Contemporary Issues in the Business Environment

This essay aims to present and evaluate the incident of globalisation, also the factors which cause to generate globalisation. Moreover, it illustrates developing economy and how globalisation urges nations to increase living standards. It also shows the benefit and drawback of integrating countries to create channel and make free trade zone. Furthermore, this essay stated about the international organisations, which regulate trade between countries to reduce tariffs and increase free trade. Also, clarify the effective of global economy on the environment such as flight, transportations and nuclear power station, which increase air pollution. It also, displays the most recent pandemic known as Covid 19 that effected the worldwide and verify the advantages and disadvantages of this corona virus.

Globalisation is a great opportunity because it helps developing countries out of poverty; also, it is measure of social progress. Nikolas Gvosdev (2020) noted the ‘Peace by Poison: How the Corona virus Could Fix Globalisation Problems’ phenomenon. After fall the Soviet Union the United States had announced foreign policy to allowed nations to contribute developing economy. That was beginning to start new industrial revolution especially in those countries had resources such as oil and row material. Nevertheless, it further encourages the investors to follow the rules created by United State (US) which leads to international order. Also reducing the barriers by US was increased prosperity for all peoples because countries motivated to start free trade and built confidential between developing nation and the US. Also, as promised a winner of globalisation help those nations straggled and compensate them for been part of international community to rise the living standards (Nikolas, 2020). On the other hand, the China had own strategic and planned to become a president of stockholder and dominate the global chain. Also, China had designed channel to associate with the worldwide and attempted to attractive and gathering peoples from entire the world (Thai News Service Group, 2019). Globalisation not just comprises developing economy, also, increasing harmony between nations. For instance, developed peace deal between the Egyptian and Jordanian countries with Israel, also, created special zone where could produce parts and raw material then send to Israel for evaluation and upgrades (Nikolas Gvosdev, 2020). After that goods imported to the United State it used for different purpose which become a domestically produced goods. It will be again export to developing countries with interesting to American domestic productions. Moreover, the United State made another channel to transfer energy from Turkmenistan via Afghanistan to Pakistan and India to settle the peace (Philp, 2020). Thus, the trade relation had created free trade zone with the United State.

In contrast, the future of globalisation face complexity, also, the world has been interrupted by a series of issues. The first concerns are political complexity in most industrial democracies of the west which there are criticising of the self-described that unsuccessful of globalisation. The protectionism and borders comeback to the stage, where it does not allowed goods and service to enter because creating trade barriers for international countries. The second global issue is Chine’s capability believed that is time to take the post of Cold War world instead appreciate the roll of the United State and follow the foreign policy. The China thought America had benefited more from the foreign policy in order the U.S. was responsible for international system (Sukar and Ahmed, 2019, p. 280). Hence, China has not officially represented its domestic form, also, does not have a great roll there in this policy apparently. Nowadays, the America feel less comfortable and more vulnerable because the US lost faith in globalisation, peoples are concerning if rely on them. This growing concerning in part because of less caring the US political president, but, the other concerns come from the vulnerabilities of globalisation itself (Bacevich, 2019). Sloman and Jones (2011, p. 13) stated that, the Process of globalisation has been accelerating by various social, technology, economic, political and ethical factors. However, environment alongside with growing economy raise the concern of the worldwide over the air pollution. Economic globalisation is the spread of trade, transportation and communication systems on a global scale in the interest of promoting international commerce. Protectionism and trade liberalisation there are two different type of economic globalisation. Protectionism is creating trade barriers to raise the price of imported goods from foreign competition (Sukar and Ahmed, 2019, p. 279). At the same time trade liberalisation is act of reducing trade barriers to create international trade easier between the countries. In term of developing economy countries can trade goods and services between two or more countries without paying taxes or tariffs. Free trade is the most common way to trade between countries. For instance, South Korean agreed to removing 98.2% tariffs on imported Canadian goods like meat, also Canada removed 97.8% of its tariffs to imported South Korean goods such as cars. So, many countries prefer trade liberalisation because of more efficient for the world rather than protectionism (Cherry, 2012, p. 248).

Sloman and Jones (2011, p. 104) stated that, the trade Bloc is another way to reduce trade barriers, that an agreement between governments. Those countries are parts of free trade which makes them a trade bloc because of the goods and services, which can easily be exchanged from and to the neighbourhood countries. Trading cause to create The North American Free Trade Association (NAFTA) in 1989 during the trading between the United State and Canada as trading partners, also in 1994 Mexico joined the official NAFTA (Sloman and Jones, 2011, p. 347). This brought a free trade agreement and a trade bloc, which dominates or eliminates trade barriers between countries. Nevertheless, those trade increasing investment opportunity and found procedures to reduce the complexity within trade. The creation of NAFTA has caused manufacturing jobs from developed countries like United State and Canada (Sloman and Jones, 2011, p. 346-348). In developing nations normally have less government regulation such as tariffs and workers fair are lower. This function called outsourced, for instance, the United State outsourced nearly 800,000 jobs to Mexico in 2010. There are three organisations such as The World Bank (TWB), World Trade Organisation (WTO), and the International Monetary Fund (IMF), those created to help balance increase in the global economy. Also, the founder of those organisations urges them to protect the workers and standards of living in all nations, and concentrating the balanced growth of international trade, encourages worker to develop the resources where produced of all member countries (Woods, 2014, p. 1-3).

