BM136 CRITICAL ISSUES IN INTERNATIONAL MANAGEMENT Assignment Sample
Introduction
This study will evaluate different theories of globalisation and principles of those theories to understand the need for globalisation for international management. Countries faced so many issues during pandemic situations that have affected business and international relationships of countries that will be evaluated in this study. Positive and negative impact of globalisation in economic and social factors during COVID-19 pandemic period will be critically enlightened in this study. Impact of COVID-19 in different industries will be evaluated in this study to understand its impact on globalisation. Economic and social crises of post-pandemic situations will be evaluated in his study.
Discussion
Critical evaluation of issues in international management during COVID-19
Various types of conflict have arisen among politicians of different countries that foreign companies affect domestic entrepreneurs in their growth by creating unfair competition among them. The World Trade Organisation has predicted that trade will fall by more than 32% in post-pandemic period (Harvard business review, 2016). It is necessary to promote business globally that creates employment and a source of revenue. Domestic companies are terminated by international companies during pandemic periods because international companies have a large number of financial resources. Globalisation has affected domestic businessmen during the COLD-19 period. International business environment has collapsed because of the restrictions in import and export business. Shipping charges have been increased during this pandemic period.
Almost every industry has faced a large number of losses during COVID-19 period. It is hard to operate a business during this crisis due to lack of transportation and scarcity of spreading corona virus. As opined by Almaiah et al. (2020), reputed companies have evaporated during this period because of the lack of precaution. Operating cost of every organisation has increased because of the extra burden of maintaining proper hygiene and sanitisation. Consumer demand has been violated during this situation and a large amount of food is wasted due to lack of an efficient supply chain. Employees are unable to go to their workplace due to lack of public transportation and most of them have been fired by a company because of low workflow and uncertainty.
Employee efficiency has decreased because of the scarcity of infections by a corona virus. A lot of employees have lost their lives working in organisations during pandemic situations. As opined by Luengo et al. (2020), most of the countries have got a large amount of foreign investment to spread business activities internationally over the last half-century. Globalisation is main reason for the development of trading in international market. A revolutionary change has been seen in consumer demand during this period, essential and immunity-boosting foods have become the most demanding food during this period. Demand for digital tools has increased and Smartphone companies have earned a large amount of revenue.
Positive impact of globalisation in social and economic factors
Economic factor
Globalisation has allowed access to different types of foreign technologies that are more efficient than traditional modes of work. People are quarantined due to the spread of corona virus and it is hard to operate business activities traditionally; companies have incorporated foreign digital technologies to facilitate work through online platforms. As cited by Gozgor et al. (2020), COVID-19 has influenced entrepreneurs to find effective plans that will be sustained in uncertainty. A large number of investors are influenced by new technologies and sustainable plans. Efficiency of employees has been developed by organising training programmes to teach them the use of digital technologies. Employees are empowered and companies have implemented remote working methods during this period that provides a great work-life balance to the consumers. Effective digital tools have increased productivity and have reduced the cost of products.
A large number of companies have adopted digital marketing techniques to sustain their business during the pandemic period. As cited by Destek (2020), digital marketing has allowed global consumers to get to small companies. Many entrepreneurs have earned a large amount of revenue through digital marketing that the number of digital marketers has increased to 250000 in the UK. Countries have become more concerned about nature and the use of sustainable energy is influenced by the governments of different countries. Effective supply chains are implemented by using digital technologies that are cost-efficient and can be operated in any crisis. COVID-19 has created different business opportunities for b entrepreneurs in a global market that has started a new era of international trade.
Social factor
Several types of business opportunities have been created during COVID-19 situation that has facilitated employment. Employees are motivated and empowered in this period that has increased their efficiency. Use of digital technologies has helped to produce quality products for potential consumers at a reasonable price because marketing cost is low in this policy. As opined by Latif et al. (2018), society has accessed new cultures and even adopted foreign cultures, movies and music. Innovative technologies have provided a high standard of living to their potential and real consumers. Effective technologies have been spread all over the world during this pandemic situation. Globalisation gives an opportunity to understand different communities and people that is necessary to understand the demand of global market. Moral values for nature have developed in a society that has influenced mankind to use green energy to save the world from global crisis.
