MKT744 Global Marketing Assignment Sample
Module Code And Title : MKT744 Global Marketing Assignment Sample
Introduction
Economic globalization and the fourth industrial revolution are driving global trade in recent times where increased accessibility and technological outfits are strategically incorporated in maintaining productivity and business relationships. The liberalization of trade has outstretched the economic prosperity for the developing and developed nations through exchange of capital, goods and services across the borders and international territories to meet public demand and requirements.
It gave the opportunity to connect with specialized goods and services of different nations and raise the trade volume with economic and other subsequent gains. Skilled labour as well as knowledge and technology are also the subject of global trade where the United Kingdom (UK) is a pioneer country of global relationship through a history of political and economic relationship with the emerging markets. Emerging markets are the developing markets enriched with resources, skill and technology which are competitively engaging the business transactions with developed nations and world economic orders with the collaborations of larger populations.
This market also lacks some of the standards of developed nations which need to be altered for growing market area and world business standards. BRICS nations and ASEAN bloc of countries are the major participants of the emerging market where resources are abundant and cheap which positively influences the business engagement with the developed nations.
These markets lack the capital, technology and innovation to use renewable energy as the source of industrial operation and are hugely dependent on fossil fuel. The UK is one of the prominent powers of global relations who have maintained its business relationship critically through the European Union (EU) before Brexit where it had easy access to all resources and technology throughout the EU.
On the other hand, due to strict guidelines of quality and standard, the EU imposed embargoes and sanctions on trade with emerging markets of BRICS countries and ASEAN nations. Post Brexit UK is quite alone in the EU zone with deteriorated business relationship with EU countries and having witnessed the lack of skilled labour and other resources which are crucial for propelling the country’s economic activity (Lyon and Dhingra, 2020). It has coordinated with these nations with cultural and political influence to tie up business relationships with bilateral and multilateral relationships.
Additionally, the severity due to the Covid-19 has influenced the economic shrinkage which needs a revival of trade relations with global markets for socio-cultural upliftment and emerging markets are the best place to grow the economic activity with cheap and abundant resources as well as huge population to spread the consumerism for competitive business space.
The norms of lockdown have slowed down the global exchange, almost killing the global business transaction of goods and services across the borders and international territories. Specifically, manufacturing of automotive, textile, chemicals and products are the most impacted sectors by Brexit of UK (Tuc.org.uk. 2022).
Hospitality, tourism, arts and entertainment are the most affected industries of the UK due to the Covid-19 where the downturn of the automotive Industry also contributed to the Covid-19. Issues mainly arise from the lack of bilateral relationship for business exchange, reformulation of regulations of product quality and limit, climate crisis, tariffs and non-tariff barriers, change in exchange rate and geopolitical tensions (Roudi, et al., 2019). This essay will elaborate the business opportunities and challenges for the UK to engage with the emerging markets in the global arena for economic growth of the nation.
Recent developments in UK in terms of international trade (Brexit and Covid-19)
The Brexit and contemporary effects of the Covid-19 has experienced a crunch in export around £1.7 billion as well as a downfall of around £3 billion on imports which is negatively influencing the socio-economic status of the UK population.
The decrease in international exchange of goods and services also lowered revenue generation and made a hard line for the strategy maker of the UK to combat these issues with reflective and competitive business prospectus. The emerging markets of BRICS nations and ASEAN countries are supplying cheap resources as well as labour force to the developed nations and help to ease the business transaction in global trade.
The UK has a sea of opportunities to explore and stabilize the economic growth through economic reforms and strong bilateral business tie-ups with emerging markets through growth in imports and exports (McCann et al., 2021). The reduction of net trade between UK and EU is also facing some serious issues as delay in reapplying for trade license along with cross border transaction of trades and services with potential disruptions are weakening the business objectives of UK in EU.
The tariff and non-tariff barriers are yet not perceived with cost effectiveness post Brexit where other aspects of business relations are already narrowing the economic activity of Britain through the tough period of Covid-19. The sudden divestment from the UK market also causes the increase of unemployment in labour forces which are the significant issues which need to realign through bridging the relationship with emerging markets.
