Evaluating UK Policy Responses to Deglobalization Post-Pandemic

This report discusses how UK policy makers can ensure protectionism or deglobalization does not happen in the UK during the pandemic. It highlights strategies such as maintaining competitive wages, providing subsidies to businesses, and implementing flexible export tax systems. The report also outlines the benefits of international trade, including specialization, increased market access, and economies of scale. Furthermore, it addresses the disadvantages of globalization for UK firms, such as trade imbalances, increased unemployment, global supply chain management challenges, language barriers, intellectual property risks, cultural differences, and tax competition. The report concludes that international business is complex, with both advantages and limitations, and emphasizes the importance of addressing key limitations to leverage them into benefits for companies. Desklib provides access to this report and a wealth of other study resources for students.

The Economic
Environment

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Task..................................................................................................................................................3
1.1Discuss how UK policy makers can ensure protectionism or deglobalization does not happen
in the UK during this time of pandemic...........................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Globalization necessitates that social workers take into account more than simply local
and national viewpoints. The worldwide mobility of labour is a negative component of
globalization that demands more attention. As a result of globalization, each country has
experienced unprecedented flows of capital, services, goods, and labour. Above all, financial
movements and emerging markets receive far less attention, as does the migration of people
seeking work outside their native countries. Immigrants are exposed to exploitation and other
damages, and nowhere is this more evident than in human trafficking, which is a violation of
fundamental human rights. The term "globalization" refers to how trade and technology have
made the world a more interconnected and interdependent place. Globalization also encompasses
the economic and societal developments that have resulted as a result of it. Globalization, to put
it simply, is the process by which people and products travel freely across boundaries. It's mostly
an economic notion — the integration of markets, commerce, and investment with few
impediments to stifle the flow of goods and services across countries.
Task
1.1
There are some of the points for Avoiding protectionism or deglobalization and they are as
follows:
 Because worker output in developed countries is higher than in developing countries, wages
in developed countries are frequently higher. Wages rise in response to increased
productivity. This is what gives a company a competitive advantage when it comes to
creating goods. Otherwise, owners would have to lower wages to keep up with productivity.
When an import tariff is imposed on sugar, for example, domestically produced sugar
becomes less expensive than imported sugar. This encourages people to buy sugar made in
the United States. As a result, money stays in the pockets of American farmers and
producers.
 There are some of the subsidies that are available for business is Following the UK's exit
from the EU, a new UK-wide subsidy control system was launched today, with the goal of
providing faster and more flexible support to UK businesses, Decisions that were previously
subject to the approval of unelected EU bureaucrats will now be made in the United

Kingdom and For the first time, devolved administrations and local councils will be able to
determine whether or not to give subsidies based on UK-wide principles. The Subsidy
Control Bill, which was introduced to Parliament today, takes advantage of the opportunities
that have arisen as a result of the UK's exit from the EU's bureaucratic State aid regime to
establish a new system of subsidies that can support key domestic priorities such as levelling
economic growth across the country and driving our green industrial revolution.
 For a variety of economic, environmental, and social reasons, both developing and
developed countries implement export limitations in the form of export taxes, quantitative
restrictions (through quotas and licenses), and outright export bans. An export tax with a
fixed rate and sliding rates dependent on international pricing could assist the fiscal system
respond to market changes. When the price of a commodity rises in foreign markets, a
sliding rate mechanism ensures that the government's portion of the rent rises. When prices
are low, the export tax is reduced, lowering the tax burden on investors and increasing the
long-term viability of current assets. As a result, export taxes with sliding rates would
provide a built-in mechanism to the fiscal system, increasing its flexibility to respond to
market swings.
Some of the benefits of international trade are as follows:
 Specialization refers to a country's inclination to specialise in particular products that it
trades for other goods rather than manufacturing all of its own consumption goods.
Countries create an excess of the product in which they specialise and trade it for another
country's surplus good.
 International commerce expands the range of goods available to domestic customers, lowers
the cost of those items due to increased competition, and allows domestic businesses to
export their commodities.
 International commerce enables countries to extend their markets and gain access to
commodities and services that might otherwise be unavailable in their own country. The
market has become more competitive as a result of international trade. As a result, pricing
becomes more competitive, and the consumer receives a lower-cost product.
 The existence of economies of scale (also known as increasing returns to scale) in
production is another key factor for international trade. Economies of scale refer to the

