Effects Of International Trade And Globalisation On Organizational Behaviour Essay.

Assess how organisational behaviour can be affected by changes in international trade and globalisation of business.

Identify measures and economic groups that aim to restrict trade and evaluate how successful they are.

Critically evaluate how international trade relations and regulation affects the supply of materials, labour, products and services in different industries

Globalisation and its Impact on Organizational Behaviour

Global trade among two or more than two countries is said to be an essential factor in improving the standard of living, offering employment and allowing customers to relish a higher range of products. Global trade has arisen since the primary civilizations initiated trading; however, in current years, global trade has converted as an increasingly important aspect with a higher GDP share dedicated towards imports and exports. For example, few nations are indeed plentiful in the raw material such as for diamonds Congo, for oil Qatar, for metal, and fish Iceland, and for butter New Zealand (Pettinger, 2017). Deprived of international or global trade, these nations will not be benefited from the natural grants of raw material.   

This report is being presented in order to highlight the reason behind how organizational behavior can be influenced by the alterations in the global or international trade, economic groups and measures that restrict the trade and how the global trade relations can affect the material, labor, product's supply. Besides this, the report will discuss how the internet has made changes in the international trade, and how it has influenced various industry sectors. Further, various examples of the companies will be provided on how the internet has influenced the business, and how international brands and companies got affected by the ethical considerations. All these discussions are divided into two tasks. In order to complete this task, Emirates Airlines have been selected.

An emirate is an airlines company which is situated in Dubai, UAE. It is the Emirates Group’s subsidiary and completely owned by the government of Investment Corporation of Dubai. The company is known as the biggest airline of the Middle East, functioning around 3,600 flights every week from the hub of the airlines i.e. International Airport of Dubai. The flights of the company travel in more than 81 countries and 140 cities. In the world, it is the biggest airline in terms of revenue.

Organizational behavior helps in the evaluating the people behavior in a group and try to make the effective and efficient environment of business.

Globalization is the procedure that has enhanced the communication by integration of the politics, business, culture, and society all around the world. Globalization is the combination of any type of market with the worldwide economy. In other words, Globalisation means the complex network of the economy of global competition, product markets, and resource suppliers.

Trade Regulations and Economic Groups

Before the introduction of globalization concept, nation-wide borders were flawlessly protected and companies were free from any type of international competition. In today's scenario, the world is called a global village where international companies are scattering their business operations all around the world. Similarly, a huge number of employees are chasing for the opportunities of the job all around the world. As globalization has nurtured the idea of multiculturalism, the association between organizational behavior and culture has become progressively valued (Prosenjit, 2014).  

Today companies have become global so as Emirates Airlines, employees of the company belong to various cultures and nationalities. This variety of employees has made a big change in the organizational behavior and will make changes in the coming future. International organizations such as Emirates Airlines bring different culture and behavior people together. These dissimilar people possess different ethics, values, and belief. Besides this, there are race, gender, ethnicity, and age variances among them. In Emirates Airlines, management of different individuals offer new parts to the leaders.

Cultural diversity is focused toward possessing a deep understanding and respect of the numerous people in the business. The cultural diversity of Emirates Airlines will be strengthened by having teamwork, interpersonal communication, feedback, and team-building activities. For the duration of these type of engagements, people will be capable to communicate and appreciate the culture of every person in the company, accordingly, an organizational behavior and cooperative culture is recognized in the organization.

The trade regime of UAE is open, with non-tariff barriers and low tariffs to trade. The openness of UAE was contributory to attaining the hard growth listed preceding to the global crisis and has enabled the economic activity’s diversification. The worldwide financial crisis came to an end in the time period of fast growth. In 2009 the economy got contracted and developed by 1.4% of the overall GDP in 2010. In the outcomes of the crisis, the growth of GDP was influenced by the lower prices of oil, financial market's turmoil, specifically in the financial sector of Dubai, and price alteration in the property market of Dubai. As a retort to the crisis, the powers supported banks by offering deposit and liquidity guarantees, and by a recapitalization.

The trade regime of UAE is liberal, though there are various conditions and limitations on the foreign investment. Enhanced access of market for the products by the liberalization of multilateral trade and agreements of bilateral trade is a key objective of trade policy. In UAE the planning and execution of the policy are done in both at emirate level and federal level, there is a high level of independence in Emirates. In the Dona development agenda, UAE has always been the active player, in which it offers proposals to reduce non-tariff barriers and tariffs on the raw material and succumbing an initial proposal in trade in services. UAE has been the establishment member of the Gulf Cooperation Council (GCC) (Trade Policy Review, 2018).

