International relations theories analyze international relations by attempting to provide a conceptual model. Each theory is useful in analyzing different sets of data and assumptions. These international relations theories help in varying degrees in small business enterprises.1
Two positivist schools of thought are prevalent: the realism and liberalism theories. This article will discuss the realism and liberalism theories as well as the popularly-known theory on Marxism, functionalism and constructivism, and their impacts on small businesses.
The realism theory has several assumptions. Among these is the unitary form of nation-states with geographically-based actors having no authority above capable of regulating relations between states, hence, the assumption regarding the non-existence of a true world government. Further, the theory assumes that the sovereign states are the principal actors in international relations rather than non-government organizations. This leads to a situation where states compete with one another. The state also acts as the main actor for its own security and economic interests with a view that international corporations have little long-term independent influence. Moreover, there is a general distrust for long-term cooperation and alliance. In sum, the realist view that man is self-centered and competitive.2
The effect which this theory has on small businesses may be discussed in the micro and macro level. In the micro level, small businesses view themselves as competitive and self-centered. Since customer satisfaction is the main key for the survival of a business, enterprises initiate methods which make their products and services competitive in the market place such as product development and innovation. They also specialize so that consumers will go on their specialized products when they need them. Competition has its main advantage in product development and more efficient services, which mainly include quality, usefulness and beauty of the product or service. However, failing to diversify means more problems on a small enterprise who fails to cope with stiff competition in the market place. This results in smaller profits and huge expenses in the enterprise.
In the macro level, the country develops its own protective policies which restrict the entrance of international markets and foreign investments, except when needed. As a result, small businesses may be provided with protection against foreign competitors that seek to attract the local market given its new technology and creative workforce.
On the other hand, since the government is the main actor for its economy, foreign competitors may be replaced with government-owned and controlled corporations in competition with small enterprises.
The Liberalism Theory on Small Businesses
Liberalism values state preferences more than state capabilities as the determinant of state behavior. Plurality is the key term in defining state actions. There will be varying preferences from state to state and international relations are not only based on political matters but also on economic matters whether through international organizations, commercial firms, partnerships or individuals. The concept of liberalism flows in international cooperation and wider notions of power.3
The impact of liberalist policies on small enterprises is material. As a result of government's liberal concept, less restrictive economic policies are being initiated that invite foreign competition. The local small business enterprises may have difficulty in coping with foreign competitio ...
Cite this document
(“International Relations Theories and Business Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/274865-international-relations-theories-and-business
(International Relations Theories and Business Essay)
“International Relations Theories and Business Essay”, n.d. https://studentshare.net/miscellaneous/274865-international-relations-theories-and-business.
The world today has become a system of interdependent states, which need each other to survival in an increasingly competitive international system. This interdependence among states means that they have to find ways of relating with each other in order to maintain international security, even as they pursue their individual interests (Beitz, 1999, pp.
In accordance with this, a realist analysis may proceed in evaluating the importance of global security, international hegemony, natural resources, and “democratization” in reference to the NATO deployment in Afghanistan. The justification for the use of NATO forces in Afghanistan is based on the association of al-Qaeda and Osama bin Laden with the Taliban in the country, who were in control of the State apparatus in 2001 when the 9/11 attacks occurred.
The discussions relating to the currency war cannot but take on a heavy slant in economics and economic policy, even as one cannot argue that trade is a major force that knits or destroys relationships among nations, something that has been discussed in much detail in many theoretical discussions in international relations.
Has globalisation started the process of promoting a single common world culture? Has globalisation led to inequality of nations and has it widened or closed the gap between the developing and developed economies? These questions help us to provide adequate understanding of the process of globalisation.
Buckley (1989) has argued that owner-managers of such small companies may very well undertake greater risk than other types of decision makers. In such situations the smaller firms can fill the role of a niche player in the market and this becomes a
In the study undertaken, the main objective is to be able to present a view on the International Relations (IR) and other related social theories specifically the postmodernism theory. The present trend of the international community can be viewed towards the trend of globalization and oneness. The interaction can be considered as a significant focus.
This paper concerns the realism and liberalism as the two major theories of international politics. Although they differ with respect to their basic assumptions about the nation-state, the international order and the role of conflict in the international system, both of them provide substantial insight into the ways in which the international order is structured.
Due to this independence from each other, the states are never interested in the happenings of another state. This theory can be seen as a classic case of self-preservation by the individual states. Therefore, one state
According to the report globalisation is a relatively new concept that raises pertinent issues in as far as international relations is concerned. The understanding of globalisation is significant in establishing a connection of how it has influenced the development of international relations concept.
6 Pages(1500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic International Relations Theories and Business for FREE!