INTERNATIONAL BUSINESS REVISION NOTE + EXAM QUESTIONS ÔN TẬP CUỐI KỲ KINH DOANH QUỐC TẾ TIẾNG ANH CHAPTER 1 GLOBALIZATION The shift toward a more integrated and interdependent world economy 1 THE GLOBALIZATION OF MARKETS the merging of historically distinct and separate national markets into one huge global marketplace falling trade barriers make it easier to sell globally consumers’ tastes and preferences are converging on some global norm firms promote the trend by offering the same basic prod.
INTERNATIONAL BUSINESS REVISION NOTE + EXAM QUESTIONS ÔN TẬP CUỐI KỲ KINH DOANH QUỐC TẾ TIẾNG ANH CHAPTER 1: GLOBALIZATION The shift toward a more integrated and interdependent world economy THE GLOBALIZATION OF MARKETS: the merging of historically distinct and separate national markets into one huge global marketplace • • • falling trade barriers make it easier to sell globally consumers’ tastes and preferences are converging on some global norm firms promote the trend by offering the same basic products worldwide Significant differences still exist among national markets, including consumer tastes and preferences, distribution channels, culturally embedded value systems, business systems, and legal regulations customize marketing strategies, product features, and operating practices to best match conditions in a particular country The most global markets currently are not markets for consumer products—where national differences in tastes and preferences are still often important enough to act as a brake on globalization—but markets for industrial goods and materials that serve a universal need A powerful force drives the world toward global market is technology • It has proletarianized communication, transport, and travel It has made isolated places and impoverished peoples eager for modernity Almost everyone everywhere wants all the things they have heard about, seen, or experienced thru the new technologies • Corporations follow this new reality benefit from enormous economies of scale in production, distribution, marketing, and management THE GLOBALIZATION OF PRODUCTION: the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital) Lower their overall cost structure and/or improve the quality or functionality of their product offering, thereby allowing them to compete more effectively Early outsourcing efforts were primarily confined to manufacturing enterprises, but today, more companies are taking advantage of modern communications technology, like the Internet, to outsource service activities to low-cost producers in other nations Not easy for businesses to move production parts to the best or cheapest places to produce: Formal and informal trade barriers between countries, barriers to FDI, transportation costs, and issues related to economic and political risks THE EMERGENCE OF GLOBAL INSTITUTIONS (định chế toàn cầu): help manage, regulate, and police the global marketplace, promote the establishment of multinational treaties to govern the global business system The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, they overall wanna promote international trade by reducing or eliminating trade barriers such as tariffs or quotas (WTO) is an intergovernmental organization that regulates and facilitates international trade between nations • polices the world trading system • makes sure that nation-states adhere to the rules • laid down in trade treaties • promotes lower barriers to trade and investment • 11/01/2007, VN became a member of WTO International Monetary Fund (IMF) 1944 • maintains order in the international monetary system • lender of last resort for countries in crisis The World Bank (1944) 1944 • promotes economic development via low interest • loans for infrastructure projects The United Nations (1945) • maintains international peace and security • develops friendly relations among nations cooperates in solving international problems and in promoting respect for human rights a center for harmonizing the actions of nations The G20 • Forum through which major nations tried to launch a coordinated policy response to the 2008-2009 global financial crisis (housing bubble) • • • WHAT IS DRIVING GLOBALIZATION a Declining barriers to the free flow of goods, services, and capital: (high tariffs was to protect domestic industries from foreign competition One consequence was “beggar thy neighbor” => depressed world demand and contributed to the Great Depression of the 1930s protectionism, an economic policy that attempts to protect domestic businesses from foreign competition and labor markets, usually by imposing trade barriers like tariffs more favorable environment for FDI) the global financial crisis of 2008–2009 and the associated drop in global output that occurred led to more calls for trade barriers to protect jobs at home If trade barriers decline no further, this may slow the rate of globalization of both markets and production more favorable environment for FDI facilitates global production view the world, rather than a single country, as their market base production in the optimal location for that activity Technological change Microprocessors (vi xử lý) and telecommunications • Enabled the explosive growth of high-power, low-cost computing, vastly increasing the amount of information that can be processed by individuals and firms • Global communications have been revolutionized by developments in