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

Global Business Strategy - Essay Example This 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 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 to 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 b y 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 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 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 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 that a country barring economic liberalizatio n 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). It’s 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 framework 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 social fabric and operation of governance (Balaam & Dil ham, 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