Negative impact of globalisation in social and economic factors
Social factors
Globalisation is a threat for domestic businessmen because globalization allows reputed international companies who have effective sources of capital and technology of producing goods and services at a low price. As opined by Rogers et al. (2020), effective and experienced workers are hired from a different country where the economic condition is not powerful and work for companies at a low cost. Currency fluctuation is one of the main negative points of globalisation, price of same product is different in different countries but cost is different because of the difference in geography. Globalisation has allowed companies to hire workers from different countries but so many conflicts arise due to different moral values. Sudden changes in currency value have been seen during pandemic situations and it interrupts the existing pattern of supply and demand.
Economic factor
Demand of consumers varies on the available choices and price of that product consumers are influenced by imported products which are comparatively low cost in most of the products. Entrepreneurs have worked to develop fast and efficient electric cars to sustain energy sources (Harvard business review, 2016). Production of new technologies to make an electric car has been shrunk and a large number of employees are fired due to lack of financial resources during a pandemic period. Consumers have become dependent on imported products that domestic entrepreneurs are exploiting. A large number of employees are replaced with robots that have interrupted the balance of economy. Investments and consumption has been slashed by COVID-19 and it has harmed the US although it is one of largest importers in world.
Hawaii has been banned in UK for its 5G operation and different countries engaged in cold war during this period. As cited by Zimmermann et al. (2020), workers are exploited most for globalisation and real wage rate is violated for the engagement of employees for developing and underdeveloped countries. Capital structure is violated in different countries for globalisation and it increases the risk of currency and banking crisis. Outsourcing service is increased for globalisation and so many negative effects have been seen in an independent economy.
Effects COVID-19 in different industries in the context of globalisation
Business organisations have been affected by COVID-19 situation and have faced a large amount of loss due to a lack of supply chain of goods and services. As cited by Liu et al. (2020), a large amount of food is wasted because it is hard to send goods to potential consumers during this period. Hospitality industry is almost closed because operational expenses have increased but engagement of guests has decreased. Reputed companies have faced financial crises because investors have withdrawn their money for continued loss in this industry. Health industry has faced a lot of complications in providing service on time so that effective plans are taken into consideration and many foreign technologies are imported. It is possible for globalisation. Globalisation has created an environment of work among people from different countries but foreign employees are exploited from getting support during this crisis.
This global issue has created many opportunities for entrepreneurs to open new businesses as per the current demand of consumers. Consumer demand has changed to essential foods because living with good immunity is important during COVID-19 situation. As cited by Burlacu et al. (2018), many business and job opportunities have evaporated in North America, Europe and reappeared in different parts of the world. Supply chain of car industry is most complicated and technological revolution is important for its development. Rules and regulations are different in countries and they have changed their globalisation policies to save domestic entrepreneurs. Inflation has increased during pandemic situations and GDP has decreased for international business engagement.
Cost of shipping has been slashed for globalisation by a single driver during pandemic period. As cited by Su et al. (2021), companies have faced difficulties to manage finance and sustaining activities during pandemic situations at the preliminary stage of this crisis. Most of the companies have found efficient and cost-effective processes to make products and manage international relationships among countries. Many technologies are transacted among countries to manage international relationships during this pandemic. COVID-19 has affected supply chain and international relationships that it is so hard to reconstruct international management after a pandemic situation. It is necessary to make effective decisions for the development of supply chain and vertical integration to develop economic condition of country. Effects of COVID-19 is dependent on the geographic position of a particular origin that product and service-related that arises that it is necessary to implement policies by government to solve organisational issues.
Expected social and economic crisis in the post-pandemic period
Social effects
Industries are unable to achieve their predetermined goals during pandemic situations because of changes in demand of consumers. As cited by Poruchnyk et al. (2021), consumers have changed their daily routine of work and old demands have been changed for globalisation. A lot of employees are fired during pandemics but post-pandemic situations create new business opportunities nationally and internationally. More opportunities will create more employment opportunities in post-pandemic situations. Companies that have established technologies and machines in their organisation to sustain business activities in an uncertain period will decrease the demand for human resources. Human resources are exploited in post-pandemic situations for the implementation of digital technologies in the operating area.
Economic effect
Countries’ economies were developed by taking innovative initiatives in organisations to reduce the cost of production. As opined by Hill et al. (2020), low efficient workers are exploited and have not got any jobs in corporate sector because robots are more efficient and productivity is higher than them. Companies have reopened in the post-pandemic period and earned a large amount of revenue for implementation of effective strategies that are more efficient than previous plans. Income of industries has increased but a large number of employees’ individual income has decreased due to implementation of effective technologies within the organisation. Flow of money has cantered in particular individuals and a high gap of income between different individuals has seen in the post-pandemic period.
