Author: Pranay Sudhakar Zagade / 0225109.
1.0. Introduction:
Globalisation has become an important part of the modern economic system, influencing trade, innovation, business strategy and labour markets across countries. Over the years, increasing international integration has created new opportunities for growth, technology transfer and industrial development. At the same time, it has also raised concerns about savings behaviour, environmental sustainability, market competition and organisational challenges. The impact of globalisation is not the same in every country, as outcomes depend on institutional strength, policy design and economic structure. This review examines different perspectives from recent research to better understand how globalisation affects economies and societies in both positive and negative ways.
2.0. Objective:
· To analyse the economic, social, environmental, and organisational impacts of globalisation across different countries and sectors.
· To evaluate whether globalisation enhances competitiveness and growth or creates structural imbalances and competitive pressures.
3.0. Literature Review:
To understand the impact of globalisation, the researcher reviewed around ten existing research papers on different economic and social aspects. The findings show that globalisation promotes innovation, trade growth, and industrial development, but it also creates challenges such as environmental pressure, reduced savings, and increased competition.
3.1. Is Globalisation Sufficient for Innovation?
This article by Duarte and Carvalho. (2025) explores whether globalisation alone can improve innovation performance across countries. The authors analysed data from 127 nations and found that global interconnectedness helps in knowledge creation, technological growth and creative output. However, the study also shows that globalisation is not enough by itself. Countries with strong institutions, skilled labour and better infrastructure benefit more from global exposure. In contrast, weaker economies struggle to convert global opportunities into innovation results. The research suggests that globalisation supports innovation, but domestic strength remains essential for long-term success..
3.2. Social Globalisation and Domestic Savings.
The study by Shaik Saffarudin et al. (2025) examines how social globalisation affects domestic savings in ageing Asia-Pacific countries. The findings show that exposure to global lifestyles has reduced savings in countries like Japan and South Korea. This is mainly due to higher consumption patterns influenced by global culture. However, the effect is not the same everywhere, as China does not show a similar decline. This indicates that cultural values and policy systems influence financial behaviour. The article highlights that global integration can affect economic stability in different ways depending on national context.
3.3. The End of Globalisation and Business Strategy.
Sufi (2025) discusses how recent trade conflicts, geopolitical tensions and supply chain disruptions have slowed global integration. The concept of “slowbalisation” explains this shift. Instead of focusing only on efficiency, many companies are now concentrating on risk management and stability. Businesses are diversifying suppliers and reducing dependence on single regions. This does not mean globalisation has ended, but it shows that it is evolving. The article emphasises that adaptability has become more important than pure cost efficiency.
3.4. Globalisation and Economic Spillovers.
Jayadevan, Hoang and Yarram (2025) analyse how globalisation affects economic growth across countries. Their research shows that trade and capital flows generally promote growth. However, they also identify spillover effects where growth in one country may create pressure or imbalance in another. This shows that globalisation produces both benefits and challenges at the same time. Policymakers must consider regional connections when planning economic strategies.
3.5. Economic Complexity, Globalisation and Environmental Impact.
Dada, Ajide and Al-Faryan (2025) study the relationship between globalisation, economic complexity and environmental sustainability in Africa. The findings suggest that more advanced production systems reduce environmental damage. However, economic and social globalisation can increase ecological pressure. Political cooperation, on the other hand, may reduce environmental harm. The article highlights the importance of governance and regulatory systems in managing sustainable development.
3.6. China’s Strategic Model of Globalisation.
Dehnavi and Ahmadzada (2025) explain how China follows a state-centered approach toward globalisation. Through initiatives like the Belt and Road Initiative and regional trade agreements, China has expanded its global presence while maintaining policy control. Unlike purely market-driven models, China combines openness with strategic planning. The study shows that globalisation outcomes depend on national strategy and institutional strength.
