Business Environment: Global Trade & Policy

This business environment assignment explores various aspects of international trade and its impact. It delves into the justification for supporting organizations like the WTO, analyzes the effects of currency devaluation, discusses the curtailment of imports in the United States, examines firm expansion into international trade, and highlights the role of social media in government communication.

Running head: BUSINESS ENVIRONMENT
Business Environment
Name of Student
Name of University
Author’s Note

2BUSINESS ENVIRONMENT
Answer 1: Justification to the contradiction of the constituent: To justify the
contradiction as a Congress member, it can be suggested that the support of the WTO
with the foreign countries give a better relation politically, socially and economically.
WTO has the ability to solve the economic crises that have formed from the world trade
(Wade 2014). Many international and government agencies provide exportation or
importation assistance to the United States. Still, there is some confusion with the restrict
import. Thus, the contradiction is necessary to maintain the civility between the trade
disputes.
Answer 2: Effects of nation’s currency devaluation: With the increase in the demand
for domestic goods and the services in foreign, firms are able to sell their goods with the
same unit of price to abroad. Thus, the foreigners’ buys domestic goods at cheaper rates
than that used to be before. Consumers when buy imported goods, due to the currency
devaluation these goods become more expensive while considering the domestic goods
price remain the same (Laffer 2014). Thus, with the increase in the price of the goods and
the services, the competition decreases. The devaluation of the nation’s currency become
difficult to retire with the debts owes to the other nation as it would be higher and more
loan payment owed to the foreign country.
Answer 3: Curtailment of imports in United States: If imports to the United States
has curtailed by 20 percent for the trade deficit to eliminate, it would economically thrive.
The currency war will change to tariff war as it was in 1970’s (Watch 2014). The
international and domestic trades both would have heightened quality and production.

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Answer 4: Expansion of firm trade: When the firm successfully competes with the
competitor, then it should consider expanding from the domestic trade to international
trade, and it needs deep amount of time, commitment and money for the firms to involve
with the international trade. The factors that might affect the firm’s decisions are Laws,
Finances, custom and competition.
Answer 5: Government Agency Going Social: Social media has provided a better
opportunity to change the perception of the individuals and organisations to communicate
with the government. The government shows an effort to acknowledge the incoming
tweets and replying to the comments on Facebook. Social media is the best place to make
public aware of the important news or about any new legislation. In fact, around 62%
adults of United State see news from social media. There are some sensitive information
which cannot be shared (Morrison 2014). Even there can be a negative reply from the
public also in the comments made in social media and sometimes crisis may have a direct
impact to the citizen which is then up to date and provided with better information to
build the trust and transparency with the citizens.

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References
Laffer, Arthur B. "Currency manipulation and its distortion of free trade." The Laffer
Center (2014).
Morrison, Caren Myers. "Investigating Jurors on Social Media." Pace L. Rev. 35 (2014): 285.
Wade, Robert. "The US role in the long Asian crisis of 1990-2000." Occasional Paper 21
(2014): 33-62.
Watch, Public Citizen’S. Global Trade. "The Rising Use of the Trade Pact Sales Pitch of Last
Resort: TPP Foreign Policy Arguments Mimic False Claims Made for Past Deals." (2014).