satellite, optical fiber, wireless technologies, and of course the Internet • • • • b • • • • • • The cost of microprocessors continues to fall, while their power increases (a phenomenon known as Moore’s law, which predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months) Moore's Law states that we can expect the speed and capability of our computers to increase every couple of years, and we will pay less for them The Internet and World Wide Web • Easier for buyers and sellers to find each other, wherever they may be located and whatever their size • It allows businesses, both small and large, to expand their global presence at a lower cost than ever before • Enables enterprises to coordinate and control a globally dispersed production system Transportation technology Lower transportation costs help create global markets and allow firms to disperse production to economical, geographically separate locations Low cost information processing and communication firms can create and manage globally dispersed production Low cost global communications networks help create an electronic global marketplace The Changing Demographics Of The Global Economy The changing world output and world trade picture the share of world output accounted for by developing nations is rising the share of world output and world exports accounted for by longestablished developed nations relative decline reflects the growing economic development and industrialization of the world economy India’s Software Sector explores the growth of India’ software sector over the last twenty-five years First, the country has a large supply of engineers Second, labor costs in India are low Third, since many Indians are fluent in English, coordination between Western firms and Indian firms is easier Fourth, because of time differences, Indians can work while Americans sleep • • • The changing foreign direct investment picture FDI developing countries accounted for a growing share of global foreign direct investment (FDI) inflows and outflows disperse production activities to optimal locations and to build a direct presence in major foreign markets political stability, security, and regulatory environment are leading factors driving decisions to invest in developing countries The changing nature of the multinational enterprise the number of mini-multinationals (f small and medium-sized multinationals) has risen The rise of the Internet is lowering the barriers that small firms face in building international sales The changing world order Many former Communist nations in Europe and Asia are now committed to democratic politics and free market economies (creates new opportunities for international businesses, but, there are signs of growing unrest and totalitarian tendencies in some countries) GLOBAL ECONOMY OF THE TWENTY-FIRST CENTURY • The world is moving toward a more global economic system • globalization is not inevitable • Globalization brings risks THE GLOBALIZATION DEBATE GLOBALIZATION, JOBS, AND INCOME • Opponents falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower the pool of global labor has increased Other things being equal, we might conclude that this enormous expansion in the global labor force, when coupled with expanding international trade, would have depressed wages in developed nations • Supporters free trade results in countries specializing in the production of goods and services that they can produce most efficiently, while importing goods and services that they cannot produce as efficiently the increased income generated in developing countries from exports increases income levels in that country, which helps the people purchase more products produced in developed ones, which helps create jobs By outsourcing customer service call centers to manufacturing nations, enterprises in service countries can reduce cost structure and thereby its prices for goods Consumers benefit from low price can spend more of their money on other goods and services weak growth rate in real wage rates for unskilled workers owes far more to a technology-induced shift within advanced economies away from jobs requiring low skills and toward jobs that require significant education and skills solution: increasing society’s investment in education to reduce the supply of unskilled workers GLOBALIZATION, LABOR POLICIES AND THE ENVIRONMENT • Opponents adhering to labor and environmental regulations significantly increases the costs of manufacturing enterprises and puts them at a competitive disadvantage in the global marketplace move production facilities to nations that not have such burdensome regulations or that fail to enforce the regulations they have pollute the environment, employ child labor, and ignore workplace safety and health issues, all in the name of higher profit • Supporters tougher environmental regulations and stricter labor standards go hand in hand with economic progress free trade enables developing countries to increase their economic growth rates, this should lead to they enact tougher environmental and labor regulations By creating wealth and incentives for enterprises to produce technological innovations, the free market system and free trade could make it easier for the world to cope with pollution and population growth Solution: get the nations of the world to agree to policies designed to limit carbon emissions put a price on