Analyzing Global Economic Forces and CNCC Activities

This report provides a comprehensive analysis of the forces that shape the global economy and their impact on the activities of China National Chemical Corporation (CNCC). It explores the various factors contributing to global economic development, including demand and supply dynamics, technological advancements, and their positive effects on currency. The report then analyzes both the positive and negative impacts of these global forces on CNCC, such as brand value, market share, and business expansion, while also addressing the expenses and competition challenges faced by the company. Finally, it examines models used to analyze and interpret deepening trade relations, specifically the Gravity model, which determines trade flow based on economic size and distance. The conclusion emphasizes the importance of market research and continuous adaptation for business success in the global market.

Gone shopping _ The
Economist

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Forces that have contributed to the development of the global economy..........................1
2. Analysing the impact that global forces have on the activities of CNCC..........................2
3. Model that have been developed to analyse and interpret deepening trade relations........2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
For any organisation, ultimate aim is to gain maximum profit. In this context, companies
make business expansions through which customer base gets stronger (Reuben and Tinetti,
2012). Further, it also helps the country in which firm operates. Present report covers various
forces which contribute to the development of global economy. Further, it covers the analysis of
impact that global forces have on the activities of specific organisation. Lastly, it also includes
model which enable to deepen the trade relation of the organisation.
1. Forces contributed to the development of the global economy
There are many forces which contribute to the development of global economy, among
which few of the forces are as follows:
Demand and supply: When business is expanded in a new market then, it focuses of
raising consumption and production. Firms get to attract new customers for the product or
service which they want to deliver (Hong, Hwang and Tai, 2013). When business is expanded,
economies expect to have a quarter or more revenue according to their five year plan. It provides
huge opportunity for the organisation as they get to target new customers and this will increase
their market share and productivity.
Technology: In different countries, diverse technology is used in order to provide better
services to customers. When the business is expanded, the firm which enters into market brings
the technology which may be new for the country. On the other hand, there are cases in which
the organisation gets to know about the technology which are adopted by the companies of that
country in which expansion has to be made. In both cases, new technology is formed which
enable to expand the business effectively and efficiently.
Positive effect on currency: When the business is expanded in a new market, it
contributes effectively towards the growth of GDP (Gross Domestic Product) and GNP (Gross
National Product) of the country, this happens because the financial condition of the market gets
improved (Ioannou, Singh and Couzin, 2015). With this respect, government of the country is
highly supported by the foreign companies. In addition to this, it also helps in raising the value of
currency.
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2. Analysing the impact that global forces have on the activities of CNCC
There are both positive and negative impacts of global forces over the organisation that is
China National Chemical Corporation (CNCC). With this respect, following are the positive
impact:
Brand Value: When business is expanded, people of new market get to know regarding
the products and services which are provided by the firm (Lankton and Lankton, 2013).
Customers will get attracted to their commodities depending upon the marketing strategies which
are adopted by the cited firm.
Market share: CNCC has established its business in the Italy and with this; they have
raised the market share of their organisation. With this respect, they have also bought up the
shareholders of Pirelli which is an Italian tyre-maker.
Expansion enhanced their business: Through the expansion of business, cited firm that
is CNCC becomes able to increase its profitability and this has also supported the government of
Italy (Klink, Jentgens and Lorteije, 2014). Further, it has also enhanced its business operation
and revenue of the company.
Following are the negative impact of global factors on CNCC:
Expenses: For any business to expand in new market, it is important that they conduct
market research so that they identify the areas through which they will be able to expand their
business. The taste and preference of the country differs from market to market and it is
important to have market research. Competition can be determined as one of the major issues
faced by the organisation. In this context, it is important that firm underwent frequent research
and survey so that they will be able to assess the needs and requirement of customers. With this
respect, high expense is incurred by the firm in conducting research and survey.
3. Model developed to analyse and interpret deepening trade relations
There are different models with the help of which analysis enables to deepen the trade
relations. Among which Gravity model of trade determines the trade flow on the basis of
economic size and the distance among both the units (Cailliau and Van Lamsweerde, 2012). This
model is used by economists and determines the trade flow like common borders, legal system,
languages, currencies, etc. In addition to this, this model is also used in developing international
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relation and helps to evaluate the impact of alliances and treaties on trade. Further, other bilateral
data flows are like remittances, migration, foreign direct investment and traffic.
CONCLUSION
In order to expand the business in new market, research plays vital role, as it enables to
understand customer’s needs and requirements. Accordingly, services can be developed through
which customers can be satisfied. In addition to this, to sustain in the market, frequent research
should be conducted so that necessary changes to sell products and services can be made to
enhance profit margins.
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REFERENCES
Books and Journals
Cailliau, A. and Van Lamsweerde, A., 2012, September. A probabilistic framework for goal-
oriented risk analysis. In Requirements Engineering Conference (RE), 2012 20th IEEE
International (pp. 201-210). IEEE.
Hong, J. C., Hwang, M. Y. and Tai, K. H., 2013. Applying the BaGua to revitalize the creative
problem solving process during a goal oriented contest. Thinking Skills and Creativity. 9.
pp.120-128.
Ioannou, C. C., Singh, M. and Couzin, I. D., 2015. Potential leaders trade off goal-oriented and
socially oriented behavior in mobile animal groups. The American Naturalist. 186(2).
pp.284-293.
Klink, P. C., Jentgens, P. and Lorteije, J. A., 2014. Priority Maps Explain the Roles of Value,
Attention, and Salience in Goal-Oriented Behavior. The Journal of Neuroscience. 34(42).
pp.13867-13869.
Lankton, C. H. and Lankton, S. R., 2013. Tales of enchantment: Goal-oriented metaphors for
adults and children in therapy. Routledge.
Reuben, D. B. and Tinetti, M. E., 2012. Goal-oriented patient care—an alternative health
outcomes paradigm. New England Journal of Medicine. 366(9). pp.777-779.
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