International Organizations Are In Difficulty Commerce Essay

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Arguably, in a global spectrum as it operates, international organizations are in difficulty. They have been confronting with great challenges that eventually rely in the future like the pursuit and great effort for the purpose of having the availability of resources. The likelihood of which the state has encountered certain failures, the problems together with the forces that are linked with the so-called globalization, terrorism, and the possible incident that could happen, the mass destruction.

With the said challenges, this might probably be focused on the global view rather than just within the national solutions. One of the Economists (2008) who in his statement that, "Global institutions are an obsolete muddle…the organizational response looks ever shabbier, slower and feebler." In that sense, scholars have said that International organization is only somewhat responded to the occurrence of the shortcomings being identified.

This paper emphasizes how this international organization has able to achieved superior performance based on the past year of operations. Hence, this paper uses relevant frameworks and models at which it could be used to critically appraise the business strategy that a particular example of company illustrates. With the consolidated data based on the different researches and finding from various literature. At the same time, with the analysis to be done on this matter, it needs quality effort in addressing some relevant issues as it covers the area of global competitiveness, financial standing, value creation, and other business-success details.

Talking of the competitive environment in view of the global demands, attention is said to be the most factors to which a corresponding response could be given. Eventually, this pertains to either in a single, few or most of the competitors in which the international organizations functions. Whereas for other matters in the internal part of competition, it has been found that in literature 'attention' in the external part of competition is more often than not being ignored.

One of the latest surveys from the article of Biermann (2008) indicated that in view of the international relations "up to this time, research is still the focused of every organizations," it is more likely in the set up of focusing on the interactions at the micro-level. On the other hand, it is not on the interplay at the macro-level, this is actually being performed by an enormous number of international organizations. Therefore, it requires dealing with the current market in its entirety from which the international organizations are able to function. In this view, the whole utilized system in terms of the interaction amongst organizations in which must be considered, than that of having a particular organization which being isolated.

On the same way, in lieu of the effort which is eventually been made in order to move from the analysis into the implemented policy through a way of advance proposals. In which the purpose of this is to dedicatedly improve the performance of these international organizations. The said advanced proposals are intently being designed in order to strengthen the competition both internally and externally. For some scholars, they have been somewhat disinclined into it to further continue in this course. In a way that, the knowledge being acquired from working in specified institutions, together with their exchanges in the international realm remains subsequently limited, the said proposals could only be, an evocative one.

There is a necessity to fully be aware of the fact that, if such international organization scholars may not be able to come along with the ideas as to purposively intends to help prevail over the existing problems, this said proposals would still be considered advanced yet, through individuals who are even not that knowledgeable as expected and also for those organizations having the serious negative cost in view of the governance globally.

To further describe on the concept of international organization, this is actually being used broadly. One definite description is that, it covers the International Governmental Organizations (IGO) - United Nations and its sub-organizations, like the following: UN Educational, Scientific, and Cultural Organization (UNESCO), the International Monetary Fund (IMF), the World Trade Organization, as well as the International Non-Governmental Organization (INGO) - World Council of Churches or the European Trade Union Confederations. Additionally, this also covers those non-profit-oriented transnational organizations. What are among those? These are the International Olympic Committee the Amnesty International, Greenpeace or Transparency International.

These said organizations have truly been able achieved a growing political influence over the past decades (Werker and Ahmed, 2008). Thus far, these international organizations profited such political and media importance and should not be left unused. With the existence of the international organizations it is basically because of the provision with public goods.

According to Congleton (2006), the major problem has been considered as an incentive to free ride, like for instance, the case of being undersupplied of the needed goods would effect. Contrary to that, for those goods and services that are considered private, in here, there is no need for international organizations' involvement; because for most reasons, those companies that operate internationally as well as those private interest organizations are capable enough to provide the desired services.

With such, it confronts the problem that almost all of the global activities are somewhat subjected to free-ride as well as to both external effects, positively or negatively. In line with the global aspect, the difference as to compare the two; private and public goods have seemed to be blurred. Acquiring the concept of international organization in its existence, it must actually not always be considered as serving the nature of these goods or services. Instead, with its existence, this would depend on how far do they are, at the same time, how exactly the so-called property rights have been assigned in the international scope. In one way or another, there must be a recognize as to what extent does a particular international organization is reaching and the coverage of its service in lieu of what it offers.

With the participation of the political interests of the national governments, the private interest organizations, at the same time the existence of international organizations, definitely functions vitally on its given role. In this wide range of considerations, it entails that such activity could have been supplies by the international organizations. Primarily, from the aspect that is mainly private into public groups.

