Download 1.1 International Relations for Business (1)

International Relations for
Business
Unit – 01.1
Speaker’s Name:Prof. Mohammed Khaja Qutubuddin
International
Relations for
Business
Prof. Mohammed Khaja Qutubuddin
What is
International
Relations?
International relations is the study of the interaction
of nation-states and non-governmental
organizations in fields such as politics, economics,
and security. Professionals work in academia,
government, and non-profits to understand and
develop cooperative exchanges between nations
that benefit commerce, security, quality of life, and
the environment.
Our richly connected, complex world demands
professionals skilled in international relations, an
exciting field of study that presents a globally
oriented perspective on issues that transcend
national boundaries.
• The study and practice of international relations is
interdisciplinary in nature, blending the fields of economics,
history, and political science to examine topics such as
human rights, global poverty, the environment, economics,
globalization, security, global ethics, and the political
environment.
• Exceptional economic integration, unprecedented threats to
peace and security, and an international focus on human
rights and environmental protection all speak to the
complexity of international relations in the twenty-first century.
This means the study of international relations must focus on
interdisciplinary research that addresses, anticipates, and
ultimately solves public policy problems.
International relations (often referred to
international affairs) has a broad purpose in
contemporary society, as it seeks to understand:
he origins of war and the maintenance of peace
The nature and exercise of power within the global system
The changing character of state and non-state actors who participate
in international decision-making
• For example, some institutions may study the
psychological and social-psychological reasoning behind
the actions of foreign policymakers, while others may
focus their international studies on the institutional
processes that contribute to the goals and behaviors of
states. Ultimately, the area of international relations
studied depends on the goals or objectives of the
organization.
The Value of
International
Relations in a
Globalized
Society
• Although international relations
has taken on a new
significance because of our
increasingly interconnected
world, it is certainly not a new
concept. Historically, the
establishment of treaties
between nations served as the
earliest form of international
relations.
The study and
practice of
international
relations in
today’s world is
valuable for
many reasons:
• International relations promotes successful trade policies
between nations.
• International relations encourages travel related to business,
tourism, and immigration, providing people with opportunities
to enhance their lives.
• International relations allows nations to cooperate with one
another, pool resources, and share information as a way to
face global issues that go beyond any particular country or
region. Contemporary global issues include pandemics,
terrorism, and the environment.
• International relations advances human culture through
cultural exchanges, diplomacy and policy development.
The practice of
international
relations is
valuable in a
wide array of
settings.
Some examples
include:
Humanitarian
organizations
• Action Against Hunger
• Oxfam International
• World Food Programme
Government agencies
• Department of State
• Department of Homeland
Security
• Department of Commerce
• International corporations
• General Electric
• BP
• Exxon Mobile
• Toyota
• Nestle
• Siemens
•
• Media outlets
• BBC
• Washington Post
• The Guardian
• Der Spiegal
• New York Times
• Forbes
• Wall Street Journal
• Intergovernmental organizations
• World Trade Organization
• United Nations
• NATO
•
• International communications
• Amnesty International
• Freedom House
• Human Rights Watch
• Reporters Without Borders
Research centers/Think tanks
• Brookings Institution
• Center for International Policy
• Council on Foreign Relations
• Global Public Policy Institute
Impact of international relations on the
global business environment -VUCA
• VUCA stands for volatility, uncertainty, complexity, and
ambiguity. It describes the situation of constant, unpredictable
change that is now the norm in certain industries and areas of
the business world. VUCA demands that you avoid traditional,
outdated approaches to management and leadership, and dayto-day working.
Impact of international relations on the global business
environment
• In international relations, globalization transfers the location of
governance from nation-states laterally to such private actors as
nongovernmental organizations (NGOs) and multinational firms,
as well as vertically to local governments and supranational
organizations.
How international relations affect global
business?
• One of the more obvious effects that international relations have
on business is how you can trade abroad.
• The focus is often on cutting the cost of import and export
tariffs – a costly aspect of trading abroad – and actively
investing in international trade, even taking into consideration
the nontariff barriers to trade.
• International business environment has many positive aspects
in spite of various issues, such as it contributes new
technology, infrastructure development, managerial skills,
creating jobs, providing better services, and bringing in
investment capital from other countries by exporting products.
The Theories
and
Principles of
International
Relations
• International relations may be an offshoot of
political science, but this field of study is
exceptionally in-depth in its own right. As our
global society evolves and expands,
international relations will evolve and
expand along with it as we continue to
explore new and exciting way to link our
complex world.
• For example, traditional dimensions of
international relations related to international
peace and prosperity include topics such as
international diplomacy, arms control, and
alliance politics. Contemporary studies in
international relations, on other hand,
include topics such as international political
economics, environmental politics, refugee
and migration issues, and human rights.
Examining the Levels of State Behavior Professionals studying international relations often determine
the level at which they will analyze a state’s behavior:
• System Level Analysis: System level analysis looks at the international system; more
specifically, how the international system affects the behavior of nation states, with the
key variable being that the international system includes the power of each state
rather than being independent of them.
• State Level Analysis: State level analysis examines how a state’s characteristics
determine its foreign policy behavior. This type of analysis often views states as
having cultural characteristics based on their religious or social traditions, and their
historical legacy, and includes an analysis of economic and geographic factors.
• Organizational Level Analysis: Organizational level analysis examines how
organizations within a state influence the state’s foreign policy behavior. In other
words, organizational level analysis views that organizations—not states—make the
decisions that create a state’s foreign policy.
• Individual Level Analysis: Individual level analysis views the leaders of states as
being the largest influencers of foreign policy.
Examining
the Theories
of
International
Relations
• The study of international
relations involves theoretical
approaches based on solid
evidence. Theories of
international relations are
essentially a set of ideas aimed
at explaining how the
international system works.
• Realism
The two, major
theories of
international relations
are realism and
liberalism
:
• Realism focuses on the notion that states work to increase their
own power relative to other states. The theory of realism states
that the only certainty in the world is power; therefore, a powerful
state—via military power (the most important and reliable form of
power)—will always be able to outlast its weaker competitors.
Self-preservation is a major theme in realism, as states must
always seek power to protect themselves.
• In realism, the international system drives states to use military
force. Although leaders may be moral, they must not let morality
guide their foreign policy. Furthermore, realism recognizes that
international organizations and law have no power and force, and
that their existence relies solely on being recognized and
accepted by select states.
Liberalism (Idealism)
• Liberalism recognizes that states share
broad ties, thus making it difficult to
define singular independent national
interests. The theory of liberalism in
international relations therefore
involves the decreased use of military
power. The theory of liberalism saw its
first strong post-WWII emergence in
the 1970s as increasing globalization,
communications technology, and
international trade made some
scholars argue that realism was
outdated.
Liberal approaches to the study of international
relations, also referred to as theories of complex
interdependence, claim that the consequences of
military power outweigh the benefits and that
international cooperation is in the interest of
every state. It also claims that exercising
economic power over military power has proven
more effective.
Although the liberal theory of international
relations was dominant following World War I
while President Woodrow Wilson promoted
the League of Nations and many treaties
abolishing war, realism came back into
prominence in the Second World War and
continued throughout the Cold War.