International Business

Table of Contents
Section A.................................................................................................................... 3
Introduction to WTO................................................................................................ 3
Top Performing countries with their CSF (Critical Success factors)..........................3
Overview of emerging Economics...........................................................................4
UAE export growth opportunities and challenges....................................................4
Conclusion............................................................................................................... 4
Section B.................................................................................................................... 6
Globalization........................................................................................................... 6
Pros of globalization................................................................................................ 6
Cons of Globalization............................................................................................... 6
Impact of globalization............................................................................................ 7
Conclusion............................................................................................................... 7

Section A
Introduction to WTO
The world trade organization is an internal based organization, which deals primarily with the
rules and regulation maintenance between different countries within the globe. Each country
members are signed in a particular agreement to maintain efficient trade and business system
within their territory (Ball and McCullogh, 1996). Therefore, it can be stated that various
obstacles and conflicts are innovatively managed by this particular organization with the help of
rules and regulations, which in turns facilitate the business process within the country, as well as
helps in development of better trading within the region. With the help of 16 different
multilateral agreements, the economic development has been carried out by the organization. It
was established in the year of 1948 and the authority has carried out the effective participation
since 1995 (Boddewyn, 1976). The annual budgets develop for the company is around $ 180
million. The primary activities of the organization. Such as, Different barrier of trade within the
different countries and establish innovative rules for governing the conduct of international trade
effectively. On the other hand, the intellectual property rights issues and other trade agreements
as well as internal trade agreements were monitored and supervised smoothly by the
organization. However, it can be stated that the authority innovatively manages the overall
settlement disputes and official capacity disputes (Boudreaux, 2008). Most importantly, various
economic and financial researches has been conducted, which help in collecting the data
regarding the current scenario and helps in establishing better ground for future development.

Top Performing countries with their CSF (Critical Success

factors)
It is evident from the WTO data that top three exporters around the globe are China, United
States and Germany. It has the total 11.7% share of the world merchandise export and annually it
is registering the growth of 8%. The second biggest exporter of the merchandise goods is United
States, whose value of total exports is around $1580 billion (Daniels and Radebaugh, 1995). It
has 8.4% share in the total merchandise export in the world and is registering an annual growth
of 2%. The third major exporter of merchandise goods is Germany which has a total value of
$1453billion. It has 7.7% share in the total merchandise export in the world and is registering an
annual growth of 3%. The top three importers of the commercial services are United States,

China and Germany having value of imports $432billion, $329billion and $317billion
respectively. The share of these countries in the decreasing order is 9.8%, 7.5% and 7.2%. On the
other hand the top three exporters of the commercial services are United States, United Kingdom
and Germany and the value of exports are $662billion, $293billion and $286billion respectively.

Overview of emerging Economics

In recent times, the commercial services from the emerging economies have increased by around
14% which is much higher when compared to the other economies. There is a significant growth
registered in Asian countries such as Cambodia which has become a major tourist destination,
Bangladesh has become a major exporter of the information technology and there is an increase
in the construction services in Afghanistan (Folsom, Gordon and Spanogle, 2009). In Africa the
growth in commercial sector has been registered mainly due to expansion of the Ethiopias air
transportation. There is also spurt in the commercial activities due to the addition of Tanzania
and Uganda in the tourist destination. There are some significant development has been carried
out by the countries economist but the rate remains very law 0.7%.

UAE export growth opportunities and challenges

UAE is one of the most emerging countries who diversified their economy from the non-oil and
oil economy innovatively with the help of extraordinary strategies. The non-oil sectors contribute
around 70% of its GDP. After Saudi Arabia, it is the second largest economy in the Arab world.
The major opportunity for UAE is that its economy is growing at a constant rate. It has close
relations with the other gulf countries and is a major member of the Gulf cooperation council. It
is also an important market for re-exporting to other markets. There is also no taxation on the
personal income (Gerdes, 2006). It is ranked 30 th in the ease of doing business by the World
Bank. The major challenges in exporting are that there Emirates has the complete control on the
regulatory powers and it is mandatory to have a national sponsor with a share of 51%. The
complex structure of the federal laws and individual emirates laws are very frustrating for the
export houses.