carbon-intensive energy generation through a carbon tax GLOBALIZATION, NATIONAL SOVEREIGNTY • Opponent today’s increasingly interdependent global economy shifts economic power away from national governments and toward supranational organizations unelected bureaucrats now impose policies on the democratically elected governments of nation-states, thereby undermining the sovereignty of those states and limiting the nation’s ability to control its own destiny • Supporter exist to serve the collective interests of member states, not to subvert those interests the power of these bodies rests largely on their ability to persuade member states to follow a certain action real power still resides with individual nation-states If these bodies fail to serve the collective interests of member states, those states will withdraw their support and the supranational organization will quickly collapse GLOBALIZATION, THE WORLD’S POOR • Critics: the gap between the rich and poor nations of the world has gotten wider • Supporter Many of the world’s poorest countries have suffered from totalitarian governments, economic policies that destroyed wealth rather than facilitated its creation, endemic corruption, scant protection for property rights, rapidly expanding populations and prolonged civil war reasons for economic stagnation has nothing to with free trade or globalization The richest nations of the world also can help by reducing barriers to the importation of products from the world’s poorest nations, particularly tariffs on imports of agricultural products and textiles improve their lot is to lower their barriers to free trade and investment and to implement economic policies based on free market economics sách pt kt (totalitarian) => tham nhũng nước nghèo thường xóa nợ (khi tham gia vào tổ chức giới) => mà kp cách pt lâu dài tận dụng hiểu mang lại lợi ích, Globalization Advantages ● Increased international productivity: The worldwide movement of goods and labor makes for increased competition and lower prices There are more goods at lower prices The freer flowing trade, reduced labor costs, and fewer trade barriers has led to the rise of giant multinational corporations who are able to take advantage of small price differences and leverage those into huge profits Allows developing countries access to international investment funds Easily share technology across national borders Globalization Disadvantages there are fewer barriers to trade, and the rapid pace of globalization means jobs - even whole industries - have been rapidly moving away from the country The first workers to be affected were blue collar jobs, but now many white collar jobs are following suit: engineering, accounting, and design jobs are all under wage pressure and face the threat of being outsourced for less money So, as a result, the rich have gotten very rich, the poor have lost ground, and the middle-class is shrinking The exploitation of labor: Working conditions and safety standards deteriorate in order to lower labor costs, especially in countries without the same protection as the U.S Workers unions, or even countries that try to stop these conditions, face the very real possibility of those jobs going to less humane parts of the world that can get the job done for less Lastly, globalization can hurt national culture and diversity through the promotion of consumerist culture via commodities that are advertised across multiple cultures For example, Sword uses global marketing campaigns to sell American cars and values, which can eliminate local tastes Chapter INTERNATIONAL TRADE THEORY (IPLC, New trade, Porter’s diamond) A What is Free Trade? The primary barrier that exists to free trade is tariffs Tariffs are taxes people have to pay when they try to import goods into another country Countries place tariffs on imports for two major reasons: ● Governments can make a large amount of tax revenue if people are willing to pay the tariff ● Domestic businesses will be able to sell their goods for cheaper so foreign countries cannot run local companies out of business The idea of free trade is the solution to this problem by eliminating tariffs and encouraging the export of goods between countries Free Trade refers to a type of trade relationship countries can have with each other the idea that the best way to profit from trade is not to regulate it at all Free Trade Examples: The elimination of trade barriers A free trade example is the idea that tariffs should not exist between countries because they restrict the natural flow of goods If countries produce better goods at a lower price, they should be able to export those goods to any country without paying taxes However, the problem with free trade is that not all countries benefit from this policy If country A is paying millions of dollars in tariffs to country B, there is almost no reason that country B would ever embrace free trade because they are profiting so much from the current trade system Free Trade Agreements are a set of rules and procedures negotiated by two or more countries that establish a tariff-free trade zone Countries in an FTA can export goods to any participating country without paying tariffs These agreements also typically encourage cross-country business, such as the construction of factories in one country and the processing of goods in another However, these agreements exist because if all