion, the author of this report agree with the argument of Grazia et al.(2011), but there still can give some supplements of the result. There are also some other causes can cause the globalization, like rapidly growing of global trading blocks like European Union, ASEAN and NAFTA,which have reduced national barriers;The support of the WTO which reduced the tariff barriers and encouraging the global trade can also cause the stronger development of globalization; and because of the rapidly development of the world economy,people are more willing to find their job in different countries, so the mobility of labour has increased, it also caused the global trades from developed countries to developing countries.
2.4 The impacts of globalization
Undoubtedly, the emergence of globalization is inevitable and necessarily, it brings some economic benefits and also has some unsatisfied impacts.Petras and James(2001) had given some ideas of the economic benefits of globalization, the most direct reaction is the increasing of income. And the World Bank pointed that on the basis of correct policies, the globalization can bridges the gap of global income between different countries and more and more countries can develop towards prosperity.(Petras and James,2011) Because of the globalization, the distribution of world income has a remarkable change, the average world income has increased and the globalization also let the poor becoming less poor.(Petras and James,2011) However, the globalization not only bring the benefits of the world economy, but also has its bad side. Klein and Naomi (2010) has point a phenomenon which related to the bad side of the globalization, because of the free flow of trade and capital, some companies find that there have some cheap labour and material suppliers in other countries, so they close their existing factories and turn to contracted-out.These companies start bypass their production but only focus on to build their brands, and make their costs really cheap.(Klein and Naomi,2010)The labour in some Asian countries are very cheap, like China or India which has high efficiency and low wedges, so these international companies are prefer to set their factories in these countries in order to reduce their costs, it lead to the labour are suffered squeeze and their rights are being violated.(Klein and Naomi,2010)
Obviously, the impacts of globalization is a double-edged sword, it brings the growth of the world economy, the expansion of the world market and the gradually reduce of the gap between the rich and poor countries; but it also bring the increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labour.
2.5 Evaluate the globalization
In recent years, there are more and more international corporations appeared and globalization become a common words and not far away from our life anymore. However, is the world absolutely global? Guigrok et al. had discussed the myth of globalization in 1995 and aim to realize the internationalization strategies of some largest firms around the world. This literature has pointed that there has no core firm is truly global, borderless or footloose,some of these largest core firms in the world have parts of sales aboard or production facilities abroad, but the management styles of these companies are still domestic control.(Ruigork and Tulder,1995)Large multinational companies often start from small industry, and even there is almost no firm are completely global; the degree of internationalization of these firms is still higher than governments and trade unions.(Ruigork and Tulder,1995) And it is undeniable that the domestic bargaining field is the foundation of its globalization strategy which as a direct extension of its domestic markets.(Ruigork and Tulder,1995) Thus it can be seen that globalization is an important part of the world economic development, but still need to take measures within our capabilities, and the most important thing is to laying the foundation of domestic markets and then going global.
3. Conclusion
This report has given a summary of several literatures that all about globalization, list the arguments, identity the key notions of these researches, explain them and also give some evaluation and discussion about these arguments. The author has give a brief identified of globalization, describe the history and development of globalization, list the causes of globalization through these various researches, and also put forward some own ideas about globalization. The impact of globalization on the world economy is obviously, but we also need to use a critical view to look at the globalization, develop the strengths and improve the weaknesses.
For future research, we also can discuss the culture globalization or political globalization, and find the impact of these two factors on the world.
4.References
1. Ietto-Gillies,Grazia. (2011). The Role of Transnation Corporations in the Globalisation Process. The Handbook of Glovalisation. p173-184.

2. Ruigrok,W. and Van Tulder,R. (1995). The Myth of the 'Global ' Corporation. The Logic of international restructuring. p152-173.

3. Petras, James,F. (2001). Globalization or Imperialism?. Globalization unmasked: imperialism in the 21st century. p11-25.

4. Hirst,P.Q.,Thompson,G. and Bromley,S. (2009). Globalization and the History of the International Economy. Globalization in question. p24-67;p247-249.

5. Held,D. and McGrew,A. (2003). The Great Globalisation Debate:An Introduction. The Global Transformations Reader:An Introduction to the Globalization Debate. p1-50.

6.Klein,Naomi. (2010). The Discarded Factory:Degraded Production in the Age of the Superbrand. No logo:no space,no choice,no jobs. p195-229;p468-471.

References: 1. Ietto-Gillies,Grazia. (2011). The Role of Transnation Corporations in the Globalisation Process. The Handbook of Glovalisation. p173-184. 2. Ruigrok,W. and Van Tulder,R. (1995). The Myth of the 'Global ' Corporation. The Logic of international restructuring. p152-173. 3. Petras, James,F. (2001). Globalization or Imperialism?. Globalization unmasked: imperialism in the 21st century. p11-25. 4. Hirst,P.Q.,Thompson,G. and Bromley,S. (2009). Globalization and the History of the International Economy. Globalization in question. p24-67;p247-249. 5. Held,D. and McGrew,A. (2003). The Great Globalisation Debate:An Introduction. The Global Transformations Reader:An Introduction to the Globalization Debate. p1-50. 6.Klein,Naomi. (2010). The Discarded Factory:Degraded Production in the Age of the Superbrand. No logo:no space,no choice,no jobs. p195-229;p468-471.