Qantas Airways International Strategic Management

qwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklz
xcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdf
International strategic management
[Type the document subtitle]
3/23/2020
student name

International strategic management 1
Contents
Introduction................................................................................................................................2
Brexit effect on UK and Central America..................................................................................3
Trade agreement terms and how benefit to each economy........................................................4
Countries roles in world economy.............................................................................................5
FDI trends and foreign value added activities............................................................................7
Economic trade theory...............................................................................................................8
MNC example............................................................................................................................9
Globalisation critique...............................................................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................11

International strategic management 2
Introduction
Brexit is a withdrawal of British from your opinions which eventually known as Britain’s exit
or Brexit. The split of European Union and British has impacted the whole world and it was
shocking withdrawal across the globe. Therefore, stopping being a member of EU on 31
January 2020 refers to Brexit which was a good due to public “which was a commonly called
as referendum. With 17.4 million individuals agreed to Brexit which reflect 52% of the
population. However, this exit has reflected another side to the decision that is what will be
European Union and British future relations. Considering this to be deciding UK continues to
adopt rules and regulations and trading relations of European Union (expatica, 2020).
Brexit uncertainty has cost various impacts on foreign direct investment and trade at initial
stages. The simulation of neoclassical growth model has in multi country that includes MNCs
that were investing abroad and home subsidiaries. The analysis reflects that post Brexit
situations have reflected tighter restrictions when it comes to trade and foreign direct
investment from other European unions by United Kingdom is. United Kingdom organisation
has to increase investment in various intangible resources and research and development
which increase the cost for the companies and lower down the welfare for citizens of UK
(bbc, 2020).
Other than United Kingdom is the impact of Brexit would also be considered to study for
Central America through this report.

International strategic management 3
Brexit effect on UK and Central America
The effect of Brexit on UK and Central America can be considered on the basis of
implication for consumers and businesses, fiscal policies, trade depreciation and GDP.
The consequences for United Kingdom and Central America include:
Considering business and consumers of nation, the economy of this nation has slowed down
after Brexit as various businesses have shifted their headquarters to European Union from
United Kingdom. Moreover since the subsidies and agreement between the two nations have
with drawl, the benefits are also decreased for all the companies working In UK and Central
America which reflect the implications for increase in price for the products for consumers as
the production price increases for businesses (nbe, 2020).
Considering Trade, the major implications of Brexit includes elimination of terror free trade
among Central America that is EU member and Britain. This reflects increase in cost of
exports that has majorly impacted negatively on United Kingdom exporters and the products
have found to be become expensive in Central America as well. Other than this the higher
import prices for both the countries have decrease the standard of living for the residents of
both the countries and create inflation in United Kingdom (ukandeu, 2020).
Considering the fiscal policy or exchange rate that has been impacted due to Brexit includes
lower currency exchange rate which has eventually affected devaluation of pound. The
statistics reflect that the pound sterling foreign exchange to euro has lowered down to 15% as
compare to pre-referendum level (expatica, 2020).
Considering GDP, Brexit it has impacted the uncertain slowdown of growth of United
Kingdom to 1.5% in 2018 from 2.4% in 2015 (lse.ac, 2020).