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Global Business Strategy - Coursework Example

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The author of this paper "Global Business Strategy" touches upon the and domestic economies of nations. As the text has it, in the liberalized nation doing international trade relations, economic decisions are often with resultant impact to politics and policies to host countries…
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Global Business Strategy
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Download file to see previous pages Liberalism theory is etymologically derived from an individual’s love of freedom and democratic principles. Applied to governance, liberalism adheres to liberal democracy which is inclined to more peaceful administration of government. Pluralist liberalism contends that the inequitable distribution of power cause gaps and may result in international conflict while economic liberalism rest on economic interdependence of states to establish peace and cooperation (WTO, 2011). In regulatory processes, liberal policies and foreign relations are driven by the principle of accommodation. Under liberalism, individuals and private groups seek to promote their independent interests within the context of differentiation, individual autonomy, and an unlimited competition by seizing either absolute or comparative advantage (Roy, 2011). It seeks to limit the role of the state in economic activities. Economic nationalism, on the other hand, refers to the set of policies which regulate the capital generation, economic control, labor management. Capital generation also deals with tariff imposition and some restriction on the movement of labor, goods, and capital (The Economist, 2009). It is contrary to globalization, liberalization and unrestricted free trading. It seeks to assert the role of the state in managing the national economy. Cross-national trading is consistent with economic protectionism and import substitution. As a consequence of this, economic protectionism extols the imposition of tariff trade to control national involvement in international trading and encourage their local industries to cultivate their business, unions, and market for domestic competitiveness (Economist, 2009). Roy (2011) pointed out that a country barring economic liberalization would confront the problem of decreasing trade relations and poor strategy in trade management. Under mercantile operations, protectionist economy prefers the exclusive trading within a region or country, hence, their raw materials and resources are not exported but are utilized for its own populace. Developing internal competitiveness proved advantageous for them to nourish their independence, inventiveness, and innovation in managing domestic markets (Economist, 2009). It’s likewise aimed at stimulating its economy, free from external compulsion and to revolve their finances within. It is against the foreign acquisition of national resource for multinational-sourced developments. Structuralism is a theory which focuses on framework or models about how an institution or organization coordinate and interrelates for the full completion of their tasks Structuralism relates to the tiers of government and its people in an interrelated social fabric and operation of governance (Balaam & Dilham, 2010). In trading, this points to the relation of investing countries to host nations in international trading relations. Since structure binds people, the political and economic relations are likewise sensitive to the system of social behavior, culture, economic dynamism or political processes. It illustrates some frameworks and policies that are maybe extensive, diverse and sometimes complicated, especially on international market relations between less developed countries and the industrial or advanced nations (Balaam et. al., 2010). ...Download file to see next pagesRead More
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