Dian Arya Jaya (2020-119), A.Atiful Khair (2020-125), Yayank Avrilia 2020- 130), Andrian Pramudya (2020-352)
Universitas Muhammdiyah Malang
ABSTRACT
The global trade environment has undergone significant changes in recent years, driven by technological advancements, political events, and shifts in consumer preferences. As a result, businesses operating in international markets must navigate an increasingly complex and dynamic landscape to remain competitive. This paper provides an overview of the current global trade environment, highlighting key trends and challenges facing businesses. It explores topics such as the rise of e-commerce, the impact of trade disputes, the role of international organizations in shaping trade policies, and the growing importance of sustainability and social responsibility in global trade. The paper concludes with recommendations for businesses seeking to thrive in the rapidly evolving global trade environment.
Keywords:   global   trade,   e-commerce,   trade   disputes,   international organizations, sustainability, social responsibility.
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CHAPTER I INTRODUCTION
Globalization is a social process that results in geographical restrictions in socio-cultural conditions that become less important, incarnated in human consciousness (Rhoni Rodin, 2020). Globalization has drastically changed the production model of multinational companies which originally tried to produce all their needs as production specialization. Therefore the world/international business must really be practiced in this global era. International trade itself is understood as one of the ways countries can meet their needs, especially for very important goods such as fuel, minerals, or electronic machinery. However, services are not only goods but also goods sold in international trade. International trade is trade by the government for residents between countries where there is a profitable process of exchanging products and services (Bonaraja Purba, 2021). This International Business means that international trade is closely related to finance. (M. Rafiqul Islam, 2020). Today's global trade is very important. In addition to free trade and economic globalization, it is also realized that no country can fulfill its needs without trading. Trade relations between parties in two different countries are generally carried out in the form of exports and imports according to (Eddie Rinaldy, 2020).
At the country wide stage, trade outbreaks constitute roughly the whole percentage of production trapped throughout countrywide borders, as well as the wide variety of jobs in countries that rely upon foreign exchange. At the worldwide degree, exchange represents the proportion of all global production this is used for imports and exports among nations (Brady, David, 2020). From those international change sports, financial family members are formed between cooperating countries. There are three types of economic members of the family amongst which can be as follows. 1. there may be an alternate of output or effects received by means of a rustic with different nations which have mounted cooperation. 2. The formation of financial members of the family in the shape of receivables that arise among international locations. three. there has been an change of manufacturing flows and an change of production facilities (Wahono, 2021). The drivers of international exchange are differences in natural assets, technology and technology, overproduction that calls for business enlargement, citizens of different nations having an hobby inside the identical product, and expanding markets (hamid A.h, 2020), and eventually the inhibiting issue is the change price. exceptional countries, global economic policies, conflicts in a rustic, export and import sports that take too lengthy.
Therefore, there are many reasons why we as students need to study the economy and global trade environment. This reason according to (Suherman Rosyidi, 2022) that the goal is to train so that someone can develop their creativity to be able to do business both locally and globally. By studying international trade, we will know various theories related to international trade and business that can be used to analyze the conditions of economic and business relations that occur between one country and another (Eddie Rinaldy, 2020). Other knowledge, for example related to the international monetary system, international finance, international investment and balance of payments, can be used to assist the analysis. The factor of international trade is also a big influence for each country to be able to highlight its comparative advantage in order to be able to compete in the international world, of course this must also be supported by good political conditions so that export-import activities run according to a country's economic targets (Kartavinata , 2021). Proponents of the concept of standardized global trade believe that the world is developing to become increasingly equal in terms of regional environment and the behavior of its customers, they do not care where their consumers come from (vrontiis and tassou, 2022). For this reason, for students who have the possibility to work in a company that carries out international trade or business activities, knowledge related to international economics and business will be very useful.
