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PHÂN TÍCH VỀ TỒN CẦU HĨA - ĐÁNH GIÁ VỀ VIỆT NAM Thesis: globalization Is globalization inevitable? Is there any other alternative in 21 st century? If yes, explain the definition and why it is a better option for business circle Documents are included I – What is globalization? Globalization in Chinese is 全全全: quán qìu húa “Toan cau” means the whole world and Hoa means the change from this entity to another (According to Vietnamese Dictionary) Thus “Toan Cau Hoa” is the change in societies and economies of the whole world Reference definition: Globalization (or globalisation) describes the changes in societies and economies worldwide which have been resulted from the increasing integration among countries, organizations, or individuals in international culture, economy, ect The term is most closely associated with the term economic globalization which refers to trade in general and free trade in particular Economically, international sources of capital are followed by trade, information techonology, and culture Definition of globalization by group 01: Globalization is the latest form of capitalism in 20th and 21st centuries formed by powerful countries It serves as a tool of multinational coporations, international financial organizations, and United Nations to exploit natural resources and labor forces in developing countries Developing countries will be turned into markets and dependent entities With sophisticated methods, powerful countries can invest a small amount of capital but gain a huge one In fact, many are mistaken by their pretext of mutual benefits II The meaning of globalization and the negative and positive globalization - The meaning of globalization a) The meaning of globalization: Globalization can mean: The impact of advances in technology and telecommunications, the relationship between regions of the world increasingly closer, coupled with the continuous increase of the exchange change at the individual level and the mutual understanding and friendship between nations in the world, leading to a global civilization Globalization is an objective definition of dependence is constantly crossing between states and individuals Dependence can occur across the economic, technological, environmental, cultural or social b) The signs of globalization, the positive and negative aspects of globalization - Can identify globalization through a number of trends, most of the trends that began World War II Among them are international traffic increased for goods, money, information and people, along with the development of technology, institutions, regulatory systems and infrastructure for the circulation of this There is still much controversy surrounding the existence of a trend Increased international trade with a higher speed growth of world economy Increased international capital flows, including direct investment (FDI) Increased cross-border flow of data through the use of technologies like Internet, satellite and telephone communications Increasing international cultural exchanges, such as the export of cultural products such as movies or books, have a common language - Globalization also affects human consciousness, making people pay more attention to issues affecting global problem of climate warming, terrorism, drug trafficking and raise issues living in poor countries - The widespread of all multiculturalism and individuals increasingly tend towards cultural diversity, on the other hand, loss of cultural diversity through assimilation, hybridization grocery The recommendations of the GATT and the WTO include: Promote free trade For the goods: to reduce or eliminate the tariffs, building free trade zones with low or no tariffs On capitalism: to reduce or eliminate the capitalist form of control Reduce, quit or conditioning subsidies for local businesses Tighten intellectual property issues Harmony of intellectual property law among nations (generally tighter) Intellectual property recognized in scale between countries (for example, patents issued in Vietnam can be U.S admits) - Here are some of the most profound expression of "globalization" worldwide action that concretely is expressed on a multi-dimensional space - First is the economic trade finance Currently we see the ODA, ODF, strong FDI investment from capitalist countries, the developed countries to developing countries and leastdeveloped countries The countries receiving the capital investment will be brought to those countries that invest in the profits or benefits given The economic integration of the investment will bring capital to the developing countries and the countries of the third world has changed dramatically - Monday is about science and technology In the context of globalization today, just staying at home with the internet can also know plenty of information in the world, these events occurred in the distant past half earth Or when purchasing products or anything that does not need to take place providing that just go online and complete the procedure in which the parties will have to send their products to take place without the long much time or effort - Tuesday is the culture, language and society In Vietnam have had to struggle against the products of the mainstream culture is flooded with pornography Acquiring technical, high tech, but they have difficulty acquiring mainstream hip hop music, including market expansion hip-hop fashion is much more rapid (Youth Report has observed that in the next few years, hip-hop fashion boom can be up to us as is happening in Japan and Korea) The national cultural identity is that it is increasingly strong in general is very easy to become blurred or distorted Along with the business culture - Wednesday is the political administration To be comprehensive globalization, the nations must change the conditions to attract investment from abroad by the fins will have to change and add back on the mode of administration and legal procedures to match the global demand - Thursday is about national security Globalization can say that is freedom of movement freedom of trade so that trade will appear much more complex issues such as terrorism, social evils, transnational crime vvv And more is the position regarding territorial economic interests