Conclusion
WTO has to play a major role in the development of the trade relations of the emerging
economies and has to actively participate in the framing of their economic policies. Though

countries such as United States, Germany China and United Kingdom have been the top
performing countries economically but they are getting strong competition from the other
emerging economies such as India, Brazil, South Africa and other Gulf nations. it is the right
opportunity for UAE to undertake economic reforms and facilitate the increase in the export
from its soil. With proper planning it has complete potential to become a major economic hub in
the gulf region.

Section B
Globalization
Globalization is a term, which is used to describe this era where people have come closer to each
other and the goods and services, which are developed in a particular country, can be easily
promoted in any other country of the world almost instantly. This has happened mostly due to the
expansion of the information and communication technologies and faster means of transportation
(Hitt, Ireland and Hoskisson, 1999). This phenomenon has very strong impact on the world
economy and greatly influenced the societies. Globalization may be defined as a combining of
the different countries, cultures, policies and economies as one. Although globalization is not a
new phenomenon but this process has gained momentum in the last few decades due to the
countries adopting the policies to open up their economies. Over the past few years many
countries has adopted the free market economy principle which has vastly increased their own
production capacities and increased the opportunity for international trade and investment
(Waters, 1995).

Pros of globalization

Enhanced availability of the services and products due to economic globalization

Due to globalization the developing countries have been witnessing steady cash flow

which is helpful in reducing their dollar difference

There is an increase in the investment option for the companies
Due to globalization the political decisions on the world matter are taken by the mutual

consensus of every nation rather than just few developed and powerful nations
Globalization has reduced the cultural boundaries and people are have become acceptable
to the outside world (Hoekman, 1995).

Cons of Globalization

Globalization has led to the people losing jobs in the developed countries since the

companies are out sourcing their work

There is a threat from the corporate to the global order as they invest a lot of money in

the other nations

There is sense of the loss of cultural identity due to globalization

There have been problem of social dumping

The sovereignty of a state is reduced
Coordination has become politically difficult

and

expensive

(M.

RAVOK

(WEATHERWEAR) LD. V. THE NATIONAL TRADE PRESS LD., 1955).

Impact of globalization
Globalization has a positive impact on the economy of UAE. Due to Globalization UAE has
been able to increase its foreign investment. It has also been able to increase domestic investment
by the foreign companies due to the globalization of the economies. UAE has promoted free
trade with other nations to facilitate the process of globalization. In 2007, UAE was able to
register a growth rate of 8.2% mainly due to foreign countries investing in the country (Overview
of developments in the international trading environment, 2001). Apart for the development of
the UAE economy globalization has played a very crucial role in the development of the
infrastructure of the country.

Conclusion
It is evident from the study that globalization is one of the most significant drives that results in
eliminating the barriers of trading within different countries and it results in increasing overall
business competition within the organization (Sjursen, 2000). The emergence of globalization
also played important role to enhance the economy of the countries as it helps in better trading
and therefore, the business expansion took place. With the help of this particular expansion, the
target market area is also expanded and the total revenue generation become more rapid and
frequent which provide significant contribution to the overall nations GBP. Globalization has
transformed the way in which the business used to be done in the earlier days. The companies are
more aware of its rivals strategies and the gap between the policies of the different companies
has reduced due to globalization. The main advantage of globalization has been to the consumer
as they are getting the best possible in the lowest price.

References
Ball, D. and McCullogh, W. (1996). International business. Chicago: Irwin.
Boddewyn, J. (1976). International divestment. [Geneva]: BI.
Boudreaux, D. (2008). Globalization. Westport, Conn.: Greenwood Press.
Daniels, J. and Radebaugh, L. (1995). International business. Reading, Mass.: Addison-Wesley.
Folsom, R., Gordon, M. and Spanogle, J. (2009). International business transactions in a
nutshell. St. Paul, MN: West.
Gerdes, L. (2006). Globalization. San Diego, Calif.: Greenhaven Press.
Hitt, M., Ireland, R. and Hoskisson, R. (1999). Strategic management. Cincinnati: South-Western
College Pub.
Hoekman, B. (1995). The political economy of the world trading system. Oxford: Oxford
University Press.
M. RAVOK (WEATHERWEAR) LD. V. THE NATIONAL TRADE PRESS LD. (1955). Reports
of Patent, Design and Trade Mark Cases, 72(6), pp.110-111.
Overview of developments in the international trading environment. (2001). Geneva: World
Trade Organization.
Sjursen, K. (2000). Globalization. Bronx, N.Y.: H.W. Wilson Co.
Waters, M. (1995). Globalization. London: Routledge.