On the other hand, these organisations have many similarities when it comes to designate a particular purpose to improve standard of living. Thus, all organisations help to extend of international trade, also avoid protectionism and prevent difficulties which might be guide to another world complexity. So, the World Bank supports poor countries such as Bangladesh, Bhutan and Nepal to increase agriculture productivity and reducing poverty (World Bank, 2016). Also, since the beginning 1990 the World Bank has been helping the government of Bangladesh to take advantage of secondary education and support poor children (Targeted News Service, 2014). Moreover, The IMF gives loans to developing countries for short term to sort out an emergency issues if occur. For instance, Yemen one of those countries had a loan agreement worth an estimated 500 Million Dollar in 2012 to support the people with poverty to recover sever economic difficulty as a result of 2011 revolution and allows government to generate of its political and institutional to move forward as possible (Yemen Post, 2013). The WTO expose legitimacy deals for free trade between countries which reduce the disputes and conducts trade negotiations (Saggi, Wong and Yildiz, 2019, p. 316). That was a great opportunity to developed counties increases economic separate all around the word. The WTO also reduces the cost of products and services for those who live in developed countries, but at the time environmental concerns and works rights are normally ignored. In addition, the WTO promotes economic growth in developing countries, but they do by favouring the rich countries and powerful transactional corporations which might be end up harming these countries (Brooks, Weatherston, and Wilkinson, 2011, p. 103).

Nowadays, Oil and gas operated in most manufactures, nuclear power station, and transportation including flight as well. Nevertheless, it has a massive of health and environmental issues which partly associated with electric generation that raises the concern of radioactive wastes such as uranium from nuclear power station and the CO2 as well directly come from factories, cars and others. Part of These materials can stay in radioactive and concerns for environment and human health for thousands of years (Ward, 2019). Alternatively, to protecting the food security and water resources, keeping living standards need to fine resources that less impact of environment for example wind and solar power (Siler-Evans, 2013, p. 11768). Also, there are a method called Stewardship which making the Earth more sustainable. Stewardship taking responsibility of Earth’s resources, so that future generations will be able to have access to goods on the earth (Pezdeysek Malovrh et al., 2019, p. 648). Because most countries concern about globalisation in term of growing economy in mean time keeping in mind sustainability of earth’s resource are essential. For that global nations need to aware of Knowledge Economy and consider the issues impact the environment and developing globalisation (Rosa et al., 2018, p. 752).

In most countries to attain economic efficiency open their barriers to the global trade in goods and services for more than two decades. Also, the size of the global trade between nations rapidly elevated, that appeared as an outcome of contemporary globalisation. There is China and India showed that increased in their growth rate and decreasing in number of poverties. However, globalisation has developed some countries, also looked as great mixed experiment for some nations. But, countries such as Latin America, Africa (sub-Saharan) and some countries in Asia straggled to keep growth rate. Moreover, in many countries in the south trends of poverty are increased. For example, in Pakistan growing rate proved by just eight percent, but meanwhile poverty increased from thirty percent to thirty five percent in 2005 (Mamoon, 2018, p. 161). Hence, globalisation plays a great role in most countries, but also it makes the wealthy people wealthier as even before and poor people poorer than before. In Europe and North American investment companies motivated by expected high returns from expensive food price and especially from production of bio fuel feedstock. A food security is big underlying concern of growth in investment which differentiates from the way working of foreign investments. Furthermore, controlling export induces increasing food prices and policy, that make difficult for the society and grown more risk were food supply rely on world markets. That strongly affect particulate those countries worsening land and water shortage and face rising population, income deficiency and are depend on import food. In way of globalisation many countries in Africa attempt to attract foreign investment to use land and encouraging international access to land resources. Even number of developed countries in Africa is selling their land asset to wealthy countries to produce food and then export to rich nations (Hallam and Hallam, 2011, pp. 91-92).

