The Impact of Trade on Global Development

This assignment analyzes the profound effects of international trade on global development. It argues that trade fosters competitiveness by lowering input costs and generating financial profits through investment for developed nations. The research highlights how trade accelerated the growth of communication and information technology, reaching a vast majority of the global population, including a significant portion of Africa. The analysis draws upon various sources, including academic journals and publications on international business, to support its claims.

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INTERNATIONAL BUSINESS ENVIRONMENT
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INTERNATIONAL BUSINESS ENVIRONMENT
Contents
Introduction.................................................................................................................................................3
Importance of international business and trade............................................................................................4
Impact of globalization............................................................................................................................5
Fundamental issues of managers regarding development of emerging markets..........................................6
Role of managers in cross-cultural and ethical international business.........................................................7
Analysis of skill development through the discussion of case studies and other workshop activities..........8
Reflection on development of enhanced communication skills.................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Introduction
The report which is discussed below is based upon international business environment. The
report consists of some skills which are required in business. In the modern economy,
international trade is an enormously relevant aspect. It will only become more integrated into
core strategy of the firm as technology continues to progress. Besides that, the backbone of the
global economy is the international trade and business environment. Understanding the situation
and environment inside which the company needs to work is essential for keeping up a specialty
unit successfully at everywhere. Meanwhile, the environmental factors affect for all objectives
and purposes of business. The environmental considerations in business are based upon its
viewpoint, its region, the expenses of things, the personnel policies as well as the distribution
system (Czinkota, Rivoli and Ronkainen, 2010). Accordingly, it is basic to get some answers
concerning the diverse parts of the business environment. The distinct parts involve the financial
perspective, the socio-social points, the political structure, the technological and the legal aspects
and so on.
Background of the company
The company considered here is Macquarie Atlas Roads Group of Australia. Macquarie Atlas
Roads Group is a transport company, and it is one of the largest operator and developers of
private toll roads in the world. MIG or Macquarie Infrastructure Group had a portfolio of eleven
toll roads across seven nations which include Australia (Arthur and Morphy, 2005). The
organization is controlled by a team of executives engaged by the Macquarie Group. The
management team contains senior executives from the former MIG. So, it provides the continuity
of the Directorate, experience along with knowledge. While observing conventional standards of
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corporate governance and managing risk, the organization aims to deliver long-term profitability
as well as shareholder returns. At first, in 1969, the company was established in Sydney with
only three people (Browning and Goodwin, 2016). Now, the company took a globalization turn.
Importance of international business and trade
The buying and offering of services and products across over national boundaries is known the
international trade. Where transport is of clear significance and so the adjustments in the
transportation system opens up new, in advance unfamiliar zones and markets. Irrespective, as
noted above, improvements in the transport structure in itself would not speak be thought
satisfactory to sustain relocation (Reinsdorf and Slaughter, 2009). Again, it is vital thus that the
investment is considered as a remarkable part of a more large package in support of various
segments or exercises supporting other economic or social convalescence factors and spatial
procedures. Moreover, international trade is significant for the establishment of a present day of
today’s people, business world, as creators in various nations attempt to profit from a developed
market, instead of being bound to offering inside their specific edges. Irrespective of the way that
different customers jump at the chance to buy less overpriced products.
One of the fundamental principles of international trade is that one should buy and services from
a nation which has the lowest price and sell his services and products to a country which has the
highest cost. International trade is also concerned with the allocation of economic resources
among countries (Purcell and Scheyvens, 2015). Such allocation is done in the global markets
through international trade under the perception of free trade. Trade business helps to boost
development. As a result, poverty is reduced by generating growth using increased commercial
investments along with opportunities. It also exports diversification by allowing the developed
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nations to access new materials and new materials which open up new possibilities in production
(Singh, 2010).