ability to produce at a bigger scale (with more output) at a lower cost (i.e., with economies
or savings)
 A foreign direct investment (FDI) is the purchase of a stake in a firm by a corporation or
investor based outside of the country's boundaries. In general, the word refers to a
commercial decision to buy a significant stake in or buy a foreign company completely in
order to expand its activities to a new territory.
1.2 Disadvantages of globalization on UK firms.
Some of the limitations of the international trade business are as follows:
 Trade imbalances: When the value of a country's imports exceeds the value of its exports, a
trade deficit is created. Imports and exports apply to both goods and services. Simply put, a
trade imbalance occurs when a country purchases more products and services than it sells. A
trade deficit happens when an international transaction account has a negative net amount or
balance. All economic transactions between residents and non-residents that result in a
change in ownership are recorded in the balance of payments (international transaction
accounts).
 Increased unemployment: International commerce raises the relative price of skill-
intensive products in a country with a high level of competence. This lowers the
unemployment rate for skilled people while raising the rate for unskilled workers. The role
of trade in eradicating global poverty is crucial. Countries that are more open to foreign
commerce tend to grow quicker, innovate, enhance productivity, and provide their citizens
with more wealth and opportunity. Lower-income households benefit from open trade
because goods and services are more inexpensive.
 The practise of administering and coordinating a network of businesses to create and
distribute goods and services abroad is known as global supply-chain management (also
known as global SCM). Global supply chain management's main goals are to maximize
profit, decrease inefficiencies, and deliver goods and services on time. And they are as
follows:
a) Lead times
b) Delays
c) Cash flow
d) Data management

e) Exposure to risk
f) Accountability and compliance
g) Quality control and defects in the material
h) Language barriers
i) Different time zones
j) Exchange rate
 In developing countries, small and medium-sized firms (SMEs) account for the bulk of jobs,
yet often have low productivity and exports. Small businesses can benefit from international
trading. International trade has long been regarded as a primarily profit-generating activity
for huge corporations.
 Language barrier is the most common reason and the biggest limitation in the international
trading. A language barrier is a term that refers to linguistic hurdles to communication, i.e.
communication difficulties experienced by people or groups who speak different languages,
or even dialects in some situations.
 The greater the reach of a product, the more probable it is to be unlawfully copied by a
competitor. This can take the shape of confidential data or market branding. It is extremely
difficult for a firm to prosecute when there are cross-country borders. Copyrighting in the
United States, on the other hand, can help a corporation protect itself if the country where
the product is sold has signed an international intellectual property treaty. Some countries
also have their own copyright and trademark protections that can be filed to protect
businesses selling goods in their own country.
 Culture difference is the major problem as it is known to all the trading people when there is
trading done different region people have different culture and various practices and they are
having different point of views and that are considered very important limitation of doing
the international trading business. One of the primary drawbacks of international trade is that
cultural differences are frequently overlooked. Unwritten norms of trade exist in the country,
which are difficult to unearth and even more difficult to solve.
 Tax competition is when countries, states, or even municipal governments utilize tax cuts,
tax incentives, tax loopholes, or tax subsidies to entice investment, hot money, or even
affluent individuals. The latest front in the battle between these two perspectives on
intergovernmental rivalry is the field of "tax competition." When one country tries to entice

investment within its borders (and presumably increased tax revenues) by lowering business
taxes, this is known as tax competition. In other words, the rival country tries to make
investments within its borders more appealing by lowering its tax claims on any income
derived from such investments, hence increasing the post-tax returns to investors. This can
become an iterative process in which other countries try to prevent future investment and
revenue losses by lowering their own tax rates on enterprises and income that are believed to
be vulnerable.
 Globalization faces a challenging task due to polarization and opposing agendas. Around the
world, there are more wars, important economic powers are gaining clout, financial penalties
are being used as a weapon, and the Internet is disintegrating. As a result, money,
information, products, and services may take longer to traverse international borders.
 In the last quarter of the twentieth century, the United States was a powerful nation.
However, state capitalism in its current version is increasingly engulfing many countries.
This is establishing new market groups and undermining the promised homogeneity of
globalization. There is now nothing specifically American or about globalization.
 The oil monopoly is eroding, and the world is being torn apart by numerous skirmishes and
terrorist attacks. In the midst of such instability, the fundamental core of globalisation is
becoming hazy. All worldwide and large global companies encounter these time-sensitive
challenges. While the challenges do not appear to be going away anytime soon,
multinational corporations now have the option of exercising their power on a worldwide
basis. They may or may not adapt to the new trend, but the major global crises have
undoubtedly boosted their superiority and power.
CONCLUSION
In this respective report it has been concluded that international business is a tough job
and it is concerned with some of the factors in which some of the points are in favour of the
company and some of the limitations for the company also it has been analyse that some of the
major limitations of international trade are very essential to be given that consideration so that
they can be turned into some sort of benefit for the company.

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