CW2 Global Business Environment Portfolio Papers Assignment

CW2: GLOBAL BUSINESS
ENVIRONMENT
PORTFOLIO PAPERS 2, 3 &
4

TABLE OF CONTENTS
b. Description on president trump's approach to economic policy which impact upon foreign
economies....................................................................................................................................3
REFERENCE...................................................................................................................................4
c. Discussion and interpretation of emerging economies which presenting opportunities for
global expansion of businesses...................................................................................................5
REFERENCES................................................................................................................................7
d. Explanation on fiscal and monetary policies of government to stimulate economic activity
and to get growth using trickledown economics\........................................................................8
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
Development of economic policy by president Trump, created trade war in most of the
countries. It especially developed between US and China. Major reason for this war is that it is
slowing down economic growth of such countries. China is known for real trade economy and its
deceptive and harmful trading practices were impacting the working of the country in the huge
context. Therefore, for protecting jobs of America, president Trump has initiated this economic
policies in US.
b. Description on president trump's approach to economic policy which impact upon foreign
economies
With the development of economic policy by president trump, the world is in trade war
and will consider as breaking out soon (Trump puts 25% tariff on Chinese goods, 2018).
development of economic policies by President Trump is becoming biggest conflict is arising
between US and China. President Trump has recently raised imposed tariffs which from 10% to
25% on Chinese import. This raise is worth $250 billion and president Trump also threatened for
imposing new tariffs rest Chinese products. With this increasing trade war, it is considered that
economic growth of world is darkening (Sassen, 2018). Thus, Trump recently placed high value
of tarries on Chinese commodities to punish the country for the years of unfair trading practices
that is inclusive of stealing American intellectual property for the benefits of its economy.
Major reason for this war is that it is slowing down economic growth of China. The
reason for developing this trade policy is to reduce demand from China about US trade policy to
increase its growth. Main reason of developing this policy is to stop Chinese products in US
market because China has majorly captured the business market across the world with its
products and services (Gledhill, Dolan and Snyder, 2019). US is considered as largest destination
of goods which made in China, which overall accounting for 18% of all Chinese products.
Overall impact of president Trump policy providing bad impact of foreign economies. According
to president Trump, for protecting American jobs it is necessary to prevent unfair transfers of
American technology and intellectual property to china.
Thus, china is known for real trade economy and its deceptive and harmful trading
practices were impacting the working of the country in the huge context. Trump stated that tariffs
were essential as it works as to preventing the further unfair transfers of American technology

and intellectual proper to the china and it also protest the American jobs. Due to this, China
announced tariffs on $ 34bn of US goods including agricultural products, cars and marine
products. Thus, the large trade deficit and unfair rules in China, will create the bad position that
the country stands to gain no matter what happens (Flew, 2018). The US expects from china to
stops practices that allegedly encourage transfer of intellectual property, design and its products.
It share ownership with the local partners to access the Chinese market. However, it can be true
to said that plans have elicited a mixed political reaction, drawing praise from Democrats and
opposition from Republicans, who has favoured free trade policies.
REFERENCE
Books and Journals
Sassen, S., 2018. Cities in a world economy. Sage Publications.
Flew, T., 2018. Understanding global media. Palgrave Macmillan.
Online
Trump puts 25% tariff on Chinese goods. 2018. [ONLINE]. Available through
<https://www.bbc.com/news/business-44498484>.

EXECUTIVE SUMMARY
Emerging economics are the economy of nation which nowadays more progressive and
developing advancement for achieving growth of country. In this report, advantages and
opportunities in emerging economic market is explained. In this report, five key characteristics
that is average per capita income, recent rapid growth, high market volatility, less mature capital
markets and higher than average return for investors is explained.
c. Discussion and interpretation of emerging economies which presenting opportunities for
global expansion of businesses
Emerging economies is described as economy of nation which is more progressive and
advanced for the development of industrialization and growth in country (Jackson, 2019). In this
global world, emerging market technologies are majorly providing opportunities for businesses
across the nation for expanding their business operations across the worldwide. Currently this is
the era where internationalization and globalisation is becoming an important thing for running
business successfully. There are various opportunities for companies to develop their business
internationally.
Emerging market opportunities are generally with developing countries. Therefore,
industries which offering intellectual skills, exceptional quality of services and products in
reasonable rate will able to develop their place in such countries of market. There are five key
characteristics which includes under emerging market. These are less than average per capita
income, recent rapid growth, high market volatility, less mature capital markets and higher than
average return for investors (Swedberg, 2018).
In developing countries, people rise out of poverty and a consumer class is now
developed where customers are hungry for new products and services in market. This is the
opportunity for firms which wants to expand their business globally. By fulfilling right demand
of country, these business will able to develop their position in marketplace of developing
countries.
Another opportunities for businesses is that now emerging markets have begun global
innovation. More companies are allowed for innovation at lower cost (Hare, 2019). Therefore,
this is the opportunities for such companies who wants to expand their business some innovative
products. Nowadays, world is digital in which customers are now more aware with products and
services of worldwide and they are more demanding for bringing new products in their own

