The introduction of new technology has reduced the world to a small village. Anything that is done is one country affects the other countries directly or indirectly. International affairs and business in a country are today at loggerhead. However, there is diversity of economic resources and practices, one no longer enjoy the freedom of trade for there are international laws, regulations, and standards that must be observed and satisfied. The current international peace negotiations in various countries have seen the collapse of business since for every opportunity that arises one must satisfy certain conditions before being allowed to carry out any activity.
The fight against terrorism, which forced the US military to go camping in the Middle East, has seen the oil prices rising up considerable. The US being the super power is bestowed with ensuring international peace and check cases of terrorism. Middle East being the largest producer, exporter and distributor of oil have faced many difficulties because of too much military operation in the area. It is believed that Afghanistan is the home for the most wanted terrorist Osama Bin Laden hence to restore and curb the spread of the terrorism the leader must be arrested but up to date the soldiers have not succeeded. Due to this, therefore the production of the crude oil has been very tedious and time consuming since resources like labor live in constant fear. Resources used to extract are also limited because a larger proportion was destroyed during the war that erupted during the search for Osama. Due to these factors, the oil prices generally have shoot up and businesspersons dealing on this sector have faced real difficulties.
Investors on the other hand are also faced with difficult decision since Middle East is potential destination but there are restrictions never to trade with them. Investors therefore feel that their freedom of movement, expression, speech, and choice has been violated. They blame the US government decision of letting their soldier camp at this place. Business for these investors has been affected negatively and forced to operate on low income sectors of the economy. There are hard-core followers of Osama who have not been identified and they fight the US military secretly when they get a chance. The pirates also on the other hand are believed to be followers of Osama and they have invaded the oceans and sea rendering the water transport highly risk. This in turn has inflated transportation cost, affecting businesses largely since this was somehow a cheaper means of transport for exportation and importation of goods and services.
Then World Trade Organization (WTO) has implemented laws and regulation governing international trade and relation but because of insecurity, the International Defense Counsel (IDC) does not allow free trade. These two forces have conflicting interests and therefore slowing down the rate of globalization. IDC is considered more powerful than WTO therefore, the decision made by IDC are more binding than those of WTO and should be followed for better international relation and peace keeping.
The other current issue demonstrating how international affairs and business intersect is the issue of piracy row between United States and China. The contentious allegation is that many Chinese companies have been pirating US movies and music and making billions of money through the act while American Multinationals have strict measures to curb the vice. Violation of copyright restrictions is and international affair and US being the centre for many multinational companies is the loser on this, but the Chinese make many profits through it hence they are reluctant to arrest and prosecute violators. Due to too much pressure, the Chinese government has invested many resources and labor since the practices is deeply rooted in the country and needs time and commitment for it to be stopped.