HOW NATION-STATE IS MANAGING THE ECONOMY

Introduction

Economic globalization has largely affected the way nation states used to manage their economy. Economic globalization can be categorized into three different models and these are liberalization in trade, investment in labor markets. The national government is handling those cases. Transnational corporations are associated with the national government as a nation state. Global and regional organizations are also participating in economic globalization to boost the economy and identify to what extent a nation state is capable of managing the economy. Two different views are found out in the literature. Some of the literature suggests that national governments can no longer manage their domestic economy and they are being forced to shape the international economy. This is associated with the TNC in particular. On the contrary, some literature suggests that the demise of the nation state is much exaggerated as the shaping of the international economy is affecting activities of other actors largely by state. This essay is going to highlight the points of managing the national economy.

Management of national economy by a nation state

The global economy is developed through the specific actions and reactions of people. Sub-national and supranational governments are regulating the global financial system. Most of the northwestern states have lost certain functionalities as they were expanding. As explained by Michie (2011), they became more secular as there was power relinquished over the moral regulations. Terminology such as “radical modernity”, “late capitalism” has invested in the analysis of disruptive changes. The nation state is determined towards macroeconomic planning, collectivist welfare state along with identification of global economical constraints (Mann, 1997). Environmental and population threats are perhaps going out of control for the nation's state and these are the most important parts of managing the economy. It has been a part of the discussion whether the international economy had corresponded towards the autonomous supranational economic system.

National currencies, labor markets, and trade rules are creating differences in nation state management of the economy. This essay is going to focus on the factors that are controlling the international economy. Governments' roles can be identified that are essential in managing the economy such as maintaining monetary policies (Jensen, 2005). It is exercised by the federal reserve systems that are empowered to take various actions of increasing and decreasing the money supply. Nation states can take help from fiscal policy to identify the government's power of spending and taxation. Taxation and government spending can be used for a reduction or increase in total monetary supply inside the economy. While the government takes in more money than it spends on goods and services is identified as surplus. On the other hand, sometimes the government has to spend more than it takes in and this process is identified as a budget deficit (Ohmae, 2008). Moreover, the nation state is currently facing a lack of export and import management that requires immediate optimization.

The nation state is not in the current economic position to manage the supply and demand aspects, which is a micro issue. Microeconomic policies are important in accelerating growth and it is important for outperforming government actions and creating different business actions. As explained by Hirst, & Thompson, (1995), at this point, promoting a pro-growth agenda of productivity, income, and demand management become important. For example, in the United States, government experts are regulating the money supply and levels of interest rates through successful uses of fiscal policy and monetary policies. The nation state is collecting the taxes, which alters economic behavior. On the other hand, half of the federal spending is devoted to the production of goods and services. Management of road taxes, defenses are part of economic development, which is largely being affected. Government can boost the economy by adjusting the cost of borrowing money. As defined by Prakash, and Griffin, (2012), controlling the use of credit collectively requires support from the government. Now at this point, financial markets, deregulations, and technology are identified as forces that shaped the economy to its core. These major factors are subject to the international shaping of the economy. However, here three components will be analyzed that are tried to be regulated by nation-states.

Transnational corporation: Transnational corporation is associated with a reduction in cross-trade barriers. It is associated with income management, foreign investments, and applied good and service optimization. Setting up labor is done in developing countries to get labor at a low cost. According to Gordon (1988), U.S based Mcdonald's is helping the economy to grow at a fast pace by spreading their business in different countries. An increase in consumer demand is also helping the economy to be boosted. Global and regional organizations are associated with a contribution to the economy. Nation states are not covering up the globalization issues and the organizations are not funded enough to cope up with their goals by nation states. Applying fiscal policies and monetary policies are not giving enough information criteria on the management of the economy. There should be more focus given on transnational corporation management. While the states are busy with their international policies, the domestic economy is being affected. Capitalization is also playing an immense role in this economic domain.

Liberalization in trade and investment markets: Liberalization is associated with promoting free trade and goods are growing without any regulatory barriers. Increased competition is identified as a trade liberalization factor and greater efficiency is achieved through the identification of production components (Beck, 2008). Trade liberalization is helping countries that make most of the investments in accessing a large marketplace. The main objectives, in this case, are identified in terms of reducing tariffs and eliminating quotas. However, a policy of liberalization is not alone going to help in the overall management of income and productivity growth. There are supreme growths regulators identified that are expected to help the components of economic growth. An increase in GDP is associated with raising an income level up to .9% to 3% (Rodrik, 2011). There is economic growth execution indulged in complex phenomenon identification of trade improvisation. Concurrency management is important as there are issues like poverty to be managed by the countries. Conquering the factors associated with GDP is essential in terms of managing the domestic economy by a nation state.

