LSBM303 Portfolio: Critical Issues in Business Management, Trade

This portfolio delves into critical issues in business management, focusing on Commonwealth trade in a digital world. It analyzes the impact of the COVID-19 pandemic on global and intra-Commonwealth trade, evaluating prospects for recovery and identifying sources of future growth, including the Commonwealth advantage. The report also examines the importance of digital trade, its challenges, opportunities, and the effects of the pandemic. Furthermore, the significance of the African Continental Free Trade Area (AfCFTA) is discussed, highlighting its role in fostering economic integration, industrialization, and job creation in Africa. The portfolio provides a comprehensive overview of the evolving trade landscape and its implications for Commonwealth countries.

CRITICAL ISSUES IN BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Presenting the impact of COVID-19 on common wealth......................................................3
2. (A)Presenting the importance of digital trade.......................................................................5
Significance of African Continental Free Trade Area(AfCFTA)................................................7
3...................................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business management refers to the managing and coordinating the activities of the
business and includes the production of raw materials, innovation and marketing. It is the process
of planning, organizing, directing and controlling the resources of business in order to achieve
the objectives of the organization(Myers, 2019). Proper and effective management helps the
managers and the employees to understand their part of work. The report covers impacts of
Covid-19 on the Commonwealth countries and future growth of the country. It also reflects on
the importance of the digital trade and various challenges and opportunities and effects of the
pandemic. Along with this the importance of AfCFTA is also discussed.
MAIN BODY
1. Presenting the impact of COVID-19 on common wealth
The COVID- 19 pandemic has affected the global economies, business and government and
society Along with this, it has negatively impacted on the economy of various country.
Due to lockdown in various country there was restriction on trade and because of that
GDP and economy growth has fallen down. Furthermore, the supply chain of countries was
impacted and due to opening of lockdown measures many industries and supply chain
has sought business as usual However, the present impact of COVID- 19 has impacted on
sector of common wealth countries (Beisenova and et.al., 2020). The intensity of the impact
was drastic change in supply and demand shocks in sector. Moreover, education sector was
not impacted very much because it took the advantage of online class. Along with this,
sector such as hotel, tourism and restaurant was impacted very negatively however it didn’t
grow very much even after using the interactive mode of delivery. Furthermore, common
wealth member has directly and indirectly impacted on the overall business because there has
been change in the purchasing pattern of customer, declining rate in domestic as well as
foreign demand. However, the most affected sector is textile and export and import service
and hotel and restaurant services that has impacted common wealth small island that
economy mainly demanded on tourism sector. Along with this, there were restriction on the
transport sector that has affected merchandise trade and travel restriction has affected the
impact on tourism. Furthermore, trade service was good in the 2021 but it was below

average in year 2020 due to pandemic (Bhugraand et.al., 2018). Due to restriction on trade
the economy growth was faced major economy decline most of the common wealth
countries was not able to earn more. However, most of the countries income was based
on tourism as well as hotel industry and due to that it has affected the overall economy
growth. In addition, to this, the export and import was also impacted as government has
banned the trade and transport and because of that country major income source has
been affected.
Figure 1Global trade change
Sources: Global trade’s recovery from COVID-19 crisis hits record high., 2020
Describing The sources of future growth
The three common future source are labour, capital and technology that has affected the
economy of the country. Along with this, the common wealth can contribute in
developing the GDP of the nations. Capital can be future sources such as if countries
open the domestic as well as international trade then it can increase the rate of economy.
Furthermore, conducting common wealth in poor country will help the nation to earn the
capital as various participating country will be investing in it. However, if country has
capital then it can build the country infrastructure and develop companies that will
contribute in increasing the job rate. It will allow the country to maintain the stability in
the economy. Moreover, the country should provide it citizen with jobs facility so that it

