Nationalism & Business: Impact & Considerations - Essay Sample

Introduction

Secondly, nationalism involves how people identify with their own countries and the support they offer for their country's interests. Nationalism often affects business by favouring one's nation at the expense or detriment of others (Cheng, Wong, and Prideaux, 2017). I, therefore, chose this concept because, with loyalty and love for one's country, leaders in the country are likely to make favourable decisions and not consider what is fair for other countries.

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Lastly, I chose to also focus on protectionism because it involves the policies and actions of governments that restrain or restrict foreign trade for their own domestic economy. Governments employ protectionism to improve their economic activities and also to protect their business interests (Barattieri, Cacciatore, and Ghironi, 2018). Because of this, protectionism plays a crucial role in affecting how businesses make decisions.

In general, I chose the topic concerned with globalisation, nationalism, and protectionism because I believe that these three factors are among the biggest influencers of how business decisions are made. This topic is significant in academic studies of business because scholars will be able to understand how the factors mentioned affect how companies, individuals and governments make business decisions. The topic will help shed more light on why specific policies and regulations exist in international trade. A clear understanding of these factors and their effects on decision-making processes will help academicians to advise business people better and plan for future business endeavours.

Literature Review

For my literature review, I chose articles that primarily focused on international business. I precisely wanted articles that had keywords, including nationalism, globalisation, and protectionism, as they relate to business decisions. Selecting articles by keywords is crucial because it helps filter out irrelevant articles, and enables me to only concentrate on articles that contain the information I needed. Secondly, I chose articles by year of publication and ensured that I only used articles that had been published at least five years from 2019. I decided on these articles because business processes are rapidly evolving, and therefore some practices that may have existed in 2012 may not be applicable or practised in today's business world. I, therefore, decided that articles published within five years would contain accurate and appropriate information regarding how the theme factors influence business decisions. I also selected articles by author credibility. I selected articles and then ran the authors through relevant search engines to establish their credibility and expertise in the area of study. I found this important because an author that has more experience in international business is likely to have valid and factual information as compared to an author who has just gotten into the field.

Analysis Frameworks

For this study, I have considered two analytical frameworks that are used to assess international markets. I will first use the PESTLE business analysis model to rate the sustainability of applying nationalism and protectionism in business decision making processes. The PESTLE analysis is a significant and widely used framework that assists in showing the bigger picture of a company's external environments, especially as they relate to foreign markets (Ghemawat, 2015). PESTLE represents the Political, Economic, Sociocultural, technological, environmental, and legal contexts in which individual companies operate. Business scholars argue that PESTLE analysis helps business leaders obtain a better and more precise understanding of the threats and opportunities that may be facing. The analysis further helps to build a better vision for the company's future business environment and landscape and also how the company can become more competitive and profitable. PESTLE is a useful tool to use when analysing markets for growth and barriers to entry. For a company looking into entering new markets, or for a firm already operating in foreign markets, this framework is of paramount significance (Ghemawat, 2015). Similarly, the PESTLE analysis provides information and insight into market and trade barriers in terms of their past, current and future trends. Businesses can, therefore, determine the potential threats and opportunities that they have within the new markets.

The other framework I used for this analysis is the Cultural Administrative Geographical and Economic analysis. This framework is used by business to evaluate different countries in terms of the distance that exists between them. In the case of CAGE, the distance between countries is not just defined to include the geographical or physical space, but also the administrative, cultural, and economic distances between them (Shtal et al., 2018). The CAGE analysis provides businesses with a framework of thinking and perceiving opportunities and potential risks associated with foreign trade.

References

Barattieri, A., Cacciatore, M. and Ghironi, F., 2018. Protectionism and the business cycle (No. w24353). National Bureau of Economic Research.

Cheng, M., Wong, A.I. and Prideaux, B., 2017. Political travel constraint: The role of Chinese popular nationalism. Journal of Travel & Tourism Marketing, 34(3), pp.383-397.

Evenett, S.J., 2019. Protectionism, state discrimination, and international business since the onset of the Global Financial Crisis. Journal of International Business Policy, 2(1), pp.9-36.

Fernando, R., 2016. Sustainable globalisation and implications for strategic corporate and national sustainability. Corporate Governance: The international journal of business in society, 12(4), pp.579-589.

Ghemawat, P., 2015. From International Business to Intranational Business. In Emerging Economies and Multinational Enterprises (pp. 5-28). Emerald Group Publishing Limited.

Harvey, M., Fisher, R., McPhail, R. and Moeller, M., 2009. Globalisation and its impact on global managers' decision processes. Human Resource Development International, 12(4), pp.353-370.

He, J. and Wang, C.L., 2015. Cultural identity and consumer ethnocentrism impacts on preference and purchase of domestic versus import brands: An empirical study in China. Journal of Business Research, 68(6), pp.1225-1233.

Shtal, T.V., Buriak, M.M., Amirbekuly, Y., Ukubassova, G.S., Kaskin, T.T. And Toiboldinova, Z.G., 2018. Methods of analysis of the external environment of business activities. Revista ESPACIOS, 39(12).