Global Issues for Management | Report

Running head: GLOBAL ISSUES FOR MANAGEMENT
GLOBAL ISSUES FOR MANAGEMENT
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GLOBAL ISSUES FOR MANAGEMENT1
Introduction
The main purpose of this report is to find out the evidence either for or against of the
topic which is whether Globalisation & Free Trade is good or bad in the modern global
competitive business environment. Facts and figures along with examples will be provided on
both sides of the debate, along with a conclusion regarding the summary of the findings.
Concept of Globalisation and Free Trade
The term globalisation means the process or system which the management of the
organizations follow to develop influence in international markets or starting their operations in
operating the business operations on international level. In other words, it is the process of
connection of various parts of the world which results in expansion of economic, international
and political activities. It is the process of flow of integration of people as well as goods among
various nations across the world (Lacal-Arántegui, 2019). Globalisation occurs a result of
political forces, technological factors, market forces, cost forces and competitive forces which
also impacts the flow and nature of the business operations that are followed by an organization
(MITROVIC & LJUBIC, 2015). Manufacturing of the products from other international market
places to reduce unit costs are termed under cost forces, which also helps to lower the overall
production cost factor by seeking for efforts from other nations. All the competitive forces lead
to more intense competition due to the rapid growth of small and new businesses in the
international market places (McMichael, 2013).
Free trade, on the other hand, is a trade policy through which import and exports of
different products can be performed without facing any restriction (Stiglitz, 2017). Most of the
countries are performing this, which helps to upgrade the overall standard of the led developed or

GLOBAL ISSUES FOR MANAGEMENT2
developing nations, and making them sufficient enough to possess a better standard of living for
the people who live in these nations. It enhances socio-economic development and promotes
more number of better jobs in various nations where free trade is followed and operated. Free
market idea is applied to the concept of international trade. It can be stated that most of the
countries are now members of the World Trade Organization, and have to strictly follow the
rules and regulations regarding performing free trade between the nations. Tariffs and quotas are
not followed in the concept of free trade (Jaumotte, Lall & Papageorgiou, 2013).
Facts, Figures and Examples
Organizations like Starbucks, Coca-Cola, KFC, Burger King, Uber and various others are
expanding their market reach to new places and fresh segments of people in order to increase the
earning of revenue as well as gaining the competitive advantage over its rival institutions. It can
be stated in this context the European Union is regarded as one of the largest contestants in
international trade, just after the nations of the United States and China, where more than 15% of
the overall global exports are represented by this region. Exports related to trade and services
grew to €2900 billion in the year 2018 from €1160 billion in the year 2000. eBay is also another
major example of globalisation, as one can easily receive their products by sitting at different
parts of the world. Technology has played a major part in the process of globalisation and free
trade, the benefits of which are enjoyed by most of the countries throughout the world. Effective
communication between the countries along with increase in the access to media, technology,
education, consumer goods, healthcare and other resources has helped in overall growth of the
nations and the people who are associated with globalisation and free trade process (Ying, Chang
& Lee, 2014). Travel and tourism is another major example of globalisation, through lots of
places are benefitted along with the people who are associated with this.