GLOBAL BUSINESS

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 TOPIC 1

Authorities have taken steps to restrict the spread of the coronavirus since it

originated in China and spread globally. Experience with similar diseases shows that, while

the human costs are significant, most economical prices are due to individual preventive

action and government transmission control policies. The current circumstance is no

exemption. As the infection spreads across the world, a few countries have effectively found

a way or will take ways to restrict its spread through friendly disconnection arrangements like

shutting instructive schools, lessening work, and limiting individuals' portability. The careful

steps had a quick and fundamental impact on all economies and accomplice economies

through exchange and the travel industry. This paper draws the effect of Covid 19 on

worldwide exchange and speculation

Macroeconomic impacts: The global pandemic will reduce Chinese GDP by 3.7

percent and global GDP by 2.1 percent. Because of their relatively deep trade integration,

East Asia and Pacific (EAP) countries are projected to suffer the most significant GDP losses.

China, widely regarded as the "world's factory," would see a drop in production across all

sectors and commodities. The yield organization shifts toward assembling, bringing about a

deficiency of profitability and lower yield. The cost of a unit of imports and fares rises, while

Chinese work loses seriousness. As far as fare decays, the EAP nations are the most

influenced, with Hong Kong SAR, China, encountering the main misfortunes (5.2 percent),

trailed by the Lao People's Democratic Republic (3.6 percent), Cambodia (3.9 percent), and

Singapore (4.4 percent). China's vacationer related action trades are somewhere around 29%,

while imports are somewhere near 37

Household actual consumption falls by 7.2 percent. Global GDP is anticipated to fall

by 2, while GDP in developed countries is likely to fall by 2.5 percent and in high-income
nations by 1.9 percent. The EAP countries are predicted to experience the most significant

losses, with China (2.3 percent) being the most affected (Ranald, 2020). Tourism flows

increase by 2% to 3% among nations outside the EAP zone, nonetheless total tourism flows

to decline in all countries. Exports from the area fall by around 30% as the shock spreads

from China to Asia. Under uplifted overall pandemic situations, worldwide GDP drops by 3.9

percent, while Chinese GDP falls by 4.3 percent. The main GDP misfortunes have been

recorded in the areas that are generally coordinated through exchange and the travel industry.

Cambodia and Thailand are gauge to endure GDP misfortunes of over 6%. Sub-Saharan

Africa and the Middle East and North Africa nations are the most un-affected. Worldwide

GDP is required to fall somewhere in the range of 0.1 and 1.5 percent, while global exchange

is probably going to fall somewhere in the range of 0.2 and 3.75 percent.

Trade impacts: Under the heightened global pandemic scenario, US exports are

projected to fall by nearly $85 billion (2014 dollars). Exports of services, especially tourism

and services requiring face-to-face contact, have been hit the hardest. Exports to Europe and

the EAP are projected to fall the most due to the recession and lower demand.

Impacts on sectorial productivity: Each transmission channel causes a particular

sectorial reallocation of production. The first shock has a similar impact on all industries by

limiting labour and capital supply (Ranald, 2020). The most significant negative surprise is

seen in the production of pandemic-affected domestic services and exchanged visitor

services. Trade and some agricultural products are the industries that have suffered the most

in absolute terms. Thailand's gross production deficit is estimated to be 5.3 percent in the

amplified global pandemic scenario.

The pandemic has presented an unprecedented threat to the hospitality industry.

Temporary closures have resulted from community lockdowns, social distancing, stay-at-
home orders, and travel and mobility limitations. Almost all restaurants were instructed to

restrict their operations to take-out only. In the COVID-19 market world, hospitality

companies are required to make significant improvements to their operations. A sizable

proportion of people (more than half) cannot eat at a restaurant right away. The majority of

consumers (more than half) cannot fly to a destination and stay in a hotel any time soon. To

direct hospitality operations during the coronavirus pandemic, the industry and academia are

in desperate need of behavioral and operational hospitality marketing and management

studies (Maliszewska et al., 2020). When the COVID-19 vaccine becomes effective, a group

of consumers will only feel comfortable eating at a sit-down restaurant (around 14%) and

traveling to a destination and staying at a hotel (about 17%).

Companies are currently in response mode. This stage focuses on the measures an

organization has taken to plan for a crisis and the specific actions it is taking now to handle

business and workers in the face of a virus outbreak. The following tasks may be included in

this stage: Create and carry out a crisis communication strategy, Create a COVID-19 task

force, Provide workers with flexible working schedules, such as teleworking, Determine

supply chain disturbances, Find novel ways to provide value to customers, and Adapt to

changing consumer needs by introducing new services, products, processes, and innovative

solutions.

