Reference no: EM131496980

This assignment will assess the following learning outcomes:
1. An understanding of a variety of international environmental effects on business.
2. An analysis of the impact of uncertainty on international business behaviour.
3. Demonstrate independent learning in preparation for assignment

Assignment International Business

The data shown below reflect the growth of world merchandise trade (exports) for the period 1870-2007. Critically analyse the facts and respond to the four (4) tasks enumerated below:

The rapid growth of world trade 9ver the last century reflects, at least in part, the fact that nations have become more interrelated as they attempted to gain the benefits of free trade. The table below compares the relative growth of world trade and world output from 1870 to 2007. It shows that the growth rate of world merchandise trade (exports) has exceeded the growth of world output (GDP) in four of the five periods. The post-Second World War period (1950-73) saw an unprecedented growth of world trade which far outstripped the growth of world production (Wall, S. & Ress, B., 2010).

Growth in world GDP and merchandise trade 1870-2007 (average annual % change)

 

	1870-1900	1900-13	1913-50	1950-73	1973-2007
GDP	2.9	2.5	2.0	5.1	3.0
Trade (exports)	3.8	4.3	0.6	8.2	5.1

1. Discuss the two types of trade flow that underlie the recorded growth in world trade.

2. Select one type of trade flow and apply it to the country of your choice that is currently involved in world merchandise trade.

3. Provide the country's 5-year net export figure (2010-2015):
a. Evaluate its performance based on the given data and discuss whether the balance of trade is a "favourable" surplus (exports exceed imports) or an "unfavourable" deficit (imports exceed exports) to the domestic producers and domestic consumers.
b. Examine its effect on the country's gross domestic product (GDP). Show the actual relationship, with figures and chart.

4. Determine the measure/s to sustain a positive net export or method's to restrict the level of imports that when left unabated will lead to realising a negative net export.

(Note: the method may be against the essence of free trade, in this case, come up with justification/s for the use of such a method).

Introduction A. Narrative of current international trade & economy (150 words)

B. Explanation of the two types of trade flow with example/s (150 words)

Main Body  (Contents &  Discussion)

A. Application of the type of trade flow to the country that is involved in world merchandise trade (300 words)

B. Evaluation of the country's performance based on its 5-year net export figures (400 words)

C. Examination of the relationship of actual 5-year net export figure vis-à-vis the GDP data for the same period (400 words)

D. Determination & justification of the use of measures/methods in relation to sustaining a positive net export and abating a negative net export (300 words)

Conclusion & Recommendation.

Brief summary of the main body giving emphasis that growth in world trade (exports) is consistent/not consistent with rising economic prosperity (GDP) (150 words)

Formulate suggestion/s based on the findings (150 words)