Critical Issues in Business Management

This report discusses the impact of COVID-19 on Commonwealth countries’ global and intra-Commonwealth goods and services exports, and the prospects for trade recovery. It also highlights the concept and significance of digital trade in the Commonwealth, including its main trends, challenges, and opportunities. Additionally, the report analyzes the African Continental Free Trade Area (AfCFTA) and its transformative and inclusive potential, especially for women.

Critical Issues in
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Task 1...............................................................................................................................................2
What is the impact of COVID-19 on Commonwealth countries’ global and intra-
Commonwealth goods and services exports, and what are the prospects for trade recovery?2
Identify and evaluate the sources of future growth including from the Commonwealth
advantage................................................................................................................................3
Task 2...............................................................................................................................................4
Why is digital trade now more important than ever? What are its main trends, challenges and
opportunities in the Commonwealth including the effects of COVID-19?............................4
There has been much comment on the African Continental Free Trade Area (AfCFTA).
However, what is its real significance, the current state of play and how transformative and
inclusive can it be, especially for women?.............................................................................6
TASK 3............................................................................................................................................8
Pitch........................................................................................................................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10
Books and Journals...............................................................................................................10
Online...................................................................................................................................11
1

INTRODUCTION
The emergence of Global unprecedented pandemic Covid-19 there has been huge critical issues
faced by the developing and under developed countries all across the world. There is heavy
downfall and recession in the economies at the large scale (Khorana, Martínez-Zarzoso and Ali,
2021). There is the association of 54 voluntary independent counties known as the
“Commonwealth of Nations” and shortly referred as commonwealth. The pandemic has caused
huge impact on the economies of these countries by affecting the global and infra commonwealth
trading. In order to recover from the pandemic situation the digital trade phenomenon is widely
accepted by the UK and other countries of the commonwealth. Digital trade refers to a form of
trade that uses technology to order or deliver goods or services digitally. The present report will
discuss the impact created by the covid-19 on the commonwealth trading and its prospects for
trade recovery. Further, there is recognition and analysis of sources of future growth using
commonwealth advantages. In addition to this report also highlights the concept and significance
of global trade in current era, including its main trends, challenges and opportunities in the
commonwealth. At last there is discussion on the African Continental Free Trade Area
(AfCFTA).
MAIN BODY
Task 1
What is the impact of COVID-19 on Commonwealth countries’ global and intra-Commonwealth
goods and services exports, and what are the prospects for trade recovery?
The covid-19 pandemic has been a global shock and as created the devastating effect on trade at
the international level and also crushed the macro economics at the major level (Escaith and
Khorana, 2021). The covid-19 pandemic has been considered as the global recession affected the
trade flows along the both supply and demand Chinese average 8% in the trade flows across
different countries and regions depending their trade structure (The Impact of COVID-19 on the
Global and IntraCommonwealth Trade in Goods , 2021).. Covid-19 has a disproportionately
created serial economic impact and the trade effect on the 54 commonwealth countries. The
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commonwealth countries trade and export between the infra commonwealth countries has been
predicted to be lowered by 13% as the infra commonwealth trade is expected face huge trade
loss. 70% of the commonwealth countries traded goods and the share of merchandise trade is
higher for the African countries does with the effect of covid-19 the international trade has been
collapsed for commonwealth countries specially for the members that realise heavily this specific
comedy is like agricultural and mineral commodities as these commodities prices are declined
two great extent creating a adverse impact on trade and macro economics situations of the
countries. As the global crisis of death are accompanied with receiver drop in the commonwealth
and intra commonwealth trade flows (The Impact of COVID-19 on the Global and
IntraCommonwealth Trade in Goods , 2021). Fuel is one of the most important commodity that
is being exported from country to country and it is analysed that due to the covid-19 42% of the
sport of fuel has been declined to great extent due to the lowest prices which is negatively
affected the demand for the committee in the various countries like UK, Australia, USA, China
and many more.
Prospect of recovering the trade which is declined due to the covid-19 the sustainable
development goals are the important means to achieve high trading especially for the world's
poorest countries. Digital trade is also one of the median by which trading can be recovered in
the commonwealth and infra commonwealth members (Banga and Raga, 2021). Economy is
facing a strong but uneven recovery from the covid-19 as the effect of band and reversing slowly
firstly through poverty reduction. Policymakers are more looking forward to seek and nurture the
recovery of the economy and the international trading passive guarding the price stability and
fiscal sustainability for which there is the improvement in the growth by enhancing the reforms
of the kilometres and prayed more into greener and resilient path.
Identify and evaluate the sources of future growth including from the Commonwealth advantage.
Commonwealth is large size association of 54 independent countries mixed combination of
different developed, underdeveloped, small, large and landlocked economies. The motions of
covid-19 has created the global crisis and the profound changes in the global trade landscape
new governance, technologies and rules and norms that supports trading of goods and services
through digital economy.