Growth in export and import are essential to regain the economic might in global business for the UK upon satisfying the population needs and investment for a good return. Apart from that, the food production sector witnessed positive growth with competitiveness to boost profitability and growth in trade in UK (Du and Shepotylo, 2021). It needs to mention that the fastest growing export market for the UK is the Asian countries with 40% growth of Taiwan and around 19% growth in India supporting the UK initiatives and quality in the global marketplace (GOV.UK. 2022).
The regional disparities inside the UK are growing as the twin shock of Brexit and Covid -19 has crippled many regional trade hubs where the affected sectors have not yet consolidated the comeback strategy and redefined the partnership for global value chain.
The covid-19 pandemic has hit the UK economy hard which causes a fall of economy where it stills lagging around 9.7 percent below prior to pre-pandemic period as it is one of the worst hit countries in Organization for Economic Cooperation and Development (OECD). It also witnessed the loss of output around 3 to 3.5 percent due to strict measures of lockdown where the unemployment range is increased at a high rate (Jones et al., 2021). In addition to that, the end of freedom of movement of resources, capital and labour in the EU regions may hit the service industry more critically with a loss of around 0.7% output terms.
Importance of emerging markets for UK in order to boost up foreign trade
Emerging markets are labelling new equations of global trade relations, supplying a huge export to the world economies which are experiencing considerable economic growth as well as possess some of the characteristics of the developed nations. The robust growth and development are transitioning the developing economies towards developed economies with influential economic might. Rich in resources as well as population is the primary reason where the UK may boost up foreign trade with specialized products at a cheap rate, intellectual skills and exceptional quality of service and product on the motto of decentralizing the UK (Morphet, 2021).
It provides the UK companies competitive advantage in emerging markets with high productivity and lower cost rate in sourcing raw materials, labour and services along with launching finished goods and services to the public. Emerging markets are actually involved with low-middle income per capita compared to other countries which also have ample of opportunities for growth and investment.
The governments of the emerging market economies also strategically made the business policy which paved the way for industrialization, infrastructure development and a lot of investment through foreign Direct Investment (FDI) which have helped in lowering the unemployment and growth in disposable income per capita through increased business liquidity (Haroon and Rizvi, 2020).
The market volatility of the emerging markets also needs to be considered for enhancing business relationships with the UK where political instability, geo-political tensions, fluctuations of exchange rate in global markets are the significant aspects of foreign trade. Emerging markets are attractive due its high growth rate respectively to the developed markets where the EU and UK markets have seen stagnant economic growth after the 2007/8 financial crisis. The investors are exploring the opportunities in the emerging market for a high return as well as growth in the economy through growing business transactions of GBP.
The growing influence of technology and growth in consumerism has helped the business relationship to shape the future market collaboration of First Moving Consumer Goods (FMCG) and e-commerce platform for market competition.
However, the underserved population and educated workforce in emerging markets ensure the high return on investment with strong product value proposition, robust supply chain and localization of manufacturing for increased socio-cultural influence in product domestication. Government policy also intervened to ease the business relationship of emerging markets with the UK economy with increasing purchasing power parity and high consumerism with a brief understanding of cultural competence, differences in habits, preferences and taste.
The investment in research and design has a positive potential for market reputation with inclusive growth through product differentiation and market trendy innovations. Emerging markets are competitive enough to enrich the economic activity of the UK through increasing exchange of goods and services through a more robust business engagement strategy compromising the challenges for smooth business relationships.
Challenges for UK to engage with Emerging markets
During the Covid-19 the United Kingdom was not able to maintain the continuity of global trade with other foreign countries as the pandemic has created many challenges and barriers for the international trade of the UK. Due to lockdown during the Covid-19 outbreak, the labours and employees of many organizations were unable to physically present which decreased the production rate of the country and that created an adverse impact on the internal trade of the UK.
Additionally, tariff and non-tariff barriers have increased during this time which has increased unemployment in the country and reduced the opportunities for international trade in the UK (Brautzsch and Holtemöller, 2021). Analysing the international trade of the country it needs to be mentioned that there are many challenges such as political conditions, tariff and non-tariff barriers, culture and Covid-19 which has created many difficulties for the UK in order to engage with emerging markets.