3.7. Globalisation and Employee Adaptation.
Lau and Shaffer (2023) focus on the human side of globalisation. As companies become more internationally connected, domestic employees may experience cultural stress and adjustment challenges. The study finds that adaptation depends on social support, personal openness and organisational culture. This research reminds us that globalisation affects not only markets but also people’s daily working lives.
3.8. Globalisation and Indian Manufacturing.
Agrawal et al. (2025) examine how globalisation has influenced India’s manufacturing sector. Trade liberalisation increased exports and foreign exchange reserves, contributing to industrial growth. However, excessive dependence on imports may weaken domestic industries. The study suggests that balanced trade policies are necessary for sustainable development. Globalisation offers opportunities, but domestic capacity must be strengthened.
3.9. Globalisation and informality.
Bellakhal, Ghazzai and Lahmandi-Ayed (2024) analyse how globalisation affects informal employment. The study shows that the impact is not straightforward. In some cases, globalisation encourages formalisation, while in others it increases informal activity due to weak regulation. Institutional design and policy implementation play a major role in determining outcomes.
3.10. Globalisation and the fall of markups.
Gradzewicz and Mućk (2024) examine how participation in global value chains affects firm profits. Their research on Poland shows that increased international competition reduced firm-level markups, especially among exporters. This suggests that globalisation increases competition rather than monopoly power in emerging economies.
4.0. Conclusion
These research articles collectively indicate that globalisation has impacted economies, businesses, and society in a number of ways. It has opened new avenues for innovation and growth in the economy and businesses. At the same time, it has created new issues for businesses and economies. These issues are environmental issues, financial issues, competitive issues, and social issues. The impact of globalisation cannot be viewed as a single phenomenon. It impacts economies differently based on their economic systems and governance. These articles indicate that globalisation in itself cannot be viewed as a positive or negative phenomenon. It impacts economies and businesses in a way that depends upon the governance of economies and businesses.
5.0. Reference
Agrawal, V., Gupta, S., Gaurav, K. and Mitra, P.K. (2025) ‘Globalization and its impact on Indian manufacturing sector and economy’, Advances in Consumer Research, 2(4), p. 996–1009.
Bellakhal, R., Ghazzai, H. and Lahmandi-Ayed, R. (2024) ‘Globalisation and informality: The role of quality gap and social contributions’, The World Economy, 47, p. 3120–3149.
Dada, J.T., Ajide, F.M. and Al-Faryan, M.A.S. (2025) ‘Economic complexity and ecological degradation in Africa: Does globalization matter?’, The International Trade Journal, 39(5), p. 496–524.
Dehnavi, E.A. and Ahmadzada, K. (2025) ‘China’s strategic navigation of globalization: Institutional reforms, trade policy and business implications’, Advances in Consumer Research, 2(4), p. 2740–2750.
Duarte, M.P. and Carvalho, F.M.P.O. (2025) ‘Is globalisation sufficient for innovation? A national systems of innovation approach’, Innovation: The European Journal of Social Science Research, 38(2), p. 606–630.
Gradzewicz, M. and Mućk, J. (2024) ‘Globalisation and the fall of markups’, The World Economy, 47, p. 1089–1116.
Jayadevan, C.M., Hoang, N. and Yarram, S. (2025) ‘Spillover effects of globalization using alternative spatial approaches’, Applied Economics, 57(34), p. 5128–5147.
Lau, V.P. and Shaffer, M.A. (2023) ‘A typological theory of domestic employees’ acculturation stress and adaptation in the context of globalization’, Academy of Management Review, 48(1), p. 57–77.
Shaik Saffarudin, M.R., Goh, S.K., Wong, K.N. and Law, C.H. (2025) ‘The impact of social globalization on domestic savings’, Applied Economics, 57(39), p. 6061–6074.
Sufi, T. (2025) ‘The end of globalization and the last illusion: Implications for business leaders’, Journal of Business Strategy Finance and Management, 7(2), p. 102–104.