International Business Report: Globalisation and Trade Analysis

This comprehensive international business report delves into various critical aspects of global trade and investment. It begins by analyzing the fundamental theories of international trade, exploring how countries specialize based on factor endowments and comparative advantages. The report then examines government interventions in trade, including tariffs, subsidies, and quotas, and discusses the economic and political rationales behind these barriers. Furthermore, it explores the implications of globalization for firms, including the impact of foreign exchange fluctuations and the role of the International Monetary Fund. The report also provides an in-depth analysis of India's business environment, discussing recent reforms, challenges, and opportunities for international businesses operating in the country. The report concludes with a discussion on political and legal systems and their implications for international business operations.

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Running head: INTERNATIONAL BUSINESS
International business
Name of the student
Name of the university
Student ID
Author note
Table of Contents

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INTERNATIONAL BUSINESS
Answer to Topic 2...........................................................................................................................2
Answer to Topic 3...........................................................................................................................4
Answer to Topic 4...........................................................................................................................5
Reference.........................................................................................................................................9

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Answer to Topic 2
Each of the country has dissimilar types and elements of funds that will control what they
can or cannont produce. The endowment factors of capitals (Boncinelli, Bartolini & Casini,
2018) of an country is referred to as land, labour, capital and enterprise.
A large supply of natural resources such as coal iron ore, bauxite and grazing land,
Australia has.
In case of china, business outsource manufacturing unit is increasing there which is the
primary reason to China became world’s largest industrial leader. That is why the china could
yield quality industrial items at a very low price. For instance Pacific brands, the textile
manufacturing unit produces clothing such as Bonds. It is very closed to the Australian
engineering plants and subcontracted their production to Chinese firms. The main reason is to
arise china as the worlds largest industrial nation by the business venture of china. A highly
skilled low cost staff and the government enthusiasm in china for advancing in industrial
infrastructure, most of the production items like TV, electrical equipment and cars have became
cheaper. For a consequence the world’s disposable income (Wang, Fang & Law, 2018) (y-t=
income left after paying tax) increased, as the price fall.
Japan is having highly skilled workforce. They use technology in a very advancenment
manner in oreder to produce cars and electrical equipment.
In terms of the distribution factors over the country, Australia has rich productive land
and advantages in competativeness for grains growing, where as the countries like Japan,
Sweden and the Netherlands are well gifted with the capital and have a relative advantage in
capital intensive industrial commodities.

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In India, especially capital and labour movements influences the growth and economic
structure. Export of particular consistently allows an economy to obtain a particular skills,
knowledge and expertise for their fabrication. It also recognizes the accumulation of capital.
Similarly continuous importation of specific capital goods and technology alerts the “capital
labour ratio (Gumata & Ndou, 2017).
Displining labour, the expansion of a growth triangle is a very effective method of
keeping a top on production cost in Singapore itself.
Australia has an adequet supply of farming land but short in population. In comparison to
other countries, Australia has cheap land and high wages. Therefore the production of goods that
meets massive area of land and cheap rate of labour. Regions like Australia, ample supply of
labour, technicaly skilled as well as untrained and capital will find it cost-effective to specialize
in productions. As there is different factor of donations trade would be benifitial for every
nations. Trade permits countries to have admission for goods and services that are unproduced or
can not not be produced properly.
In case of India, income growth leads both consumption and savings by the income
growth rate, consumption and investrment differ in unbalanced growth. If the production patterns
are diversified (Sorge & Streeck, 2016) the output composition will also change.
International and inter-regional changes in the “production costs” occur because of
changes in the supply of manufacturing factors, that is land, labour and capital. Those type of
goods that need a huge amount of adequacy, then lower production refers lower costly factor,
which ensures lower selling value in the international market. For instance china is

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comparatively sound capable with the labour in comparison to the Netherlands, because of
concentrating to the production of labour intensive goods (Yang, 2016).
Countries having a greater amount of land they distribute land intensive products (Zhang
et al, 2018) and who is having labour, they will export labour intensive product. There is always
exceptions that the price of the aspects depend only on the “endowment factors”. In then perfect
market factor price are not set. However minimum wages and intensive can influence the price of
labour, investment tax credits (Comello & Reichelstein, 2016) reduce the cost of capital (Frank
& Shen, 2016). As an effect the factor price do not fully reflect in their supply.
Answer to Topic 3
Generally the rules and regulations of trade policy (Prebisch, 2016) are used to either
restrict or facilitate trade. This is sometimes refers the political economy of a nation. The
political economy of an international trade therefore includes any government laws, taxes,
restrictions, regulations, agreements or actions which impacts the business activity of both
domestic and international firms working in that particular country. In this topic, discuss the
business environment which includes economical and political.
Before going to elaborate the political and economical reasons to create barrier, it is
required to know seven main instruments of interventions utilized by government (Edwards,
Othman & Burn, 2015).
Tariffs- Tax on imported goods (Lindé & Pescatori, 2019).
Subsidies- it is an encouragement given to the producers to assure production
Import quotas- restriction in the volume of imported goods (Hamilton, 2017).

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Voluntary export restraints- freely restrict the bulk of imported goods in order to elude other
restrictions
Administrative policies- An administrative practice that impedes the flow of free trade.
Local content requirements- A significant portion of good and service be produced locally.
Anti dumping policies- the concderned rules to punish firms that sell goods or services produced
locally.
Political reasons
To keep a position of unfair foreign competition protect jobs and industries. It also
describes that the Australian government may want to protect the domestic industry.
For national security protect important industries like food, telecommunications, defence.
Force to other nations to follow the rules
Prevent the cutomers from the unsafe products
Foreign policy
Economic reasons
Strategic trade policy that means to protect the industry which needs to improve the
economics of scale.

