Analysis of International Trade Agreements and Their Impact on Global Economy

The assignment provided is an analysis of international trade agreements, specifically the Comprehensive Economic Trade Agreement (CETA), Transatlantic Trade and Investment Partnership (TTIP), and the Trade in Services Agreement (TISA). The main objective of these agreements is to promote free trade and eliminate barriers between participating countries. The analysis includes a discussion on the benefits and challenges of these agreements, as well as their impact on businesses and economies. Additionally, it covers the role of international organizations such as the World Trade Organization (WTO) in promoting global trade and investment. The assignment also explores the implications of Brexit on the UK creative industry and the Commonwealth's trade policies.

Critical Issues in Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Key trend in trade of goods and services between commonwealth (CW) countries..........1
2. Impact of Brexit on trade and investment within the creative industries sector in the UK.3
3. Critically Evaluating the possible challenges and opportunities of multinational enterprise
in London in context of changing global trade landscape......................................................6
CONCLUSION................................................................................................................................9
RECOMMENDATION...................................................................................................................9
REFERENCES ...............................................................................................................................1

INTRODUCTION
Management structures and success of a business relies on many varied and important
factors. A enterprise operates number of activities and commences different operational
functions to meet out the set needs and wants. So on the other side, commercial enterprise also
engaging with some of the critical issues of business concern that affect enterprise goals and
objectives. Present study will be presenting the some business pitfalls and effects of the Post
Brexit effects on the enterprise or organisations. However, study also presenting some of the key
trends in trade of goods and services between commonwealth countries. Further, it also critically
evaluates the possible challenges and opportunities of a multinational enterprise in London in the
Post Brexit creative industries sector.
TASK
1. Key trend in trade of goods and services between commonwealth (CW) countries.
As per the one quarter part of the world government, one third of the world’s population
or one fifth of global trade, Commonwealth is different section of a community of nations that
sharing diverse an inheritance of a common language, institutions and culture. It brings together
a unique range of countries and goals, people etc (Exploring intra commonwealth goods &
services trade, 2015). In terms of commonwealth track record of north south and south
collaboration which provides a sound for co-operation targeted specifically at expanding and
building inter country and inter regional trading links.
In Colombo Meeting which was held in 2013, where the head of Commonwealth
government stood alone against the issues of trade. Meeting discussed some potential growth
elements in intra – Commonwealth trade investment in order to promote some potential
constraints and growth factor.
Key major trends are
 Mega trends and Global Shifts : Commonwealth 2018 the trade relations of
international businesses like Australia, Canada, India, Malaysia, New Zealand, Papua
New Guinea, Singapore and the United Kingdom. Commonwealth businesses are most
challenging and trade business growth and new emerging market trend which adopts new
technologies and new concept in term of development management activities (Cogin and
Williamson, 2014). In 2018 commonwealth businesses has explore new technologies,
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new trade individually and collectively. With the helps digitalisation, business can more
easily purchase or sell their goods and services into more systematic manner. It brings
new businesses and long term goals and strategical manner.
 Globalisation Drivers : Globalisation drivers are like technologies, international trade,
international investment are the key trends of globalisation drivers. Some of the major
Key trends of trade is to trade for development, to enhance the climatic change for small
sates where trade is highly vulnerable to the impacts of climatic change and introduce
new techniques and trade environment (Davis, 2017). In those particular are trade of
goods and services helps to to enhance the investment opportunities and growth.
Managing the selling and buying process of small states which about to consisting 31
commonwealth membership for their development of economic growth.
 International business : international Business environment has includes intense change
in daily basis at global landscape. That includes technologies and diverse governance
framework that supports the trade of goods and services (Claussen, 2017). Business
environment is dynamic in nature which presents some potential challenges and threats,
opportunities to explore and deepen trade, investment and innovation in order to develop
the national economy.
 Urbanisations and global Consumers : these kinds of consumers having wide variety of
different range that helps people to make effective long lasting effects. Analyses major
trend in global trends in global trade since the 2015 commonwealth. In this year were
Commonwealth trade and investment generally give importance to creating new job
opportunities, building productive capacity attention to the role of greenfield investment.
On the other side, In Part 2 the main focus of the Commonwealth trade is to enhancing
the mutilate. For example Google Cloud Platform helps companies to store their data into
only one device. That connects in an appropriate manner and goals. By exploring the
common wealth trade effects of commonwealth does not account for sample selection. It
is the exploring and managing the leading growth for both the countries. Trade and
investment flows among country will lead the continue growth to the country members.