can contribute in the growth of the economy (Bishopand Clegg, 2018). Along with this,
with the help of capital countries can invest in the education and health care so that it can
contribute in increasing the economic growth of the country. The privates and government
business plays important role in the overall growth of the firm as it has pay certain
amount of tax to the government. That is used in developing the overall growth of
the economy in the country. In addition to this, the technology factor is key driver for
future growth as it makes the production of goods and services progress more efficient. In
COVID- 19 it has been major factor that helped the countries to earn the profit so that it
can invest in nation. Along with this, it has made the business easier and efficient and
due to that many e- commerce companies have earn more and more profit. Moreover, by
conducting common wealth game on online platform in 2020 has allowed it to earn more
profit. Technology has helped the country in developing the innovation that has helped
the country in developing the research and development sector.
2. (A)Presenting the importance of digital trade
Digital trade is known as movement of data that not only means production but also known
as assets that can be traded through organised services. In simple words, it wide concept
that allows business to increase the sale of product and service though online channels.
However, it has allowed countries to conduct trade and was one of the major factor
that has contributed in increasing the economic growth. Along with this, it has helped
the retailer to connect with the global marketplace (Csakiand Jambor, 2019). It has allowed
small business to cover the large area of market in the time of pandemic. Due to this,
it has contributed in increasing the sales of the firm as well as resulted in enhancing the
profitability. The major challenges that has been faced by common wealth game are
environmental sustainability such as climate change and pollution. Along with this, fairness
is also an issues such as democracy, good governance and human rights. Furthermore, the
another challenge is security likewise organised crime, violent extremism and cyber security.
In addition to this, the another issues was prosperity such as trade, investment and jobs.
However, the major challenges that has been faced by common wealth game was Coved -19.
Because of that many countries were not able to invest in the game and because of that
proper income was not generated. Along with this, due to virus the organizer has to invest
more in developing more accommodation place as compare to single this affected the

operational cost. In addition to this, the organizer has to invest more on safety precaution
such as testing that has affected the cost (Danlami, Hassan. and Hidthiir., 2020). Trends
that are followed in common wealth game is safety measure such as only few members
has advice to participate so that virus can be reduce.
Along with this, the organizer has to do create a bio bubble in order to protect the
participant so that virus do not spread very much. Furthermore, the organizer has made of
technology to conduct the major meeting of the Olympic game as well as used advance
technology to telecaster the Olympic show. Due to pandemic there are major opportunity
that has helped the common wealth to develop. Such as asking federal government to
cover the full cost such medical eligibility and enhancing the subsidies for marketplace
coverage. Along with this, the alternative method of payment helped the organizer to
maintain the stream of revenue. That has contributed in maintaining the flow of
income that can be used for developing the economy of country. In addition to this, addressing
the health care facilities and small community such as providing them training so that it
require health professionals (Herr, 2021). Furthermore, government has decided to
introduce the safety norms and policy so that participant can be less infected form the
virus. Along with this, the common wealth countries must address challenge such as
providing good quality jobs to the younger population as well as building the resilience. In
addition, to this, the common wealth has increased the trade service with the various
countries that has allowed to maintained the economic growth. Due to organizing
commonwealth in poor it can help in developing the countries as rich nation will
invest in it. It also provide the country to attract more and more audience that
helps in increasing the reputation of country in the world market place.
In addition to this, the country such as Africa has been benefited in 2021 as UK existed
the bloc of EU (Nugmanovaand et.al., 2018). Because of free trade the number of participant
countries has opened for business in Africa. Along with this, new are of market has been
developed under the contract of AFCFTA that has enhanced the GDP of the country.
Moreover, it will also boost the African trade, create job as well as promote industrialization
that will contribute in increasing the overall growth of the economy. Along with this,
digitalization has improved the companies competiveness in the global market that
has contributed in increasing the brand image of the companies at global market. Thus,