Countries have faced food crises during a pandemic and they have created strategies to store foods for uncertain periods. It has impacted global trade and WTO has identified that import and export business has decreased and unemployment has increased in the post-pandemic situation. As opined by Jones et al. (2020), unequal distribution of workload and racism inaccurate wage rate is common in pandemic periods. A large amount of demand has been seen in the post-pandemic period but people are unable to buy their needs and wants due to a lack of b financial resources. A large number of people have suffered from poverty during a pandemic period that will affect companies because number of potential consumers will reduce in upcoming future. Communication skill is necessary for effective and quality work but automated processes are unable to provide a diverse outcome.
Critical evaluation of relevant information based on available theories and principles
Political realism theory of globalisation
World is engaged in a competition to become powerful economically and socially. Political realism theory helps to assume the interest of different countries to maintain relationships among them. As cited by Gozgor and Ranjan (2017), countries are dependent on each other because of the difference in geographical conditions. Demand and supply of pro/ducts are managed by import and export businesses. Political realism theory helps to manage international relationships effectively to increase power and fulfil demand of consumers of a particular country. Foreign exchange contributes most to the growth of the GDP of a country.
Liberalism theory of globalisation
Liberalism is a moral and political philosophy of maintaining liberty in consent of governance. It removes racism and promotes equality that helps to create equal competition in a competitive global market. As opined by Alterman (2017), integration among different countries and liberalisation is known as globalisation. This theory influences sale of technologies to the top ten underdeveloped countries for global development. Infrastructure of economy is developed for entering in global market and it helps to get cost-efficient raw material and affordable products for consumers. This theory ensures growth of world GDP by globalisation.
Modernism theory of globalisation
Modernism theory helps to develop economic condition of underdeveloped countries to develop global economy. This theory accurately describes the needs of globalisation for socio-economic development. As cited by Ichsan et al. (2020), efficiency of employees is increased by this theory for the implementation of new training programmes and provides a better work-life balance environment to workers. This theory is flexible and helps to create news hypotheses to facilitate globalisation. Consumer experience is improved for better interrelationships among countries of the world. This theory also focuses on the development of a current method of work to find the most effective process that will allow countries for the total utilisation of available resources.
Conclusion
Based on the study it can be concluded that globalisation has made a massive social and economic transformation and it would not be brought to an end by an eruption. This transformation cannot be changed because mankind is changing their working style from years with the ever-changing environment. It can be said that it will be hard to manage international relationships for bundles business, a difference of income between high and low-income level people will increase that affects every country to maintain globalisation. COVID-19 period has impacted every business industry and globalisation of import and export business but posts COVID-19 period will bring more food crises in every region of the world. Foods will be available and demand will be high but consumers are unable to purchase their essentials due to lack of money. Most of the middle and lower class people have suffered from the food crisis in the post-pandemic period but it is not possible to change the whole sustainable system by raising a voice against it.
References
Almaiah, M.A., Al-Khasawneh, A. and Althunibat, A., 2020. Exploring the critical challenges and factors influencing the E-learning system usage during COVID-19 pandemic. Education and Information Technologies, 25, pp.5261-5280.Available at: https://link.springer.com/content/pdf/10.1007/s10639-020-10219-y.pdf
Alterman, R., 2017. From a minor to a major profession: Can planning and planning theory meet the challenges of globalisation. Transactions of the Association of European Schools of Planning, 1(1), pp.1-17.Available at: https://scholar.archive.org/work/anzwkylzcbdf3hxlqzbnav224y/access/wayback/http://transactions-journal.aesop-planning.eu/download/volume-1/article-3/
Burlacu, S., Gutu, C. and Matei, F.O., 2018. Globalization–pros and cons. Calitatea, 19(S1), pp.122-125.Available at: https://www.researchgate.net/profile/Sorin-Burlacu-2/publication/324212575_Globalization_-_Pros_and_cons/links/5d1a071e92851cf4405a6ba3/Globalization-Pros-and-cons.pdf
Destek, M.A., 2020. Investigation on the role of economic, social, and political globalization on environment: evidence from CEECs. Environmental Science and Pollution Research, 27(27), pp.33601-33614.Available at: https://link.springer.com/article/10.1007/s11356-019-04698-x
Gozgor, G. and Ranjan, P., 2017. Globalisation, inequality and redistribution: Theory and evidence. The World Economy, 40(12), pp.2704-2751.Available at: https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12518
Gozgor, G., Mahalik, M.K., Demir, E. and Padhan, H., 2020. The impact of economic globalization on renewable energy in the OECD countries. Energy Policy, 139, p.111365.Available at: https://www.sciencedirect.com/science/article/pii/S030142152030121X
HARVARD BUSINESS REVIEW., 2016. What Aristotle Can Teach Firms About CSR [online]. [viewed 16 June 2020]. Available from: https://hbr.org/2016/09/what-aristotle-can-teach-firms-about-csr.
