institutions introduced after the World War II comprising the General Agreement
on Tariffs and Trade (GATT), renamed in 1995 as the World Trade Organization
(WTO), World Bank, and International Monetary Fund (IMF) have played a significant
task in fostering free trade instead of protectionism.
World Trade Organization or (WTO) represents the chief international organization that helps encourage free trade through creating rules regarding international trade. WTO’s chief function is ensuring that trade runs as efficiently, predictably and liberally as possible. The organization’s heart possesses WTO agreements, agreed and signed by numerous of the globe’s trading countries. The World Bank group has definite trade initiatives, which are aimed at fostering Free trade they comprise (Kelly, McGowen, & Williams, 2014);
The International Monetary Fund (IMF) additionally has major roles to play towards fostering international trade, they comprise;
a. Promoting international monetary collaboration;
b. Facilitating the development and impartial expansion of international trade;
c. Promoting the exchange steadiness;
d. Aiding the founding of a multilateral payments framework;
e. Extending IMF’s general resources temporarily accessible to the members through adequate safeguards
Trade liberalization entails removal of barriers to trade among dissimilar nations and fostering free trade. Trade Liberalization possesses numerous benefits (Kelly, McGowen, & Williams, 2014)
According to Woolcock (2007) the EU has move beyond reducing tariffs and non-tariff barriers, eliminating quotas, to trading amongst member countries and creating a customs union. The European Union has shifted toward even bigger economic incorporation by turning to be a common market; this arrangement abolishes impediments to the movement of production factors, for instance capital and labor, amongst participating nations. The European Union as a common market manages and harmonizes every nation’s tax, manufacturing, along with agricultural policies (Kaberia, 2007).
Business doing business face huge challenges overseas due to
differences in many aspects between their home countries and the host
countries. These challenges might even lead to closure of business if they
remain unaddressed. According to Kelly, McGowen, &
Williams (2014) each
nation has varied cultural etiquette, thus, being uninformed of them and make a
socially unethical deed can harmfully affect the business dealings. Many companies
have indicated that cultural differences form the biggest challenges of conducting
business overseas. It is extremely significant to discover the cultural diversities
in international business regarding what is acceptable in the host nation. This
regards what may regard as odious in the host country.
Secondly, there are diverse quality standards in every country, regarding the industry. A fresh business setting requires a new set of business decorum that ought to be promptly learnt. The Corporation should seek to hire the locals of the state where you are undertaking the business.
Thirdly, as a result of rising terrorism incidences that are continuously occurring, there exist numerous political dramas amongst various international states. This evidently affects their trade relations, openly or indirectly. Thus, a constructive political relationship between the home nation and a probable foreign market implies a blessing for the business (Reuvid & Sherlock, 2011).
Fourthly, doing business
internationally requires the business to be able to overcome foreign exchange variation
barriers. Additionally, a business should ensure that it owns adequate
financial backing to offer a cushion towards unpredicted financial mishaps.
Ethics entails studying
what is correct or wrong, along with doing the correct thing however “the right
thing” is never almost as simple as indicated many business ethics literatures.
Ethics initiatives ought to arise naturally from the business culture along
with hiring ethical staffs will reduce unethical conduct in the corporation. Additionally,
staffs from dissimilar backgrounds should be offered a universal understanding
regarding what is deemed as ethical conduct via official training, therefore forming
an ethical corporation climate. This can attain effective business ethics
(Kelly, McGowen, & Williams, 2014). Furthermore, dire consequences should
be directed to staffs extending unethical behavior that hurt the business along
with fellow employees. Changes are required in the regulatory structure, in the
corporation ethics programs in the business. Among the mainly the major reasons
of unethical issues regards monetary gain, thus the business should ensure that
the workers are properly remunerated. Honest administration should be entwined
with managing the business coupled with appropriate rewarding/motivating
processes that influence staff decision making and behaviors may result in
reductions of unethical behaviors. Ethical behaviors should be initiated and
maintained by managers since employees look to their supervisors, meaning, that
once managers engage in unethical behavior the juniors will definitely engage
in the same conducts (Finance Train, 2012).
Finance Train (2012). Role of International Organizations (IMF, World Bank and WTO). Retrieved from: http://financetrain.com/role-of-international-organizations-imf-world-bank-and-wto/
Kaberia, D. K. (2007). World Trade Organization (WTO) and its Role in International Trade: with Case three Case Studies (Philippines, China and United States of America. Retrieved from: http://www.uwsp.edu/forestry/StuJournals/Documents/IRM/kaberia.pdf
Kelly, M., McGowen, J., & Williams, C. (2014). BUSN 6.
Reuvid, J. and Sherlock, J., (2011). International Trade: An Essential Guide to the Principles to the Principles and Practice of Export. 1st ed. India: Kogan Page Publishers, Inc..
Woolcock, S. (2007). European Union policy towards Free Trade Agreements. Retrieved from http://www.felixpena.com.ar/contenido/negociaciones/anexos/2010-09-european-union-policy-towards-free-trade-agreements.pdf
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