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Unit 1.4 global trade and its impact on strategy Assignment Sample

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Globalization is one of the most common and most effective approaches to grow and develop the business of the organization. Globalization of business can be considered as a process that is used by organizations to develop international operations and influence. This study will be providing a brief overview of the globalization process for business organizations. The impact of change in global trade and globalization of business operations will be evaluated on the behaviour of the organization(Tirdasari, Indrawan, and Fahmi, 2019). Various economic groups also will be studied in report that aims to restrict trade and evaluate success in the process. Impact of international trade regulations and regulations will be evaluated on the supply of materials, services and products in different industries. Role of the internet in changing global trades will be studied in report with evaluating its impact on the business organization in different industries. Impact of politicizing different issues and ethical considerations will be evaluated on the organization.

1.1 Impact of International Trade and Globalization of Business on Organization Behavior

Globalization and international trade are two major aspects that must be considered by the business organization to regulate their operations and business processes to maintain effective performance in target market. Some major aspects must be considered by organizations to evaluate impact of globalization of business on Organization behaviour. With globalization, major change that occurs in the organization behaviour is related to the competitive environment in workplace. Globalization of business increases the competition level for the business organization. This competition could be related to the products, price, technology, customer base quick products and quick services of company. In global market, customers have large number of choices available in market and it can increase pressure on organization to stay effective in the marketplace. This pressure can increase internal environment of company and it also forces the organizations to find effective ways to develop proper response for the competitive market on global level(Tu and Shangguan, 2018).

Another impact of globalization of business operations is directly on the technology of company. Regular technological changes can be made by company to exploit business opportunities in global market. Impact of international trend is crucial for the organization that is performing its business operations on global level. Change in global trends can force the organization to make several changes in their products and services to keep their operations, products and services relevant in market place. Some global trends that can affect the behaviour of business organization are- quick growth of emerging markets on global level has affected the business operations of organization on global level(Dawson, 2019). It has forced the organization to make certain changes in the business operations and develop effective strategies to keep their performance effective in target market.Tariff is most important element the international business operations. Main purpose of tariff restrictions is to put restrictions on import and export of goods. Basically, Tariff can be explained as Tax that is imposed on import and export of goods and services on international level.

1.2 Measures and Economic Groups That Aims to Restrict Trade and Evaluate the success

Trade barriers are mainly considered as government-induced restrictions on global trades. There are different type of trade barriers can affect business operations of organization. Major trade restrictions that are implemented by the government are- Tariff, Non-tariff barriers to trade, import licenses, export licenses, import quotas, subsidies, voluntary export restraints, local content requirements, embargo currency devaluation and trade restrictions. Most of all trade restrictions work on similar principles. Tariff restrictions prevent the organizations from performing international barrier in case if organization is performing business against the law. It is considered a protectionist trade barriers that could be in several forms. The main purpose of imposing tariff is- protecting customers, foster the growth of infant industries, national security, retaliation in case trading partner is not following the trading rules. Major types of tariff are- special tariff, licenses, import quotas, voluntary export restraints and local content. Tariff that is implemented by the government is highly effective as trade restriction on business organizations. Without fulfilling requirements and legal laws business organization cannot perform international business operations. These trade restrictions force the business organization to perform all the business activities effectively and help the governing body to prevent illegal business activities in the country. For example, import or export tariff allows the government to restrict process in case of illegal business operations or transportation. All government related agencies and organizations are responsible for these trade restrictions in global market.

There are some ethical and cultural barriers are also faced by organization in global business operations. These ethical and cultural barriers can affect performance of organization in target market and it can affect their business operations in marketplace.

The most common type of barriers that are faced by business organization in international trade is related to Technologies. These barriers are most crucial in international trades of company. These technologies can act as trade restrictions for business organization. Technical standards can prevent the organization to perform international business. Major technological trade restrictions are result of quality standards of company product or services. If business organization do not match the quality standards in the business operations then it could be difficult for them to perform international trades. Technological restrictions are most common type of restrictions that are faced by business organization in global trades(Sumner and Lapalme, 2019).

1.3 Ways Trade Relations and Regulations Affects the Supply of Material, Labour, Products and Services in Different Industries

Supply chain is major part of organization in international business operations. This is role of global supply chain of organization to maintain level production and delivery of goods in market place according to market demand. Role of trade relations and regulations are crucial for the international business operations of organization. Mainly, the supply chain of organization is consists of preparation, production and distribution of company goods in marketplace. Supply chain management process is consists of data management, relationship management, and logistics management. For the global business operations, this is most important for the organization to stay aware of the trade rules and regulations of countries in which organization performs business activities(Sarangi, 2019).