Hill, C., Rosehart, P., St. Helene, J. and Sadhra, S., 2020. What kind of educator does the world need today? Reimagining teacher education in post-pandemic Canada. Journal of Education for Teaching, 46(4), pp.565-575.Available at: https://www.tandfonline.com/doi/abs/10.1080/02607476.2020.1797439
Ichsan, R.N., Santosa, S., Shara, Y. and Liriwati, F.Y., 2020. Investigation Of Strategic Human Resource Management Practices In Business After Covid-19 Disruption. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(7), pp.13098-13110.Available at: https://www.archives.palarch.nl/index.php/jae/article/view/5059
Jones, M.M., Abrams, D. and Lahiri, A., 2020. Shape the Future: how the social sciences, humanities and the arts can SHAPE a positive, post-pandemic future for peoples, economies and environments. Journal of the British Academy, 8, pp.167-266.Available at: https://www.researchgate.net/profile/Dominic-Abrams/publication/351838396_Shape_the_Future_how_the_social_sciences_humanities_and_the_arts_can_SHAPE_a_positive_post-pandemic_future_for_peoples_economies_and_environments/links/60acb68ea6fdcc6d62722af9/Shape-the-Future-how-the-social-sciences-humanities-and-the-arts-can-SHAPE-a-positive-post-pandemic-future-for-peoples-economies-and-environments.pdf
Latif, Z., Latif, S., Ximei, L., Pathan, Z.H., Salam, S. and Jianqiu, Z., 2018. The dynamics of ICT, foreign direct investment, globalization and economic growth: Panel estimation robust to heterogeneity and cross-sectional dependence. Telematics and Informatics, 35(2), pp.318-328.Available at: https://www.sciencedirect.com/science/article/pii/S0736585317306809
Liu, M., Ren, X., Cheng, C. and Wang, Z., 2020. The role of globalization in CO2 emissions: a semi-parametric panel data analysis for G7. Science of the Total Environment, 718, p.137379.Available at: https://www.sciencedirect.com/science/article/pii/S0048969720308895
Luengo-Alonso, G., Pérez-Tabernero, F.G.S., Tovar-Bazaga, M., Arguello-Cuenca, J.M. and Calvo, E., 2020. Critical adjustments in a department of orthopaedics through the COVID-19 pandemic. International orthopaedics, 44, pp.1557-1564.Available at: https://link.springer.com/content/pdf/10.1007/s00264-020-04647-1.pdf
Poruchnyk, A., Kolot, A., Mielcarek, P., Stoliarchuk, Y. and Ilnytskyy, D., 2021. Global economic crisis of 2020 and a new paradigm of countercyclical management. Problems and Perspectives in Management, 19(1), pp.397-415.Available at: https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/14843/PPM_2021_01_Poruchnyk.pdf
Rogers, M., Siregar, G. and Siregar, S.A., 2020. Existence Of Pancasila As A Stats fundamental Norm Of The Nation And State Of Indonesia In Facing Economic Globalization Challenges. Journal of Advanced Research in Dynamical and Control Systems, 12(6), pp.589-595.Available at: http://repository.darmaagung.ac.id/id/eprint/85/
Su, Z.W., Umar, M., Kirikkaleli, D. and Adebayo, T.S., 2021. Role of political risk to achieve carbon neutrality: Evidence from Brazil. Journal of Environmental Management, 298, p.113463.Available at: https://www.sciencedirect.com/science/article/pii/S0301479721015255
Zimmermann, K.F., Karabulut, G., Bilgin, M.H. and Doker, A.C., 2020. Inter‐country distancing, globalisation and the coronavirus pandemic. The World Economy, 43(6), pp.1484-1498.Available at: https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12969
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