Nature of trade blocs
Trade blocs have played an active role in the improvement of international trade. In economic
integration, trade blocs differ from region to region such as OPEC, ASEAN, SAARC, EU and so
on. It represents various independent economies and brings nations closer. It also helps to
eliminate tariffs as well as non-tariff barriers and facilities (Ohlin and Dell, 2012). Consequently,
free trades are encouraged. The free transfer of resources helps in optimum utilization of the
available resources. Moreover, business blocks have resulted into increase in competition
between two organizations of the entire area. The trade bloc formation transfers the technologies
across the border. Therefore, productions are improved along with the quality of services and
products. Ultimately, it benefits the customers to a greater amount. At last, it plays a significant
role in contributing the development, economic growth and industrialization of the whole region.
Impact of globalization
The process by which the national economies became more independent and integrated with one
another is popularly known as the globalization. The procedure has been an ongoing process for
many centuries now. Macquarie Atlas Roads Group of Australia globalized their business and
got positive results. Globalization of Macquarie Atlas Roads Group has led to increasing in
competition level (Vaish, 2010). Apart from it, the company needs to improve technology with
the growth of globalization. Globalization also leads to rising in investment levels as well as
opportunities. Subsequently, it increases immigration rates and thus gives people the chances to
grow socially and economically. The increase in foreign investment helps the organizations and
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native cities develop at a rapid rate. In the recent marketplace, conducting business
internationally is much of a defensive play as an aggressive play (Boudreaux, 2008).
Fundamental issues of managers regarding development of emerging markets
The managers face some challenges during the development of their market strategies. The
business firms such as Macquarie Atlas Roads Group engage in international trade often use
some combination of trade in financial instruments, legal contacts as well as insurances to
protect the flow of income from their investments against price or currency swings (Salvioni and
Bosetti, 2014). The managers of human resource face some challenges. During a development of
business, the role human resource managers are to recruit skilled employees who can handle the
new technologies. The directors of companies need to keep up the proper flow of operations in
spite of the change an industry has gone through. Apart from it, the manager needs to make plans
and strategies to grow the business. At the same time, each and every business needs to be alert
to new opportunities. During emerging time, the managers need to looks after the legal and
ethical issues of the firm. For legal matters, the managers of a particular company need to obtain
proof the target business owns key assets like equipment, patents, copyrights and intellectual
properties. Some common issues are listed below:
 Legal and Ethical issues
 Cross-Cultural Issues
 Communication issues
 Sponsor issue
On the other hand, educated customers is another matter, the manager face in today’s generation.
It is hard for the organization to sell conventional products at a high price. Individual employee
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problem can be another conflict in the business. The managers need to handle these situations.
The managers need to take the responsibilities to improve the performance of the team members
during the development of a project (Kearney, 2012). The team leader must offer a constant
feedback as well as nurture cohesiveness. When the manager faces team issues, they must
diagnose the problem. After that, they must take immediate corrective actions so that they can
avoid serious performance breakdowns. Sponsor is another problem a manager face during
emerging time.
Role of managers in cross-cultural and ethical international business
Manager of Macquarie Atlas Roads Group is engaged in cross-cultural as well as ethical issues
in international business. When different types people joins an organization, they bring with
them beliefs and values (Izraeli, 2016). These beliefs and values are insufficient to help the
employee succeed in the company. Moreover, culture is something that shapes the behavior and
perception of the individuals. Cross-cultural management consists of managing work teams in
ways that consider the diversities in cultures, preferences as well as practices of customers in
international and global business context. The managers handle diverse cultures by cross-cultural
management. Cross-cultural management is examining the human behavior within the company
from a global viewpoint. On the other hand, the managers are responsible for protecting the code
of ethics and assisting others to do so as well. The managers hold positions of authority (Zheng,
2010). It makes them accountable for the ethical conduct of those who report them. Aside from
that, the behavior of employees is monitored by managers by the expectations of Macquarie
Atlas regarding appropriate behavior. The creation of ethical code and implementing them is
done by the managers of an organization. These changes and modifications may be in response
to a general purpose based on the knowledge of employees.
