Globalization in Industry - Literature review Example

The world is always faced with the issue of the entrance of infant industries into the market and the attempts to explore the wider market. Therefore, with this stiffening competition, entrepreneurs see the urgency of capturing the larger market on a universal scale. Economic globalization is the expansive interdependence between regions as goods and services are moved across borders. Whereas business globalization focusses on the need of getting cross-cutting goods and services, the industrial globalization is based on technical integration between regions to establish dependence and sustainability. Industries coexist in this century as each depends on the other for resources or market of their products. With cross-cutting worldwide ventures, conquering the borders is the only instinct of survival of entrance into the business.

The Journal of International Business and Cultural Studies discusses the topic on Globalization and hyper competition: Drivers, linkages, and industry differences. It recognizes the pace that the economics of international trade and the competition having grown at a fast rate for the past decade. Globalization and hyper-competition are connected by five linkages namely: a value chain that is fragmented, value chain with competitive agility, increased competition within the value chain, a move towards hyper competition. It defines globalization based on the emergence of new industrial expertise in geographic centers (Donald & Holy Family University, June, 2014). Not the only resources are considered in the industrial globalization, but also the sharing of knowledge and ideas. Hence, the primary focus is on the increase of economic activities and the integration of these activities between different regions. It is established through a deepening relationship and greater interdependence between countries. Hyper-competition is derived from the competitive environment and is a driver of the same which shows dynamism in its nature.

The value chain is used as a basis of analysis for the interconnectivity between product and service. The flow of goods is usually in one direction, but that of information and knowledge flow serves to integrate the value chain. Globalization disperses activities within the industry and incorporates it on the universal scale changing its quality and quantity. The paper seeks to analyze the structural drivers of globalization in the industry. It argues that the category of the global drivers are six; politics, transnational corporations, market pull, support services, competitive strategies, and technological diversity. Globalization has been oriented by a shift towards the more democratic governments. The technologies of communication and transportation are essential to cross-cutting integration on the wider scale. These technologies have increased consumer satisfaction with the established trend of changing global preferences for the same if not different goods; this is a factor of demand pull. Transnational corporations hold the power to shift resources entirely and therefore the significant effect. The drivers mentioned are continuously interacting and therefore cannot be singled out and analyzed independently. Competition is both the product and driver of globalization. Hyper competition ensures that the competitive lead is only temporary and occurs in three forms; trench warfare, judo competition, and white-knuckle competition.

Macroeconomic, political, technology, and organizational drivers all influence hyper competition. Areas for further research include a more detailed examination of specific competitive strategies and competitive value chain strategies as links between hyper competition and globalization. More industry analysis and segment definitions are required to examine specific industries and value chain types as a means of developing and testing the links between globalization and hyper competition. Specific industries could then be compared and a model refined and tested.

Further areas of research include the effects of Internet and computing technologies on value chains and the effect on globalization and hyper competition, with the expectation that these technologies will increase the rate of global hyper-competition.

The journal for the globalization of the film industry published under the creative encounters states that although we are aware of internationalization and production to universal specifications, the globalization aspect of this industry is still under-researched ( Lorenzen, Feb, 2008). The findings in the research show that most film industries rely on the subsidies that are provided by the government. Those that experience significant profits have a significant number of home audience. The sales also depend on the income base of the home market; this is evident from the record of India overtaking China and USA film industries due to the attachment provided for by the home market. The industry is a victim of the aspect of uncertainty, and it is hard to ascertain future consumer preferences and satisfy them accordingly. Therefore, this is a business of probability. These factors have led to the industry to becoming heterogeneous at both the firm and geographical level. Ceteris paribus in the film business ensures that in spite of uncertainty, the entrepreneur still makes some sales. The internationalization of the movie industry, though perceived to be that which provides a base that is competitive but not exploitive of the home based companies is not true. The prolific long-term effect is that of dominance over the local firms. Globalization should go beyond internationalization. It encompasses not just the spread of products, people or practices from one or few countries, it also entails interconnectedness between a multitude of countries, leading to their integration into one (or several) global economic, cultural, and to some extent also political, systems or networks.

