International Business: Evaluations & Reflections on Globalisation

This report, prepared for a MGT530 International Business course, evaluates and reflects on key topics within the field. It begins by examining the implications of globalisation for a chosen company, discussing the impact of events like the China-US Trade Dispute. The report then delves into the economic and political reasons behind trade barriers, specifically focusing on the Australian government's perspective. Furthermore, it reviews a country report on Albania, analyzing factors that contribute to economic growth and those that pose concerns. The analysis incorporates academic references to support the arguments. The report uses a question-and-answer format, providing a concise and structured approach to each topic, adhering to APA 6 referencing style, and following the specified formatting guidelines.

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
Name of the Student
Name of the University
Author Note

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MGT530 - International Business
Assessment item 1 - Evaluations & Reflections on International Business
Topic 1: International Business, Internationalisation and Globalisation
Q. Think about the company you work for (or an organisation you have
researched). Discuss the implications of globalisation for this business.
As per the globalisation, in today’s business world, Globalization led by the regions
like United States and other developing countries goes through the convolution of economy,
whereas China is identified as the furled globalization that is driven by the developing
economies and the fact that his has become efficient enough to be a compliment (Steinbock,
2018). However, being a part of World Trade Organization ( WTO), I witnessed that as per
the WTO reports, the economy of China, in the year of 2000, was hardly a tenth of the US
GDP (Stiglitz, 2017). However, China, after being involved in the World Trade Organization,
the trading business in export resulted in the favourable growth (Steinbock, 2018). Following
it, the U.S employed the trade barriers under the impression of protectionism that regulated
the economy of the nation (Steinbock, 2018). It is evident that after the years of threats in the
aspects of the trade business and its globalisation, Trump administration incorporated a tariff
war as the defensives force against China in the year of 2018 (Stiglitz, 2017).. Following the
event of the trump election, Trump on the day of his inauguration, he declared the US
withdrawal from the Trans Pacific Partnership (TPP), which was pledged to renegotiate
NAFTA and is recognized as Clinton legacy (Stiglitz, 2017). However, as per my analysis,
the early consequences of the impact of trade barriers on US exports appeared to prove
greater effects than that of the trade barriers that were put on China’s exports (Steinbock,
2018). Form the report of 2018, it is observed that the China could prepare themselves to

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target the economy of U.S by regulating stringent policies (Stiglitz, 2017). The escalation of
Tariff might leads to put an immense effect on the prices for the consumers as well as the
firms based in U.S and further it results in causing job losses (Steinbock, 2018). The
implication of the globalization in the dynamics of global trade business is regulated in the
view of WTO as it is associated with commitment of government procurement (Deckers,
2004). Within the paradigm of the framework of WTO, it is observed that there are variant
forms of actions in the context of Protectionism that the US can implement (Deckers, 2004).
By imposing these, the US goes through unfair challenges and the fact that the country is
immensely biased against other countries (Stiglitz, 2017). Ideally, WTO was designed to
prevent global trade wars. The international institutes such as the IMF, the UN, the World
Bank, the regional development banks, as well as WTO aims to regulate the globalization and
prevent trade wars (Deckers, 2004).
Topic 3: Political economy in Trade and Investment
What are some of the economic and political reasons the
Australian government might employ barriers to trade?
Trade and investment in the sphere of international level has been crucial to the Australian
economy in facilitating jobs and stable economic condition through the agreements towards
the improvement of the market dynamics in terms of trade business across all the regions of
trade that includes international trade services, goods and investments (dfat.gov.au., 2020).
Following it, such trade agreements helps in retaining the competiveness of Australian
organizations and firms and further results in attaining the wide range of better valued
services and trade services to the Australian consumers (dfat.gov.au., 2020).
As witnessed, Australia is recognized for the retaining the standards of World Trade
Organization (WTO) in the sphere of Technical Barriers to Trade in order to control disputed

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flow of goods. However the Australian government manages to retain some of the restrictive
and stringent requirements, specifically in the arena of health restrictions that is related to the
causing of impact on the free flow of imported as well as exported goods Bonnitcha, Poulsen
& Waibel, 2017). In the sector of trade regulations, Australian government acknowledges
both non-tariff as well as tariff trade barriers (Anderson & Garnaut, 2017). Tariffs are the
taxes added on the prices of the imported product. With the addition of the tariffs, the
purchase demand in the domestic market is regulated (dfat.gov.au., 2020). The non-tariff
trade is recognized as the trade rules that restricts or controls the flow of foreign goods and
services (Anderson & Garnaut, 2017). The non tariff barriers are demanded only when
regulation in the international trade market is required (dfat.gov.au., 2020). Regulations, for
instances, techniques used in the course of production and also the regulations are essentially
incorporated for safety concerns in the course of production (Anderson & Garnaut, 2017).
The Australian government converges itself to remove these barriers to improve the business
across the globe (Bonnitcha, Poulsen & Waibel, 2017). In December 2018, the government
introduces action plan that requires a standard consultation with the organizations and trade
industries in order to strengthen the relationship between the exporters and the government to
acknowledge the non-tariff barriers (Anderson & Garnaut, 2017). However, the Australians
might apply the trade barriers due to both economic as well as political reasons (Bonnitcha,
Poulsen & Waibel, 2017). The economic reason might appear to be the unfair trade. There are
certain cases in which the foreign products might be sold in low price in the domestic
economy compared to the actual cost due to which the foreign government support the
producers financially (Anderson & Garnaut, 2017).
While in the political sphere, the need for national security is required in the business trade
market (Anderson & Garnaut, 2017). Thereby, trade barriers are employed. With the help of
trade barriers, the assessment of protectionism is employed by protecting the organization