Commonwealth advantage is the rooted historical canvas of institutional and governance that ties
influence commerce, trade and investment within the commonwealth. Commonwealth members
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on average try to trade more between themselves as this brings an advantage. With different
source of growth in the trading the commonwealth advantage is one of the greatest cost trade
advantages for the commonwealth members as it is streamlines the great governors and
procedures (Manski, 2017). Beyond commonwealth advantages systematic initiative reduced the
commonwealth trade cost provides benefit to the poor and smallest countries of commonwealth.
Different ways for the future source of growth surface supporting small states and 100 steps
during the covid-19 by accessing them with funding to meet their development goals.
UK commonwealth trade is associated to the growth prospect in the different
commonwealth countries as UK International export growth opportunity is considered at
favourable aspect in backing up free trade agreement.
Task 2
Why is digital trade now more important than ever? What are its main trends, challenges and
opportunities in the Commonwealth including the effects of COVID-19?
As precautions and measures of lockdown, social distancing by the government in order to
protect the people from the spread of corona virus. Therefore, in trade world there is adoption to
mitigate the effects of covid-19 pandemic by increasing the uses of online shopping, tele-
working, making the book of digital more relevant and important in the current dynamics. So
board digital trade and information technologies has use significance in today's society as a
provides the countries around the globe a significant access to the trading markets that were
previously considered unreachable (Osmond and Colombo, 2019). In the modern world the
digital trade that is trading of goods and services using a digital technology has more important
than ever because it has reduced the barrier of geographical distance and the consumers needs
and choices and no more restricted by the good found in their nearby local stores or towns. The
digital trader provides the businesses with the consumers of the whole market in the real time for
the supply of the goods and services. The world trade organisation that looks after the trading all
across the globe has found that digitalization has changed the economy to great extent therefore
it is very important to make sure that thread system is up to date with the advanced technology in
order to exploit new report unities and to address the challenges that are present in the current
trading world.
Main trends in digital trade
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With the Covid-19 digitalisation in trade has been accelerated to the heights as the digital trade is
kept the flow of goods and services in movement even in the restrictions (Stephens and et. al.,
2018). With this there are some new trends in the digital trade for the commonwealth members
that are enlisted below:
Development of e- commerce in digital trade: with the world turning into digital world there
is new trend in the trading that is development and improvement of e- commerce sites and
applications (Assessment of Modern Global Trends in Digital Trade and Finance, 2020). Big
brands like Amazon are the key example for the leading e- commerce development and have the
revenue earning more than the largest bank JP Morgan. The consumers are also likely this trend
to the great extent as consumers use internet to buy goods like clothes, medicines, food and many
other items through e-commerce.
Digitize trade documentation: Restrictions on the physical movement during the covid-19
pandemic there was highly disruptions in the supply chain as international trade is a heavy
paperwork system that relies too much on the physical documentation (5 ways to advance digital
trade in the post-COVID world, 2021). Also with the digitalization of the trade that is the digital
trade process in the international trade from one commonwealth to country to another has
reduced cost in trade, made trade more resilient, lowered barriers to entry for the small
companies and small states. This problem of physical documentation has given rise to the new
trend of digitalized trade documentation that will recognise and permit the digital signatures
records and transactions known as electronic transfer records (Kumari and Bharti, 2021).
Challenges in digital trade
 Digital trade in the commonwealth countries there is more involvement of high invested
technological systems that calculate how much new technologies are reducing the cost of
trade but in the convergence in the poor countries that are not the technology and not able
to perform effectively through digital trade. This creates a challenge of gap between the
rich and poor countries.

Opportunities in digital trade
 Trade has created the huge opportunity for the commonwealth member at that has rise the
internet penetration in the small and to our members of commonwealth buy greatly boost in
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the E-Commerce industry in the small countries (Dung and Tri, 2021). This is the key
opportunity as it is one of the key trends that will continue to rise in the future.
 Accumulation of technology into the trade has been a great global trade model which has
brings the innovation and different form of artificial intelligence for automation in the
trading in commonwealth members which is a great opportunity for developing countries to
improve their production process by reducing the trade cost of technology for effective
communication in trading.
There has been much comment on the African Continental Free Trade Area (AfCFTA).
However, what is its real significance, the current state of play and how transformative and
inclusive can it be, especially for women?