Moreover, by such utilization of standard economic approach, that commences the examination with regards to the character of goods; both private and public or either of the two, has said to be limited in terms of its worth. Citing relevant examples are actually those organizations that are humanitarian and eventually are active in its participation in the global scope. Furthermore, in some point of those public goods, the government intervention is not actually be needed at all or even discarded.

One good example for this is, the Red Cross, seeing its importance, it is considered one of the major players that are providing international public goods. It eventually accentuates its self-governing and self-ruling classifications from the national governments, though; knowing for a fact that this has also been heavily funded by them.

This paper considers Red Cross as an example of an international organization (humanitarian organization) together with the affiliated organization which is the Red Crescent Movement. This organization has been widely known and even been recognized as the largest humanitarian group in the world. This said organization is neutral and impartial, and the same time, as partly engaged in providing protection as well as assistance to every citizens who in their way of living in this world has encountered or become affected by natural calamities and conflicts. This is composed for about 97 million volunteers around the world together with a number of supporters, and also staff who do the operations, operating in the 186 countries internationally. This type of international organization has three main works: first is the composition of the International Committee of Red Cross (ICRC); next is the International Federation of Red Cross and Red Crescent Societies; and lastly, the 186 Red Cross and Red Crescent Societies.

With the collaboration of the three, there are varieties of members who in their on little have been able to continue supporting the communities to become stronger enough at the same time become safer through different development projects together with such humanitarian activities. As part of the compliance, this international organization has worked in cooperation with the government agencies, donors from their respective locations, and also for other aid organizations. They are tasked by way of assisting defenseless citizens allover the world.

For this international organization-Red Cross, to be able to globally serve, they have series of business strategies in which this organization has been adopted since in the year of 2001 and eventually been updated in 2005. Its purpose is to strengthen the organization's ability to reach out unfortunate or the so-called defenseless people with effective respond in a humanitarian basis. Together with that, they have outlines of objectives, and most importantly get the best results of their effort of serving the people.

Hence, Red Cross has designed an exclusively humanitarian mission that is to protect the people's lives as well as their dignity, most especially those who are victims of war; for those who are identified as a victim on internal violence, and at the same time by providing them with the right assistance.

In times of conflict situations, the organization's responsibility is to direct and also to coordinate the organization's international relief activities. In this way, one aspect is that it would promote the significance of such international humanitarian decree and portrays attention to the global spectrum. The organization also on its function, in order to meet the needs of those internally displaced individuals, have eventually increase the awareness of the public of the about the dangers of mines as well as the likely to explode leftovers of war. Part of the organization's responsibility is to trace those victims who have gone away and still missing during occurrence.

The organization has employed for about or more than 12,000 personnel in those 80 countries globally. While there is for about 30% of the organization's operational activities which have been brought out in collaboration with the National Societies. Furthermore, Red Cross organization is a humanitarian sector which functions internationally. At the same time, it coordinates and directs the global support being followed with the natural and man-made disasters during the so-called non-conflicts conditions. Again, they are designed to improve the quality of life of the people and the defenseless individuals through mobilizing the power of humankind.

With the organization's assistance operations that is being associated with work development, and also with the inclusion of preparedness programs for disasters, as well as for the health and care activities, and at the same time, in the promotion of charitable values. Specifically, this organization is in support with the programs pertaining on risk diminution and eventually part of it is to fight the spreading of diseases. So, what particularly? Like the HIV, avian influenza, tuberculosis, and malaria. In the same manner, it also works to battle "discrimination and violence". Therefore, it enables to promote human rights and being able to assist immigrants.

The organization's programs aligning with the designed activities as part of the International Federation's Global Agenda are the following: a) reduction of the number of deaths, injuries, as well as the impact from the occurred disaster; b) reduction of the number of deaths, diseases and also the impact from that of public health emergencies; c) a growth for local community, with the organization's capability to deal with the most imperative circumstances of defenselessness; and d) to help promote respect for a diversified and dignified humanity, and the reduction of fanaticism, discrimination, and such social exclusion.

In the light of the modern political economy, having been able to focus on the concern of those active citizens in an international basis together with the organizations themselves, and subsequently with a proportional approach, this is in providing a more functional source for analyzing the international organizations than that of the standard economic approach acts (Vaubel, 1986).

This paper discuss also on the Political Economy, in which it could find out the functions of international organizations in a way of utilizing the competition concept in two variations: 1) for the external competition-this describes on the aspect in which the market has been opened intended for the outsiders; 2) reversely, the internal competition-in here, it is the preferences of the people that have been reflected through the actions being taken by the international organizations.

Analyzing the fact that, both of these simplified types of competition have been strictly controlled and they are even lacking. Since, it goes that way, there are a lot of suggestions in lieu of the contemporary features as to help strengthens competition. Again, the external competition, with the said interaction in the international markets it is its concept being used - this specifically describes to where the demand intends to and at the same time, the provision of the needed goods together with the services be able to meet.