countries simply embraced free trade, some countries would benefit while others would not Therefore, these agreements set restrictions and standards that make the benefits of free trade more equitable across participating countries These restrictions are monitored by international organizations like the World Trade Organization (WTO) Examples: One of the best-known and most significant FTA's is NAFTA The North American Free Trade Agreement was a free trade agreement created by Canada, the United States, and Mexico in the 1990s These three countries exist in a unique part of the world and share similar interests and concerns For these reasons, NAFTA was created to help all three countries prosper while also encouraging more trade between the countries The agreement created a free trade zone within the three countries and almost completely eliminated all tariffs on goods In addition, because Mexico and Canada are smaller both in population and economic power compared to the United States, this agreement was necessary to make free trade more desirable for smaller countries This agreement existed for over twenty years, but in 2017, President Donald Trump announced he intended to pull the U.S out of the trade agreement This was based on the belief that NAFTA was harming the United States economically and disproportionately benefitting Mexico and Canada By 2020, NAFTA was replaced by the U.S.-Mexico-Canada Agreement (USMCA, also referred to as CUSMA), which is a readjusted free trade agreement to limit the loss of American jobs The problem with free trade agreements with the United States is that American companies are so large that they are constantly looking for ways to cut costs and are willing to move operations to other countries to so If free trade is not managed, this can lead to the exportation of entire job sectors outside the country Pros of Free Trade • opening a country to trade could increase:a country's stock of resources as increased supplies becomeavailable from abroad; the efficiency of resource utilization and so free up resources forother uses; economic growth ● Free trade enables consumers to decide what products and prices are preferred This is the idea of the 'invisible hand' from The Wealth of Nations by Adam Smith Instead of governments needing to regulate trade and add tariffs to make money, free trade would force domestic companies to strive to be as efficient as possible to compete with goods worldwide Subsidies-government payments todomestic producers: Subsidies help domestic producers; compete against low-cost foreign imports; gain export markets; Consumers typically absorb the costs ofsubsidies Voluntary Export Restraints- quotas ontrade imposed by the exporting country,typically at the request of the importingcountry’s government; Import quotas and voluntary exportrestraints (benefit domestic producers¬raise the prices of imported goods) Local Content Requirements- demand that some specific fraction of a good beproduced domestically (benefit domestic producers; consumers face higher prices) Administrative Policies- bureaucratic rules designed to make it difficult for imports to enter a country=> polices hurt consumers by limiting choice Antidumping Policies–aka countervailingduties- punish foreign firms that engage indumping and protect domestic producers from“unfair” foreign competition Defend against aggressive and arguably unethical trade practices of exporting countries Dumping, which occurs when an exporter sells a high volume of products in a foreign country at a lower price than it charges in its own domestic market (enables firms to unload excess production inforeign markets¬ may be predatory behavior producers useprofits from their home markets to subsidizeprices in a foreign market to drive competitorsout of that market, and then later raise prices) => An anti-dumping duty is a tariff aimed at imports that are dumped on a market => make the dumped product very expensive in comparison with domestic products C Why Do Governments Intervene In Markets? Political arguments- concerned with protectingthe interests of certain groups within a nation(normally producers), often at the expense ofother groups (normally consumers) • Protecting jobs- the most commonpolitical reason for trade restrictions¬results from political pressures by unions orindustries that are "threatened" by moreefficient foreign producers, and have morepolitical clout than consumers • Protecting industries deemed importantfor national security- industries are oftenprotected because they are deemedimportant for national security¬aerospace or semiconductors Retaliation for unfair foreign competition-when governments take, or threaten totake, specific actions, other countriesmay remove trade barriers¬if threatened governments not backdown, tensions can escalate and new tradebarriers may be enacted¬risky strategy4.Protecting consumers from “dangerous”products– limit “unsafe” products • Furthering the goals of foreign policy-preferential trade terms can be grantedto countries that a government wants tobuild strong relations with¬trade policy can also be used to punishrogue states ¬theHelmsBurton Actand theD’Amato Act,have been passed to protect Americancompanies from such actions • Protecting the human rights of individuals inexporting countries– through trade policyactions¬the decision to grant China MFN status in 1999 wasbased