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With the prolonged capacity of all global business all through the latest decades, managers are
going up against a developing degree of obligations nowadays. The training of Cross-Cultural
Management is imperative for anyone working either all around or in a multicultural space, as it
gives the ability to see cultural similarities and differentiations and gives the probability of
changing in accordance with particular conditions genuinely. Managers are required to oversee
challenges, contact and mixed up presumptions originating from multifaceted differences.
Remembering the ultimate objective to satisfy the rising essentials of cutting social management,
cultural competency is required to get the best out of a multicultural meeting.
Analysis of skill development through the discussion of case studies and other workshop
activities
According to the case study, Macquarie Atlas Roads Group of Australia is the renounced global
company who is one of the largest operator and developers of private toll roads in the world.
Macquarie Atlas Roads Group of Australia has 11 toll roads across the world, and some of the
roads are in Australia. To achieve this global sound position, there is a massive skill
development procedure which company has followed. CEO, higher management, human
resource department and employees: these are the working chain of Macquarie Atlas Roads
Group of Australia Company. Each and every unit has played their role with dedication.
Macquarie Atlas Roads Group of Australia often arrange some skill development procedure to
motivate the employee and HR department. On the other hand, Macquarie Atlas Roads Group of
Australia organize the specific program to enhance the expertise of employee as well as human
resource department (Borissov and Hellier, 2013). HR Department is very much aware of
employee satisfaction. Macquarie Atlas Roads Group of Australia is one of the companies who
pays their employee's bit higher according to their effort. By some motivational program, more
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senior management, and human resource department comes to know that, how to handle the
terrible situation when the working pressure is very high. Along with that, Macquarie Atlas
Roads Group of Australia frequently arrange some technological campaign. With the help of this
campaign employee, managers and human resource department become aware of the latest
technology about their concerned field. This process helps Macquarie Atlas Roads Group of
Australia to enhance the revenue. Customer satisfaction is one of the essential criteria of every
company, and Macquarie Atlas Roads Group of Australia has maintained this norms correctly.
Client feedback of Macquarie Atlas Roads Group of Australia is very optimistic.
The concerned team of Macquarie Atlas Roads Group of Australia is much aware of customer
satisfaction. They investigate their developed roads very frequently. Leadership skill of
Macquarie Atlas Roads Group of Australia is very practical to maintain their service procedure.
Every team leader of the concerned team communicate with their employee and motivate every
time. It is one of the optimistic significance of good leadership management (Borissov and
Hellier, 2013). Besides that, when the recruitment process is concerned, the human resource
department of Macquarie Atlas Roads Group of Australia recruit the best employees depending
on their educational and working skill. Nevertheless to say that this can help the Macquarie Atlas
Roads Group of Australia to reach their goal and create their market position unyielding rather
than their rival construction company. Also, Macquarie Atlas Roads Group of Australia provide
some policies to satisfy their employee. The company provides medical insurance for their
employee, and some good employees get awarded at the end of the every financial year. These
norms motivate the employees very much, and they become much dedicated to their company
and this is the beneficial side for Macquarie Atlas Roads Group of Australia. With the help of
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skills as mentioned above Macquarie Atlas Roads Group of Australia has managed to reach their
goals very quickly, and the turnover is
Reflection on development of enhanced communication skills
Effective communication skills can be developed by following some procedure. At first, I need
to learn to listen to become an active listener. It is recommended for me to use the techniques of
reflection and clarification to confirm what others said. As a result, it avoids confusion. I should
also become aware of the emotions of other people. I need to be aware of what’s going on other
people’s lives. Empathy is another process by which communications skills can be developed.
