INCEPTION:
International relations means the conflicts and cooperation that exist between international actors. The term itself sounds like something concerned with primarily the states and their governments at international level. It is not just confined to the borders. It would be quite surprising that everything and even every individual is affected by the international environment.
Business is no exception in this regard. International hitches continue to have an impact on businesses and trade as well. Various international relations thesis writing services report that the momentum of businesses towards progression depends upon international relations.
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OVERSEAS COMMERCE:
With the help of international relations people can trade abroad. In this age of digital media, it’s better to pick digital marketing (bestassignmentwriters, 2021).This is the demand of business for which it thrives to take hold on, in order to flourish. Even a major chunk of different powerful economies of the world is dependent on trading abroad. It has been this way for centuries and will continue to operate for centuries to come. Trading abroad is supported by international relations in sense that governments try to formulate the policies in the national interest which is in fact the interests of its subjects.
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INTERNATIONAL LAW:
One might wonder that the interactions between businesses at local level are controlled by the laws of that country. But in case of commerce or trade abroad who is going to decide the right and wrong? Well a full fledge international law is here at play which deals with functioning of relations at international level in similar way as physiology thesis writing service deals with its mechanism with minute details. The states, individuals and even the organizations are the subjects of international law. Further the private international law deals with trade between individuals at international level. While the public international law deals with dealings between states at international level.
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COST OF IMPORT AND EXPORT TARRIFS:
Import and export tariffs are the most common and costly hindrance that businesses have to go through if they want to invest in international trade. These are the kinds of taxes imposed by the government of a country at state level while in case of a Union this is done by supranational union. Governments try to formulate these tariffs in the best interest of their respective countries under the umbrella of international law. This is indirectly in the interest of the businesses within that country.
Tariffs are the most important constituent of trade comprising businesses at international level. The reasons for the governments putting so much importance to tariff related policies both in terms of imports and exports is due to the fact that government maximize their national interest through them. This results in reducing the import of goods and services as their prices are increased by the governments.
While on the other hand this is done so as to protect the domestic industry. When imports would be reduced, it will automatically boost the local producers. In this way imports and exports related policies are being controlled by the governments as per their international relation in favor of their local businesses.
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INTERNATIONAL TREATY OBLIGATION:
Tariff related policies are formulated between states by entering into international treaties. However under certain conditions the nature of the treaty is such that it can be suspended. It is to be kept in mind that not all the treaties are suspended at some particular time in history. Some treaties remain in action even when international relations are in conflict placement. However, the other states can also put embargo upon the trades, which puts an end to the trade between countries at international level. The basic acts containing these norms on which the international legal system primarily relies are international agreements, whether contracts concluded between states and / or international organizations, bilateral or multilateral. (Dragana Nešović, 2018)
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DISPOSITION OF BUSINESS MARKET:
Change in international relations as a result of variations in national and international politics mostly affect the business markets, the most. States changing their foreign policies at intervals is not a new thing. Many foreign policy determinants are always at play to alter the current policies or in the future anticipation. Whatever might be the reason it is not the point of concern here. The point is that states do observe variations in policies which affect the business market notably.
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WHAT IS BUSINESS MARKET?
Business market is a place where different companies come to access their requirements in term of components, raw material and resources. This place handles the pricing situation between these businesses. Any stance, on the part of the government, is directly applied to the variations on the price of the materials. So these policies can be held as a greater determinant of the increase and decrease in pricing of the materials.
Businesses fluctuate their policies in compliance with change of policies at governmental level. So they either go for abrupt rushes in the trade or to avoid these policy factors altogether. It makes the canvas filled with the view that international relations are in fact the actual players forging the changes in business markets to a greater extent.
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EXAMPLE OF BREXIT:
UK was the part of European Union (EU), which is a trading block. UK held a referendum which decided to leave EU. This withdrawal of UK from EU was followed by a lot of certainty all over the world, at international level. This political decision has impacted the market of businesses internationally.
If such drastic changes occur at international level, they are sure to have an influence in businesses operating at other corners of the world like it did so in this example. The pound has recovered since then from its initial position where it was at the time of this referendum. But it is not always so, that business markets are sure to end up in stability which was the case of Brexit.
CONCLUSION:
In the end it would be quite justified to say that international relations have a great significance for the businesses as these relations offer a guiding set of policies for the regulation of these businesses. These relations are also able to impact the trading abilities of businesses along with the business market which actually showcases how it might be.
Bibliography
bestassignmentwriters. (2021, september 4). A Complete Guide to Writing a Well Research Marketing Assignment. https://bestassignmentwriter.co.uk/blog/complete-guide-to-writing-a-well-research-marketing-assignment/.
Dragana Nešović, D. J. (2018). ROLE AND IMPORTANCE OF INTERNATIONAL AGREEMENTS IN REGULATING INTERNATIONAL RELATIONS IN MODERN CONDITIONS. Економика – Часопис за економску теорију и праксу и друштвена питања.