on this philosophy7.Protecting the environment– internationaltrade is associated with a decline inenvironmental quality¬concern over global warming ¬enforcement of environmental regulations Economic arguments- concerned with boostingthe overall wealth of a nation – benefits bothproducers and consumers • The infant industry argument-anindustry should be protected until it candevelop and be viable and competitiveinternationally ¬accepted as a justification for temporarytrade restrictions under the WTO • Strategic trade policy- first moveradvantages can be important to success¬governments can help firms from theircountries attain these advantages¬governments can help firms overcomebarriers to entry into industries where foreignfirms have an initial advantage • Advantages and Disadvantages Restricting imports helps a country's domestic economy develop new industries that might otherwise be quashed by imports from other countries that have had a head start These developing industries can add to the country's economic growth, create jobs, increase the overall wealth of the country and lead to a better balance of trade Trade protectionism is not efficient from an economic standpoint It's more efficient under the concept of comparative advantage for a country to focus its production on those goods for which it has an advantage in production and import those goods that it does not Consumers in the domestic market may also have to pay a premium for a better produced import or be denied the ability to acquire it at all =>reduce the standard of living of the citizens Additionally, the Golden Rule often applies in international trade: Countries subjected to another country’s trade protectionism may retaliate by raising trade barriers against imports from Cara's country countries that attempt to use such policies willprobably provoke retaliation • Integration and Selective Protectionism team up with other countries through economic integration (a group of countries or a region reduces trade barriers and coordinates certain economic activities: trade agreements, free trade areas, customs unions and common markets ) and selective protectionism It's basically about treating some trading partners better than others form or join a customs union: trade barriers between member countries are eliminated just like with free trade areas However, unlike free trade areas, members of a customs union will develop a unified trade policy regarding non-members common market or economic union: A common market not only lifts trade barriers between members and provides for a common trade policy, but it also lifts most barriers to the movement of capital, labor and technology among member countries On the other hand, an economic union is like a common market, but the member countries also maintain a consistent monetary policy, fiscal policy and tax policy The member countries act as a single economic unit in many ways The European Union is an example of an economic union CHAPTER 5: FOREIGN DIRECT INVESTMENT The flow of FDI - the amount of FDI undertaken over a given time period The stock of FDI - the total accumulated value of foreign-owned assets at a given time Tại doanh nghiệp thích sáp nhập tài sản có thực đầu tư mới? sáp nhập mua lại thực nhanh đầu tư doanh nghiệp nước ngồi đưỢc mua lại doanh nghiệp có tài sản có giá trị chiến lược, chẳng hạn trung thành với nhãn hiệu, mối quan hệ khách hàng, nhãn hiệu sáng chế, hệ thống phân phối, hệ thống sản xuất thứ tương tự Doanh nghiệp dễ dàng rủi ro mua lại tài sản xây dựng chúng từ đầu thông qua đáu tư Thứ ba, doanh nghiệp thực mua lại họ tin họ có thể’ làm tăng hiệu đơn vị mua lại cách chuyển giao vốn, công nghệ kỹ quản lý Thứ nhất, nhượng quyền dẫn đến cơng ty đưa bí cơng nghệ có giá trị cho đối thủ cạnh tranh nước ngồi tiềm g hố cơng nghệ sử dụng để’ thâm nhập thị trường khác trực tiếp cạnh tranh với công ty nhượng quyền doanh nghiệp khơng thể kiểm sốt chặt chẽ việc sản xuất, marketing chiến lược nước để’ tối đa hoá lợi nhuận họ Multipoint competition arises when two or more enterprises encounter each other in different regional markets, national markets, or industries Phát sinh hai hay nhiều doanh nghiệp gặp thị trường khu vực, thị trường nội địa ngành công nghiệp khác Lý thuyết Knickerbocker phần mở rộng giúp giải thích việc hình thành hành vi FDI doanh nghiệp ngành công nghiệp độc quyền, lý thuyết không giải thích lý doanh nghiệp độc quyến nhóm định thực FDI khơng phải xuất hay nhượng quyền Lý thuyết quốc tế hoá thảo luận tượng giải đưỢc vấn đề FDI có hiệu xuất cấp phép cho việc mở rộng nước ngồi khơng Vì lý này, nhiều nhà kinh tế học coi lý thuyết quốc tế hoá lời giải thích cho FDI, hầu hết đồng ý giải thích bắt chước phần quan trọng FDI hoạt động đầu tư cách nhà đầu tư quốc gia đưa vốn để đầu tư sang một quốc gia khác đồng thời trực tiếp tham gia quản lý với mục đích thu lợi nhuận The Radical view The radical view traces its roots to Marxist political and economic theory Countries bracing the radical view argue that the multinational enterprise (MNE) is an instrument of imperialist domination They see the MNE as a tool for exploiting host countries to the exclusive benefit of their capitalist– imperialist home countries MNEs extract profits from the host country and take them to their home country, giving nothing of value to the host country in exchange They note that key technology is tightly