The Paramounted Importance of Critical Analysis in International Trade Policies

International trade is largely based on the constant fluctuations in the world-wide economy, this resulting in constant changes with regards to tariffs, trade subsidies and unending amendments of regulations with regards to international trade. “Trade policy and economic Growth”, a paper by Keith Maskus, PhD, focuses on the relationship between trade policies and the growth of the economy or lack thereof, the main point of interest of the paper was to establish whether the variance of trade policies will affect the economic growth of any country. The conclusion reached was that open economies tend to grow faster than closed economies, ceteris paribus. therefore concluding that open competition is good in the sense that it improves resource distribution and the country gains in Investment and innovation.

An organisation that is involved in international trade has to pay special attention to such information. There might not be any countries with closed economies however there are countries that have low imports to the point that they are regarded as closed economies for instance Brazil. In 2011 Brazil recorded 13% as its import percentage which was quite low for a country of its stature. Is it not then imperative to constantly be up to date with changes in the trade policies of countries one is interested in pursuing trade relations with? since there is a proven positive relationship between the openness of an economy to competition (thus meaning the country is greatly involved in trade) and the growth of that country`s economy, this serves as an indication of how lucrative and profitable a business venture would be under such circumstances. The Critical analysis aspect then comes into play by determining how much gain or loss would result from substantial changes to the policies, which are measures and instruments that can influence export and imports, the objective being the policies influence the trade sector to the result of profit for the business venture. one might feel a degree in commercial management is then needed in order to fully understand all the kinks and edges of the international business, and they would be right, but the eventuality is that it will always boil down to intelligence and efficiency in the analysis of trends, calculation of potential profit/loss, predictions of future stability or fluctuations in the world economy prompting changes to prices in the trade sector.

There is one other important factor that can alter potential business plans, and that is the politics of the country in question, policies are easily influenced by the politics of the nation, and it is thus advisable that critical analysis be also engaged, this results in better understanding of the country and its stability thus reducing the chances of incurring a bad business eventuality. Nations are not governed by robots, unfortunately, but are governed by people with interests and human nature desires to differ from individual to individual making it difficult to maintain a constant effective system. if politicians are elected they tend to focus on altering policies for their own benefit, and the benefit of those they promised (if there are still honest politician available) from that point it is important that international business consider such factors before pursuing business. Prime examples being, whenever there are strikes in South Africa investors tend to shy away, and most of the strikes are birthed from political influence, thus deeming South Africa an Unstable nation to invest in, or Zimbabwe a nation sanctioned, due to political infringements, making the country undesirable for investment irregardless of the profitability of the business idea. It is thus an excellent idea to firstly research in-depth to the politics of the country before hand and invest with,much-needed information, guiding the innovative decision made.

The Need For Strategic Thinking Is Critical To Effective Continuous Improvement

Strategic thinking is a mindset or way of thinking about a business or organization. It is a process whereby you learn how to make your business vision a reality by developing your abilities in team work, problem solving, and critical thinking. Strategic thinking is the process whereby you examine the implications of your choices and analyze the options available to you before making a decision.

Strategic thinking is applicable and useful in a wide range of situations, including developing strategies for a company, making a business or personal decision, or just understanding a situation. Strategic thinking is marked by beginning with a focus on the Vision and Objectives for the future and then working backwards to the present situation. Without comprehensive Strategic Thinking the organization risks making quick decisions that lack the creativity and insights derived through a Strategic Thinking process.

Purpose

The purpose of Strategic Thinking is to create a strategy that is a coherent, unifying, integrative framework for decisions especially about direction of the business and resource utilization. The main purpose of strategic thinking is about how to outmaneuver your competitors in strategic planning.

Strategic thinking is an attempt to think through as many “results” that come from our actions that defeat our actions. Strategic thinking is a process in which significant issues and decisions are considered in a special way. Strategic Thinking is a planning process that applies innovation, strategic planning and operational planning to develop business strategies that have a greater chance for success.

Process

Why is it so much easier to just do and do, manage crises, put out fires, without thinking, planning, and making everyday action purposeful?

If you aspire to improve operational performance, the process of strategic thinking must become second nature to you. Outcome-driven thinking is the process of approaching every interaction with a desired result in mind. It focuses on long term rather than short term, Involves systems thinking, and focusing on the big picture, NOT just the small one Strategic thinking focuses on identifying leverage (how can we use what we have to maximum advantage)

In its highest form, strategic thinking is a distinct perspective that helps you break down complicated processes into easily manageable pieces that can be arranged to present a clear set of alternatives. The purpose of the process is not to have you categorize thoughts you already have, but to organize them in a systematic fashion so that new thoughts can emerge.

Strategy

The word strategy is derived from the Greek strategia, which referred to that which is “general. Strategy is one of the most over-used and yet misunderstood words in business. The military theorist, von Clausewitz (1832), said strategy is “the use of the engagement (a set of actions) for the purpose of the war.

In strategy, we are trying to convert information to knowledge to a decision about a course of action in the future. Hence, even during the implementation of strategy, we cannot escape the continuing need for thinking.

Understanding the Situation

Strategic thinkers develop an understanding of what needs to be accomplished by their work teams and strive to influence the way both senior managers and line staff view work priorities. It requires patience and an understanding of organizational dynamics. In its most basic sense, strategic thinking is about analyzing opportunities and problems from a broad perspective and understanding the potential impact your actions might have on others.

Strategic thinking must be used to improve understanding of the environment and the options available to the business. It involves an understanding of how the situation will change over time and the importance of maneuvering for superior position and flexibility to deal with turbulence and to keep ahead of the competition. Gaining employee understanding of how the work they perform links to the realization of the departmental strategies and the corporate strategic plan. Working on strategy is not so very difficult if you focus on understanding what you are trying to achieve.

Conclusion

Strategic thinking is often described as reflective dialogue about the future so that one can avoid pitfalls as well as take advantage of opportunities. Strategic thinking is more about effectiveness and considers transforming change, while strategic planning centers on achieving greater efficiencies through incremental change. Strategic thinking is understood as a deliberate and creative process as well as the resulting state of mind. Strategic Thinking allows proactive thinking beyond your current activities and traditions deals with change positively by responding to it effectively involves making decisions that consider changes or anticipated changes in the environment Strategic Thinking is not a one shot deal a box of tricks or bundle of techniques a quick fix to solve immediate problems Without comprehensive Strategic Thinking the organization risks making quick decisions that lack the creativity and insights derived through a Strategic Thinking process.

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