major countries can support small nations that are included common wealth
(Jennings, 2017). Along with this, Africa will be having am opportunity of economic growth
prospects as it is one of the most fast growing country. And companies such as
telecommunication as well as banking has competitive advantage and will be among the
current economic growth. It will clearly be an investment opportunity. However, Africa is
fasted growing consumer market in the world. This will help the nation to remove the
poverty line as well as develop the nation.
Significance of African Continental Free Trade Area(AfCFTA)
It is a free trade area which was founded in 2018 and commenced on 1st January 2021. It
was created under the African Continental Free Trade Agreement among the African Union
Nations. Its main purpose was to create a single market and also focused on economic integration
of the continent. The objective behind of creating the agreement was to create a single market
for the goods and multiple services and enhancing the economic integration of Africa and also
supports the aid in the movement of people and capital in order to facilitate investment within
the continent(Levin-Koopman,et.al, 2021). The focus was on establishment of custom unions
and achieve the development of socio-economic and sustainable gender equality along with the
structural transformation among the members states. This initiative also concentrates on boosting
the intra-African trade, promoting the industrialization, creating job and employment
opportunities for the youth and especially for women. It also helps in industrial development
through diversification, agriculture development and food security.
The importance African Continental Free Trade Area (AfCFTA) is that it will boost the regional
income of Africa, increase the wage rate of the women and will help to overcome the major
challenge faced by the country is reduced the poverty rate of the country by 2035(Magwape,
2018). By creating the single market, the agreement focuses on economic integration of the
continent. The importance of initiating this agreement was to focus on poverty reduction and
move towards development of the people living their. It focuses on diversifying the exports,
increase the economic growth of Africa, boosting the Foreign Direct Investment and also helps
in creating the employment opportunities to every section of the society and especially for the
women.
In April 2021, 36 countries in Africa has sanctioned the African Continental Free Trade
Area(AfCFTA) agreement. The coronavirus pandemic has hit the various sections of the

industry. Some countries who legally ratified the agreement includes Ghana, Kenya, South
Africa, Nigeria etc.
The arrival of the coronavirus has immensely affected the whole economy of the country and
badly affected many industry resulting in shut down of the stores and business. There are various
factors which are constantly changing but many companies have tried to overcome and balance
the loss due to crisis. The Africa's economy was set to grow and were focusing on diversifying
the economy but the coronavirus had a huge negative impact on the plans and strategies of the
country(Mataba, and Ismail, 2021). Over 53% of the Africa's exports go to different countries
and all other countries were facing the impacts of crisis which led to stoppage in the export
activities of the Africa. From this covid-19 crisis, the trading deadline under the AfCFTA
postponed.
From the past many centuries, African women is surrounded in the poverty cycles due to various
factors such as lack of proper education, inequitable labour-saving technologies, discrimination
in wage rate and unsafe environment for women and various traditional practises prevailing in
the society(Obida, 2019). In order to remove such unfair practises against the women and to
reduce the inequality in the society, the African Union has focused on the development and
implementation of different regulations and framework which provides a wider opportunities for
women and will result into the economic empowerment in the country. AfCFTA focuses on
creation of job opportunities especially for women, reduce the inequalities and promotes
sustainable development of the country. The agreement under AfCFTA gave importance on the
gender inequality. Agriculture is considered as the backbone the economy of the Africa and
AfCFTA focused on the women empowerment by providing access to the regional food
markets. Under this agreement there was potential rise in the manufacturing jobs and agriculture
business that changed the life of millions of women who has faced higher level of unemployment
from the past decades in Africa(Luke, et.al,2019). The purpose was to strengthening the
enterprise by stronger trade and value chain that created ample of opportunities that resulted into
empowerment and reduced the situation of poverty in Africa. It was observed that African
women who was working as informal trader faces harassment, violation in their own society. The
main objective behind taking this initiative was to increase the economic integration, reduce
poverty in the continent and reduce discrimination on the basis of gender in Africa.