The Effect of International Trade on Supply Chain

There is the application of the Gulf Cooperation Council's Common External Tariff in UAE since 2003. The structure of tariff involves four ad valorem tariff rates: zero 15%, it is said to be the normal rate of tariff, 100% on the tobacco products, and 50% is applicable on alcohol. Similarly, all tariff line around 97% is ad valorem; duties are charged on the c.i.f. imports value. Alternative or precise duties are applicable to 0.3% of every tariff lines. From earlier UAE review, the rate of the average tariff has dropped somewhat, to 4.9% from 5.1%. All the tariff lines are bound by the UAE. Rates of Bound significantly higher as compared to applied rates, reaching 200% from zero which is reflecting some scope of reductions. The country is not liable to apply other charges and duties on imports.

The United Arab Emirates involves the world’s biggest industry of air transport. It involved five airlines, 2 of them are key international carriers, and 2 key airports and one of those airports are the world's busiest airport which is established in Dubai. The UAE's industry of airlines got advantages of the "open skies" policy of the country, the effective infrastructure of civil aviation, and competition among different emirates. The systems are supposing the sector to stay growing quickly in the coming future. For this development, both the key airports and airlines have to exploit their responsibilities roles as hubs and transfer transporters, because of the small domestic market of UAE.

There are various plans for increasing the activities and capacity of the ports. Despite the granting concessions policy to the private service providers in few regions, management of port remains a privilege of the diverse emirates. Similar to other various areas of service, despite coordination to some degree at the federal level, the fact is that every emirate possesses policies in the similar area can result in overcapacity. Moreover, coordination between different emirates can confirm that projects of investments are said to be complementary and result in extra policies of integrated development approach.

In the international economy, no country is independent. Every country is involved at various trade levels in order to sell its products, to obtain those products in which it lacks and to make more efficient in economic sectors than its trade partners (Rodrigue, 2018).

The development of new economic giants with fast growth in the trade has deeply changed the supply of services, products, labor, and raw material on a global level. The labor supply weighted by the exports share in the global GDP has increased and became doubled since 1980.

Case Study: Emirates Airlines

In spite of putting huge efforts in order to raise the standards of education, workers with low skills continue to dictate the supply of global labor, even if their portion from the working population of the trade in the world has fallen by 8 percentage points to 69%. This trend stalks mostly from the emerging countries opening up. On the other side, in the developed countries the portion of the highly skilled and talented labor increased, while the low skilled fell sharply (Tresor economics, 2008).

Global trade enabled for huge resources variety to be made extensively available. It also eases the distribution of a varied range of manufactured products that are manufactured in world’s diverse areas to global markets. Wealth becomes progressively imitative by the district economic activities specialization. By this method, the cost of production is decreased, the productivity increases and surpluses are generated that can be transported or operated for produces that will be very costly to create domestically or will merely not be accessible.

There are 6 regulations of the government that affects the supply of raw material, products, services, and labor i.e. Restriction of Dangerous substance, Evaluation, restriction, registration, and authorization of chemicals, conflict material determined under the act of Dodd-Frank, waste from electronic and electrical equipment, traceability of medical and pharmaceuticals equipment, and Part 2 Title 21 CFR (Inspirage, 2018).

The internet has opened various areas for people, industries, countries, and corporations. The internet nature keeps everyone informed of the things going around the world daily. It has become assessable for the small firms to make people aware of their services and products. It has permitted people to operate from anyplace every from their residence in place of costly offices.

Global or International trade was not possible for various nations. Though, with the communicating ability with the customers and investors globally, various small nations have capable to increase the industries and businesses globally (Cabrera, 2010).

The industry of Air services and aviation is a big, challenging, and competitive industry, considered by the high requirement of labor and capital; along with the participation of customer during the dealings henceforth service fulfillment. Offering countless reach and the potential for ironic communication, the internet is said to be the travel transaction’s natural medium. Airlines are revolving to e-commerce in order to make business flying and the aim they are concentrating on vending tickets by their website because it is the inexpensive distribution channel. Offering online discounts on the travel services like Hotwire, and Priceline enables airlines to dump additional inventory.

Cultural Diversity in Emirates Airlines

The internet is doing development in some industries sectors, particularly those comprising, manufacturing, connected vehicles, energy, and supply chain analytics.

