The reviewed module proved to be very insightful in more ways than one. The study of the phenomena and mechanisms of economics and modern society are beneficial to one’s professional and personal development since it improves one’s awareness of the surrounding world. As for the theories that are created to attempt to understand these phenomena, they contribute to this awareness while also improving one’s cognitive skills, including critical thinking.
The module was devoted to globalization and international trade, which, in my opinion, are crucial topics for the modern business since nowadays, an industry and even a single company are unlikely to remain unaffected by globalization. Globalization, however, is more than just an economic phenomenon; the term describes the processes of global integration in most fields of human activities, including communication, culture, social norms, and economics (Näätänen 2015), which eventually results in international trade (Rugman & Collinson 2012).
The two theories of Absolute and Comparative Advantages attempt to explain the latter phenomenon and provide the actors with strategies that can supposedly grant a niche in the international market (Rugman & Collinson 2012). Both theories take into account the fact that the global economies are varied; some of them are capable of producing a good with greater efficiency (fewer inputs), which means that they have the absolute advantage in this respect. For instance, a tropical country has the absolute advantage in producing tropical fruits.
Comparative advantage deals with lower opportunity costs of producing a good. In this case, the country that has the advantage produces and sells more of this good, and another country has the opportunity of buying it at a cost that is lower than the cost of production. In my opinion, these theories provide an insight into the way international trade complicates and facilitates modern economy: it tends to improve the well-being of humanity by promoting most efficient ways of producing goods and provides the connections that make globalization real, but the connections remain complex and tend to be affected socially and politically. An example is sanctions, for instance, the ones that have been imposed on Russia recently (Jenkins 2016).
The module demonstrates that globalization is capable of affecting industries in positive and negative ways, but it is hardly reversible (Kiyotaki & Miyakawa 2013; Solodkovska & Olefirenko 2014; Tuinstra, Wegener & Westerhoff 2014). As a result, the understanding of its mechanics should forearm us with the means of using it to our advantage. To sum up, I believe that the module broadens my awareness and knowledge of the theory of business and the modern world in general.
Also, this knowledge does not have to remain theoretical as it is capable of demonstrating me the ways of contributing to the development of my future workplace. Moreover, my Goal Three consists becoming an effective administrator, which involves expanding my theoretical knowledge of this role and business in general. Finally, there is a chance that I will choose to become an entrepreneur (possibly, in a field related to healthcare). As a result, I am not unlikely to practically apply the knowledge gained through this module.
Reference List
Jenkins, S 2016, ‘After Litvinenko, more sanctions against Russia would be pointless – and hypocritical’, The Guardian. Web.
Kiyotaki, F & Toshiji Miyakawa, T 2013, ‘Barriers to Global Free Trade through Bilateral Agreements’, Review of International Economics, vol. 21, no. 3, pp. 536-548. Web.
Näätänen, A 2015, ‘The impact of economic globalization on the employment policies in 19 western democracies from 1985 to 2010. Limited change or radical shift towards workfare?’, Social Sciences, vol. 4, no. 3, pp. 700-717. Web.
Rugman, A. & Collinson, S 2012, International business, Pearson, New York.
Solodkovska G. & Olefirenko, V 2014, ‘Ways of Improvement of Non-Tariff Measures of International Trade Regulations’, Management Theory and Studies for Rural Business and Infrastructure Development, vol. 36, no. 4, pp. 966-976. Web.
Tuinstra, J, Wegener, M & Westerhoff, F 2014, ‘Positive Welfare Effects of Trade Barriers in a Dynamic Partial Equilibrium Model”, Journal of Economic Dynamics & Control, vol. 48, pp. 246-264. Web.