In the business activities, availability of material and transaction of material is most important for company. All the business activities are dependent on the availability of raw material. In case if organization is not able to make material available then it can affect their supply chain management. Trade relations and regulations are most crucial in this case.

Trade relation between two or more countries can be explained as trade policies of companies. In trade policies, different aspects of trades are considered by the government of countries. in trade policies labour laws and some other aspects of labour market are considered by the countries to avoid unemployment and other issues in country. These factors force the governments to make certain regulations on labour aspect in international trade. Main reason for implicating this aspect in trade relation and regulations is to avoid ethical and cultural challenges in country. This is important for both parties in global trade to follow the regulation in the transaction of labour. This can force organization to make effective changes in their labour policy to perform internal business operations(Brooks, Wang, and Jambeck, 2018). This case is same for Product and services of organization. In the international business operations, this is most important for the business organizations to follow trade policies and trade regulation between both countries to avoid legal and other related issues.

2.2 Impact of Politicization of Issues and Ethical Considerations on Global Brands

Impact of politicization of issues and ethical considerations is major issue for global brands. Politicization of issues and ethical considerations has affected many business organization to perform business activities.International political environment is crucial to business operations of different brands. It can affect the customer base of companies in different nations. For example, political issues between United States of America and China has created situation that is affecting business operations of many brands on global level. Due to trade bane, different brands are not able to perform their business operation in these countries(Sarangi, 2019). This international policies also affect trades of global brands and their profits in global operations. Impact of politicization of issues can affect the business operations of global brands and reduce their profit in global market. Politicization of ethical consideration is major barrier for business organization and global brands. Politicization can affect the customer base of global brands. It can create challenges to the global brands in the business operations in particular countries. Majorly, Politicization of cultural, social and other issues can reduce the trade opportunities organization have in global market. Politicization is major barrier for global brands that are facing this issues in many countries.

2.3 Policies and ways Used by Companies to Protect Them Selves Against shift in Trade, National or International Barriers and Policies that Restrict Trades

There are different operations and processes are used by business organizations in global trade. This is important for the organization to understand shift in global trades to prevent major failure in global business operations. Different protectionist policies are used by business organizations to avoid major failure in global business operations because of shift in trade. Trade shift data policy is mainly used by the business organization to avoid major failure in case of trade shift. The information and data collected from marketplace are used by companies to understand trade shifts in global market. In this process, business organization organizations are entitled to perform business activities ethically(Tu and Shangguan, 2018). All ethical considerations are followed by organization to use customer data to predict trade shift.

Different national and international trade barriers are faced by organization in business operations. Major barriers that are faced by global organization in trades are- Natural barriers like distance and language, Tariff barrier or import and export taxes, and non-tariff barrier. These are major barrier for organization in international trades. Some policies of organization and country also can restrict the business operations of organization on global level. For example foreign policy, trade policies between two or nations, and business policy of organization can affect the global operations.


This report is concluding crucial information about globalization of businesses and its impact on business organizations. Impact of globalization and change in trade has been evaluated on business operations of organization. Various measures and economic groups that can restrict trades of organization on global level has been evaluated in study. Effectiveness of these groups also has been evaluated in study. Impact of international trade relations and regulations also has been evaluated for supply of material, labour and products and services of organization.Different ways have been evaluated in the report that can be used by global brands to avoid issues related to global trade shift.


Books and Journals

Brooks, A.L., Wang, S. and Jambeck, J.R., 2018. The Chinese import ban and its impact on global plastic waste trade. Science advances. 4(6). p.eaat0131.

Dawson, L., 2019. Canada’s Global Trade Options—Is There a Plan B?. In Canada–US Relations (pp. 151-161). Palgrave Macmillan, Cham.

Sarangi, U., 2019. Green Economy, Environment and International Trade for Global Sustainable Development. Journal of International Economics (0976-0792). 10(2).

Sumner, J. and Lapalme, H., 2019. The public plate in the transnational city: Tensions among food procurement, global trade and local legislation. Canadian Food Studies/La Revue canadienne des études sur l'alimentation 6(1). pp.22-42.

Tirdasari, N.L., Indrawan, D. and Fahmi, I., 2019, September. Family Business in Agriculture: Challenge and Strategy to Face Global Business. In International Conference on Trade 2019 (ICOT 2019) (pp. 155-158). Atlantis Press.

Tu, Y. and Shangguan, J.Z., 2018. Cross-border e-commerce: a new driver of global trade. In Emerging Issues in Global Marketing (pp. 93-117). Springer, Cham.

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