BUSINESS ACTIVITIES

Significance of the Global Factors That Shape National Business Activities

Significance of the Global Factors That Shape National Business Activities

Introduction

An economy, as a dynamic system, is continuously changing to incorporate technological innovations in the production processes and to satisfy the needs of an ever-evolving society. In the last 30 years, an outburst of technological innovations in the computer and in communication has moved the economy to be more global. This can clearly be seen in the formation of the global corporations in all industries, especially in financial, and in the outsourcing of production and services in the manufacturing and labour sectors (Stiglitz, 2006, 23).

The global slowdown and recession of 2007 to 2009 has taught us that there is a strong interaction among the economic activities of all countries around the world. We are seeing that new economic powers are emerging in the developing countries, challenging the already well-established powers of the United States, the European Union, and Japan. These new powers are strong in both producing and consuming goods and services. At such a global setting, the economy of a country is very much dependent on global economic activities. In this connection, this study will assess the impacts of global factors on business activity (Bradford, 2006, pp. 257-71).

Discussion and Analysis

Global Factors and Economic Performance

The dependency on global factors of national business activity needs to be incorporated in measuring economic parameters of a country, such as output, prices, employment, and so on. In addition, new parameters need to be identified and measured for the global economy. On the technical aspect of forecasting, one area that still needs substantial contribution is in applied forecast evaluation. Defining success in an organization and evaluating the performance of a forecast in that context is in critical need of development (Archer and Fritsch, 2010, pp. 103-128).

An economic system can be monitored using parameters that describe its different aspects, such as income, production, employment, inflation, and so on.

Significance of International Trade to UK Business Organizations

The term international trade refers the exchange of capital, services and goods across international territories or borders (Gruber 2001, pp. 703-741). International trade has become one of the most critical issues in domestic as well as international politics in recent decades. Although a growing number of historically oriented studies have shown that trade has been a salient issue among empires, states, and cities for centuries, it has become such a critical, contemporary issue because countries' economies are now, more than ever, open to trade flows. They thereby create complex interdependence, defined as mutual dependence, between national economies. Technological progress has resulted in dramatically falling transportation and communication costs, whereas various liberalization policies have freed the exchange of goods and services from different tariff and non tariff barriers (Alt, Frieden, Gilligan, Rodrik and Rogowski 1996, pp. 689-717).

In this context, the significance of international trade for UK business can be assessed. UK is one of the most developed nations of the world as well as producers of some of the most popular ...