Global and regional organization: Global and regional organizations are associated with the opportunities of serving the nation by giving their maximum effort in development. The nation state is, however, not having enough resources to support each of the organizations individually (Bakir, 2015). Hence, at this point, it becomes essential to understand the different strategies that can be taken for the management of the economy.

Conclusion

The study has highlighted different aspects that are considered while coming to the judgment of a nation's capability in managing economies. The domestic economy is seen to be neglected greatly while nation state areas are focused on the factors of international economic growth. Hence, the conclusion can be drawn that all nation-state territories are supposed to be analyzed while legitimate trade concerns are discussed. It is important to identify the sources from which nation states are completely managing the funding and keeping control of TNC and labor markets. Economic expansions require complete monitoring of the essential subjects of corporate responsibility and becoming a country with multi-national significance.

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References

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Beck, U., 2008. Reframing power in the globalized world. Organization studies, 29(5), pp.793-804.

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Hirst, P., & Thompson, G. (1995). Globalization and the future of the nation state. Economy and Society, 24(3), 408–442.

Jensen, N., 2005. The multinational corporation empowers the nation-state. Perspectives on Politics, 3(3), pp.548-551.

Mann, M. (1997). Has globalization ended the rise and rise of the nation-state? Review of International Political Economy, 4(3), 472–496

Michie, J., 2011. Globalisation: Introduction and overview. The Handbook of Globalisation. Second Edition. Cheltenham und Northampton: Edward Elgar, pp.1-16.

Ohmae, K., 2008. The Next Global Stage-Challenges and Opportunities in our Borderless World.

Prakash, A. and Griffin, J.J., 2012. Corporate responsibility, multinational corporations, and nation states: An introduction. Business and Politics, 14(3), pp.1-10.

Rodrik, D., 2011. The globalization paradox: why global markets, states, and democracy can't coexist. Oxford University Press.

This essay is going to identify the roles of labor, consumption, and technology variants while an expansion has to be conducted for a particular business. In this case, the chosen industry is Car industry and this follows the economic engagement of business factors. There are global issues identified that reflect upon expansion models of business. The car industry is widely being spread across nations and some rules that are to be followed are explained in this context. Laborers are an integral part of an industry and without their help, it is impossible to grow. There should be a consumption factor identified that will help in gathering information on the requirements of the product and based on the data popularity of a product will be identified. Technology is also playing a great role in the analysis of global expansion criteria. Here, the identification of quality control is one of the important aspects of product development and global expansion.

Role of labor, consumption, and technology in the process of its global expansion

Roles of labor in car business management

Globalization has changed the way businesses were conducted earlier. Now B2B communication has largely impacted the business variables and future of the economy as well. Automotive manufacturers and the supplier are working with growth of the product and they are placing the right business objectives on the availability of a skilled labor market. In terms of overall economic growth and unemployment, the rates have gone down and below 4%. In the UK the unemployment rates have been 4.1% which has been the lowest in approximately 20 years. According to reports, "as automotive manufacturers and suppliers manage growth, evaluating local labor markets becomes a key criterion in the site selection process". The car manufacturing industry is not labor-intensive anymore due to the continuous automation of the manufacturing process (Barnes, and Mattsson, 2017). However, there are contradictions found out to this statement as without human labor it is not possible to conclude. Artificial intelligence and automation might help accelerate the car manufacturing and expansion process. However, it cannot conclude designs and the final product. The need for skilled workers is expected not to be mitigated completely.

Labor churn, frequent retirement is identified to leave a negative impact on the management of the car industry. Quick delivery of the desired product and organization of components becomes easy to manage with an effective workforce. There is sustainability indulged within the management of manufacturing policies. New labor is always welcome so that work variety is achieved. Automotive industries need to focus on the long-term solution of finding out the correct locations of work. Instead of cannibalizing the preexisting labor market and looking for highly qualified people for the development of saturation in the industry is required. A skilled task force not only helps in delivering the desired product on time but also helps the employer align with the in-demand market niche (Bryndin, 2018). Expansion of products can be done with the incorporation of features that customers are expecting. Giving training to the workforce and creating opportunities for individual development can be effective in the management of business expansion for the car business. A globally acknowledged workforce helps in the delivery of products on time with attractive features and gives customer satisfaction. The organization heads can choose to move forward towards a sustainable labor pool as well.

