One of the major potential benefits of globalization is to provide opportunities for reducing macroeconomic volatility on output and consumption via diversification of risk. The overall evidence of the globalization effect on macroeconomic volatility of output indicates that although direct effects are ambiguous in theoretical models, financial integration helps in a nation's production base diversification, and leads to an increase in specialization of production. However, the specialization of production, based on the concept of comparative advantage, can also lead to higher volatility in specific industries within an economy and society of a nation. As time passes, successful companies, independent of size, will be the ones that are part of the global economy.
And while globalization has helped economies and societies expand and broaden, it's also made them more homogenized, critics charge. Case in point: The growth of international chains that results in the same restaurant – a Starbucks or a Shake Shack – on every corner, or the same retailers – Apple, Nike, The Gap – in every town. As these examples suggest, the so-called cultural exchange has been largely one-sided: American goods and culture have spread to other countries more than those of any other nation, often to the detriment of smaller, indigenous brands and outfits that can't compete with global giants, as mentioned above. So, countries end up with societies very similar to one another.