Innovation : Innovation is the most common key trend of Common wealth that helps
companies to make productive product or services in the present market goals. Common wealth
is a voluntary association of 53 independent and equal sovereign states. It includes developing
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and advanced countries with holding 2.4 billion people as well. CW countries generally include
small states in which small island nations has also included as well. Innovation keeps the market
more enhancing and productive in order to attract the number of customers towards the
companies. For an example : Innovation creates advanced internet search services, it helps in
high advertisement. It helps industry to adopt the digital platform and participation in open
services as well.
Transaction : The trend of the business goes changes time to time, the best part or
advantage of this trade is advanced technology, governance which presents new findings and
trends (Trade Horizon, 2018). Transaction is the another major trend of Commonwealth that
helps country to transport their product from one place to another in an effective development
manner of growth.
Common wealth has a good record track in trading the process. In order to meet out the
best product outcomes and goals into more better manner. In other term, Common wealth is the
most necessary process of trading in order to serve great outcomes or contribution level such as
employment and livelihood for all 53 members countries.
Digital technologies : It is the another trend that connects people to industry and enhance
the attributes towards the growth level. Such as Algorithm techniques which embodying
computers to mimic same as human being. This is the highly major forms of advanced
technology or trend for the businesses.
2. Impact of Brexit on trade and investment within the creative industries sector in the UK.
 Advertising and marketing : Advertising and marketing is the creative industry that
creates new and effective key trends into the business functions that affect the best
outcomes for the country. Brexit impact has given impact on the creative industry in
terms of immigration process.
 Architecture : Brexit makes it hard for the companies to build a proper action plan in
order to implement. Architecture industry get affected by in terms of employment, in
terms of lack of talented people Architecture industry got affected from all these
challenges goals. This affect the deals who has already been made before the impact of
Brexit. That affect the overall industry performance.
 Crafts : UK has participate in the creative Europe post Brexit which is one of the good
reason behind. That helps to minimize the sources of funding, combined with the
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freedom. If the UK depart Creative Europe will help in sustaining the creative growth,
performing arts, development in museums, galleries etc. In developing the creative
industrial growth. Another impact of Brexit that was given to the creative sector
businesses in implementing the government regulations system for data protection. In
order to get rid from this concern, government of UK needed to implement effective
action plan and also required to adopt effective digital technologies for that too (Dikova
and Brouthers, 2015). Brexit creates several uncertainties and negative impacts for the
industry in terms of changes in exchange rates that increases the rate of goods and
services. Besides, Stakeholders does not get any findings from EU. Some of these issues
has facing creative sector in the time of Brexit.
 Film, TV, Video, Radio and photography : Film TV industry i For government it is
necessary for them to maintained the stability of good relation with the European Union.
It helps to give the effective managing sources for the development of new sources and
facts. In terms of film all the important activities linked up with the production,
distribution and retailing of features length films with the UK. Due to which companies
has facing issues of changes in the system after Brexit.
According to the art council of England, which perceives that new trade policies after the
Brexit will create big barriers to access to EU market which can have adverse effect on the
growth of companies in creative sector. Many of people in London perceive that new policies
implemented by government can limit the ability of Multinational enterprise or artist to work in
London.
Brexit impact on Work force
UK creative tech industry required a high range of developing energy that maintained the
sufficient access of talent to continue in developing the best leadership styles and growth. As per
the secretary of state, RT Hon Karen Bradley MP, were said that Brexit can be the opportunity to
develop the new technology development by enhancing the native workforce. Brexit increases
the urgency of high skilled domestic employees which is essential for the UK companies. The
reason of this employees shortage due to the result of departure of UK from the EU.
At the time of Brexit, the main concern of the government were on the availability of
fresh talent (House of Commons Digital, Culture, Media and Sport Committee, 2018). In terms
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of creative industries, they facing the shortage of domestic employees. In order to that, company
started to appoint non-UK workers to fill the employees gap.
After that, creative industries try to more focus on the digital skilled workers to improvise
the issue of workforce shortage. For resolving this issue UK government created Digital Skills
Partnership that helps businesses to make international trade as well.
As per the above graph presented that, In 2015 the overall ratio of employment in
creative industry was about 7% of total UK employment comparatively with financial industry
which ratio was 3.5% (Brexit and the UK creative industry, 2017). it has been concluded, that
creative industry has increased their ratio of employment.
