Growth in World GDP and Global Trade

Running head: THE CHANGING BUSINESS ENVIRONMENT
Changing Business Environment
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1THE CHANGING BUSINESS ENVIRONMENT
Introduction
Lee (2017) stated that globalization is a process that resembles ease in business and
communication among diverse nations. Businesspeople opt for globalization for developing the
opportunity in trading; attain ease in outsourcing and procurement and for economic
enhancement. Organizations desires to promote their brand and merchandise in other nation get
encouraged if globalization is valued. Elliott (2017) also highlighted one advantageous aspect of
globalization that is the higher the international trade among different counties, the greater will
be the GDP of the world’s Economy. This impact can be witnessed through the growth in World
GDP and global trade from the year 1980 to 2016 (Chandran, 2017).
Image 1: Growth in World GDP and Global Trade
(Source: Chandran, 2017)
Elliott (2017) also depicted that countries that are the part of a union face less challenges
in adopting the procedure of globalization and trading procedures. European Unions are one of

2THE CHANGING BUSINESS ENVIRONMENT
such examples where all the member nations were prospering with high benefits. However,
United Kingdom opted for has voted to LEAVE the EU for their further development self-
dependency in business and trade but the assumption of increasing globalization and trade has
been called into question. This essay thus aims to explain the reasons for the above mentioned
aspects along with the implications.
Discussion
The United Kingdome was not a member country of European Communities till 1973
(Goodman, 2017). The concerned nation had joined the community through a referendum in
1975 but after four decades, in the leadership of Donald Trump, the nation again demands for
leaving the European Union (BBC News, 2017). 51.89% of voters voted for leaving the
European Union; whereas, only 48.11% desired to remain a member of the European Union
(BBC News, 2017). The prime reason for quitting the EU was many British think that European
Union is not able to serve the purpose of maintaining financial balance and trade among its
members nation. Goodman (2017) stated that people also believe that can take control away from
individual nations without any prior communication that can affect their economy to a great
extent. In addition to that people of Britain also believed that UK's relationship with Europe was
never stable and thus people or voters who have witnessed the pre-Brexit era support this belief.
According to BBC published article, 75% of the voters, who have voted for Bexit are above 65
years of age; while only 54% and 43% of the voters are 25-34 year olds and 18-24 year olds
respectively (BBC News, 2017).
In the year 2015 that is pre-brexit 44% of UK export was directed to EU Member States
(Dhingra et al., 2017). It is also stated that this is equivalent to the scenario that 53% of total