controlled by the MNE and that important jobs in the foreign subsidiaries of MNEs go to homecountry nationals rather than to citizens of the host country Because of this, FDI by the MNEs of advanced capitalist nations keeps the less developed countries of the world relatively backward and dependent on advanced capitalist nations for investment, jobs, and technology Thus, according to the extreme version of this view, no country should ever permit foreign corporations to undertake FDI because they can never be instruments of economic development, only of economic domination Where MNEs already exist in a country, they should be immediately nationalized The radical view is very similar to the reasoning behind mercantilism They both consider international trade a zero-sum game (bỏ hình mercantilism với zero-sum game nhóe) From 1945 until the 1980s, the radical view was very influential in the world economy the countries of eastern Europe and communist countries were opposed to FDI (although, in practice, the Chinese started to allow FDI in mainland China in the 1970s) Many socialist countries—particularly in Africa, where one of the first actions of many newly independent states was to nationalize foreign-owned enterprises—also embraced the radical position Countries whose political ideology was more nationalistic than socialistic further embraced the radical position This was true in Iran and India, for example, both of which adopted tough policies restricting FDI and nationalized many foreign-owned enterprises From the 1950s to 1970s, China was a vivid example of a country adopting a radical approach to development These development strategies promoted the view that China could only advance if it “delinked” itself from the international economy, which was dominated by Western industrialized nations Therefore, China was opposed to trade, FDI and loans from international banks It pursued a centrally planned economy and import substitution industrialization (Import substitution industrialization (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production.[1] It is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products.) By the early 1990s, the radical position was in retreat for some reasons The first one is the collapse of communism in eastern Europe; The second one is The poor economic performance of those countries that embraced the radical view The strong economic performance of those developing countries that embraced capitalism rather than radical ideology (e.g., Singapore, Hong Kong, and Taiwan) The final one is a growing belief by many of these countries that FDI can be an important source of technology and jobs and can stimulate economic growth The radical view still lingers on in some countries, such as Venezuela, where the government of Hugo Chávez and his successor, Nicolás Maduro, both viewed foreign multinationals as an instrument of domination THE FREE MARKET VIEW The free market view traces its roots to classical economics and the international trade theories of Adam Smith and David Ricardo The free market view argues that international production should be distributed among countries according to the theory of comparative advantage Countries should specialize in the production of those goods and services that they can produce most efficiently The MNE is an instrument for dispersing the production of goods and services to the most efficient locations around the globe => Therefore, FDI by the MNE increases the overall efficiency of the world economy the country’s massive industrial infrastructure, the availability of a large, affordable, and skilled labour force; the low cost of production compared to most other countries; and the ability of Chinese manufacturers to automate production lines Chinese suppliers typically offer high cost-efficiency and low turn-around time for production and increasingly focus on innovation China’s affluent consumer base is a critical driver for Apple’s revenue and brand growth By moving the production line from the United States to China, Apple frees U.S resources for use in activities in which the United States has a comparative advantage Consumers benefit because the prices for Apple devices decrease Besides, China also gains from the technology, skills, and capital that the computer company transfers with its FDI Pragmatic nationalism (Chủ nghĩa dân tộc thực dụng) In fact, many countries have adopted neither a radical policy nor a free market policy toward FDI but, instead, a policy that can best be described as pragmatic nationalism Pragmatic nationalism is national-interest driven It sits somewhere between the extremes of economic isolationism (the Marxist ‘radical view’) and free market philosophy The pragmatic nationalist view is that FDI has both benefits and costs FDI can benefit a host country by bringing capital, skills, technology, and jobs, but those benefits come at a cost When a foreign company rather than a domestic company produces products, the profits from that investment go abroad Many countries are also concerned that a foreign-owned manufacturing plant may import many components from its home country, which has negative implications for the host country's balance-of-payments position Recognizing this, countries adopting a pragmatic stance pursue policies designed to maximize the national benefits and minimize the national costs According to this