Political condition and tariff and non-tariff barriers of the UK
The political condition of the UK was extremely stable before Brexit, however, Brexit has created many uncertain and unfavourable conditions which have created many challenges for the UK to engage with emerging markets. According to a report, due to Brexit, the productivity rate of the UK has decreased by 2% to 5% which indicates that Brexit affects the performance and productivity level of Firms (Bloom et al., 2019).
Moreover, if the firms of a country are not able to increase the production then automatically it would affect the import and exports level of the country. FDI or Foreign Direct Investment always plays a crucial role in The UK as it is extremely helpful for the country to increase engagement with emerging markets. The report also states that, during Brexit, the amount of FDI or investment has reduced by 11% which created short term uncertainties and unfavourable conditions in the UK.
Brexit has decreased the trade rate of the UK as in 2018 the total trade amount between UK and EU countries has dropped by 23.1% and the trade between the UK and Non EU countries has also reduced by 0.8% (Ons.gov.uk. 2022). Due to the negative impact of BREXIT, the tariff and non-tariff barriers of the UK has significantly increased and it creates multiple difficulties for the country in terms of importing and exporting the products on an international level.
Culture conditions
It has been observed that most of the people in the UK speak in English while the trading partners of Non EU countries are not able to speak in English which has chartered trade barriers for the UK. The trading partners of the UK need to maintain the local accents and dialects during trade talk or else it may create many difficulties for the UK in engaging with more emerging markets in the foreign countries.
This cultural sensitivity is also harmful to the growth of global trade in the UK which also affects the economic development of the country during the post Covid-19 era. Communication is one of the main important things which needs to be effective during the aggregate of an international business and it consists of many things such as facial expression, body posture, meeting etiquette and many more.
The British people are extremely sensitive in this case as any kind of ineffectiveness in non-verbal communication may ruin the international business agreement (Ferraro, 2021). Along with that, if the international business managers of the country will be able to be flexible during trade taking then these challenges may be increased in upcoming days which directly harm the international trade of the country.
Covid-19
During the Covid-19 the international trade challenges of the UK increased more as the entire world was badly impacted by the deadliest impact of the Covid-19. Between December 2020 and March 2021, the global trade challenges of the UK have extremely increased and for that reason, the import and export process of the country has totally disrupted. Merchant shipping is some of the most important things as it helps to conduct 80% of international trading and during Covid-19 due to shipping issues the global trade of many countries was temporarily interrupted (Henry, 2020).
Due to the unavailability of workers in the firms, the productivity rate has reduced in many firms which have created a negative impact in reducing the export of the UK in many foreign countries. The Gross Domestic Product (GDP) of the UK has been poorly impacted due to the lockdown and Covid-19 as it has dropped by 9.9% in 2020 which denotes the poor condition of UK global trade (Du and Shepotylo, 2021).
Automotive, manufacturing, retail is the most growing Indian traders of the UK, however, due to the Covid-19, the productivity rate of the countries are affected. BRICS (Brazil, Russia, India, South Africa and China) countries and other Non EU countries are the emerging markets of the UK as from the makers UK generates lots of revenue which helps the country to move the GDP and economic development of the country.
The Covid-19 cases were also increasing in Brazil, China and India which disrupted the imports of the UK and for that reason, many firms of the country have suffered from the lack of raw materials. During the post Covid-19 situation, the government of the UK is trying to remove the trade barriers and the negative impact of the Covid-19 from international trade which may be useful for the country in order to increase business in emerging markets.
Opportunities for UK in Emerging market
Emerging market refers to the developed markets except some standards and it consists of Gross Domestic Product (GDP), per capita income, market accessibility and liquidity and the pandemic as well as Brexit both have the influence on the emerging market of UK. The emerging market implements several opportunities such as a proper way of progress through rapid income growth as well as a market full of consumers who are waiting for new products or services.
Additionally, the emerging market offers the company to implement proper strategy to surpass the revenue target and reduces the status quo of the market. Initially both Brexit and the pandemic pose a threat for the UK market, however, it copes with the situation through a gradual process and the emerging market supports the UK economy to combat the challenges regarding pandemic and Brexit.