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 TOPIC 2

Numerous external environmental factors can have an impact on your market.

Managers often conduct in-depth analyses of every of these variables. The aim is always to

make improved decisions for the advancement of the business. Political, economic, social,

and technical factors are all standard. Companies also study environmental, legal, ethical, and

demographic factors. This topic analyses the relevance of political and economic factors for

multinational corporations in international market assessment.

Political issues that influence industry are often giving a lot of attention. One of the

only predictable facets of the market world is the political situation. Pressure movements also

have an impact on government policy. Paying bribes to elected authorities is a way for certain

companies to survive and prosper. The success and growth of these businesses are unrelated

to the service they offer to consumers. Any companies may face higher taxes, and others may

face lower taxes. Since the decision would have an immediate effect on your business, you

must keep up with political changes. You should be mindful that political considerations will

have an effect on the final result (Rana et al., 2020). The company should be able to deal with

the local and foreign implications of politics. The transition could be caused by fiscal, legal,

or social causes, or a combination of these. These political trends have four major

consequences for businesses. The following are the details: Effect on the economy, regulatory

reforms, political stability, and risk reduction.

Economic forces influence goods, services, and money. These factors, though having

a significant effect on firms, contribute to the state of the economy on a broader scale —

whether local or global (Rana et al., 2020). This is due to the fact that the state of the

economy has a direct effect on certain important aspects of a sector, such as market demand,
taxation, and asset valuation. The following are some examples of business-related economic

factors: Interest rates, exchange rates, demand and supply, royalties, and so forth.

Effect on the economy

The political state of a country affects its financial circumstance. Organization

achievement is affected by the condition of the economy. In the United States, for instance,

there are significant arrangement aberrations between the Democratic and Republican

factions (Witt, 2019). This affects themes like tax collection and government spending plans,

which influences the economy. It has been shown that expanded government speculation

animates the economy.

Changes in the law

Governments can adjust their laws and guidelines. This could have genuine

ramifications for an organization. The US Securities and Exchange Commission turned out to

be more genuine with corporate consistence after the mid-20th century bookkeeping

embarrassments. The Sarbanes-Oxley implementation guidelines were unlimited by the

public authority in 2002. This was a response to the current social environment. The social

climate requested that public enterprises be considered more responsible.

Stability in Politics

Political unrest in a world has consequences for company activities. This is

particularly true for corporations with a global presence. For example, an offensive takeover

might overthrow a government (Witt, 2019). This might lead to riots, looting, and general

disorder in the environment. These have a negative impact on corporate activities. Sri Lanka

was in a similar condition after its civil war. The unrest has spread to Egypt and Syria.

Risk Minimization
 Political risk can be managed by purchasing political risk insurance. Companies with

international operations use this type of insurance to mitigate risk. Some indices can help you

figure out how much trouble you're exposed to in different nations. The Economic Freedom

Index is a decent example. It assigns a ranking to nations based on how politics impacts

business decisions in those nations.

PESTLE analysis is a strategic forecasting method that investigates the different

variables that influence the business climate of a corporation or organisation. The aim of a

PESTLE analysis is to obtain a detailed understanding of the environmental atmosphere of

the company. A PESTLE analysis is normally carried out before a SWOT analysis. PESTLE

is made up of the following elements: political, economic, social, technological, legal, and

environmental. PESTLE causes are difficult to categorize or compartmentalize into tidy little

bins. We assume that PESTLE influences operate within broader processes of convergence

and interconnectedness, resulting in a more complex view of the most powerful forces

impacting an organization's success and shaping strategic choices. For these purposes, we

conclude that applying PESTLE analysis in a systematic manner is the most effective way to

use this strategic technique (Rana et al., 2020). Rather than writing a PESTLE overview in a

basic table format with lists of components, we propose mapping out the PESTLE variables

in a more expansive "network" of an interconnected diagram. The "internet" picture is useful

because it allows you to more vividly imagine the organization's external world by helping

you to see the relations between different aspects and create new ideas and transparency.
 Topic3

Consumers are more than ever requesting that companies change their corporate

processes, become more transparent, and take a proactive position in tackling social, cultural,

and environmental concerns. CSR (Corporate Social Responsibility) has been ingrained in

today's business world, and businesses that lack it risk being left behind. The word "corporate

social responsibility" denotes to a company's attempts to ensure that its accomplishments

have significant social and environmental implications. Businesses who engage in aggressive

CSR practices assess their global operations to incorporate cultural and social issues, while

benefiting both. CSR models may help businesses grow and sell more while simultaneously

fostering global transformation and growth, which often includes helping individuals who

have little to no money. The importance of corporate social responsibility and the benefits of

maintainable and responsible business practices are discussed in this topic.

