The following pages intend to review some of the literature that refers to the influence of globalization on the private environment, on small and medium companies, and on consumers. The review will provide a presentation of works that evaluate the advantages of globalization. Such advantages include reduced prices of products and services as a result of increased competition, which favors customers, economic development of certain countries, and business expansion of companies. Some of the disadvantages of globalization include the increased competition in certain fields that some companies cannot successfully address, the increase of the unemployment rate as a result of the outsourcing process, and the lack of sustainability in certain regions.
The work of Zahra, et al. (2008) entitled "Globalization of Social Entrepreneurship Opportunities" states that entrepreneurship "by new and established companies is a major source of wealth and job creation, economic and technological growth and social transformation. This transformation is made possible by the powerful forces entrepreneurship unleashes, where ordinary people conceive innovative ideas, organize production, assume risk, and engage customers to accumulate wealth or address pressing social causes, often across national borders." In a news report dated August 29, 2006, it was reported that globalization "…has made a real difference to the quality of life of working people in the UK and across the world…" (HRM Guide, 2006) However, it is reported that just as there are winners there are also losers because "too many British workers are losing their jobs when companies move abroad or fail to compete." (HRM Guide, 2006)
It is argued in the work of Audretsch and Sanders (2008) entitled "Globalization and the Rise of the Entrepreneurial Economy" that recent trends in the global economy have resulted in a "shift in developed countries' comparative advantage from mature industrial to early stage entrepreneurial production." (Audretsch and Sanders, 2008) it is held that since entrepreneurs "…also serve as the agents that move varieties between life cycle stages, their value added increases due to globalization and technical change. By contrast, the factors of production employed in the mature stage of the life cycle, e.g. low skilled northern labour, become less valuable. Thus, the model predicts the emergence of an entrepreneurial economy in the North as the South opens up to trade and industries." (Audretsch and Sanders, 2008) Additionally reported in the work of Audretsch and Sanders is the following:
"The polarization...
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