Empathy is nothing but to see things from the point-of-view of others. I should not get
judgmental during communicating with others. For example, I work in a company, and I become
judgmental during communicating with others. An adverse effect will fall on me. I will not get
help from others during significant situations. I should also learn to encourage others (Harrison
and Mühlberg, 2014) . Encouragement strengthens communication between two persons. People
should be treated equally, and I should also maintain a real smile and attitude. I should also learn
to resolve and troubleshoot conflicts and problems in the company if I work in it. Besides that,
some communication scenarios can be stressful. However, stress can be a significant barrier to
effective communication. It should be reduced during working hours. Some organizations are
concerned with the training of employees to improve communication skills. Training is not the
final milestone of an individual to develop communication skill. After training, I should practice
what I have learned in the training sessions. After all, practice makes a man perfect in any fields
(Harrison and Mühlberg, 2014) . Corporate communication needs to be determined. Therefore, a
mentor is required who will guide me about all the tricks and tips needed during communicating
with the internal stakeholders as well as external ones.
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Conclusion
The overall report describes the international business of Macquarie Atlas Roads Group. In the
first section of the report, an introduction to the background of the company is provided. Next,
the importance of international trade and business is described along with the impact of
globalization on the selected company. Some key issues and role of managers in ethical and
cross-cultural business are also considered. The report also contains the development of skills by
secondary research methods. Every organization should make the trade because trade enhances
competitiveness by aiding the developed countries in reducing the cost of input and obtaining
financial profits by means of investment. In 2008, trade and investment expedited the
development of communication and information technology which includes mobile cellular
coverage reaching eighty percent of the total world's population. From the research, it is quite
clear that sixty-nine percent of the African population are also included in the mobile cellular
technology. Macquarie Atlas are severe about their trade, as their trading business injects global
competitiveness. Consequently, the domestic business units tend to become very efficient after
being exposed to international competition.
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References
Arthur, W. and Morphy, F. (2005). Macquarie atlas of Indigenous Australia. 1st ed. [North
Ryde, N.S.W.]: Macquarie Library, Macquarie University.
Borissov, K. and Hellier, J. (2013). Globalization, Skill Accumulation and the Skill
Premium. Review of Development Economics, 17(2), pp.220-234.
Boudreaux, D. (2008). Globalization. 1st ed. Westport, Conn.: Greenwood Press.
Browning, S. and Goodwin, I. (2016). Large-scale drivers of Australian east coast cyclones since
1851. Journal of Southern Hemisphere Earth System Science, 66(2), pp.125-151.
Czinkota, M., Rivoli, P. and Ronkainen, I. (2010). International business. 1st ed. Chicago:
Dryden Press.
Harrison, E. and Mühlberg, J. (2014). Leadership communication. 1st ed.
Izraeli, D. (2016). Ethical beliefs and behavior among managers: A cross-cultural
perspective. Journal of Business Ethics, 7(4), pp.263-271.
Kearney, C. (2012). Emerging markets research: Trends, issues and future directions. Emerging
Markets Review, 13(2), pp.159-183.
Ohlin, G. and Dell, S. (2012). Trade Blocs and Common Markets. Political Science Quarterly,
79(4), p.632.
Purcell, G. and Scheyvens, R. (2015). International business mentoring for development: the
importance of local context and culture. International Journal of Training and Development,
19(3), pp.211-222.
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Reinsdorf, M. and Slaughter, M. (2009). International trade in services and intangibles in the
era of globalization. 1st ed. Chicago: University of Chicago Press.
Salvioni, D. and Bosetti, L. (2014). Sustainable Development and Corporate Communication in
Global Markets. Symphonya. Emerging Issues in Management, (1).
Singh, S. (2010). Handbook of business practices and growth in emerging markets. 1st ed.
Hackensack, NJ: World Scientific.
Vaish, V. (2010). Globalization of language and culture in Asia. 1st ed. London: Continuum.
Zheng, J. (2010). Cross-cultural Study on French and Chinese Managers’ Use of Power
Sources. IJBM, 5(5).
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