CHAPTER II LITELATUR REVIEW
The global trade environment is a complex and dynamic system that consists of a multitude of economic, social, and political factors (Redmond, 2020). Globalization has led to the interdependence of countries on each other's markets, giving rise to a need for a stable and inclusive global trade environment (Vargas, 2022). This literature review explores the various aspects of the global trade environment, including its history, its current state, and the challenges and opportunities it presents. The history of global trade can be traced back to the Silk Road, which facilitated trade between Europe and Asia (Aritua, 2021). During the colonial era, European powers established trade links with their colonies, creating a global trade network (Liu, 2020). After international battle II, the overall agreement on price lists and change (GATT) turned into installed to promote loose alternate and decrease exchange boundaries. In 1995, the sector trade enterprise (WTO) become created to replace GATT and adjust international change (Herbert, 2020). Overall, the global trade environment is a complex and multi-faceted system that presents both challenges and opportunities (Doh, 2021). While protectionism and trade disputes pose significant challenges, there is also immense potential for growth and development in the global trade landscape. The key to a stable and inclusive global trade environment lies in cooperation, collaboration, and open dialogue between nations (Bathelt, 2022). The World Trade Organization (WTO) plays an important role in facilitating global trade relations between countries. It is responsible for ensuring that international trade runs as smoothly, predictably and freely as possible by creating and enforcing the rules and regulations that govern trade between member countries (Chaisse, 2023). The WTO provides countries with a platform to negotiate and resolve trade disputes and helps promote economic growth and development through trade liberalization. Its role in promoting fair and equitable trading practices is essential to ensure that all countries, regardless of size or economic situation, can benefit from the opportunities offered by the global trading system (Hoekman, 2020).
The main difference between these categories of preferential trade agreements is the number of participating countries and the scope of the agreement, with bilateral agreements being the smallest and multilateral agreements being the largest. So while bilateral agreements benefit only her two countries, multilateral agreements can have broader implications for the global economy (Hoekman, 2021). The North American Free Trade Agreement (NAFTA) has created dynamic trade ties between its three signatories: the United States, Canada and Mexico. The agreement eliminated most tariffs and trade barriers and facilitated the growth of cross-border trade and investment (Aathif, 2021). NAFTA also increased competition among signatories, leading to the reallocation of resources and the creation of new industries. However, the deal has drawn criticism in some sectors, particularly the United States, who believe NAFTA has caused job losses and trade deficits continue to work together to improve agreements and address concerns (Ariff, 2021). The four most important preferential trade agreements in Latin America are MERCOSUR, the Pacific Alliance, the Central American Integrated System "SICA", and the Andean Community. Mercosur consists of Argentina, Brazil, Paraguay and Uruguay, with associated members including Bolivia and Chile (Kamath, 2020). Another major agreement is the ASEAN Free Trade Area (AFTA). AFTA includes most Southeast Asian countries and promotes economic integration and cooperation within the region. In addition, China has several bilateral agreements aimed at reducing tariffs and facilitating trade between participating countries, such as the China-Korea Free Trade Agreement and the China-Australia Free Trade Agreement (Shimizu, 2021).
There are several forms of economic integration in Europe. The first is a free trade zone, which eliminates tariffs and trade barriers on goods traded between member countries (Ndonga, 2020). The second is a customs union that sets common external tariffs on goods traded with third countries (Ishikawa, 2021). The third is a common market that allows the free movement of goods, services, capital and persons between member states (Genschel, 2021). The fourth is an economic union with harmonization of economic policies and regulations, a common currency and a common monetary policy (Anderrson, 2020). Finally, there are political federations, in which member states establish supranational government agencies and share decision-making authority on economic and other policies. These forms of economic integration promote economic cooperation, efficiency, and competitiveness among member countries (Buti, 2023).
CHAPTER III DISSCUSION
A. The role of the World Trade Organization in facilitating global trade relations between countries.
Against this background, it can be seen that the world trade organization currently has a very important role. Several world economists and global economic policy makers are beginning to understand that in conducting international trade special policies are needed to regulate international tradeThe role of overseas exchange in the technique of monetary improvement, both at once and not directly, is that it can boom forex profits, switch capital and era from overseas and may increase new industries (Muchtar, 2021). This is because their goal is to promote the development of the world economy and its countries, as well as to reduce poverty around the world. Therefore, the International Trade Organization was established to regulate and control international trade policies. This company is referred to as the arena trade company or WTO (Chandraulan, A. A., & SH, L, 2022). the sector alternate organisation (WTO) is a international business enterprise that regulates alternate among countries. founded in 1995, this organization is a continuation of the general agreement on exchange and trade (GATT) formed after the second one world war.) the principle task of the sector exchange organisation is to ensure that alternate among member countries runs easily, reliably and as freely as possible. thus, the desired welfare may be performed exactly (Thomas and Jeffry, 2021). WTO is a international change employer primarily based in Geneva, Switzerland. This organisation become established on January 1, 1995 due to the Uruguay/Uruguay Circle negotiations (1986-1994) and presently consists of a hundred and fifty nations in line with (Echdar, S, 2020). WTO took over the role of GATT which aims to maintain an open and free international trading system. The WTO is responsible for enforcing the multilateral rules governing international trade and comprises three main legal instruments and dispute resolution mechanisms. The following is a further explanation of the four relevant issues (Suherman, A. M , 2022)
B. Compare and contrast the four categories in preferential trade agreements
Preferential change Agreements (PTAs) are worldwide trade agreements among two or more nations that reduce or dispose of price lists on certain goods and services traded between them (Kalirajan, 2022). There are unique varieties of PTAs, and that they can be labeled into 4 categories (Ji, zhu ,2020) : loose alternate area (FTA), Customs Union (CU), commonplace marketplace (CM), and financial Union (european). free alternate region (FTA), an FTA is a PTA wherein participating countries conform to get rid of or reduce price lists on items and services traded between them, even as preserving their personal exchange regulations with non-member countries (Gurtu, Johny, 2022). The purpose of an FTA is to sell loose alternate and raise economic growth by means of facilitating the motion of products and offerings across borders (Mlambo, 2022). Customs Union (CU), a CU is a PTA wherein collaborating countries agree now not only to get rid of or lessen price lists on goods and services traded between them, however additionally to undertake a not unusual external tariff on imports from non-member nations (Yao, Zhang, 2021). because of this once goods enter any of the international locations within the CU, they could flow freely in the union with out facing extra tariffs (Bown, 2021). The purpose of a CU is to promote trade amongst member nations and shield them from unfair opposition from non-member nations (Totic, 2020).