The socially responsible and technologically advanced supply chain management of the UK really helps the country to maintain its business nationally as well as internationally. The strong Supply Chain Management (SCM) enhances the opportunity for business in emerging markets as it boosts the network of the business and supports further development (Tang, 2018).
The stable government as well as the political condition of the UK government in the present is highly effective as the investors are showing interests for investment which accelerates the pace of the economy. In addition to that, the emerging markets provide a way for the investors to gain return for a long span and it helps the country to minimize the problems regarding political and pandemic issues.
The increasing international opportunities in terms of investors enhance the scope for the companies in export which enhance the innovative and adaptive capabilities (Miocevic and Morgan, 2018). The technological adoption has increased after the pandemic and it maximizes the opportunities in the emerging market for the technologically advanced country to overcome the temporary hurdles. The technological innovation highly influences the growth in the business and it supports the booming industry such as automobiles as well as other sectors which enhances the scope of business.
After the pandemic the increasing digitization in case of marketing enhances the way to regain the opportunities in business and the technologically advanced country easily cope with the new changes. On the other hand, theoretical models of international strategies provide effective ways to survive in the emerging markets and it helps to expand the business in a world wide range (Paul, 2019).
The flexible export and import trade laws of the UK eases the way to boost the economy as it helps the country to retain the emerging market in the international level with the help of strong trade relationships. The good relationships with the neighbouring countries amplify the export and import which immensely helps to retain the development of the economy and curb the effect of pandemic. The growing population of the UK is also providing an opportunity for the UK to grab the economic opportunities in the emerging market and expand the range in the international market place.
Conclusion
From the above discussions it has been concluded that, the Brexit and Covid-19 pandemic has restructured the UK’s business policy and intimacy with EU as well as engagement with the emerging market for enhancing the economic cooperation for economic prosperity. Brexit had kept the UK alone from the EU zone cutting the option of free moving of goods, services and labour across the EU where UK faces many downturns in relation to import and export of goods and services as well as lack of skilled labour.
The shortage of resources, labour and investment are the primary deficits of Brexit which is important to accommodate the countries automotive and other manufacturing industry as well as chemical products. On the other hand, Covid-19 has marginalized the global trade following strict lockdown measurements and delayed the business transactions across borders as well as disruption of supply chain.
Emerging markets are ready to supply quality materials as well as a skilled labour force to the developed market as the UK to help foster the business activity through international trade. The growing market pluralism and consumerism of the emerging market keep flourishing the foreign trade of the UK thriving to regain the lost glory due to the Covid-19 and Brexit.
The emerging markets are competitively growing to complement the developed market with the high rate of growth and industrialization to make available the huge resources for accommodating the business requirements of the UK. BRICS and ASEAN nations are considered as the emerging markets which are supplying a lot of resources such as food grains, cereals, meat and sea foods, vegetables, fruits, palm oil, mining materials and other Jewellery stones to the developed economies to contribute towards growth and market prosperity (Omotosho, 2022).
Recommendations
The recommendations for the international trade relationship of UK with the emerging markets are as follows: –
- UK business regulations need to be restructured differing from EU guidelines to become more acceptable for exported goods from emerging market
- UK should have made strong and long-lasting fair business commitment with the emerging economies to boost the foreign business
- The UK companies in emerging markets should have adopted the domestication of product, company as well as employee to positively reflect the business participation in the population
- The UK company needs to accommodate the consumer preferences, expectations, habits and cultures in the emerging market for doing business to gain market reputation and market share
- The strong business relationship with the emerging market will help to minimize the various tariff and non-tariff barriers in business proficiency
- The Multi-national companies should need to be adapted the multi-domestic strategy in emerging market to gain high return on investment into the manufacturing, industry, infrastructure and tax-structure
- The Emerging markets should have pay attention towards the use of renewable energy sources for rapid growth of productivity through industrialization for combating the climate crisis
- Emerging economies should undertake a robust business policy to ease the bureaucratic reliance upon investment and new ventures in the country
- Nearshoring and back-shoring remain the advantage in business competence where innovations and initiatives should have significant impact upon propelling economic positivity of UK
References
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