Student: 1
ECON-600:.schoology.com/course/342743767″>Competitive Advantage
in the Global Economy
Role of International
Organizations to Shape Global Economy
The idea of globalization can be described as organizing business
operation beyond the national boundaries. The international business
organizations play critical roles to shape the global economy as they operate
in the global market and serve the global customers. In this process,
integration of political, social, technological and cultural framework helps
the global economy in both positive and negative manner (Samimi &
Jenatabadi, 2014).
The global business firms contribute to the global economy by
sharing the resources and taking part in the trade liberalization. Through
outsourcing and internalization, the firm facilitates the people of the globe
to enjoy resources that are not available in their local area (Querishi &
Jalbani, December 2014). All the international firms contribute in a positive
manner in the education, manufacturing, servicing and health sectors. Further,
in the international business, the firms also provide employment opportunities
to people on the globe.
It is important or the international firms to create a harmony
with the local policies and business environment to contribute positively to
the economic development. The international firm gains the profits from the
local market, which hurts the local economy, whereas providing employment and
other resources to the local people enhances their social and professional
standards, which is a positive contribution. It is essential to maintain a
balance in the growth and development of the countries (Ocampo, 2010). The
relationship of the international business firm with the local government should
be strong and the firm should focus on social welfare and development of
country people. At the same time, the relationship of the international firm
with the global business should be based on diversity and cultural development.
Flexibility and promotion and welfare of the environment and the society should
be the main agenda. In addition, issues, like, poverty, pollution, human
health, infrastructure and education development.
References
Ocampo,
J.A. (2010). Rethinking Global Economic and Social Governance.Journal of Globalization
and Development,
1 (1), 1-27.
Querishi,
J.A. & Jalbani, A.A. (July-December 2014). The Puzzle of Mainstream and
Deviant Globalization.Business Review, 9 (2), 106-118.
Samimi,
P & Jenatabadi, H.S (April 2014). Globalization and Economic Growth:
Empirical Evidence on the Role of Complementarities.PLoS One, 9 (4), 1-10.
Student: 2
ECON-600: Competitive Advantage in the Global
Economy
Role of International Organization to Shape
Global Economy
Important role of
international organization is to promote and increase trade among nation to
increase global social welfare. International organizations promote trade for
global economic development. In times liberalized global trade regime economic
globalization free economies are concerned with losing economic competiveness
in changing world. International organization like United Nations Industrial
Development Organization (UNIDO), World Trade Organization (WTO), International
Monetary Fund (IMF), World Bank, the Organization for Economic Cooperation and
Development (OECD), UNCTAD and the World Economic Forum are some o the
international organizations. These institutions work for increasing
international competitiveness of countries, industries and their financial
markets (Irina-Elena Gentimir, 2013).
Various international
organizations have various objectives but their common mission is to promote
economic policies that enhance social and economic welfare of people around the
world (Helen V. Milner, 2001). These global forums provide platforms for
government of various countries to discuss problems and experiences and find
solutions to common problems. These organizations work with various government
and their agencies explain and understand what determines the social, political
and economical change, analyses data and compare data to predict future trend
in global trade. These organizations really help countries in bringing
development in their economies. These organizations never hurt local economies
because when development comes in the country local economy also will benefit
from development (Robert O Keohane, 2003).
Relation of
international organization should through concerned national government.
National government in turn relate with local government. Policies of global
organizations should not hurt local economies.
Relation of
international organization should be cordial one and they should be enabler for
doing global business and increase flow trade among nations. These
organizations should help global economies in creating value.
References:
Helen V. Milner,
Globalization, Development, and International Institutions: Normative and
Positive Perspectives, Journal on Economic Growth.
Irina-Elena Gentimir, “the Role of
International Economic Organizations and the Public Sector in Creating and
Sustaining International Competitiveness”, 2013, CES Working Papers – Volume V,
Issue 3
Robert O Keohane, International institutions: Can
interdependence work? CES Working Papers – Volume III, Issue 5
