LSBM303: Critical Issues in Business - Commonwealth Trade Analysis

This report examines the critical issues in business, focusing on the impact of COVID-19 on Commonwealth countries' global and intra-Commonwealth trade, evaluating prospects for trade recovery and identifying sources of future growth. It delves into the importance of digital trade, its trends, challenges, and opportunities within the Commonwealth, including the effects of COVID-19. The report further analyzes the significance, current state, and transformative potential of the African Continental Free Trade Area (AfCFTA), particularly for women. Finally, it includes an elevator pitch suggesting how the Commonwealth and the G7 can bolster trade, highlighting the need for supporting small states, embracing digitalization, managing public debt, and creating better trade opportunities to ensure economic stability and growth.

Critical issues in
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
What is the impact of COVID-19 on Commonwealth countries’ global and intra-
Commonwealth goods and services exports, and what are the prospects for trade recovery3
Identify and evaluate the sources of future growth including from the Commonwealth
advantage................................................................................................................................4
Task 2...............................................................................................................................................5
a) Why is digital trade now more important than ever? What are its main trends, challenges
and opportunities in the Commonwealth including the effects of COVID-19?.....................5
b) There has been much comment on the African Continental Free Trade Area (AfCFTA).
However, what is its real significance, the current state of play and how transformative and
inclusive can it be, especially for women?.............................................................................7
Task 3...............................................................................................................................................8
Elevator pitch..........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES:.............................................................................................................................11
Books and Journals...............................................................................................................11
Online...................................................................................................................................11

INTRODUCTION
Business environment is dynamic and it keeps on changing. There are certain challenges
that are faced by business organisations at the time of operation. There is need to be ready for
external events because they have impact on the operation (Cheshmehzangi, 2020). This report is
based on impact of COVID-19 on Commonwealth countries. Afterwards there is discussion
related to future growth prospects that will be beneficial for them. In the next part of this report
there is discussion related to Commonwealth trade, digital trade and change in Africa. The
trends, opportunities and challenges being faced are analysed. Along with that comment on the
African Continental Free Trade Area is also part of this report. In the end of this report there is
elevator pitch in regard to Commonwealth and the G7 can do to bolster and boost trade.

MAIN BODY
Task 1
Recession: It is seen
that these counties were
unable to function
effectively. There was
no trade seen among
these countries. The
situation of lock down
caused major issues and
they were unable to
work properly.
Poverty: There were
certain countries that were
facing the issue of
poverty. Due to loss of
business various people
were not having money to
avail the basic necessities.
It is seen that small states
faced issue of poverty and
people were out of Covid
and hunger.
Reduction in Export: It is seen that
the major loss faced by these
commonwealth countries is due to
reduction is export. They were unable
to make money out of exports and this
caused problem of material in other
countries.
Hit various sectors: It is seen that there
was negative impact of Covid-19 on
various sectors. The hospitality sector
faces major issue because of low
occupancy. The society were not able to
face the situation. Various business
organisations were not able to work
effectively and shut down the business.

What is the impact of COVID-19 on Commonwealth countries’ global and intra-Commonwealth
goods and services exports, and what are the prospects for trade recovery?
Commonwealth is association of countries across the world. There are 54 common
wealth countries that work together and build relation of trade. These commonwealth countries
are diverse and includes world's biggest, smallest, richest and poorest countries. It is seen that all
of them work together to raise voice for small and vulnerable states. They want that all the
countries have good trade relations and work peacefully. They work to strengthen the
governance and promote justice and equality (Gordon and et.al., 2019). They work to build
inclusive institutes so that they are able to achieve success. They have power to make laws
related to trade and commerce with other countries. The whole word faces the issue of Covid-19.
It is seen that there was unpredictable economic crisis seen by the entire world. The impact of
Covid-19 on Commonwealth countries are as follows:
Recession: The situation of recession was because there was no trade seen due to Covid-
19. Their foreign direct investment was also hit negatively and these countries were in situation
of loss. All the plans and agenda that were set by these countries were is challenge at that time.
Poverty: Due to the effective trade before wards, various people were employed and able
to do the job and earn for their living. After the situation of Covid there was no trade being seen
by these countries and the poor people have to face the issue of poverty (Ivanova and et.al.,
2018). The growth of the Commonwealth countries was in danger at the time of Covid.
Reduction in Export
Hit various sectors: This is major issue that is seen that because there is direct impact on
already vulnerable economies. The health care systems were also facing issue due to so many
patients at a single time.
It is important to take all these challenges with positive attitude and come up with new
ideas. There are certain loses that are seen by all the countries. It is important to now adopt

digitalisation and work in effective manner. Conducting meeting and discussion the important
points is one of the important task for trade
recovery
Identify and evaluate the sources of future growth including from the Commonwealth advantage.
Supporting small states: The
major issue is faced by small
states. It is important to provide
them support so that they are able
to overcome poverty.
Digitalisation: These countries
must start connecting via digital
platforms. It is seen that the use
of digitalisation enhances the
ease of doing business.
Public debt management:
The members must work on
managing the public debt
properly. It is necessary to
manage money in effective
manner so that the growth
can be achieved.
Creating better trade
opportunities: After Covid-19, it
can be understood that there are so
many uncertainties that may take
place.