CSR's benefits speak for themselves as to why it is so important and why you should

try to integrate it into your company. Four of the most obvious benefits of corporate social

responsibility are as follows:

The public perception of the business has changed. Consumers judge your public

profile when deciding whether or not to buy from you, because this is important (Nguyen et

al., 2018). And anything as simple as your employees offering an hour a week at a hospital

shows that you are a caring organization. As a result, you'll seem to consumers as even more

attractive.

Increased brand recognition and visibility. This data will spread if you are committed

to ethical practices. As a result, more consumers can learn about your products, increasing

brand acknowledgment.
 Cost-cutting: Numerous easy improvements in favor of sustainability, such as using

less packaging, will help you save money on production.

An advantage over the competitors: If you support CSR, you will stand out from the

industry's competitors. You establish yourself as a company that is dedicated to moving

beyond and beyond by considering social and environmental considerations.

Employee involvement is stronger. Just like you must ensure that your team is aware

of your consumer service techniques, you must also ensure that they are aware of your CSR

strategies. Employees want to work with a company that has a good public reputation over

one that does not (Nguyen et al., 2018). Additionally, showing a contribution to topics like

civil rights improves your odds of recruiting and maintaining top prospects.

Representatives would have more advantages. When you acknowledge CSR, your

labourers will receive an assortment of rewards. Your working environment will be a stronger

and productive climate, and you will advance individual and expert improvement by

empowering things like chipping in.

Examples

Lego's Commitment to Sustainability: Lego is the first toy firm designated a Climate

Savers Partner by the World Wildlife Fund. Lego intends to use environmentally friendly

materials to manufacture all of its primary goods and packaging by 2030. By 2025, the

toymaker plans to eliminate all single-use plastic packaging from its products. Lego launched

150 botanical parts made from sustainably sourced sugarcane in 2018 to make its iconic

building blocks more environmentally friendly (Nguyen et al., 2018). The company has also

put $164 million into its Sustainable Materials Centre, where researchers are testing bio-

based materials.
 Salesforce's Philanthropic Model 1-1-1: Salesforce, a cloud-based tech company, is a

corporate philanthropy trailblazer. Salesforce workers have logged over 5 million volunteer

hours to date. More than 40,000 non-profit organisations have benefited from the company's

grants totaling $406 million. Salesforce is a great example of how profit-making and social

responsibility projects don't have to be mutually exclusive, according to experts.

Starbucks' Commitment to Ethical Sourcing: In 2002, Starbucks launched its first

corporate social responsibility report, paving the way for the company to become as well-

known for its CSR initiatives as it is for its products. One of the ways the brand has

accomplished this goal is by ethical procurement. Starbucks announced in 2015 that 99

percent of its coffee supply chain is ethically sourced, with the aim of reaching 100% through

continued efforts.

Non-governmental organizations (NGOs) play an essential role in bringing about

social change and growth in society. It has been shown in various parts of the world that these

organizations have many faces. People must be trained, excited, and encouraged to be a part

of it.

NGOs, or non-governmental organizations, aid in educating those who have been left

behind in society since its inception and have never reaped the benefits that the government

has provided. Women's education, STs, and SCs are examples.

NGOs have given and continue to give their all in the fight to end gender inequality,

which has existed since ancient times. Girls face various issues, including a lack of access to

education, forced marriage, and the prohibition of working outside the home. As a result,

non-governmental organizations (NGOs) work to eradicate certain societies' destructive

ideologies.
 NGO's are to blame for women's inability to leave the confines of their homes and

engage in politics, company, and social activities. Because of the efforts of non-governmental

organizations and academic institutions, women now have access to a whole new world.

We've seen a rise in the number of women working (Nguyen et al., 2018). Many foundations

exist, like Agrani, Eklavya, Sewa, and Environmental Action Group. Women see new

opportunities for themselves every day thanks to the assistance of non-governmental

organizations.

TOPIC 4

Even though Parliament cannot enact legislation, EU law cannot be passed without its

approval. In a process known as co-decision, Parliament negotiates all legislation, including

the budget, with the commission and the Council of Ministers. Furthermore, international

agreements, including trade agreements, require the approval of Parliament. The president of

Parliament, who the members choose, must sign laws before they can be passed. A variety of

other powers are available to Parliament. It appoints members of the European Commission,

implying that parliamentary elections play a significant role in deciding EU policy course.