Roles of consumption in car business expansion

Car business expansion depends largely on the factors of consumption and what customers are preferring these days. Business expansion occurs through understanding consumer requirements such as lessening fuel consumption. In these economic conditions, the number of vehicles can be tested for the emission levels as emission control is identified as an important aspect of car business improvement (Bryndin, 2018). Japanese penetration in the car market is identified as a potential threat of losing many jobs. Nowadays, car-manufacturing companies are engaging in driverless vehicles and it is continuing the performance increase with safety. Hence, the features that are considered important are leading the fleet business. As per the rate of consumption, certain companies can lead towards the delivery of feature-loaded cars in future. Some important operational processes are identified as management of the prices.

Using different equipment for performance evaluation has become important for a possible growth index management of the automobile sector. Understanding the role of consumption in the development of the car business is important and it is marked as important. The increasing demand of the consumer is providing adequate sustainability to this industry (Eberhard et al. 2017). Global car concepts of development are essential in the monitoring of features that controls the overall consumption of essentials. There are legitimate analyses conducted on annual sales of electric cars, which have increased up to a 5400 in PEV population. Annual sales have also increased as passengers are preferring safer rides. Autonomous vehicles have way more to offer than the current favorites of customers. It is important to identify the concepts of growth that align with the maturity of the consumption process and gives appropriate suggestions for managing global expansion. Building a good customer rapport is also important in the management of consumer development and generating business (Gwynne, 2017). Giving consumers the right amount of after-sales care along with the identification of satisfaction factors is important. Giving consumers value through emails, calls and notifying them via CRM systems are important steps in the management of commitments.

Roles of technology in car business expansion

Technology intervention is important in terms of car business management and expansion. Technology is ruling over the world as cars can be promoted via social media. The use of social media campaigns as a part of the promotion of new cars has become important (Olabi et al. 2021). Brands like Nissan, Toyota, and Ford have been ruling over the world for ages and they are applying concepts of social media promotion campaigns. Uses of customer-relationship management software are important as the automobile industry is rapidly growing and maintaining large datasets of customers is not possible anymore manually. Hence, the consequences are required to be identified for the development of sustainable company expansion. There is feedback recognition process, that helps the manufacturer and audiences connect more (Petti et al. 2019). The use of chatbot on the company's website has been impressive for the further analysis and development of systems that support car care. It is identified that using a global pricing strategy can leave an influence on the roles of technology. Technology expansion is associated with the management of autonomous driverless cars and lower consumption of energy while driving as well. Hence, there should be more focus given on technical development so that complete economic growth is achieved for manufacturers.

Conclusion

This study has concluded that using three important factors such as labor consumption and technology all are important in the expansion of the car business. Cars these days are changing the way of life by introducing automation of driving. Lowering fuel consumption and emissions have been essential in the development of sustainable cars. This also influences the overall integrity of car manufacturers. For a global expansion, complete work support is needed and it is expected to be indulged in the systematic analysis of records.

References

Journals

Barnes, S.J. and Mattsson, J., 2017. Understanding collaborative consumption: Test of a theoretical model. Technological Forecasting and Social Change, 118, pp.281-292.

Bryndin, E., 2018. Directions of Development of Industry 4.0, Digital Technology and Social Economy. American Journal of Information Science and Technology, 2(1), pp.9-17.

Bryndin, E., 2018. Technological, economic and social aspects of management by development of the digital industry 4.0. International Journal of Managerial Studies and Research (IJMSR), 6(4), pp.19-30.

Eberhard, B., Podio, M., Alonso, A.P., Radovica, E., Avotina, L., Peiseniece, L., Caamaño Sendon, M., Gonzales Lozano, A. and Solé-Pla, J., 2017. Smart work: The transformation of the labour market due to the fourth industrial revolution (I4. 0). International Journal of Business & Economic Sciences Applied Research, 10(3).

Gwynne, R., 2017. New horizons? The Third World motor vehicle industry in an international framework. In Restructuring the global automobile industry (pp. 61-87). Routledge.

Olabi, A.G., Wilberforce, T. and Abdelkareem, M.A., 2021. Fuel cell application in the automotive industry and future perspective. Energy, 214, p.118955.

Petti, C., Spigarelli, F., Lv, P. and Biggeri, M., 2019. Globalization and innovation with Chinese characteristics: the case of the automotive industry. International Journal of Emerging Markets.