It is examined that commonwealth works with government and local people to help them
enjoy economic stability. There is direct impact of Covid-19 on these countries and that has
caused issues in their trade. The various sources that will help the growth of Commonwealth are
as follows:
Supporting small states: Economic development goals must be established for them so
that they are also able to work effectively. Their problems must be solved within time and proper
funds must be made available to them.
Digitalisation: These countries will be able to work at any point of time and attain their
goals. The information will also be managed properly by using digitalisation (Johnson, 2019).
All the solutions can be given at the time and the issues can be overcome effectively.
Public debt management: It is examined that by providing expert advice it is possible to
manage public debt. Along with that it is also important for them to provide training so that they
are able to enhance their skills and manage debt by their own.
Creating better trade opportunities: It is necessary for the members to start providing
more opportunities to the countries. The loss if employment is seen among the people of the
country at this time (Misra and Mishra, 2021). There must be rise in trade opportunities as it will
also enhance employment opportunities.
All these sources will help the growth and development of commonwealth countries. It is
important to consider all these points and follow them.
Task 2
a) Why is digital trade now more important than ever? What are its main trends, challenges and
opportunities in the Commonwealth including the effects of COVID-19?
The Covid-19 has changed the scenario and way of working around the world. There is
need of brining digitalisation so that the trade can be enhanced. It facilitates the ease of trade and
value of global value chain. The use of digitalisation is now required so that business
organisations are able to operate effectively. The digital transformation has reduced the costs of
engaging in international trade (Baker, 201). It helps to use new and latest technology so that

there is good connection among business. The consumers are also able to deal globally. The
engagement in international trade also gets enhanced. No doubt, there are several challenges that
are being faced due to digital trade the complexities have also being enhanced. The delivery of
information gets faster by proper use of digital trade. It is seen that; it is not always important
that digital trade is delivered digitally. It can also be delivered physical form. The business
indulged in trade have to decide by their own the best option to carry on the trading activity. The
effective use of digital technology is now the necessary so that all the barriers can be removed
(Atkinson and Stevens, 2020). To keep working in uncertain situations like Covid-19, using
digitalisation in trade and enhancing relationships is advantageous. In future the use of digital
trade will enhance and keep on growing so that all the objectives can be achieved properly. It is
valuable to accept the changes and keep growing so that all the challenges can be overcome
within time.
The trend in digital trade are examined below:
Times are changing: With regular development, it is seen that the business organisation
are also adopting new technology. There are certain changes seen and all the work is now done
with the help of digital technology. There is need of adopting digital trade with time in order to
complete in market and achieve success.
Getting partnerships and joint ventures right: It is seen that single organisation is
unable to manage all the work, so join hands and work together to facilitate the working of
business. It enhances the trade relations and the business is able to operate effectively. The
business organisations are coming in joint venture with digital technology driven business so that
they are able to adopt digitalisation in the business and this makes their joint ventures right
(Kumar and Strazdins, 2021). All the compliances are being made so that real success can be
achieved. It helps in sharing the risk and completing the work that is being assigned in proper
manner so that real success can be achieved.
Opportunities in digital trade
It is being observed that by working on digital trade there are several opportunities that
can be grab at the right time. It is seen that the information and data can be managed properly
and in effective manner. It helps to keep record of all the important activities so that suitable
actions can be taken on right time. It helps to possess the trade in fast and time effective manner.
The delivery of goods can be done in faster manner and effective trade relations can be