The commission may even be forced to resign by Parliament. That has never happened, but

the commission did resign en masse in 1999 in response to a corruption crisis before

Parliament could act. A variety of other powers are available to Parliament. It appoints

members of the European Commission, implying that parliamentary elections play a

significant role in deciding EU policy course. The commission may even be forced to resign

by Parliament. That has never happened, but the commission did resign en masse in 1999 in

response to a corruption crisis before Parliament could act.

 The European Union plays a major role in diplomacy, human rights promotion, trade,

development, humanitarian aid, and cooperation with multilateral organizations (Jovovic et

al., 2017). The European External Action Service's (EEAS) mission is to put the European

Union's foreign stance into coherence and cooperation. The Lisbon Treaty establishes the

European Union's diplomatic principles. Here are few examples of the EU's foreign policy

positions:

Peace Contributor: The EU has led and sponsored international peace talks to promote

solutions to conflicts worldwide internationally. After years of EU-led diplomacy, a landmark

international agreement on Iran's nuclear program was reached in July 2015. To conclude the

decades of civil war in Colombia, the EU encourages peace negotiations between the

government and the FARC movement (Jovovic et al., 2017). In Mali, by co-mediating the

Malian peace agreement, which was signed in June 2015, the EU is aiding the country to

emerge from a deep policy crisis. One example is the EU-Kosovo dialogue, which led to a

historic agreement in April 2013 and is currently being carried out with EU support.

A responsible neighbor: Several countries in the east and south of the European Union

have experienced or still face drastic political changes. The European Neighbourhood Policy

seeks to establish solid and friendly ties with countries on the borders of the European Union

to guide their transition to full-fledged democracy. Some of the strategy's objectives are to

encourage democracy, good governance, and human rights while opening trade and working

together in a range of policy fields, including migration and visa issues.

Human rights policy: In terms of political dialogue, development and aid policy, and

the EU's involvement in multilateral forums, such as the United Nations, the EU has made the

rights fundamental in its external relations (Balland et al., 2019). The EU also has guidelines

on human rights, including mortal punishment, torture, and online and offline freedom of
speech. The EU Democracy and Human Rights Instrument improve respect for the

fundamental rights and freedoms of the countries and regions where they are most vulnerable.

Human rights are the freedom to vote. Observing elections is a crucial EU operation aimed at

fostering international democracy, human rights, and the rule of law.

The EU Ministry for Foreign Affairs is different from the EU Common Trade Policy,

where the EU's Common Commercial Commissioner is responsible for implementing trade

policy. Unlike other foreign policy matters, the national governments have decided to pass

their full decision-making power to the EU.

The EU needs a unified commercial policy because of its customs union that

establishes the entire Block's internal market and a single external tariff that treats any

product and service equal to the EU. In trade agreements and the World Trade Organization,

therefore, the EU functions as a single entity. Most EU institutions are required to conclude a

trade agreement.

First, the national governments must agree to grant the European Commission a

mandate to negotiate with a particular partner through the European Council and the Council

of Ministers. The EU Commercial Commissioner takes the lead and negotiates an agreement.

The European Parliament and the Council of Ministers must accept the deal, as with any

other law, before signing (Balland et al., 2019). Lastly, if a trade agreement is

comprehensive, individual approval by each EU Member State may also be needed. One such

example is the Comprehensive Trade and Economic Agreement (CETA) between the EU and

Canada. CETA, signed in 2016, must still be fully implemented because the Government of

Italy has so far declined to sign.

 References

Balland, P. A., Boschma, R., Crespo, J., & Rigby, D. L. (2019). Wise specialization policy in

the European Union: relatedness, knowledge complexity, and regional diversification.

Regional Studies, 53(9), 1252-1268.

Jovovic, R., Draskovic, M., Delibasic, M., & Jovovic, M. (2017). The concept of sustainable

regional development–institutional aspects, policies, and prospects. Journal of

International Studies, 10(1).

Maliszewska, M., Mattoo, A., & Van Der Mensbrugghe, D. (2020). The potential impact of

COVID-19 on GDP and trade: A preliminary assessment. World Bank Policy

Research Working Paper, (9211).

Nguyen, M., Bensemann, J., & Kelly, S. (2018). Corporate social responsibility (CSR) in

Vietnam: a conceptual framework. International Journal of Corporate Social

Responsibility, 3(1), 1-12.

Rana, S., Prashar, S., Barai, M. K., & Hamid, A. B. A. (2020). Determinants of international

marketing strategy for emerging market multinationals. International Journal of

Emerging Markets.

Ranald, P. (2020). COVID-19 pandemic slows global trade and exposes flaws in neoliberal

trade policy. Journal of Australian Political Economy, (85), 108-114.

Witt, M. A. (2019). De-globalization: Theories, predictions, and opportunities for

international business research. Journal of International Business Studies, 50(7),

1053-1077.