Table of contentsIntroductionGlobalization and its impact on tradeGlenfarclas Distillery: a case studyImpacts of globalization on employment: trade and FDIConclusionReferencesIntroductionThe adoption of national economies in a global economic system remains one of the most important developments of the last centuries. This adoption process has materialized in a remarkable growth in trade between countries. One notable consequence of centuries of technological development is that the world has become more connected than ever in virtually every aspect, including commerce. Globalization is the term used to describe the increasing interdependence of the world's cultures, economies and people, brought about by cross-border trade in goods and services, flows of investment, technology, people and information. The impact of globalization on employment is an important area of ​​study. Over the centuries, countries have built economic partnerships to make these movements possible. In today's global economic system, countries trade final products just as much as they trade intermediate inputs. This has created a vast network of economic activities that span the entire world. But according to Harrison (2013), in most continents, particularly in Europe, interconnected business activities do not seem to have brought equal opportunities to member countries, especially with regard to participating companies. This article seeks to review and analyze the different management approaches that can be effectively applied in view of changes in global trade policies. The Glenfarclas distillery is cited as an example in the circumstances surrounding the United Kingdom's exit from the European Union. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayGlobalization and its impact on tradeGlobalization thrives primarily on unviolated trade agreements made by member countries. In recent years, a series of events within the European Union have continually made it necessary to cancel certain binding agreements. On June 23, 2016, the United Kingdom (UK) voted to leave the European Union (EU) (Bickerton 2018). There was a referendum and the result was that 17.4 million people, or 51.9% of voters, voted to leave the EU, while 16.1 million people, or 18.1% of voters, voted to leave the EU. voters, voted to remain (Bickerton 2018). Thus, in March 2017, the United Kingdom government invoked Article 50 of the Treaty on European Union. This means that as the United Kingdom leaves the European Union, a number of taxes will be introduced in the affected countries (Tetlow 2018). These fees will have negative impacts on the supposed progress of different businesses and citizens, as indigenous UK businesses will now have to pay additional fees compared to what was available in EU countries (Tetlow 2018). Although the UK government will do the same against EU citizens and their businesses located in the UK, there may be no direct support for private companies of UK origin operating in EU countries. the EU (Bickerton 2018). Glenfarclas Distillery: A Case Study Given contemporary market dynamics, many UK companies also operate internationally, primarily in the EU region. One such company is Glenfarclas. The Glenfarclas Distillery originates from Ballindalloch, Scotland but operates in many countriesEuropean countries, including Germany, France and Spain. Beyond the European brothers, they also operate in the United States and Taiwan. With the predictable new fees that will be imposed on companies like Glenfarclas in EU countries, a good approach to business management requires them to explore other markets to enable them to offset the constraints that this new change imposes. to their business.commercial operations. On the other hand, any internal policy to charge foreign companies more than the local content of similar products will have a direct positive impact on the growth of said local companies. Following this logic, this therefore means that Glenfarclas will likely experience greater growth locally when these policies are fully implemented, as paying lower charges to the UK government will give them a competitive advantage over foreign companies of a similar nature. . However, UK markets alone may not be enough to make up for what might be lost due to higher fees in other European Union member countries, because just as the UK government can increase its fees on foreign companies, other EU countries will increase theirs against British companies. . Considering the above changes, it is the responsibility of the international business development manager to conduct in-depth research to explore further business advancements so as to create space for business expansion. The Glenfarclas Distillery produces products that are widely consumed in countries other than European countries. . Glenfarclas Distillery's 2015 financial report indicates some levels of growth compared to previous years, but this trend did not continue beyond 2017, perhaps due to Brexit issues beginning to gain traction in 2016. For example, the operating profit recorded in the same year in North America was £1,448 million and Europe was £804 million. In subsequent years, profits declined slightly following a drift in the company's operational policies. Impacts of globalization on employment: trade and FDI A significant economic impact of international trade includes the type of people that their type of environment attracts. According to the theory of relative comparative advantages, trade and FDI should benefit from labor abundance. in developing countries and thus trigger a trend towards specialization in domestic labor-intensive activities and thus imply an expansion of local employment. However, contrary to this prediction by Heckscher-Ohlin (HO), the analysis of recent literature supports the conclusion according to which the impact on employment of increased trade is not necessarily positive for a country in development. In particular, a relaxation of the assumption of homogeneous production functions in different countries allows either to have multiple equilibria (Grossman and Helpman, 1991), or to give rise to very differentiated employment trends in evolutionary models. “catching up” (Cimoli and Dosi). , 1995). In fact, when "total factor productivity" increases in developing countries due to globalization, the competitive effect in terms of job creation must be compared to the direct labor saving effect of imported technologies (Kathuria, 2001). In other words, in a developing country, the final employment impact of increased trade depends on the interaction between productivity growth and output growth, both in sectorsof tradable goods than in non-tradable sectors. The final result cannot be evaluated a priori for various reasons. On the one hand, exports may imply demand-driven economic growth and employment growth, but on the other, imports may displace previously protected domestic firms, thus inducing layoffs. Moreover, in the presence of supply constraints (lack of infrastructure, scarcity of skilled labor, underinvestment, inefficient labor market), even in exporting sectors, productivity growth can exceed growth in production, to the detriment of job creation. Finally, protected national sectors (such as agriculture, public administration, construction, non-market services) can act as labor sinks, often implying hidden unemployment and underemployment on the informal labor market (Fosu, 2004). Shifting our focus from trade to FDI flows, when a developing country opens its borders to foreign capital, FDI generates positive impacts on employment, both directly and indirectly through employment .job creation within suppliers and retailers, as well as an effect on tertiary employment by generating additional income and thus increasing overall demand (Lall, 2004). However, all these positive effects on employment of “new” FDI must be compared to the possible crowding out of uncompetitive and previously protected domestic companies (involving bankruptcies and job losses); with the possible labor-saving effects of new technologies brought by multinational companies; and with the possible reduction in employment associated with FDI operating through mergers and acquisitions (M&A). In fact, both imports and inward FDI can involve a “crowding out” of domestic production (particularly previously protected infant industries; think, for example, of the case of large urban state-owned enterprises in China (Rawski, 2002). The job suppression effect can be further amplified when FDI flows are accompanied by financial liberalization and a resulting increase in interest rates, leading in turn to a reduction in domestic investment ( Berg and Taylor, 2001). Since the overall impact of trade and FDI on employment is uncertain, it is important to collect data on these relationships and to study the direct and direct effects empirically. indirect effects of globalization on domestic employment in a globalized developing country Matusz and Tarr (1999) examine studies carried out before 1995 on the impact of globalization on employment in developing countries. By comparing the level of employment before and after trade liberalization, the authors conclude that trade and FDI liberalization were beneficial for labor, except in the transition countries of Eastern Europe. Ghose (2003) analyzes the relationship between trade liberalization and employment in the manufacturing sector. He points out that - although the increase in trade and FDI has only been relevant in a small group of newly industrialized countries - for these countries, the growth in trade in manufactured goods has implied a significant positive effect on manufacturing employment. More evidence has been collected at the national level, mainly for the manufacturing sector. It paints a contrasting picture of the effects of globalization. In successfully integrating developing countries, the effects of trade liberalization on employment have been mixed (mainly negative) in the Latin region of the United Kingdom (Revenga, 1997), while they appear generally positive in the countries43.