In the beginning of the year 2021 the UK exited the trading bloc of the EU which as the
whole commonly referred as Brexit that is Britain exit. With this there was the starting of the
largest free trade area in respect of total number of countries participating in Africa with the new
trading bloc AfCFTA (African Continental Free Trade Area) (Arreyndip, 2021). According to
the World Bank the new trading bloc AfCFTA has created a new Market which has estimated
1.3 billion people across Africa the combined GDP of $3.4 trillion data the potential of uplifting
the extreme poverty in Africa. Trading block is expected to boost intra second grade create
multiple job opportunities employment promote industrialisation and also improve and enhance
the competitiveness of the African industries at the global level. The real significance of this
trading block is that it has huge potential and reducing the prophetic through the trade as trade is
the only force for good and prosper uplifting of poverty (6 reasons why Africa's new free trade
area is a global game changer,2021). Through this the women will gain a chance to stand for
themselves thereby improving the lives of the women. In terms of commonwealth countries the
African continental free trade area trading Brock is an important milestone in order to achieve
economically integrated commonwealth.
As per the current state and the role play of AFCFTA it is the ambitious trade that create the
world's largest free trade area connecting more than 1.3 billion people for African countries. The
current role of this trading bloc is to create a common single market for the goods and services in
order to foster the economic integration of Africa. The African continental free trade area also
aims to reduce the tariff among the members of commonwealth and to cover the policy areas
such as trade facilitation and services regularly measures technical barriers to trade and sanitary
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standards. Also as a result and impact of covid-19 this trading agreement commenced on the first
day of New year 2020 one that has huge potential for recovering from the impacts of covid-19.
The AfCFTA is highly included in transformative that it promises to unlock huge amount of
opportunities and sciences for the African women's to shift from micro to macro businesses
(AfCFTA promises to unlock the potential for African women to move from micro to macro
businesses, 2021). From many use the women's in Africa are the victim of poverty cycles due to
an equal access of education, trade facilities, production, unequal labour salary, technologies,
underpaid labour and many other factors from gender inequality practices that are entrenched in
the society (Ijaiya, Ijaiya and Ijaiya, 2021). Order to break the cycle and to empower the
women’s in Africa the African union continue to advocate for the development of new policies
and legal frameworks that could create a array opportunities for the women to become economic
in power at the global level. Thus, trading under African continental free trade area the
expectations were high as they were related to the expanding business prospects for the women
using the digital trade which helped the women of Africa to grow their business from micro to
macro-level enterprises (AfCFTA promises to unlock the potential for African women to move
from micro to macro businesses, 2021). Also the protocols under the African continental free
trade area on Trade and service competition policy trade in goods intellectual property rights has
a clear guidelines to ensure the emerging and infant industries adding the agenda 2063 that is the
goal for gender equality and women empowerment. Also with the integration of digital trade and
African continental free trade area trading block E-Commerce is thriving all across the globe and
has provided the women's of Africa a huge opportunity at large scale to showcase their uh
participation on E-Commerce and how online platforms are beneficial for women business
owners (Women and e-commerce in Africa,2021).
The reports of the various advocates of women empowerment, gender equality, trade experts
and much others half African union strategy for the gender equality and women empowerment
that will maximize economic outcomes and opportunities for the women to become
economically independent. Also the African continental free trade area will act as a catalyst for
the women to gain women financial and economic inclusion.
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TASK 3
Pitch
The UK government hosted the G7 summit as part of its 2021 G7 presidency at the Carbis
Bay, Cornwall. The prime minister of UK Boris Johnson through G7 summit brought together
many leading democracies of the world in order to fight and recover from the repercussions of
the global pandemic covid-19. The aim of the current chairperson of commonwealth and
president of G7 is to develop greener and prosper future (Martill, 2021). The present elevator
pitch for the prime minister and the president of G7 in order to suggest them ways by which
commonwealth and the G7 can boost and blaster the trade which can be benefited by all.
In order to boost the trade the UK prime minister and commonwealth and G7 is suggested to
develop some key policies that highly support the women entrepreneurship and trade through the
compliance of the digital technology like E-commerce (Wise, 2021). The commonwealth
chairperson and G7 are highly recommended to support women trading with the digital trade in
the commonwealth countries like Africa under the trading bloc like AfCFTA. This must also be
supported and backed up by the sustainable goals in order to have sustainable trade growth that
will also foster the recovery from the Covid-19. Supporting women is the best way to increase
the employment rate in the small states which is highly beneficial for the attainment of the 17
sustainable goals that include equality and employment.
The G7 summit and the chairperson of the Commonwealth is also suggested to invest more into
technology and support the countries that are not highly familiar and advance with the latest
technology like automation, AI in their trading as for the sustainability in the trade all across the
globe (Mills and et. al., 2021). This will help the UK and other countries of the commonwealth
to gain speed and more ease in their trading also through technology the trading becomes more
secure and manageable taking less time for the good and services to reach one place to another.
In order to bolster the trade the G7 and the chairperson of the Commonwealth is recommended to
reduce the tariff on the trade and to utilize the AfCFTA trading bloc as the trading medium in
order to have sustainable trading. Also the G7 summit must look forward to the agenda 2030 of
the sustainable development goals regarding the trading through sustainability.