view, FDI should be allowed so long as the benefits outweigh the costs ● Example: Japan offers a vivid example of pragmatic nationalism Until the 1980s, Japan's policy was probably one of the most restrictive among countries adopting a pragmatic nationalist stance ● This was due to Japan's perception that direct entry of foreign firms with many managerial resources into the Japanese markets could hamper the development and growth of their own industry and technology This belief led Japan to block the majority of applications to invest in Japan However, there were always exceptions to this policy Firms that had important technology were often permitted to undertake FDI if they insisted that they would neither license their technology to a Japanese firm nor enter into a joint venture with a Japanese enterprise IBM and Texas Instruments were able to set up wholly owned subsidiaries in Japan by adopting this negotiating position From the perspective of the Japanese government, the benefits of FDI in such cases-the stimulus that these firms might impart to the Japanese economyoutweighed the perceived costs Example: Japan offers a vivid example of pragmatic nationalism Until the 1980s, Japan's policy was probably one of the most restrictive among countries adopting a pragmatic nationalist stance This was due to Japan's perception that direct entry of foreign firms with many managerial resources into the Japanese markets could hamper the development and growth of their own industry and technology This belief led Japan to block the majority of applications to invest in Japan However, there were always exceptions to this policy Firms that had important technology were often permitted to undertake FDI if they insisted that they would neither license their technology to a Japanese firm nor enter into a joint venture with a Japanese enterprise CHINA In the course of the early/mid-1990s, China opened up its inward FDI regime considerably, to much of the rest of China beyond the SEZs, and allowed the establishment of wholly owned foreign enterprises on its territory At the same time, China restricts Industry sectors including industries such as the energy-, IT and telecommunications-, automotive-, and compulsory education industries The Negative List provides guidance and governs industry sectors in which foreign investment is prohibited or where possible restrictions may apply the industry sector does not fall within the aforementioned categories, foreign investors are entitled to the same treatment as domestic enterprises In general, foreign investment into China is prohibited in industries if such foreign investment: ● Threatens the country’s national security or military facilities; ● Harms public interest; ● Damages the environment; ● Hinders the protection and development of land resources; ● Or uses unique technology which is the property of China for manufacturing purposes Since the 1978 adoption of the ‘open-door’ policy designed to attract foreign investments to facilitate China’s development, a strikingly large number of foreign investments has come to China.1This incoming flow has triggered remarkable economic growth and social development over the past few decades, by creating new working opportunities, introducing advanced technologies and managerial skills, promoting legal, social and other reforms, intensifying competition, as well as enhancing efficiency and competitiveness of domestic industries Another aspect of pragmatic nationalism is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants The countries of the European Union often seem to be competing with each other to attract U.S and Japanese FDI by offering large tax breaks and subsidies Britain has been the most successful at attracting Japanese investment in the automobile industry Nissan, Toyota, and Honda now have major assembly plants in Britain and use the country as their base for serving the rest of Europe-with obvious employment and balance-of-payments benefits for Britain Democracy can be understood when the ultimate authority of the government is vested in ordinary people so that the public policy is made to conform to the will of the people and to serve the interest of the people development could be identified as a process in which a system or institution is transformed into stronger more organized and more efficient and more effective form and proves to be more satisfying in terms of human wants and aspirations Democracy is not conductive for development as it slows decision-making processes democracia Quarry democracy doesn't go along with Asian values which are based on the solidarity and that's the queen people always concerned with liability for the sake of social stability and prosperity democracy and development are interdependent that can be development with the democracy only with people participation in governance we can Ensure how to build a t of government and can address problem with inequitable growth + Hiệu ứng lan tỏa kiến thức (Externality) ví dụ Ngoại ứng Ngoại ứng hiệu ứng lan toả kiến thức Đây thuật ngữ kinh tế học, chi phí hay lợi ích gián tiếp bên thứ ba không liên quan, gây ảnh hưởng hoạt động bên khác "In economics, an externality is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's activity." + Tăng trưởng kinh tế vs Phát triển kinh tế: Tăng trưởng quy mô Phát triển ngồi quy mơ cần để ý tới khía cạnh xã hội, y tế, giáo