The film industry expresses the following aspects of globalization. Globalization of involvement where the policing bodies tend to create a favorable environment for the industries and also provide financial assistance. Globalization of consumption which shows the aspect of reaching out to the global market satisfying their needs simultaneously, this has been achieved by the customizing of films to local language and tastes. The exports are released simultaneously into the market and reach a wider consumer base. In the past, most films were embedded in one single culture and therefore was only appealing to individuals conversant with the same. This makes it difficult to make sales on the international market. Research and development ensued the globalization of production where players are crosscutting, and the viewers can develop a sense of belonging or ownership to these characters. Therefore, a single production becomes appealing to a wider scale of consumers. Every business is built on networking, and the film industry is not an exception. Therefore, the last globalization aspect is that of the organization where multinational corporations are formed to reach the root customer base in different regions. The journal suggests that further research be done on the networking linkages of the film industry and the spanning of industries from the national to global scale. There is also need to test for minimum profitable market sizes, demand uncertainty, and scale economies.

The next paper is that on towards a globalized software industry, it establishes the fact that the software industry has experienced tremendous growth over the years with a high value of about Euro 238 billion (Jaakkola, 2009). The industry is independent of the global economic trends and has registered a growth of 8.7% over the years. The driver to the globalization of this industry is that of business goals, characteristics of the products, and changes in the software engineering development process. Current productions are more of the industrial rather than that of an individual as before. The fruits of this concept have been that of transnational corporations and global ownership. The industry should be multicultural in nature from its inception to ensure global customer satisfaction. The approaches used are those of being adaptive or permissive. Individuals on the global scope either have to adapt to the situation or permit their being carried out. This has been of great influence in the software industry trying to break universal barriers and conquer the market. The study proposes further research on the multicultural influences of globalization to best help understands the software industry.

The last paper discusses Globalization and its Impacts on the World Economic Development. The paper starts by recognizing that globalization is an emerging issue and has unresolved concerns on whether it is harmful or of benefit to the world as a whole. Industries have broken global boundaries, and it is a standard feature to visit a store and find it stocking a wider range of commodities from different countries. This is also seen even in the consumer preference, and some prefer specific commodities be sourced only from specific countries. Hence, if we assert that globalization has brought national specialization, it will be right. The terms are defined differently across disciplines. Economics focuses on the transfer of goods and services while focuses on the role of UNO, WTO, and GATT. Sociology and anthropology, on the other hand, focuses on social integration based on cultural differences (Muhammad , Muhammad , Muhammad , & Iqra , Dec, 2011). Globalization, as defined in the paper, is that of economic integration. Economic development is the improvement in the social stature and quality of the life standards of an individual. It occurs in different stages namely; traditional stage, transitional stage, take off stage, drive to maturity stage, and finally high mass consumption stage. It is measured by the gross domestic product, gross national product, and per capita income. Globalization affects the world economic development in different ways, among them are global market caused by merging of distinct traditional markets. The rise of international institutions such as the IMF. Change in the world trade picture with previously dominant companies being overthrown from the top of the table. Variations in the foreign direct investment, cultural changes, employment changes, effect on the standards of living, industrial effects where the focus is on producing foreign products and finally the technological effect. The technical effect is seen in the communication industry. However, the subject matter of how globalization has affected the economic development of the world remains a topic to research on as the scope is broad and cannot be exhausted at one go.

The issue of globalization seems to be the next big thing for different industry players. However, as much effort is placed on striving to break the global boundaries, care should be taken not to be developing management problems. The concept is of influence to many components and substantially determines not only the stability of the company but that of the country. Therefore, a bid to harmonize this issue is of relevance in maintaining fair and ethical economic integration. This can significantly help in doing away with the illegal trades. The problem that it still faces is that of cultural and political differences. Illegal trades such as those of drugs and weaponry seems to be breaking boundaries fast as compared to that of other products.