Relations on the Global Front, Essay Example

Ultimately, global business is made somewhat difficult by national and international trade principles. Some regulations that exist on the global front that affect business strategies include military coercion, capacity building, and reciprocity. These regulations are tied closely into the culture of the individual countries that are involved in a business plan and may differ from country to country.

Overall, global business regulations are created due to interactions between principles, mechanisms and actors. One of the most important business mechanisms is military coercion, which is defined as regulation that occurs as a consequence of military force. Although this does not currently have a large impact on world trade, this was the primary driver of business before World War II. Military presence is able to define what goods are sold and for what price, and this impacts its availability and value on the market.

Another regulation that is set to define global trade is capacity building. Global standards are naturally set by wants and needs for products and capacity building is necessary for nations that want to trade but may not have the power to do so. Occasionally, globalization of regulation allows these nations to enter the market if market leaders believe that doing so will provide them with benefit. Therefore, nations can enact individual trade standards that will help poorer nations deliver their products and encourage them to be purchased. An example of this would be to reduce tariffs on imports.

Reciprocity is a regulatory value that emphasizes the wants and needs of trade partners. This could reflect either the legal terms of an agreement, such as a promise that x will be provided by one business partner in exchange for y from a second business partner, or a cooperation between two business. This defines an agreement and could be used as framework in future business decisions.

References

Center on Law and Globalization. (n.d.). How Are Global Business Regulations Created? Retrieved from http://clg.portalxm.com/library/keytext.cfm?keytext_id=56

McGivern Gerry, Fischer Michael Daniel. (2012). Reactivity and reactions to regulatory transparency in medicine, psychotherapy and counselling. Social Science & Medicine, 74 (3): 289–296.