Common Market (CM), a CM is a PTA where participating countries agree not only to eliminate or reduce tariffs on goods and services traded between them, but also to adopt a common market for labor and capital (Dadush, 2023). This means that citizens of member countries can move freely across borders to work, study, and invest. The purpose of a CM is to promote economic integration and facilitate the movement of factors of production across borders. Economic Union (EU), An EU is a PTA where participating countries agree not only to eliminate or reduce tariffs on goods and services traded between them, adopt a common external tariff, and establish a common market for labor and capital, but also to adopt a common monetary and fiscal policy (Al-ghazali, 2020). This means that member countries share a single currency, and their economic policies are coordinated to ensure macroeconomic stability and convergence. The purpose of an EU is to promote deep economic integration and create a common economic space among member countries (Mattoo & Ruta, 2020). In summary, the four categories of PTAs differ in the degree of economic integration they achieve among participating countries (Ishikawa, 2021). An FTA promotes free trade, a CU promotes trade and protects members from non-member countries, a CM promotes the movement of factors of production, and an EU promotes deep economic integration and coordination of economic policies (Kedir, 2020).
C. Dynamics of trade relations among the signatories of the North American Free Trade Agreement
The North American loose change settlement (NAFTA) is a local change agreement between america, Canada, and Mexico that went into impact in 1994 (Zahniser, 2020). It created a free change sector, eliminating price lists on items and offerings traded among the 3 countries (Olayiwola, 2020). NAFTA has been a subject of dialogue seeing that its inception, with proponents touting its advantages to financial increase, task introduction, and customer prices, at the same time as critics argue that it has caused task losses, wage stagnation, and environmental degradation (Dellmuth, 2021). The dynamics of exchange family members a number of the signatories of NAFTA have evolved through the years, with the settlement being renegotiated in 2018 and replaced by means of the usa-Mexico- Canada agreement (USMCA) in 2020 (Anderson, 2023). The USMCA includes updates to the original agreement, such as increased regional content requirements for automobiles, improved labor and environmental standards, and provisions related to digital trade and intellectual property rights (Villarreal, 2020).
Scholars have examined the impact of NAFTA and the USMCA on various aspects of trade relations, including the automotive industry, agricultural trade, labor standards, environmental protection, and the digital economy (Gladstone, 2021). For example, a study by Jos Antonio Alonso and Carlos Rodrguez Gonzlez analyzed the preliminary effects of the USMCA on trade and investment flows, while Kevin Kennedy, James Scott, and Andrs Rozental explored the implications of trade diversion in North America resulting from the USMCA. Other researchers have focused on specific industries, such as Maria C. Lapidus, who examined the new rules of origin for the automotive industry under the USMCA, and Christine Piette Durrance and Sarita K. Shah, who studied the potential impact of the USMCA on the pharmaceutical industry (Ciuriak, 2021). Additionally, scholars have analyzed the USMCA's trade, labor, and environmental provisions, as well as its potential impact on Mexican manufacturing and implementation challenges (Gladstone, 2021). Overall, the dynamics of trade relations among the signatories of NAFTA and the USMCA are complex and multifaceted (Lai, 2021). While these agreements have the potential to spur economic growth and improve trade relations, they also have the potential to lead to job losses, wage stagnation, and environmental degradation if not implemented properly (Haini, 2020).