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and the companies which produce essential products related to the security and defence
system of the nation. Thereby, these are the reasons, due to which the Australian government
might encourage the employment of trade barriers (Bonnitcha, Poulsen & Waibel, 2017).
Topic 4: International Political & Legal Environment
Select a country of your choice and review the report. What factors are
reassuring in this report and what issues are of concern?
In the year 2019, the economic growth of the country, Albania, evidently appears to be
slowed down to 2.9 % in due to the deficiency of rainfall that impact on the production of
energy (WorldBank, 2019). In addition the efforts received from the labour market also goes
through fatigueness that has become one of the major reasons to produce impact on the
production (Meçe, 2016). However, the initiatives of clearing the arrears have reduced the
debts of publics, but that does not help in reducing the risks. As per the report, the growth is
witnessed over the medium term, that rises to around 3.5% (WorldBank, 2019). Apart from
this, the reports on the public spending potentials and its improvements as well as the
structural reform remains vulnerable in the context of the equitable growth and its
sustainability (WorldBank, 2019).
As per the concern, it is observed that the deficiency of the rainfall in first half of the year,
has affected the production of the hydroelectricity power resulting in the reduction of GDP
growth by 50% (WorldBank, 2019). However, despite the political impacts, it is observed
that there is growth in the domestic demand in the year 2019 (WorldBank, 2019). The tension
is increasing witnessed as the traditional exports were limited due to the stagnation growth
among the export and import trade partners along with the issue of declination of the energy
production (Meçe, 2016). Meanwhile, the investments raised up enough to facilitate the
infrastructure of both political and economic condition and resulted in the contributing 0.5 p

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in the growth of GDP (WorldBank, 2019). It is witnessed that the growth emerged out to
accelerate slightly, that account to around 3.4 to 3.6 % within period 2019-2020 (WorldBank,
2019). The factors that highlights the vulnerability of the economic prospects are low demand
of the international trade partners. This factor limits the growth and decreases the quality of
the labour market (Meçe, 2016). And the fact that the preservation of the stability of the
macro fiscal growth leads to consistent growth of sustainability that involves increase in tax
revenues, continuity of streamlining of expenditures, management of fiscal risks from SOEs
and PPPs (WorldBank, 2019). It further includes taking care of the internal growth that needs
to construct better situations in the arena of the development of private sectors along with the
improvement of the dynamics of business environment (WorldBank, 2019). In addition, the
facilitation of such factors does increases the financial access security in energy production
and human capital (WorldBank, 2019). The other crucial factor that led to the declination of
generation or the production of hydroelectricity is deficiency of rainfall. This is because the
impact on the energy production leads the economic status to highly sensitive situation.
Following it, as per the reports, it is observed that the expected the record of deficit widely
ranges from 6.7 % of GDP of 2018 to 7 % in 2019 (WorldBank, 2019).

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References:
Anderson, K., & Garnaut, R. (2017). The political economy of manufacturing protection in
Australia. In The Political Economy of Manufacturing Protection (pp. 159-183).
Routledge.
Australian Government-Productivity Commission. (2017). Rising protectionism: Challenges,
threats and opportunities for Australia. Productivity Commission Research Paper.
Bonnitcha, J., Poulsen, L. N. S., & Waibel, M. (2017). The political economy of the
investment treaty regime. Oxford University Press.
Deckers, W. (2004). China, globalisation and the World Trade Organisation. Journal of
Contemporary Asia, 34(1), 102-119.
dfat.gov.au. (2020). Trade and investment | DFAT. Dfat.gov.au. Retrieved 28 March 2020,
from https://www.dfat.gov.au/trade/Pages/trade-and-investment.
Kugler, M., Levintal, O., & Rapoport, H. (2018). Migration and cross-border financial
flows. The World Bank Economic Review, 32(1), 148-162.
Meçe, M. (2016). The Impact of Globalization on Albania. Central and Eastern European
Review, 10(1), 41-60.
Steinbock, D. (2018). US-China Trade War and Its Global Impacts. China Quarterly of
International Strategic Studies, 4(04), 515-542.
Stiglitz, J. E. (2017). Rethinking Globalization in the Trump Era: US-China Relations.
WorldBank. (2019). Migration and Brain Drain. Openknowledge.worldbank.org. Retrieved
28 March 2020, from

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