Wearable- There is a crowd in the market of wearable. These are not limited to the fitness trackers, but the variety is increasing to combine clothing that displays respiration rate, football helmets that have influence detection competences and smart glasses that allow augmented reality. These instruments or devices produce environmental and biometric data for feedback or include processors permitting smart decisions to be taken depending on the collected information.

Vehicles- Connected vehicles are capable enough to analyze and take decisions depending on the data collected from the environment (Eastwood, 2017).

Manufacturing- Internet in the manufacturing sector is not atoll a fresh concept. Various facilities of production are dependent on the machine learning and smart sensors in order to do modifications in the procedures.

Agriculture- Agriculture is the industry which has become profitable due to the evolution of the internet. The applications are comprised of the usage of smart sensors to remotely control and monitor equipment and pumps, along with environmental monitoring of soil profiles, air quality, and chemical levels (Freund and Weinhold, 2004).

Healthcare- This sector has potentially lifesaving competencies that look for enhancing the quality of life of the patient and allow management and self-monitoring of health (Information age, 2017).

Energy- Gas and oil companies utilize internet devices in order to measure drilling lines. By evaluating and subsequently accepting the pressure and speed of the process of drilling, these devices offer to improve the procedure and reduce cost.

Ashley Madison is a social networking and an online dating service company established in Canada. It is marketed to those people who are in relationships or are married. Darren Morgenstern is the one who founded this company and established in 2002. The slogan of the company is “Life is short. Have an affair.” (Vega, 2018)

The internet has affected this company negatively as in 2015; “The impact team” is a group stole all the information and data of the company. This hacking group copied all the private information of the users of the site and were threatened to issue the personal information and names of the users if Ashley will not wind up or shut down immediately. In August, the hackers group released all the data of the company which also included the details of the user which was around 25 gigabytes. Due to the policy of the site of maintaining the information of the client's many users were feared of being shamed publically (Lord, 2017).

UAE Trade Regime and Policies

Fox News is a satellite television and basic cable news channel and was founded by Rupert Murdoch. They broadcast news in 86 countries worldwide. In 1995 company introduced it online website which used to feature the latest news, information, events, etc. This website of the company encouraged various used to read post and comment on the different news (Fox News, 2018).

Axe is a product of male grooming, which is owned by the British Company. The company is focused towards targeting male demographic. It is also called as Lynx in Australia, China, UK, and Ireland (Unilever USA, 2018). The advertisement of the Axe depicted numerous ways the products allegedly assisted men to attract women.

Opposing publicity has been created by the advertisement of the product for influencing sexism and sexual promiscuity. In 2008, Daniel Hurley died due to cardiac arrhythmia because of spraying huge amounts of Lynx or AXE in a limited space. Some social networking sites showed videos which depicted that teens are coming in contact with fire which lead to multiple injuries (Dolan, 2008). One of the complaints against AXE deodorant is that it is bad in taste and also vulgar. Due to this CCC said the visuals are indecent and causing extensive scandal. It resulted in a modification which is done by deleting some scenes (Munjal, 2016).

Duty-free access to imported inputs- The time country try to attempts to influence exports with an endangered trade command for the domestic market production, it is very important to guarantee continuous duty-free access to the intermediate inputs imported required for the export production (Lukauskas, Stern and Zanini, 2013).

Removal of Export Duty - The export duties which were introduced by the government were only justified for the protection of the environment, resources, however, they were eliminated afterword. But these duties were applicable in scrap metal and crude oil (Labordew, Estrades and Bout, 2013).  

Domestic taxes Exemption- Concessions are offered to the exporters in terms of turnover tax, and corporate income tax, which creates a tax chunk in support of production of export over domestic market production (Athukorala, 2005).

Protectionism is said to be an economic policy applied for the imports restriction from other various countries by the methods like imported goods tariffs, quotas on import, etc. (Kuepper, 2017)

Conclusion

In the conclusion, it can be said that Emirates Airlines is one of the top airlines of the world and operate its activities in terms of offering comfort and luxurious services to the passengers. However, the company's organizational behavior gets affected due to international trade, but in positive aspects. The above report has highlighted information which is important for the development of the country and organization. The discussion includes the effect of international trade on organizational behavior, the effect of international trade on the supply of raw material, product, and labor. Besides this, it has discussed the effect of the internet on the business and policies that restrict trade. 

References

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