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Running head: FORCES AFFECTING TRADE

Forces Affecting Trading in Global Markets

Name

Institution
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FORCES AFFECTING TRADE

Introduction

The aspect of trading in a global market entails diverse environment which one needs to be

conversant with the general environment. In a deep-set consider the needs it there is a relation

such that, while diversity provides many opportunities, there is also a provision of challenges

in the same context (Lee et.al, 2016). In this presentation, a close consider the forces which

have a major involvement in causing effects to trade will be in the discussion. The forces

have a two-way aspect and may affect trade positively or negatively; the positive aspects will

increase profits while the negative aspects will make a random reduction on the benefits

gained. However, all the forces have a revolution around factors including social, economic

and legal factors.

Complexity of the global market

As a consideration, Chester is a president in one of the largest multinational

conglomerate which in general owns an extensive cooperation. It is an inbuilt organization

with other several different agreements (Crona et.al, 2016). Some of the services being

offered are inclusive of insurance and other financial services, not only does it have a

provision to those limited services but also other cooperations in the organization provide
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consumer electronics as well as aerospace among others. Chester company has a global

market and in which makes it be a good example to use in find some of the complexity

available in the world market. The diversity in place includes the complication in the

company's business enterprises and the difference in locations (Fuller, 2016). It will be a

difficult time providing uniform services for every environment will need different attention.

Socio-cultural forces

In this context, the effect of socio-cultural forces will affect trade due to different

cultures have different general views on important aspects of time, material goods as well as

space and the necessary personal relationships in trade and agreement. Some cultures will

demand a punctuality in acting. On the other hand, other cultures will not view deadlines as

an important aspect of the trade (Fuller, 2016). In a different aspect, some cultures will permit

a high value on possession of certain material goods while some will not, the variation has an

effect of distorting or building relations among traders. In a global context, there is the need

to have all the cultures running almost like enable proper functionality. Members of the

associated culture, makes an easy establishment of relationships, which in turn brings a weak

or rather a non-functional transitory. In other countries, establishing a relationship may be

relatively hard due to the culture but rather they can be more accepted in terms of durability.

The way business is carried in one country and a comparison to the other brings in the notion

of culture. It is evident that the need to have to learn how a business is conducted in different

countries will affect aspects like consumer preference on some products and services,

therefore affecting global trade.

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Political and legal forces effect

Different countries tend to have different laws and legal views in the making of their

trade implementations. It will then prompt a rise or a hard time to carry out business from an

individual country, some of the common barriers brought by legal issues are inclusive of

tariffs a state imposes on certain goods (Tadasse et.al, 2016). When dark due taxes are made

on imports or rather exports, there will be a barrier in trade relations. Moreover, some

countries will seem not to have a protection right and thus making global trading have no

right to private properties. Different laws and regulations in the general global market make

conduction of trade difficult or easy dependant on the laws in place. The position of the

countrys take on how they implement laws affecting the global business will have an

influence on the outcome. When import, quotas are limited then the country will have imports

which is specific. It is then, affecting the global market because it blocks importation of other

products.

Economic and financial forces

Most of the economic conditions in place which will have an inclusion of economic

systems will make a great variation in the global trade. The aspect which has an effect here is

the economic systems, different global systems tend to bring a different notion on the

workability of carrying out trade (Tadasse et.al, 2016). Thus, the way a country decides in the

resources it is allocated comes out to be the force pushing how trade is carried out in certain

environment.

Conclusion

In conclusion, the forces which are in association tend to brings major effects and

instability in global trade. A general control measure need to be in draft for one to be able to
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deliver with the right services and acquire profits (Tadasse et.al, 2016). In general, global

trade is quickly becoming a basic component in acquiring goods and services due to the vast

globalization concept. The only way to try control the forces will be by making and

establishment of global rules. The concept of global trade has not been a free market and

which makes a probable hindrance in the verge to try solving the problem. The reason to this

notion is that it does not exist in a stable environment to ensure equilibrium. Unless a

different aspect to try and make the market fair, but conditions which are inclusive of

currency issues makes it difficult to come up with a solid solution.

References

Lee, T. S., Tran, A., Hansen, J., & Ash, M. (2016). Major Factors Affecting Global Soybean

and Products Trade Projections. Amber Waves, 1B.

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Crona, B. I., Basurto, X., Squires, D., Gelcich, S., Daw, T. M., Khan, A., ... & Allison, E. H.

(2016). Towards a typology of interactions between small-scale fisheries and global seafood

trade. Marine Policy, 65, 1-10.

Fuller, G. W. (2016). Introduction. In The Great Debt Transformation (pp. 1-24). Palgrave

Macmillan US.

Tadasse, G., Algieri, B., Kalkuhl, M., & von Braun, J. (2016). Drivers and triggers of

international food price spikes and volatility. In Food Price Volatility and Its Implications for

Food Security and Policy (pp. 59-82). Springer International Publishing.