Thus, there many other ways that will require the improvement in the policies and laws of the
countries and also to have sustainability in trading new strategies and trading practices using the
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technology like IT and AI are best to transform the information in seconds (Stern and et. al.,
2020).
CONCLUSION
From the above information it is understood that the global pandemic covid-19 has created
significant negative impact on the global economy of the commonwealth members in terms of
trading of goods and services. It is also analysed that in order to foster or to recover from the
negative impact of the covid-19 the commonwealth members must improvise the digital trade
using the various advanced technology. Further, it is evaluated that digital trainee is the future
for the trading at the global level as it is the only medium to recover from the economic crisis
caused by the covid-19. Thus, the amendment or commencement of the new free trading area
called AFCFTA is been highly beneficial for the commonwealth members and the Africa to
recover from the covid-19 and to reduce poverty. Also the women's are empowered through such
free trade bloc.
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References:
Books and Journals
Arreyndip, N.A., 2021. African continental free trade area (AfCFTA): projected economic
impact assessment under future warming in CMIP6. Environmental Research
Letters, 16(9), p.094046.
Banga, K. and Raga, S., 2021. Digital Trade for Post-COVID Recovery and Resilience in the
Commonwealth.
Dung, N.T. and Tri, N.M., 2021. Digital transformation meets national development
requirements. Linguistics and Culture Review, 5(S2), pp.892-905.
Escaith, H. and Khorana, S., 2021. Commonwealth Countries and the COVID-19 Pandemic:
Impact Analysis on Merchandise Trade. Published as Escaith, H and S Khorana
(2021),‘The Impact of the COVID-19 Pandemic on Merchandise Trade in
Commonwealth Countries’, International Trade Working Paper, 2.
Ijaiya, T.A., Ijaiya, G.T. and Ijaiya, M.A., 2021. AFRICAN CONTINENTAL FREE TRADE
AREA (AfCFTA) AND POVERTY REDUCTION IN NIGERIA: AN EXPLORATION
OF THE POSSIBILITIES.
Khorana, S., Martínez-Zarzoso, I. and Ali, S., 2021. The Impact of COVID-19 on the Global and
Intra-Commonwealth Trade in Goods. International Trade Working Paper 2021/08.
London: Commonwealth Secretariat.
Kumari, M. and Bharti, N., 2021. Estimating the impact of COVID-19 on South Asia's exports:
does trade facilitation matter now more than ever?. Transnational Corporations Review,
pp.1-16.
Manski, S., 2017. Building the blockchain world: Technological commonwealth or just more of
the same?. Strategic Change, 26(5), pp.511-522.
Martill, B., 2021. G7 summit: America is back, but Britain cannot escape Brexit. British Politics
and Policy at LSE.
Mills, E.F.E.A and et. al., 2021. Towards sustainable competitiveness: How does financial
development affect dynamic energy efficiency in Belt & Road economies?. Sustainable
Production and Consumption, 27, pp.587-601.
Osmond, A.T. and Colombo, S.M., 2019. The future of genetic engineering to provide essential
dietary nutrients and improve growth performance in aquaculture: Advantages and
challenges. Journal of the World Aquaculture Society, 50(3), pp.490-509.
Pennington, A. and Stanford, J., 2020. Working from home: Opportunities and risks.
Stephens, C.M and et. al., 2018. Implications of future climate change for event-based
hydrologic models. Advances in Water Resources, 119, pp.95-110.
Stern, N.H and et. al., 2020. Strategy, investment and policy for a strong and sustainable
recovery: an action plan. Centre for Economic Performance, London School of
Economics and Political Science.
Wise, J., 2021. Covid-19: G7 vaccine promises fail to meet scale of challenge, say critics.
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Online
6 reasons why Africa's new free trade area is a global game changer,2021,[Online], Available
through:< https://www.weforum.org/agenda/2021/02/afcfta-africa-free-trade-global-game-
changer/>
AfCFTA promises to unlock the potential for African women to move from micro to macro
businesses, 2021,[Online], Available through:https://au.int/en/articles/afcfta-promises-
unlock-potential-african-women-move-micro-macro-businesses
Women and e-commerce in Africa,2021,[Online], Available
through:<https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_
site/gender+at+ifc/resources/women-and-ecommerce-africa/.
Assessment of Modern Global Trends in Digital Trade and Finance, 2020, [Online], Available
through:< file:///C:/Users/HP/Downloads/125940041.pdf>
5 ways to advance digital trade in the post-COVID world,2021,[Online], Available
through:https://www.weforum.org/agenda/2020/06/5-ways-to-advance-modernize-digital-
trade-in-the-post-covid-pandemic-world/
The Impact of COVID-19 on the Global and Intra Commonwealth Trade in Goods ,2021,
[online], Available through:<
https://thecommonwealth.org/sites/default/files/inline/ITWP_2021-08_UPDF.pdf>
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