Global Business Strategy Essay Example | Topics and Well Written Essays - 1500 words

Global Business Strategy - Essay ExampleThis further asserts that liberalism and structuralism dominates and applies to WTO system as an organization that is weaving global influence in world political economy. Liberalism, National Protectionism and Structuralism Liberalism theory is etymologically derived from individuals 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 to international engagement while economical liberalism rest on economic interdependence of states to establish peace and cooperation (WTO, 2011). In regulatory processes, liberal policies and foreign relations ar driven by the principle of accommodation. Under liberalism, individuals and private groups seek to promote their independent interests within the context of differentiation, individua l autonomy and an unlimited competition by seizing either absolute or comparative advantage (Roy, 2011). It seeks to limit the role of the state in the economic activities. Economic nationalism, on the other hand, refers to the set of policies which order 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, relaxation method and unrestricted free trading. It seeks to assert the role of the state in managing national economy. Cross-national trading is consistent to economic protectionism and import substitution. As a consequence of this, economic protectionism extols the imposition of tariff handle to control national involvement in international trading and encourage their local industries to cultivate their business, unions and market for domestic engagement (Economist, 2009). Roy (2011) pointed tha t a country barring economic liberalization would confront problem on decreasing trade relations and poor strategy in trade management. Under mercantile operations, protectionist economy prefer 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). Its likewise aimed at stimulating its economy, free from external compulsion and to revolve their finances within. It is against foreign acquisition of national resource for multinational-sourced developments. Structuralism is a theory which focuses on manakin or models about how an institution or organization coordinate and interrelate for the full completion of their tasks Structuralism relates to the ties of government and its people in an interrelated amicable fabric and o peration 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 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