dục + Chủ nghĩa dân tộc thực dụng: cho phép FDI lợi ích từ FDI nhiều chi phí gây + Chủ nghĩa chuyên chế chủ nghĩa toàn trị dạng chế độ độc tài Chế độ độc tài dạng phủ cá nhân đảng trị kiểm sốt ngăn ngừa đảng phái trị đối lập Chủ nghĩa chuyên chế: Toàn quyền lực từ hành pháp đến lập pháp tư pháp, từ trị đến quân sự, kinh tế, văn hố xã hội Chủ nghĩa tồn trị: ngồi lĩnh vực trên, cịn quản lý tâm hồn trí tuệ dân chúng + Chế độ độc tài: độc tài + Các hình thức chủ nghĩa tồn trị: Trong hầu hết hình thức chế độ độc tài xếp toàn trị thần quyền, toàn trị tộc, toàn trị cánh hữu, toàn trị cộng sản + Chỉ số PPP: không phải để điều chỉnh tổng sản phẩm quốc nội dùng để điều chỉnh số khác GNI để phản ánh khác biệt chi phí sinh hoạt vào số + Rủi ro pháp lý: Khả đối tác thương mại lợi dụng theo chủ nghĩa hội phá vỡ điều khoản hợp đồng tước đoạt quyền sở hữu trí tuệ + liên quan đến việc cấp cho thực thể nước (bên cấp phép) quyền sản xuất bán sản phẩm doanh nghiệp đổi lại nhận phí quyền đơn vị bán > Đây định nghĩa cấp phép (licensing) (chứ nhượng quyền (franchising), nhượng quyền hình thức cấp phép) + Lý thuyết nội hố (internalization) (chứ khơng phải quốc tế hố) giúp giải thích doanh nghiệp chọn FDI thay cấp phép làm chiến lược thâm nhập thị trường nước + Độc quyền thiểu số > độc quyền nhóm + Quan điểm chủ nghĩa dân tộc thực dụng: FDI có lợi ích lẫn chi phí chấp nhận FDI lợi ích lớn chi phí + Một cơng cụ phi thuế quan Trợ cấp (subsidies) tài trợ! (Là khoản trợ cấp phủ dành cho nhà sản xuất nội địa) + Sự hiểu biết xun văn hố (khơng phải hiểu biết đa văn hoá hay kiến thức đa văn hóa) (cross-cultural literacy) nhận thức tồn khác biệt văn hoá vừa ý thức khác biệt có hệ đến kinh doanh quốc tế (đa văn hoá xuyên văn hoá khác nhau) + "Sáng tạo tố chất kinh doanh động lực tăng trưởng" Thức ra, xác phải Đổi lực khởi nghiệp, dịch theo từ gốc "Innovation and entrepreneurship" + Hệ thống dân luật luật dân Luật dân thường luật hệ thống dân luật Mình dùng để khỏi bị nhầm lẫn với Dân luật gọi chế định pháp Thông luật gọi Phán lệ pháp + Mơ hình chiết trung: trình bày mơ hình chiết trung sách thiếu, chủ yếu nói lợi vị trí chun biệt (yếu tố Location thơi) Mơ hình chiết trung thực tế mơ hình OLI, nên em cần nắm bắt lại mơ hình này, bao gồm yếu tố Ownership, Location, Internationalization giảng + Lưu ý điểm khác biệt hiệu hiệu suất + Dịng vốn FDI vào (inflow outflow) FDI k đầu tư vốn để lấy lợi nhuận mà cịn nắm quyền kiểm sốt DN đc đầu tư Quotas not generate revenues for the government, but aims at encouraging the production of goods within the country; that helps the nation to become self-sufficient and decrease dependency on imports from other countries In this way, quota helps in reducing imports and thus, protecting own industries from foreign competition • The government of different countries keeps a regular check on the number of goods getting imported On following the law of demand and supply, the cost of goods whose supply has been limited will see a surge in price • This will limit the supply and make the supply curve shift to the left Subsequently, the new equilibrium quantity would be set which will be lower than the natural equilibrium in the absence of quota • Hence imposing quotas will increase the price of goods and this eliminates the competitiveness from the foreign market Although on the negative side, imposing quotas on imports limits the alternative of choices available to consumers which leads them to pay higher prices for certain goods • Gross National Income (GNI) is the total amount of money earned by a nation's people and businesses, including investment income, regardless of where it was earned It also covers money received from abroad such as foreign investment and economic development aid, regardless of where it was earned • • • • • It calculates income instead of output criterion for determining nationality in GNI calculations: Residence, rather than citizenship Today, 'citizen' tends to specify a person who legally belongs to a country, and 'resident' is used, generally, for a person who is legally living or working in a particular locality To calculate GNI, compensation paid to resident employees by foreign firms and income from overseas property owned by residents is added to GDP, while compensation paid by resident firms to overseas employees and income generated by foreign owners of domestic property is subtracted Product and import taxes that are not already accounted for in GDP are also added to GNI, while subsidies are subtracted • • • • • Thu nhập quốc dân xem giống với tổng sản lượng quốc gia – GNP Chỉ khác chỗ GNP không trừ thuế gián thu khấu hao GNI = GDP (Tổng sản phẩm nước) + Chênh lệch thu nhập người Việt Nam nước gửi thu nhập người nước Việt Nam gửi + Chênh lệch thu nhập sở hữu nhận từ nước với thu nhập sở hữu trả cho nước ... other problems such as: +The government is likely to have poor information about which industry to support and how to go about it +It creates a tendency for powerful vested business interests which... dân chúng + Chế độ độc tài: độc tài + Các hình thức chủ nghĩa tồn trị: Trong hầu hết hình thức chế độ độc tài xếp toàn trị thần quyền, toàn trị tộc, toàn trị cánh hữu, toàn trị cộng sản + Chỉ số... cần nắm bắt lại mơ hình này, bao gồm yếu tố Ownership, Location, Internationalization giảng + Lưu ý điểm khác biệt hiệu hiệu suất + Dòng vốn FDI vào (inflow outflow) FDI k đầu tư vốn để lấy lợi