Question

This is a Global Economic question. how trade policies and economic variables are impacting worldwide operations from a tactical and strategic perspective and base on that evaluation how to make economic predictions and recommendations for an organization to proceed in future.

Answer 1

Due to the global politics landscape and economic variables the business are forced in the situation where they have to change their strategic and tactical. Strategic perspective involve what and why where as tactical perspective involve how. Trade policy include the set of rules concern with the exchange of goods between nations. Tariff rate , export quotas , export import regulations are all part of this policy. Where as foreign exchange rate , amount of reserves , factor endorsement , inflation are all economic variables affecting global trade.

Todays world is more economic integrated than it was ever befor as a result the operation are ment to entertain global demand and global supply. The trade policies are like a boundary in which the operations should prevail. Whereas economic variables determine the magnitude of the operation. To understand this lets look for a example in recent global pandemic the countries are insolateing themselves as a result the global business are suffering .now this is a point where operations are required to change their strategy in accordance to this new situations. A chance in every in either policy or in any variable has a change on trade. For example the price war in china and USA led to a lot of strategic changes in case of variable we almost have a pre determined reaction curve. Like if the nation income rose trade will flurish.

To be able to make predictions one must understand the nature and dynamic of the factor which can be know from past studies and trend analysis of the reason. The forecast are generally the outcomes of previous treands in current economic conditions. It may include use of statical tools to formulation of hypothesis. All this give bussiness information to make static move.