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Answer to Topic 4
A sustained reforms in business over the last few years assisted India to jump 14th spaces
from its previous positions.
The recent reforms are in the context of starting business trading with permits of
construction, trading through boarders and insolvency resolve. In doing business 2020, along
with the other top improvers, India as well, a total of 59 controlling reforms has been
implemented.
The focus now needs to continue this trends to maintain and improves the rankings
The establishment of a modern liquidation command in 2016 is a strategy of
comprehensiveness to restructuring the corporate law. It gradually increase the number of
recognizations, despite of some implimention challenges. Consequently creditor’s recovery rate
has jumped from 26.5 to 71.6 cents.
The process required to set up a warehouse which costs only 4 percent of the value of
warehouse. It has also improved quality control measures.
Improt and export has became easier for the companies. By the recent reforms India is
ranking 68th globally on this pointer and performs expressively. Which is superior to the local
average. The time requirement of exporting and importing goods has meaningfully condensed.
With the substantial progress, India is till lags in some areas like contract enforcing,
property registration. It takes almost 58 days and cost on aggregate 7.8% of the property value
to register. Among OECD, greater cost refers high income economics. It usually takes 1445 days

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for an entity to solve a marketable dispute by the local first instance court. Almost 3 times of the
average of OCED higher income economics.
On the “distance to frontier metric,” one of the important pointers in the review that the
mark of India reached from 67.23 in Doing Business 2019 to 71 in Doing Business 2020. It
depicts that the last year, India has enhanced its principles in a very complete manner. It clearly
indicates that the country is continuously steady shift towards best practice in the business
regulations (Kaur, 2016)
There are several challenges that the India has concerned about are as follows:
Starting a business
The starting cost of a new business in India is cosmological and involved procedures can
be draunting without native knowledge.
Construction permits dealing
The permits of connection are also costly. It natuarally involves 34 types of complex
procedures and takes 196 days. It will take almost a month to get an information of the building
proposal and paying fees.
Getting electricity
Here the cost of receiving electricity is realtively inexpensive in comparison to south asia.
But the number of procedures involved can be complex. Each process in itself quite time
constraining.

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Property registration
For easing out of getting credit India acts as the best among all South Asian economies .
unified security registry, which is geologically centralised, became effective in India to
strengthen admittance to credit and the protected transaction command”.
Protecting investors and enforcing contracts
The concept of investor protection is one, that has recognised a lot of late responsiveness,
and the “Securities and Exchange Board of India” (SEBI) has been build for this effect.
Implementing agreements will also be a part that will be a concerning matter. India gains as one
of the poorest nations globally for the capability to apply a agreement. It takes an average of
1,420 days.
Paying taxes
Business activity in India are essential to make 33 types of tax payments in a year. It
takes 243 hours of consideration. 30% is the corporation tax rate but the business can also incurr
changes in the form of central sales tax, dividend tax, property tax, fuel tax, vehicle tax, VAT
and excise duty.

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Reference
Boncinelli, F., Bartolini, F., & Casini, L. (2018). Structural factors of labour allocation for farm
diversification activities. Land use policy, 71, 204-212.
Wang, L., Fang, B., & Law, R. (2018). Effect of air quality in the place of origin on outbound
tourism demand: Disposable income as a moderator. Tourism Management, 68, 152-161.
Gumata, N., & Ndou, E. (2017). The Impact of the Minimum Wage on Capital-Labour Ratio
Dynamics. In Labour Market and Fiscal Policy Adjustments to Shocks (pp. 145-161).
Palgrave Macmillan, Cham.
Sorge, A., & Streeck, W. (2016). Diversified quality production revisited the transformation of
production systems and regulatory regimes in Germany (No. 16/13). MPIfG Discussion
Paper.
Yang, C. (2016). Relocating labour-intensive manufacturing firms from China to Southeast Asia:
a preliminary investigation. Bandung, 3(1), 1-13.
Zhang, Y., Zhang, J. H., Tian, Q., Liu, Z. H., & Zhang, H. L. (2018). Virtual water trade of
agricultural products: A new perspective to explore the Belt and Road. Science of the
Total Environment, 622, 988-996.
Comello, S., & Reichelstein, S. (2016). The US investment tax credit for solar energy:
Alternatives to the anticipated 2017 step-down. Renewable and Sustainable Energy
Reviews, 55, 591-602.
Frank, M. Z., & Shen, T. (2016). Investment and the cost of capital. Journal of Financial
Economics, 119(2), 300-315.

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Prebisch, R. (2016). Towards a new trade policy for development. ECLAC Thinking, Selected
Texts (1948-1998). Santiago: ECLAC, 2016. p. 211-238.
Edwards, J., Othman, M., & Burn, S. (2015). A review of policy drivers and barriers for the use
of anaerobic digestion in Europe, the United States and Australia. Renewable and
Sustainable Energy Reviews, 52, 815-828.
Lindé, J., & Pescatori, A. (2019). The macroeconomic effects of trade tariffs: Revisiting the
lerner symmetry result. Journal of International Money and Finance, 95, 52-69.
Hamilton, C. (2017). Import quotas and voluntary export restraints: focusing on exporting
countries. In The Political Economy of Manufacturing Protection (pp. 214-234).
Routledge.
Kaur, H. (2016). Ease of doing business in India: A big ‘Unease’for ‘Make in
India’programme. International Journal of Applied Research, 2(1), 697-702.