Additionally, this pertains to the degree in which the international market is said as contestable in terms of its entrance and the exit. Eventually, this shows that such international organization could easily penetrate the market and analyzing too how costly would it be if it is going to leave again. With its entry in the global market, it may be assumed by those newly established organizations. In terms of the costs upon entering in the global market may be high-priced, in such that an existing international organization has monopolized on a specified market.

The market in its global spectrum has been differentiated by a type of competition which is oligopolistic (Abdelal, 2006). Having the said global interaction in view of the stiff competition confronting international organizations might even be resulted in a saturate condition of that of an international good. (Steinwand and Stone, 2008)

Another term to which this paper defines is contestability, pertains to the cost of taking the exit from the market. The importance of this is that, its concept creates an instant way in the status of those privately profit-oriented companies. It would therefore, take the chance of whether these companies could have taken the profits within their respective global operations or put it into such investment elsewhere.

This figures out in the case of some developing countries in where the national legislation disallowed the profits repatriation. Again, the concept is actually be determined as less uncomplicated in the basis of non-profit oriented international organizations. On the other hand, to the level that the inside competition has been subdued, another is the employees of the international organizations are capable to derive rents, it is like the different benefits that they would not have it somewhere else.

Allowing the fact that the opportunity to repatriate the said benefits has been reduced, thus with the decision-makers in international organizations, they would become less enthusiastic to slot in, in the designated country. While detailing on the entry cost which is could also be possible to the exit cost, is intended for international markets.

In this matter, there are other significant areas to consider yet, though they have not been fully settle on the numeral view of the competition among this group; international organizations. Contestability in the sense that, not overtly provided but is actually subjected to the exploitations of the different players in the international scope. This is to say that, specifically the international organizations are involved to which it strongly aims to make joint efforts to limit the market for those that have right of entry to newcomers through a raising entry costs.

In connection to the politicians it might as well as the employees engaged into the cycle of international organizations, would be apt to disallow entry to expand for themselves to a more distinctive way in order to enjoy probably a quiet life. At the same time, creating extra rentals if there is a need for it (Werker and Ahmed, 2008) for the purpose of gaining for their own benefit. It has been said that these joint efforts are not of necessity as made in bad faith. Every now and then, individuals in their respective involvement especially in the filed of global view, are usually been influenced that they are the most knowledgeable, and even be considered as the most worthy players in the global market.

On the same manner, if there are many suppliers who then be acting in the global market, interest group would to form for the purpose of preventing the so-called "noxious" rivalry. In most of the cases, the international organizations have an incentive to holding

back the said competition by way of partitioning the field of activity in accordance to regions as well as those detailed activity. Foremost, there is importance to closely examine as well as to be able to better understand the different markets from which international organizations function. Most importantly, the need to fully be aware and finding ways to obtain better understanding in the area of the dynamics from which in particular, as globalization of the entire economic standing of the world has changed. (The Economist, 2008).

There would be somehow a beat harder to ask of how easy could be in establishing a new international organization. Another way is that, how long could this be in its existence in the global market, and how often would be international organizations evaporate again. Seemingly, there is an ever-growing markets for international organizations (Frey, 1997 and Vaubel, 2007).

Specifically, the figurative count for international NGOs has its rapid growth for over few decades ago. It has been computed as more than 6% annually based on the last half-century. Then it increases from less than 200 during 1909 arising to 1,000 in the year 1956, yet it rises to 20,000 by the year 2005 (Werker and Ahmed, 2008).


Giving importance to the functions of these international organizations could cause an increase of its number per year. For that of the inside competition, this is how it goes, the stronger the political competition would be, the more international organizations would also be forced to believe the partiality of the individuals being represented, or on the other means, the donors who, in their initiative and philanthropic personality are providing funds. For such competition, it has been seriously vulnerable in a way that donors in some instances have also limited awareness in what these international organizations are doing in line with the international market.

With the preferences, they are even being muted and also been seldom to explicitly be expressed. In effect to this, such concept of international organizations has a considerable sum of unrestricted power. In which it would turn to bureaucracy. More often than not, would also tend to utilize its own advantage. In this particular area, it has been broadly analyzed in the scope of Public Choice Approach, intended for the tasks to perform by these international organizations (Dreher, 2004).

Moreover, there is a need for the citizens as well with the responsibilities that these international organizations are possessing. In such that, whenever a need arise from any of the citizens who happened to be the victims, they may be able to approach them without any hesitations and discrimination. Nevertheless, such hardships be encountered or may even have difficulty in identifying the role of a certain organization it could have led to deformation. By so doing, if a specified organization has been credited with the development of a certain global standing then there would have been factors to count on for the purpose of attaining its common goals and objectives.