International Business for Geopolitical Factors - myassignmenthelp

Question: Discuss about theInternational Business for Geopolitical Factors. Answer: Various drivers are being involved in initiation of the trade agreements between the countries. According to the various theories, there are two types of drivers namely, top down and bottom up. Top down refers to the geopolitical factors which influence the promotion of trade agreements. It includes the political intention among the countries. Geopolitical factors influence in the promotion of trade agreements when there is mutual benefits which can be gained by the countries from one another (Cohen, 2014). I also believe that business intention is not only the driver for the geopolitical trade agreements but also the strategic intention plays an important role. Strategic agreements among the countries help in creating common bloc which enables them in having more influence in the global political scenario. On the other hand, bottom up drivers includes the various business stakeholders and market factors which influence the creation of the trading bloc. According to Flemes and Wehner, countries involve in the strategic agreements to equal the balance in the global politics along with promoting and enhancing business through the agreements (Flemes Wehner, 2015). According to him, various countries in South America create trade bloc to undermine the power hood of big powers such as Brazil. On the other hand various other authors are given the opinion that market factors also play an important role in influencing the trade agreements. According to Dr, Baccini, Elsig, trade agreements are also influenced by marketing factors such as the customer demands, competitive advantage of the countries and the international business policies of the organizations (Nikfarjam Zarifi, 2015). Therefore, I believe that if a country is having market demand for a certain product and it is ever increasing provided that the resources are limited, the only option remained for them is to go for a trade agreement with another country having adequate resour ces. Thus, in this case, trade agreement will help in optimal utilization of the resources of country B along with meeting the market demand of country A. According to me, another marketing factor which has huge impact on the trade agreement is the aspects of international business. Contemporary business organizations enter in the global market in order to increase their market share and global competitiveness. Thus, the first preference for them is to enter the countries where the potentiality for their business will be higher. Accordingly, the home and host countries come in to the trade agreements to initiate effective business transaction among the participating countries. According to Gantz, regional trade agreements are being initiated according to the needs and requirements of the market for a particular region (Gantz, 2012). For instance, SAARC was being formed to gain the mutual understanding between the countries in south Asia. The countries in South Asia are more or less similar in terms of the market scenario (Noronha et al., 2012). Thus, this type of regional agreements helps in enhancing the free flow of the business tran sactions among the countries in the particular regions. Thus, having analyzed the various drivers for trade agreements, it can be concluded that the marketing factors are more influential drivers than the top down factors in initiating the trade agreements. According to me, the primary motive or objective of the trade agreement is to enhance the business scenario among the participating countries. I believe that the political intension of the countries play a secondary role in influencing the trade agreements. On the other hand, marketing factors plays the primary role due to the reason that strategic aspect for the countries comes as a secondary options. Trade agreements help to promote the optimal business transactions among the countries which may enhance the political environment for the particular region. Thus, countries should consider the marketing and business aspects in promoting the trade agreements with other countries. It will help to enhance the business environment in the particular region which will eventually enables to cr eate a strategic relationship among the countries. Reference Cohen, S. B. (2014).Geopolitics: the geography of international relations. Rowman Littlefield. Dr, A., Baccini, L., Elsig, M. (2014). The design of international trade agreements: Introducing a new dataset.The Review of International Organizations,9(3), 353-375. Flemes, D., Wehner, L. (2015). Drivers of strategic contestation: The case of South America.International Politics,52(2), 163-177. Gantz, D. A. (2012). Regional trade agreements. InThe Oxford Handbook of International Trade Law. Oxford University Press. Nikfarjam, A., Zarifi, S. (2015). Exploring the effects of entrepreneurial marketing factors on SMEs.Uncertain Supply Chain Management,3(4), 333-338. Noronha, V., Tsomo, U., Jamshed, A., Hai, M. A., Wattegama, S., Baral, R. P., ... Prabhash, K. (2012). A fresh look at oncology facts on south central Asia and SAARC countries.South Asian journal of cancer,1(1), 1.