maintained (Duval and Mengjing, 2017). Digital Transformation has reduced the costs of
engaging in international trade. The cross border data transfer is also facilitated with the help of
using digital trade. The new rules and regulations are also made with the help digitalisation.
Threats due to digital trade
The technology keeps on changing at fast pace. It causes several challenges that are being
faced by the government as well. They are facing issue is following the new regulatory
framework. The management is also a challenge as there is a lot that they have to manage. The
threat of digital disruption has taken place. It is seen that people so not have right skill that can
be used by them to adopt digitalisation. More use of information and communication technology
enhances the risk of information being posted on several platforms. It is important to check and
take care of security so that important information does not go in wrong hands.
b) There has been much comment on the African Continental Free Trade Area (AfCFTA).
However, what is its real significance, the current state of play and how transformative and
inclusive can it be, especially for women?
African Continental Free Trade Area (AfCFTA) is the world's largest trading bloc of the
EU as well as it provides free-trade area for business persons so that they can participate. All of
them were motivated and invited to trade in Africa. This trade area was being launched on new
year day of 2021. It is estimated that it would be as large as 1.3 billion people across Africa. This
will benefit the people of Africa because the estimates of World bank say that it will provide
good employment and will take out 30 million Africans out of extreme poverty. It is significant
change that is undertaken and has several benefits. It will allow the business organisation around
the world to come up in Africa and start free trade. This will also enhance GDP of the nation and
a lot of poor people will get employment opportunities. They will be allowed to work together
and in effective manner. All this will assist them in lifting out of poverty. The will get job and
the standard of living will also enhance. It is important to note that the more employment
opportunities will be available. This will help them to earn money so that they are able to
transform their living. It assists them in being inclusive and following the current state of play. It
is a changing moment for the women as well. There are big opportunities that will help women
to start their career. The e-commerce sector will add so much to the nation. It is estimated that it
will add $15 billion to the market of Africa till 2030. It will help them to achieve success and
contribute good amount to economy. The women can start their career and take part in the trade

so that profitability can be achieved. They should use their capabilities so that they are able to
achieve the tasks effectively. The more opportunities in the market will be attractive for the
women. They will also be indulged in trade and will follow inclusiveness so that women are also
able to grow with the help of e-commerce platforms. It is right time for all the people to grab the
opportunity. It is necessary to understand about all these factors so that real success can be
achieved and all the people gain from African Continental Free Trade Area (AfCFTA). The
growth of entrepreneurship will take place and all the regions will work according to
digitalisation. To overcome all the challenges, it is necessary to take training so that necessary
actions can be taken. There is requirement to promote women's entrepreneurship. They will work
according to trends so that the women are able to achieve success. The women must be given full
support and guidance in order to support entrepreneurship. This will enhance competition in the
market and people will work effectively.
Task 3
Elevator pitch
It is important to work on bring sustainability in every part of Commonwealth countries.
It is necessary to conduct proper research related to the problems that are being faced by
Commonwealth countries. All the challenges have possible solutions that can be solved within
right time so that real success can be achieved. It is right time to take actions that will help in
improvements. The use of digitalisation will help to carry on the trade in effective manner. There
is need of enhancing the trade relations. These countries must reduce the duties and barriers that
are imposed on export. There is need to work according to digital trade because it is in trend. The
proper use of such technology will help to achieve success and enhance the trade relations. They
must work in such a manner that the information is managed properly and properly
communicated. The pandemic was so harmful for the countries and they were unable to manage
their work at that point of time. They must push for freer and fairer global trading system. It is
important for them provide them opportunities that will enhance the trade relations. The free
trade will allow more and more people to participate in the trade and start their business. It will
assist them to carry on business at small scale and start earning revenue. They must work on
enhancing the participation of women in the trade. This will lead to proper grown and support of
the women candidates. The women empowerment will help them to achieve success. The risk

must also be managed so that the inverter is able to invest. They must give professional training
to all the participants so that they are able to manage risk in effective manner. Along with that
one of the main thing that will lead to growth of Commonwealth is bringing sustainability. They
must use right resources so that all the work is completed by taking care of environment. The use
of good quality raw materials and providing best to the customers. They must design strategies
that will minimise wastage and help them to achieve economies of scale. They must also take
care about the transportation. It will help them to bring sustainability in the trade and will attract
more customers. It is right time to take suitable actions. The actions such as the African
Continental Free Trade Area (AfCFTA) can also be taken so that real success is achieved. It is
beneficial for all and special these countries as the GDP will get enhanced. It helps to eliminate
poverty for the nation and provide employments opportunities. The people will be able to life a
better life for them. They must form new principles that support free trade and enhance the ease
in export. The use of digitalisation will help them carry on the trade in fast manner and formulate
new strategies to carry on the trade in effective manner and achieve success.

CONCLUSION
From the above report, it is concluded that Covid-19 has direct impact on each part of
world. It is seen that, there are various complexities that take place due to the changes in market.
The impact of COVID-19 on Commonwealth countries’ global and intra-Commonwealth goods
and services exports is being analysed. The future growth sources are also being identified in the
report so that real success can be attained. The use of digitalisation is enhancing so the trends,
opportunities and challenges due to digital trade are part of this report. There is evaluation of
Commonwealth trade, digital trade and change in Africa. The transformation that will happen
and the benefits for women are being analysed in the report. In the end of this report elevator
pitch is mentioned.