INTERNATIONAL BUSINESS 6
ContemporaryIssues in International Business
ContemporaryIssues in International Business
Inthe present world, there are numerous topics, ideas, events, andopinions that are related to the global business. Hence,international trade can be perceived as the commercial transactionsthat include: transportation, sales, logistics, private, andgovernmental dealings that are carried out between two or morenations irrespective of the political boundaries. Some of thecontemporary issues in international business are the direct foreignaid, social corporate responsibility, Christianity on foreign aid,impact of evolving demographics on world trade, and how the changesaffect both developing and developed countries. The namedcontemporary issues can generate negative or positive effects oninternational business, and they require regular monitoring(Meyer & Peng, 2016).This paper provides a succinct discussion of the above contemporaryissues for a better comprehension of how each affects theinternational business.
KeyPoints of Direct Foreign Aid
Theconcept of foreign aid is very significant in the current world, andit can be regarded as a global transfer of services, capital, andgoods from a specific country or an organizational body with the aimof benefiting people of a particular nation. Aids can be of a variousforms such as crisis humanitarians, military, and financial mattersthat are given when a disaster occurs in a given country(Packenham, 2015). Hence, the following are some of the key points of direct foreignaid: it helps to eradicate poverty in poor countries around theworld, there are mutual benefits both to the donor country,recipients and countries involved, it is focused on empowering othernations so that they become more independent, the aid assist infighting problems in the society such as drug abuse and HIV/AIDS, ithelps in developing and protecting natural resources, the aidcontributes to improved health through creating clean water andsanitation, it creates jobs through encouraging development ofindustries and improved transport system, and finally, foreign aidhelps to curb the problem of food shortages by supportingagricultural projects (Packenham,2015).
WhyCorporate Social Responsibility is Important
Inthe international business, there is a concept known as socialcorporate responsibility which is a business technique that helps insustainable development by ensuring that all stakeholders enjoybenefits on economic, environment and social obligation(Wu etal.,2015). The following are some of the importance of social corporateresponsibility in the international business: it takes control of thefirm, customer retention is enhanced, a mutual relationship isestablished between customers, networks, and suppliers, has theability to maintain, attract and retain a contented workforce, moneyis saved that can be used to meeting the following costs risk,energy, and operating expenses, social corporate responsibility helpsto different business from other competitors, it improvescreativity, learning and boosts the influence of the business, ithelps to create good name of the company, it builds an environmentaccessible to investment and financial opportunities, and lastly,due to ethical activities there is positive publicity developed sincemedia are interested in the business(Gupta, Briscoe & Hambrick, 2016).
Roleof Christian in Addressing the Issue of Foreign Aid
Religionhas a significant role when it comes to the issue of foreign aid,which is an assistance offered to a nation when facing problems suchas poverty. Christians are working hard to ensure that thedevelopment assistance that is given by the donor countriesultimately reach the intended people. A lot of funds are disbursed bythe donor countries, but a significant amount is wasted by thecorrupt recipient government irrespective of the good motives of thecontributing nations (Cooper,2015).Hence, Christians insist that there has been a disparity in thesupply of foreign support but the contributor states have not beenapprehended accountable of such events. Therefore, Christians areconcentrating on the foreign aid to ensure that there istransparency, accountability and honesty in the distribution of aidwithin the poor nations. Moreover, Christians are structuringorganizations that can collaborate with churches in poor countries sothat they can ensure that there is equity in foreign aid(Cooper, 2015).
HowEvolving Global Demographics will Change World Trade
Thefuture state of the global trade is being transformed by evolvingglobal demographic shifts that are taking place around the globe. Owing to demographic variations, modifications are being experiencedin the technological realm, consumption patterns, and fluctuations inproduction. As the number of people continues to increase, there willbe high demand for goods and that creates effects on goods producedfrom international trade (Turner& Holton, 2015). There are innovations that continue to emerge as global demographicevolve and as a result world trade has been changed significantly.For instance, technology has connected human being from every phaseof the universe and payment and shipment of goods and services hasbecome more simple and convenient. As demographic changes,alterations in the consumption patterns are noted, and in which thegoods meant for world trade are required to meet the specificationsof customers. Additionally, as the population escalates, ittranslates to increases in the production of goods and servicesrequired for the international trade(Turner & Holton, 2015).
Howthe Changes Affect Society in Developing World
Thereare effects that come along with shifts in demography especially inthe developing world since it has an effect on the economic andfinancial market. For example, growths in populace posit an adverseeffect on food manufacturing, distribution of resources, and donationof foreign aid. As the number of citizens increases, the demand forfood grows and the manufacturers are forced to produce additionalquantity to meet the expectation of the population. If thepopulation growth surpasses food production both from internal andexternal aid, either of the following can happen: famine, war, andepidemics(Coale & Hoover, 2015).
Howthe Changes Affect Society in Developed World
Sinceforeign aid comes from the developed country, more pressure can bemounted on these States because the number of people in need of theirdonor services is on a constant upsurge. Such nations will beexpected to allocate huge amount of monies that can meet any disasterwhen it arises in developing nations. Additionally, developedcountries will be needed to conduct research and formulate strategiesthat can help to overcome certain problems that emerge as a result ofincreases in population(Harper & Leicht, 2015).
Internationalbusiness can be perceived as the commercial transactions thatinclude: transportation, sales, logistics, private, governmental thatis carried out between two or more nations irrespective of thepolitical boundaries. Similarly, some of the contemporary issues ininternational business are the direct foreign aid, social corporateresponsibility, significance of Christian on foreign aid, the impactof evolving demographics on world trade, and how the changes affectboth developing and developed countries. Additionally, corporatesocial responsibility is important since it enhances innovationwithin the business. There are innovations that continue to emergeas global demographic evolve, and as a result world trade has beenchanged significantly.
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Cooper,M. (2015). The theology of emergency: Welfare reform, US foreign aidand the faith-based initiative. Theory,Culture & Society,32(2),53-77.
Gupta,A., Briscoe, F., & Hambrick, D. C. (2016). Red, blue, and purplefirms: Organizational political ideology and corporate socialresponsibility. StrategicManagement Journal,12(2),346-354
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