D. Identify the four main preferential trade agreements in Latin America and the key members of each
There are 4 preferential trade agreements in Latin America:
Preferential Trade Agreement (PTA) in PTA there is a reduction or elimination of several tariff posts which are in the interests of the countries involved. In this agreement, the Rules of Origin (ROO) are enforced to determine the status of a product exported to a partner country. The PTA aims to secure market access for each fully participating country. (Richars, 2020). Trade in Good Agreement (TIGA) This agreement includes the reduction or elimination of all product tariff items. This agreement enforces some of the regulatory benefits of the global exchange corporation (WTO). (Echdar, 2020). Free Trade Agreement (FTA) is an agreement involving two or more parties that regulates the reciprocal imposition of tariff preferences between parties who have entered into an agreement (WCO, 2020) FTA can be used for preference and non-preferential interests. And finally, and then Comprehensive Economic Partnership Agreement (CEPA) includes eliminating trade barriers for several goods and services and regulating other economic cooperation such as labor movement, investment and also business competition. (Zhen and Chen, 2021)
E. Identification of the main preferential free trade agreements in the Asia Pacific region
Fifteen countries inside the Asia-Pacific area have signed the world's biggest free alternate agreement, that's anticipated to boost up monetary recovery after being hit by using the coronavirus pandemic. local complete monetary Partnership (RCEP), signed on Sunday (15/11) at the sidelines of the ASEAN annual summit, which was held thru video conference. The dream summit become hosted by using the Vietnam which in flip hosted the RCEP convention. This fact will lower price lists, open up the provider zone and set wellknown exchange regulations inside the location. The agreement covers funding, telecommunications and Copyright (Hardjoko, 2021). This agreement covers 10 ASEAN member international locations; Vietnam, Thailand, the Philippines, Laos, Cambodia, Myanmar, Malaysia, Singapore, Indonesia and Brunei - in conjunction with Australia, China, Japan, New Zealand and South Korea. missing was India, which withdrew from the RCEP negotiations the subsequent year at the grounds of concern that it's going to open up overseas opposition inside the agricultural and production sectors(Tirtodiningrat, 2022). The chinese optimum celebrated the signing of the settlement pronouncing: "The signing of RCEP isn't always only an essential fulfillment of East Asia regional cooperation however also a victory of multilateralism and free trade." (Li Keqiang, 2020). New post-pandemic optimism. Indonesian President Jokowi in his speech virtually from the Bogor Presidential Palace, West Java, said the success of the RCEP negotiations marked the commitment of nations to the precept of multilateral change that is open, fair and beneficial to all parties (Jokowi, 2020).
F. Describe the various forms of economic integration in Europe.
After international war II, the eu political weather favored the democratic integration of eu international locations, which became visible as an try and avoid the acute nationalism that had sparked preceding wars in Europe. ecu integration itself is a procedure of industrial, political, criminal, economic, social and cultural integration of countries in Europe, european integration is supported via the Council and the eu Union. The system of political integration of the eu Union commenced to be intensified after the bloodless struggle. the ecu Union makes a decision on two criteria, every of which is the premise for financial coverage and ecu political policy.The European Union's economic criteria are known as the Maastricht Criteria, while the European Union's political criteria are known as the Copenhagen Criteria (Arief, 2020). Each European Union member state is required to comply with and fulfill both of these criteria. The preparation of these 2 criteria increases the demand for countries of the former Soviet Union to join the European Union. Strengthening political integration of the European Union was also followed by strengthening the market economy. Countries that want to join the European Union then begin to be strictly selected using two European Union criteria (Azwar, 2021). European Union political integration can also be formed as a result of similarities in history, tradition, culture and politics in its member countries. Europe was built into a form of European integration of democratic values in each EU member state. Mutual trust is the primary principle agreed upon by the members of the European Union in forming and strengthening its politics. The European Union's political history began when the European Union was founded (Azwar, asruddin, 2020). EU politics aims to establish security for European citizens by overcoming all the geopolitical problems they experience. His main interests include diplomacy, international law, negotiations, and multilateralism. European Union politics was formed as an attempt to abolish the tradition of war militarily in solving problems between countries in Europe. (Qobidi, Ainul, 2020).
