Critical Issues in Business Management

Running head: CRITICAL ISSUES IN BUSINESS MANAGEMENT
CRITICAL ISSUES IN BUSINESS MANAGEMENT
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1CRITICAL ISSUES IN BUSINESS MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Significant Developments in trade of goods and services between Commonwealth countries. .2
Increasing prominence of developing nations.............................................................................4
The Impact of Brexit on trade and investment within the creative industries sector in the UK..6
Possible challenges of multinational enterprise (MNE) in London in the post-Brexit creative
industries sector.........................................................................................................................10
Opportunities.............................................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
Trade is identified as a major means of support of the Commonwealth, further serving as
a chief contributor to productivity, increase, employment as well as livelihoods for all of the 53
member nations. Reports of Lea (2018) have mentioned that the combined exports of
merchandise and services of 53 Commonwealth members have been estimated till 2016 to be at
around $ 5.5 trillion, which is about 25% of the world’s aggregated exports. However, Shahbaz
et al. (2014) have stated that around half of these exports come from urban country members,
whereby other members since 2005 have cooperatively intensified their distributions from 46%
to slightly above 55%. The increasing impact of developing nations in the world financial system
illustrates huge trading opportunities for wide range of Commonwealth members. Furthermore,
according to Lea (2018), around 35% of Commonwealth industrial countries’ goods are exported
to budding countries accounting up from only 21% a decade ago. However, on the whole, since
2000, the percentage of Commonwealth exports primarily intended for developing nations has
amplified from 32% to 51% (Wu, 2016). The following report evaluates the key developments
and progress in dealing with goods and services between the 53 Common Wealth nations.
Additionally, the paper essentially focuses on the consequence of Brexit on trade as well as
investment within the creative industries segment in the United Kingdom by assessing potential
challenges and scopes of multinational corporations in the international trade landscape.
Discussion
Significant Developments in trade of goods and services between Commonwealth
countries
The global trade landscape has been undergoing significant alterations whereby the
Commonwealth members have been adapting to such latest realities. However, Ottaviano, Peri

3CRITICAL ISSUES IN BUSINESS MANAGEMENT
and Wright (2018) have stated that as business dealings with the South has been intensifying, a
critical challenge for several developing nation members relies on the improved harnessing of
these opportunities in order to build their industrious as well as trade facilities and further expand
their exports, predominantly to China and other budding markets. Small states specifically in
recent times have been facing confrontations with critical challenges and have encountered
deteriorated export direction in their financial system. Furthermore, Nathan (2014) is of the
opinion that well-established nations tend to sustain as vital markets. Thus, Commonwealth
developing nations must persist to discover openings for trading further with them as well as
effectively using obtainable favoured schemes along with extensive trade and investment
collaboration (Shahbaz et al., 2014).
There has been witnessed a considerable development in spheres of Regional Trading
Arrangements (RTAs), with the majority of Commonwealth members partaking in a number of
these means. Effectual execution of RTAs however has been a critical impediment for many
(Neufeld, 2014). Thus reinforced provincial collaboration trade with behind-the-border actions
and guaranteed enhanced linkage must be specified with the utmost concern. Comprehensive
studies of Gray (2014) have further mentioned that an elevated number of merchandises are
produced through production system engaging various countries. Though some of the
Commonwealth members have benefitted from this improved connectivity, several nations such
as Africa, Caribbean along with Pacific Ocean which has been chiefly natural resource-based
exporters have experienced restricted ability to successfully associate with global value chains
(GVCs).
At this juncture, authors have shed light on the importance of rules-based multilateral
trading system. The implementation of the 2030 Global Agenda for Development, trade