marketplace. This demand also creates an opportunity for such companies in order to expand
their business worldwide. Emerging market, nowadays are growing rapidly with their share of
GDP. According to survey, it is found that between 2010 to 2015, economic market has been
risen with $8.5 trillion.
Doing business in emerging market will provide an opportunity for businesses to
increasing demand for new kind of goods. As emerging market are considered with growing
upper-class population and consumers of such countries are more interested regarding their
purchase of luxury goods. This creates benefit for company who want to expand its business.
These opportunities also helps in establishing brand image and to eliminate competition for
marketplace. Emerging market also providing opportunities for businesses to become
diversification in offering goods and services to customers of business market. Diversification in
business overall helps companies for achieving higher profitability of company. This is the
interpretation of emerging economies which providing higher opportunities for businesses across
the worldwide for expanding their business and to get growth. For example:- Tesco is retail
company which has started its business with UK's marketplace and have expanded its business
worldwide by capturing market opportunities of emerging economies (Gledhill, Dolan and
Snyder, 2019).

REFERENCES
Books and journals
Jackson, T., 2019. The post-growth challenge: Secular stagnation, inequality and the limits to
growth. Ecological Economics. 156. pp.236-246.
Swedberg, R., 2018. Folk economics and its role in Trump’s presidential campaign: an
exploratory study. Theory and Society. 47(1). pp.1-36.
Hare, P., 2019. Growth and development–catching up. Acta Oeconomica. 69(s1). pp.215-240.
Gledhill, J., Dolan, R. and Snyder, J., 2019. Availability without access? Globalization and
socio-political cleavages in emerging economies. Globalizations. 16(1). pp.83-103.

EXECUTIVE SUMMARY
Trickledown economics is theory which used to claim benefits for wealthy economics in
countries. In this report, explanation is given on the on fiscal and monetary policies of
government to stimulate economic activity and to get growth in country. Explanation is given on
how Government used trickledown theory, for development of monetary and fiscal policy for
maintaining positive economic growth and to develop full employment and to keep inflation low.
d. Explanation on fiscal and monetary policies of government to stimulate economic activity and
to get growth using trickledown economics\
Trickledown economics is the theory which claim benefits for wealthy economics.
Benefits will arise with cutting tax on businesses, tax cuts on higher income earners, capital
gains and by dividends. In this economics investor, savers and company owners are known for
drivers of growth. Government used trickledown theory, for development of monetary and fiscal
policy is to maintain positive economic growth, to develop full employment and to keep inflation
low.
Main motive of government to develop fiscal and monetary policy is for reducing
cyclical fluctuations in economic cycles of country. Government relied on monetary policy is to
reduce inflation in country and fiscal policy is used for the economic recovery of country. Fiscal
policy is the policy which involve change of government spending and tax. This policy states
shift in government position budget (Kuo, 2018). Monetary policy states influencing demand and
supply of money which is through use of interest rates. For example: income tax and value added
tax is increased by government for cutting spending of consumers for improving budget sitation
of countries.
Monetary and fiscal policy are two set of tools which used to influence nation's economic
activity. Monetary policy is used to measure total supply of money which is carried out by banks
of countries. Fiscal policy is developed to measure spending actions of government. With
trickledown theory government will able to improve economic welfare which is through higher
real GDP and also will able to improve other economic indicators of country. These policies of
government help in reducing poverty and to improve healthcare standards of country.
For example:- to reduce inflation in country government will analyse fiscal and monetary
policy. It will be analysed with following diagrams-

With above graph it is interpreted that, to reduce inflationary pressures, government will
try to reduce growth of AD. By using fiscal policy, government will able to reduce budget deficit
in country. For improving budget deficit, most economies relied on monetary policy for fine
tuning of economy. Government uses monetary policy to cut interest rates to stimulate spending
and investment (Tang, 2018).
With the use of trickledown economic theory, government will able to create more jobs
and will also able to develop strategies by which low skilled workers will able to gain higher pay
which overall helps in reducing effect of inflation in country. To get economic growth,
government with use of fiscal and monetary will cut tax rates and will also increase spending
which helps in improving higher budget deficit. Therefore, both these fiscal and monetary policy
will help government in developing better economic growth of country (Singh and et.al., 2018).

REFERENCES
Books and Journals
Kuo, A., 2018. Module's Title: Business Opportunities in Emerging Markets. " EXCELLENCE
IN PEDAGOGY" ELECTIVES. p.45.
Tang, C.S., 2018. Socially responsible supply chains in emerging markets: Some research
opportunities.
Singh, D and et.al., 2018. Corporate expansion during pro-market reforms in emerging markets:
The contingent value of group affiliation and diversification. Journal of Business
Research.82. pp.220-229.

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