MGT 365 Week 4 Discussion - Post And Response

MGT 365 responses

Johnathan Berghorst

The biggest problem that is currently facing the international business practice is the COVID-19 pandemic. Trade and commerce has experienced many problems with dealing with back orders, delays, and an overall feeling of mistrust to some countries, especially China. There are business that no longer trust China and therefore no longer want to do business with China. We've seen here in the United States many problems related to the pandemic. The price of meat sky rocketed as there was a major shortage in meat and diary trading. Farmers faced the problems of distrupting their crops and turning profits from the international trade that they depend on. I was able to see this on a personal experience this past summer when I worked for a plumbing supply company. Everything from toilets, to showers, tubs, and sinks were on back order or were shipped and the shipment was incorrect due to the caous of the virus. This meant that homes that were being built and needed these supplies were put on delay because the products simply were not coming in. Other customers said they no longer wanted any products coming from China and that the business I worked for would have to find a new manufacturer. 

The virus affected trade and international business in so many other ways as well. People were not traveling to other countries due to shut downs and therefore were not conducting business that was essiental in each country. Some business was able to continue due to todays technology but other business practices such as contracting could not because of the travel bans. This left many projects uncompleted with more and more money lost. This leads into the second problem that is currently facing everyone and that is the trade war. I think this is a very difficult situation and one that will have to play out over the long run to see whether or not it will hurt or help the United States in international business. I think that for the short term the move that the Trump administration has made for the traffics on trade will hurt the economy but I think that in the long run it will help. The new trade agreement that was signed between Canada, Mexico, and the U.S proved to be beneficial, especially for agricultural trade. I think that over time the same can be said for the other trade agreements because of the unfair practice that has occurred over the years where we have a massive trade deficit that continues to raise our national debt and make China stronger. I hope that a more fair and even trade deal can be worked out for the future that in the long run will benefit business better then the current structure. 

TORSELLO, Marco, and Matteo M. WINKLER. “Coronavirus-Infected International Business Transactions: A Preliminary Diagnosis.” European Journal of Risk Regulation, Cambridge University Press, 7 Apr. 2020, www.ncbi.nlm.nih.gov/pmc/articles/PMC7160163/. 

“To Make Better Decisions, You Need to See the Big Picture.” IHS Markit, 14 Sept. 1970, ihsmarkit.com/solutions/us-china-trade-war-impacts.html. 

Sarah Bellinger

Since everything is interconnected now because of globalization, there has been an explosion of issues that threaten international business and civilization. I believe the issues that pose the most significant threats are those that disrupt the international supply chain, enabling resources to not reach their destinations. Some of those issues are Covid-19, protectionism, disruptive weather patterns due to climate change/global warming and terrorism. Of those issues, I think protectionism and disruptive weather patterns due to climate change/global warming seem to be the most pressing issues because they disrupt the supply of products and services. For example, there have been a number of countries utilizing protectionist practices after a decades of breaking barriers to gloabization. A lot of these protectionist practices deal with trade, trade blocs and governmental regulations that disrupt the openness of international business. This can be seen with Brexit and the United States halting discussions with the North American Free Trade Agreement. Also, China and th United States were involved in tariff trade wars. Lastly, China has banned the use of social media site like Facebook from use by its citizens. The best solution for these issues is to get back on track of open international trade and stop punishing other countries with regulations, tariffs and sanctions.

Another key issue is disruptive weather patterns due to climate change that is fueled by global warming. Devastating weather has caused a lot of destruction in many countries. While countries continuously rebuild their infrastructure from damaging weather, other countries that participate in international business, may find a supply shortage of services and products that are produced in the weather battered countries. Individual companies should continue environmentally friendly practices, so as not to add to global warming. On an international level, developed countries should help other developing countries like India source and obtain technology that will allow them to go green. Without infrastructure to move goods and services and without the openness to share ideas, civilization will not advance as fast as it would. Globalization has allowed for poverty to drop significantly in the past thirty years. While international business is prone to a multitude of risks, I think what the world will gain in the end, will be worth it.

Sources:

https://www.businessinsider.com/greatest-threats-to-civilization-modi-india-2018-7

Ch. 6&7 in the class textbook

Isaac Beltz 

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 What issues, do you believe, create the most significant threats to international business and the well being of our civilization?

I believe the biggest threat to international business and the well-being of our civilization is covid-19 and other black swan events. Covid has disrupted business operations and resulted in closing borders and isolation. Furthermore, it is hard to continue normal operations when our normal way of life is turned upside down. It is hard to adjust and adapt to black swan events as they come about suddenly. As we can see, unexpected events like the economic recession or covid-19 drastically affected the economy which is bad for business. It is hard to maintain relationships with suppliers or other companies if you cannot go to their place of origin. According to FP Insider Access, " Closed borders, travel bans, paralyzed supply chains, and export restrictions have prompted many to ask whether globalization itself might fall victim to the coronavirus." Essentially, this virus has reeked havoc on society all around the world. 

   Please develop an analysis that identifies the two issues which create the most significant Political/social economic risk to International Business AND make recommendations for solutions: A) at the international level and B) for individual companies to implement. 

The two issues which create the most significant political and social economic risk to international business is President Trumps trade wars with China (tariffs) and unemployment/quarantine due to covid.  According to Peterson Institute of International Economics, " Each battle uses a particular US legal rationale, such as calling foreign imports a “national security threat,” followed by Trump imposing tariffs and/or quotas on imports." This causes tension between countries and could result in an endless battle for the best deal. They need to negotiate in a way that benefits both parties, not where China dominates the US. As for covid, virtual meetings can be hard, but with proper timing, it could work. We must continue to stay safe and stay home in order to beat the virus.  

“Trump's Trade War Timeline: An Up-to-Date Guide.” PIIE, 12 Aug. 2020, www.piie.com/blogs/trade-investment-policy-watch/trump-trade-war-china-date-guide.

Fontaine, Richard. “Globalization Will Look Very Different After the Coronavirus Pandemic.” Foreign Policy, 17 Apr. 2020, foreignpolicy.com/2020/04/17/globalization-trade-war-after-coronavirus-pandemic/.

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