3.
Trade is one of the most important factor of ending the poverty and commonwealth countries
will be able to grow faster as well as improve productivity and provide higher income as well
as opportunity to people. Along with this, if trade is conducted between the countries then
lower income group people will be able to afford goods and services. And the poor countries
will be able to grow their economy rate that will contribute in increasing the growth rate.
Moreover, if trade is conducted between various countries then it will also increase the culture
and help each other to know the custom as well as build the healthy relation. Along with this,
trade facilitation will help countries to integrate into global value chain that target
reforms and investment (MS, 2020). On the other hand, trade agreement between the
countries will help each nation to identify their technical details and export as well
as import rate will increase. That will result in earning more and more income. Furthermore,
emphasize on trade will be core national development strategies. The common wealth
country can make use of Aid for trade is a multilateral designed to assist developing
countries especially low income nation that will increase the growth by integrating world
economy. However, market and competition policy will encourage the growth a prosperity
between the countries as well as improve the market place condition.
CONCLUSION
It is concluded from the above report business management is an integral part of the company in
order to continue its operations and working effectively. Proper planning, direction and
coordination is required in order to attain the desired goals and objectives of the organization.
The company should focus on the improving its plans and policies for the proper management
and also to compete in the market. The Coronavirus pandemic has affected almost all the
industries as well as the economy of the countries. The report also summarize the impacts of
Covid-19 on the Commonwealth countries and intra Commonwealth goods and services. It also
focused on evaluating the future growth of the commonwealth countries. The importance of
digital trade and the various trends and challenges related to the Commonwealth countries. The
significance of African Continental Free Trade Area (AfCFTA), its current state and the

importance of the AfCFTA especially on women and changes which took place in the lifestyle of
the African women.

REFERENCES
Books and journals
Beisenova, M. U. and et.al., 2020. SOCIO-ECONOMIC INDICATORS OF THE
SITUATION OF PEOPLE WITH DISABILITIES IN THE COMMONWEALTH
COUNTRIES AND KAZAKHSTAN. In Industrial Technologies and Engineering ICITE-
2020 (pp. 57-59).
Bhugra, D. and et.al., 2018. A review of mental health policies from Commonwealth
countries. International Journal of Social Psychiatry, 64(1), pp.3-8.
Bishop, M. L. and Clegg, P., 2018. Brexit: Challenges and opportunities for small countries
and territories. The round table. 107(3). pp.329-339.
Csaki, C. and Jambor, A., 2019. Convergence or divergence–Transition in agriculture of
Central and Eastern Europe and Commonwealth of Independent States revisited. Agricultural
Economics. 65(4). pp.160-174.
Danlami, I. A., Hassan, S. and Hidthiir, M. H., 2020. Assessing the asymmetry of the
exchange rate pass-through to inflation in West African Commonwealth Countries. Academic
Journal of Economic Studies. 6(1). pp.93-109.
Herr, R., 2021. COVID-19 in the Pacific Island Commonwealth: microstates managing a
macro-challenge. The Round Table.110(1). pp.138-148.
Jennings, Z., 2017. Interventions in schools’ curricula to achieve quality in learning:
Experiences from the Commonwealth Caribbean. Compare: A Journal of Comparative and
International Education. 47(6). pp.818-834.
Levin-Koopman,et.al, 2021. The Advent of the AfCFTA: New Possibilities and Implications for
the African Land-Water-Climate-Food Nexus.
Luke, et.al,2019. Inclusive Trade in Africa: The African Continental Free Trade Area in
Comparative Perspective. Routledge.
Magwape, M., 2018. The AfCFTA and Trade Facilitation: Re-Arranging Continental Economic
Integration. Legal Issues of Economic Integration.45(4).
Mataba, K. and Ismail, F., 2021. COVID-19 and trade facilitation in Southern Africa:
Implications for the AfCFTA (No. 2021/67). WIDER Working Paper.
MS, S., 2020. India and the Commonwealth in the 21st Century: A promise to
Growth. Journal of Humanities and Social Sciences Studies. 2(4). pp.83-86.
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Myers, M.D., 2019. Qualitative research in business and management. Sage.
Nugmanova, D. and et.al., 2018. The prevalence, burden and risk factors associated with
bronchial asthma in commonwealth of independent states countries (Ukraine, Kazakhstan
and Azerbaijan): Results of the CORE study. BMC pulmonary medicine. 18(1). pp.1-11.
Obida, D.I., 2019. The Quest for Africa’s Trade Growth: Intra-African Trade and the Proposed
African Continental Free Trade Areas (AfCFTA): A Commodification of Old Practice
or Maintenance of New Order. World Journal of Innovative Research.6(2). pp.42-49.
Online references
Global trade’s recovery from COVID-19 crisis hits record high., 2020. [Online]. Available
through <https://unctad.org/news/global-trades-recovery-covid-19-crisis-hits-record-high>
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