Globalization and Its Effect on Cross-Border Mergers and Acquisitions

Abstract

This study examines the evolving relationship between globalization and cross-border mergers and acquisitions (CBMA), employing a mixed-methods approach that integrates econometric analysis with qualitative case studies. The quantitative results reveal that globalization indices, institutional openness, and macroeconomic conditions significantly enhance CBMA activity, although these effects are moderated by policy uncertainty and financial volatility. Regression analysis confirms that globalization fosters higher deal volumes and values, particularly in advanced economies, while also amplifying risks in emerging markets. The qualitative evidence, based on case studies of transactions from diverse sectors, underscores that acquirers pursue CBMA primarily for innovation, knowledge access, and resilience, but face challenges of cultural distance, regulatory screening, and ESG alignment. Emerging-market multinationals demonstrate springboard strategies to overcome competitive disadvantages, whereas advanced-market acquirers leverage institutional credibility to secure strategic assets. The findings also highlight the impact of COVID-19 in accelerating digital and supply-chain driven acquisitions, marking globalization as both an enabler of growth and a source of contestation. By integrating these perspectives, the study concludes that globalization continues to drive CBMA but in a more selective and fragmented form. It contributes to international business scholarship by reframing CBMA as a dual process of opportunity capture and risk management, offering practical insights for managers and policymakers navigating the new global economy.