If globalisation developed economy in the past and settled peace in the worldwide, but corona virus now have decreased growing economy and cracked globalisation. The worldwide has been significantly impacted by the Covid 19, this virus first spread beyond the Wuhan region in China. The pandemic called Corona Virus caused illness affected the most people in the world worldwide (Hunter, 2020). Also, this virus has created an unprecedented complexity for economy and public health. So, most countries decided to lockdown its countries and cities to minimise the spread of corona virus. But many countries were desperate because there are depend on foreign market for extra medical supplies, training front line staff, and protective clothing (SyndiGate Media Inc, 2020). Meanwhile, productions and services has been suspended also, disabled supply chain, trade and investment between countries, that follows a massive impact especially employees rely on the foreign investment. In order, government announcement and followed by the National Health Service asked people to isolate themselves at home to protect families and societies. So, this affected a hundred of million peoples globally which leads to lose a million of jobs around the world and cut out their income and become unemployed (SyndiGate Media Inc, 2020). According to the Penske Business Corporation (2020) the brand such as Nike Shoes retail stores closed globally then employees will be losing their work and customers also desperate buying pairs of Nike shoes as they are unpaid. Mean while peoples might be relying on other competitor domestic production which cheaper than other brands were export from other countries. While government face challenging as national emergency need consider economic measure and quickly respond to its budget plans to increase cash flow in markets to support business (BBC News, 2020). Because industry remains on the frontline has impacted as much as global health authorities. According to the Telegraph Media Group Limited (2020) the airports and Airlines such as British Airway, Lufthansa and other flight has been shut down and flight temporarily cancelled in most countries. These hugely impact Growth Domestic production (GDP) which is descending economic globalisation.

In the recent special issue, those countries like Chinese, United states, United Kingdome and others which had a big role has changed and fallen, especially Chinese factory the biggest supply chains and Chinese tourist a bigger proportion of global flows (The editorial broad, 2020). Also, major manufacturing has been shutting down and car manufactures such as Honda and Toyota have closed, this effect has visible and leave feed print on developing economy. So, a million of employees sent back home as a result of closing manufactures. Families and worker directly affected changed their live style, so activities and entertainment they had earlier could not carry on and consumer needs to spend less than before. Thus, other business involved which relies on workers to run cash flows will be suffering. In this case the government need to respond quickly to this crisis funding employees through finance ministry to keep running the business and feed the people. In addition, supply raw material such metal also affects which connected a few countries as demand for raw production suspended. Oil prices have fallen which could be devastate for those countries where the government budget or finance supports by selling oil or those countries-built economy based on oil price face challenging to paying their employees and government sectors that cause to increase inflation in the whole nation.

According to the BBC News (2020), the UK supermarket has ongoing worries about specific goods and food shortage is coming from long way away. A global food security expert at Edinburgh University Dr Peter Alexander believes the system can cope if employees’ level can be maintained and consistently imports goods for a long period of time. Because corona virus pandemic created the fright about strength and security of the supply chains which impact peoples live entirely in most nations. Therefore, keeping logistics running is essential for nation to have reserve food in the UK. So, that at least balancing living standards and keeping the nation’s economy working. In the United Kingdom almost half of the food comes from abroad, the statics shows about thirty percentage food (30%) comes from the European Union (EU) and the rest of it coming from outside the EU. The advantages of procedures taken to lockdown from most countries caused by covid 19 have significant benefit for the environment. Both society and ecologically suffered seriously in results of hit the atmosphere and crises like global warming which a million of people face to contamination and death globally every year (HT Digital Streams Limited ,2020). Based on an international team of researcher’s data, 652 cities in 24 countries particulate the matter of the day to day mortality rates. The team measured the concentrations of two microscopic particle of soot, PM 2.5 and PM 10, this tiny particle has small enough to get into lungs and bloodstream (Qin, 2019).Even the low level of fine particulate matter (PM 2.5) cause cancer, early death, and heart disease, found that by the world Health Organisation (World Health Organisation, 2019). According the study in the New England Journal of Medicine discovered that the particle soot increased the number of deaths. Also, in the United State a daily mortality rises of 0.79% for each 10 microgram per cubic meter increase in PM 10 and a 1.58% rises for each 10 micro programs increase in PM 2.5. That would alert to increase 178 deaths daily if the level of these pollutions increased by these amount (Bakalar, 2019). Moreover, exposure to air pollution is cause to poverty. In America around 18 million peoples with low income lives in area with the worst air quality in the nation. In contrast reducing air pollution by creating incentive for living people locally, controlling unnecessary travelling and flight, also concentrating on manufactures and power station will help the environment also, remain people healthier and happier (Schlanger, 2020).

In conclusion, this essay support that globalisation is beneficial and highly recommended by most nations even there is criticisms consistently related developing economy. However, environment widely impacted caused worse for human health and increased global warmth. But it still more countries interested to become part of globalisations, it almost everywhere, it might be difficult to stop it. As a demanding for globalisation increased but, meanwhile it greatly affects living standards in a society both negative and positive.

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