Impact of Brexit on Future immigration arrangements
This is the another factor that affected by the impact of Brexit. No matter of Brexit,
government of UK should need to take some steps for renovating the system of Visa for Non-
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Illustration 1: Share of UK employment
(Source : Brexit and the UK creative industry, 2017.)

EU nationals. This were given the impact on Creative industries which contributes the valuable
contribution in the development of UK economy. After introducing the Brexit law, they provides
an opportunity to overhaul the system of visa.
After implementing the Brexit Law UK had opportunity to make new immigration
system growth that helps to overall UK. This system will help UK to maintained their exiting
leading position across the world.
United Kingdom having some best leading cultural institutions, creative and digital
business growth and museums that having high reputation and outstanding expertise (Dikova and
Brouthers, 2015). For maintaining that position, government has always trying to keep sustained
collaboration, partnership with all over the institutions around the world to seek profit by
creative industries.
Creative industry plays a most important role in the UK market in terms of employment
and to exports goods and services to another place.
3. Critically Evaluating the possible challenges and opportunities of multinational enterprise in
London in context of changing global trade landscape
Music Sub sector : Creative sector is the fastest growing industry which is making
important contribution in the economic development of United kingdom. New trends and new
needs creates some challenges and concern for the music industry to adopt changes as per the
want of customers. Brexit have both positive and negative effect on the business operation and
growth of creative industry. It has bought many opportunities as well as challenges for creative
sector in United Kingdom. One of the biggest is the lack of funding which is required for the
development of nations as well as creative sector. Lack of sufficient funding lead to the rise in
the administration cost of British artist. The post Brexit has give rise to the threat to London
positions as creative capital. Political instability in the country has restricted the free movement
of people which has lead to the talent crisis in the Music sector which have adverse effects on
industry performance as well as growth. Amendments in laws has direct effect on the business
policies and procedure (Dikova and Brouthers, 2015). Change in norms by UK government after
Brexit has great effect on the recruitment policies of business entity in creative sector. Due to
the change in employment law by UK government enterprises in Music industry is now facing
the diversity issues which have negative impact on the companies' performance. Companies in
creative sector have high level of different concerns related to the effect of post Brexit on their
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growth. Few concerns of Multinational enterprises in London related to the Post Brexit are :
funding, access for talent, flow of skills into creative sector, regulatory issues, trade and
investment.
As per the Womad Visa Fiasco tells us about live music in Brexit Britain, where UK has
been the leading destination for discovering sounds from far flung corners of the globe, whether
it is malian songbird. So in order to that, people keep changing its likes or dislikes due to which
they need always something new. Brexit change the overall culture or the profit level of this
industry.
Fashion Sub Sector : Fashion creative sector has emerging in Africa and affected young
fashion enterprises. It is the possible changes and opportunities for the fashion industry to make
effective productive changes in order to meet out the possible action plans and major effective
development task to enhance the long term effects. As per the rapid development of technologies
and the new concepts. Fashion market has to be updated and effective in order to meet out the
customer needs and wants. It is the challenges for the fashion industry. Besides, Opportunity for
fashion industry are new trends, new styles, technologies, innovation creativity etc. Global trade
landscape has constantly increasing. With the help of commonwealth and their diverse
membership of advanced economies and developing countries. It helps to make the powerful
goals and effective leadership skills to keep maintained the pace of development by enhancing
the advanced economies development countries, resources etc.
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Global economic development and trade performance
It is the another opportunity that gained by commonwealth countries by going businesses.
Due to the financial crises in 2008 had given serious impact on the trade flows between
countries. After that, In 2014 the growth of the trade has been increased by $16 trillion.
Growing Prominence of developing countries
With the help of growing globalisation trend has been given the potential growth to
global trade. This introducing the changes in the direction of exports and imports for many
countries. Besides, for commonwealth exporters, the traditional market of developed countries is
significantly important trading opportunity.
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Illustration 2: Export Performance of Major services by Commonwealth
country
Source: The Commonwealth in the Unfolding Global Trade Landscape. 2015

CONCLUSION
On the basis from above report it has been concluded that, Commonwealth is an
association of 53 independent states that trade with each others in order to generate great profit
returns from each other. Study also explained that CW is most effective in order to develop the
employment opportunity, livelihood for all those country states. However, study explained some
potential key trends of goods and services between commonwealth countries. Further, also
explained the impact of Brexit on trade & investment within the creative industries sector in UK
such as post Brexit. UK facing the shortage of skilled employment and the shortage of resources
as well. Another issue that UK faced that was the improper system of visa. Likewise, report also
presented the possible challenges and opportunities of a multinational enterprise in London that
helps creative industries sector in order to develop manner.