G. Major regional organization activities in the Middle East
Regional monetary business enterprise, inside this corporation, there are 6 styles of organizations: the primary is SAARC based on December 8, 1985 in Dhaka, Bangladesh the usa of Pakistan, Bangladesh, Bhutan, India, Nepal, Maldives and Sri Lanka. SAARC is based in Kathmandu, Nepal. The history to the established order of SAARC turned into the wish of South Asian nations to work together with a spirit of brotherhood, faith and understanding. The goal of SAARC is to shape the economies of South Asian member countries (Suwarno, 2020). The second EEC (citizens of the European Economy) on June 1, 1955 there was a meeting in Messina, Italy, which appointed Paul Henry Spaak (Belgian Minister of Foreign Affairs) to chair the committee that had to compile reports on possible collaboration in all economic fields. Officially the EEC was formed on March 25, 1957 and was agreed upon by 15 European countries (Petrikor Immanuel, 2020).
Third, AFTA means the convention of ASEAN countries which was made to produce a free trade place, in order to increase regional economic competitiveness by making the ASEAN region a global production base (Syamsuddin A., 2021). Fourth, NAFTA (North American loose exchange agreement) NAFTA started out operations on January 1, 1994. to begin with NAFTA became applied in 2 international locations, namely the united states and Canada. The heritage to the founding of NAFTA was the American Summit in Chile in April 1988 which discussed increasing cooperation in the field of trade. NAFTA has objectives including: increasing economic growth and employment opportunities, creating a business climate to encourage fair competition (Thomas, 2020). Fifth, CAFTA (Central American Free Trade Agreement) CAFTA is a free trade agreement agreed by the United States and Central American countries such as Costa Rica, El Salvador, Guatemala and Nicaragua in the 2003-2004 period. And finally APEC (Asian-Pacific Economic Cooperation) APEC was founded in 1989 by several countries in the Asia and Pacific region. The purpose of establishing APEC is to increase economic growth and strengthen the community of countries in the Asia Pacific.
H. Identify problems for global marketers looking to expand in Africa
Infrastructure challenges, the inadequate infrastructure can pose a significant challenge for global marketers operating in Africa, as it can hamper the movement of goods and services across the country. This can be attributed to a lack of proper roads, transportation networks, and other essential facilities (Lwesya, 2021). Cultual and language barriers, Africa is a diverse continent with many different ethnicities and languages, which can make it difficult for global marketers to communicate effectively with local consumers, a better understanding of the cultural norms and languages of each country is essential (King, 2020). Political instability and corruption, many parts of Africa are plagued by political instability and government corruption, which can stifle economic growth and create an unfavorable business environment. This can have a direct impact on the business operations of global marketers (Watabaji, 2022). Limited access to credit, access to credit is a significant challenge in many African countries, making it difficult for businesses to obtain the necessary funding to expand their operations (Ndung'u, 2020). This can limit the expansion opportunities for global marketers in the region. Lack of skilled labor, many African countries face a shortage of skilled labor, meaning that businesses may need to invest significant resources in training and development to ensure staff are appropriately qualified to do the job. This can impede the rapid expansion of global marketers in Africa (Choi, Dutz, 2020).
Limited access to market information, reliable market information can be difficult to obtain in some African markets, which can make it challenging for global marketers to conduct market research and develop effective marketing strategies (Sraha, Sharma, 2020). Limited distribution networks, in some African countries, there may be limited distribution networks, which can make it difficult for global marketers to reach their target audience and distribute their products efficiently (Sutherland, 2020). Economic challenges, while many African countries are experiencing rapid economic growth, others still struggle with poverty and underdevelopment (David, Grobler, 2020). This can make it difficult for businesses to establish themselves in these regions and may require additional resources to address economic challenges. Regulatory challenges, many African countries have complex regulatory systems that can make it difficult for businesses to navigate legal requirements and obtain necessary permits and licenses (Hilson, 2020). Overall, expanding into the African market requires a deep understanding of local cultures, infrastructure, politics, economics, regulations, languages, and market trends. By addressing these challenges, global marketers can successfully expand into this dynamic and rapidly growing market (Litvinenko, 2022).
CHAPTER IV CONCLUSION
The global trade environment is complex and constantly evolving. It is characterized by a myriad of factors ranging from market liberalization policies, technological advancements, cultural diversities, and geopolitical tensions. However, despite these challenges, international trade remains vital in promoting economic growth, creating new opportunities, and improving living standards. To remain competitive and successful in the global trade environment, businesses need to be sensitive to changing market conditions, embrace new technologies, build strong relationships with partners and stakeholders, and adhere to regulatory frameworks. In addition, policymakers must work towards creating an environment that is conducive to trade, enabling businesses to compete fairly, minimizing trade barriers, and promoting inclusive economic growth. Ultimately, the global trade environment is an opportunity for countries to promote growth, development, and prosperity for their citizens through international cooperation and mutually beneficial trade agreements.
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