RECOMMENDATION
Ways to tackle challenges and enhancing the opportunities
Global trade is the most effective process of generating some new opportunities for
enhancing the opportunity for small businesses. These all trends has been given major impact on
the development growth will generating high opportunity growth for the other businesses.
Many commonwealth Countries are given the opportunity through various regional
trading arrangements that helps to some new development process and goals.
Global value chain is the best way to develop the potential trend in between the
developing goals and making potential outcomes and new emerging market growth. This term
can easily helpful in integrating the developing countries into emerging at international market.
Besides, this process can also addressing the issues of commonwealth trade system and helping
to generate new growth system.
Reducing Climate change concern
it is one of the challenging concern of sustainable development. This is the major conflict
that many of the Commonwealth countries has facing. Due to which affecting the trade of the
product or services. As per the report of UN which is based on climatic change which referred
that, changes in climatic conditions is unequivocal and human influences factor. Due to
emerging high population and greenhouse gases such as carbon dioxide, methane, nitrous and
some polluted industrial gases. So in order to that, climatic change is the major challenges for the
London enterprises in trading.
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Enhancing global trading environment
This is the another major concerning factor or challenges in trading global environment
supportive of their participation process. This is the important aspects for the businesses to assess
the market knowledge, border administration and to analyse the business environment as well.
Without having none of these will lead the negative impact on the trading system for
Commonwealth countries.
The emerging of mega regional trade agreements
This is the form or the process of partnership between countries or regions with high
share of foreign direct investment and world trade. The main purpose of this process is to
generate better regulatory compatibility framework for ironing out the differences in investment
and business climate. In this includes two regional trade agreements which is Trans Pacific
partnership and Transatlantic Trade and investment partnership. In this partnership includes
countries like Australia, Canada, Japan, Malaysia, Mexico, Peru and Vietnam. The main purpose
behind this first agreement is to achieve the extensive liberalisation of both goods and services. It
also helps to provides government procurement to those countries as well.
Transatlantic trade and investment partnership is the another kind of agreements that
main purpose is to reaching trade agreement between US and EU. The main objective of this
agreement is to eliminate the all kinds of business issues, trade barriers, compatibility issues.
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REFERENCES
Books & Journals
Claussen, K. 2017, “The next generation of US-Africa trade instruments”, AJIL Unbound, Vol.
111, pp. 384-388.
Cogin, J. and Williamson, I. 2014, “Standardize or customize: the interactive effects of HRM
and environment uncertainty on MNC subsidiary performance”, Human Resource
Management, Vol. 53 No. 5, pp.1-33.
Cox, R.W. 2014, “Transnational capital, the US state and Latin American trade agreements”,
Third World Quarterly, Vol. 29 No. 8, pp. 1527-1544.
Davis, W. 2017, “The African growth and opportunity act and the African continental free trade
area”, AJIL Unbound. pp. 377-383.
Delimatsis, P. 2017, “The evolution of the EU external trade policy in services – CETA, TTIP,
and TiSA after brexit”, Journal of International Economic Law. pp. 583-625.
Dikova, D. and Brouthers, B. 2015, “Establishment modes in international business and strategy:
past, present and future”, Management International Review. pp. 489-530.
Online :
Brexit and the UK creative industry. 2017. [Online] Available
through :<http://bruegel.org/2017/01/brexit-and-the-uk-creative-industry/>.
Exploring intra commonwealth goods & services trade. 2015. [Online]. Available
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13d518f797c4/cw_effects_ssrn.pdf>.
House of Commons Digital, Culture, Media and Sport Committee. 2018. [Online]. Available
through :<https://publications.parliament.uk/pa/cm201719/cmselect/cmcumeds/
1141/1141.pdf>.
The Commonwealth in the Unfolding Global Trade Landscape. 2015. [Online]. Available
through :<http://thecommonwealth.org/sites/default/files/inline/Commonwealth%20Trade
%20Review%202015-Full%20Report.pdf>.

Trade Horizon. 2018. [Online]. Available
through :<https://www.embracing2018.com/sites/default/files/trade-horizons-xxi-
commonwealth-games.pdf>.
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