is also a controversial topic - Friday is the ecological environment We can see the process of economic integration in a "terrible" among countries across regions with non-stop growth, it had little impact on the environment to modification of global climate today Quantities of waste water emissions extremely giant has turned our living environment of sweet smoke and dust and water was seriously polluted Along with the depletion of scarce financial resources of countries around the world III- Globalization economic impact on the economy The strong development of productive forces has led to a major trend is the dominant growth of the modern world, which is the process of globalization Multinational companies (MNCs) increasingly play an important role in leading and world economic relations As of 2004, worldwide there are about 63,000 multinational companies with over 800,000 affiliates Multinational companies now dominate more than 80% of international trade, accounting for more than 90% of the total value of investment capital and scientific and technological world With growing strength, multi-national companies increasingly expand its influence, maintaining and improving the control of power in important areas such as finance, technology, services and labor Transnational companies is an extremely important factor contributing to the stronger process of economic globalization To form a more organized international economic links in the different levels (regional and global) and the important role of the WTO in the process of globalization In recent years, the world economy has witnessed rapid development of strong and active international economic integration The process of international economic integration takes place at many different levels, from the link triangle, quadrangle development to regional integration such as EU, ASEAN, NAFTA, MECOSUR, related areas such as APEC, ASEM and global links Currently worldwide there are about 24 organizations and regional economic integration and largescale relations with the different levels Globalization has spurred economic development with high speed, if the first half of the twentieth century, the world's GDP increased 2.7 times, the last half century, total world GDP has increased 5.2 times In early 1950, the proportion of trade in global GDP was 7%, it has now risen to over 50% In 2004, total global trade value reached more than 22,267 billion dollars, making trade actually become the main force promoting the development and growth of world economy The following chart shows the growth of GDP and world merchandise exports in 10 years after the WTO came into existence Chart: GDP growth and export goods of the world during 1995 - 2004 Globalization opens up opportunities for economic advantage of external resources, but that, in turn implies the ability to depend very much on the outside of the country This level depends on the two indicators is the proportion of trade in GDP and the proportion of foreign investment capital, especially short-term capital in total capital investment and development Economic globalization may bring negative consequences on the environment and society Because the opening to receive the resources, the achievements of science and technology, equipment and capital investment for development of the world, itself faces potential disadvantage: the Intrusion obsolete technology, environmental pollution, social evils, the inequality in society increases From the content we see the positive and negative aspects of "globalization." However, no single person or a country may hamper the ongoing development of "globalization" because it is a general trend can not be changed So only one way is to identify ways to reconcile the negative elements and keep positive Thus we see manifestations of globalization are not always good, but it is always a duality It not only causes an effect on the environment but also cause many problems even more worrying as wealth inequality, the scarcity of resources, notably oil shortage and crisis economy From the hot issues this entails a lot of consequences to come For example, the scarcity of oil today, it involves many complicated in the face of the world IV-with Vietnam and are not inclusive globalization? It can be said is already integrated into the general economy of the world As we can see all the people living in Vietnam, but they are using your computer's Japanese American, Swiss watches, clothing, cosmetic use of Japanese, Korean, French, ride Thailand's garment, of Japan, a Japanese car, American, German, Korean phone, etc of America But to be able to "globalization for life like that" are of course right through economic activity, trade exchange Along with that industry also influences of globalization distributed on the surface of a deep space A country may not produce a complete measurement is a product that needs to coalesce many countries, each country making a step in that product, is responsible at any stage is dependent on qualification play development of that country Ford cars as spare parts manufactured in the USA but assembled in Vietnam To answer the question of globalization is inevitable, we suppose that Vietnam does not participate in the process of globalization, the impact will occur – Economics: Become self-resilient economy and Vietnamese products will hardly be exported due to tariff barriers - Depend on agriculture and agricultural products will not be able to be exported - Do not receive foreign investments into economic field - Consumption products are expensive and unvaried - Consumers have no alternative choices - There is not the technology transference from more developed countries - Domestic businesses are isolated Domestic businesses are protected but not competitive They not have access to advanced technology and Vietnamese economy before integration from 1977 to 1986 2- Politics - Political relations are limited without the exchange in economic and cultural fields - Only have ties with some countries with similar ideology Do not improve Vietnamese position in the international arena Mutilateral relations are not done - Do not make soft power for the nation - Risk being embargoed and national security is threatened - On Culture: - Not the publicity about the identity of Vietnamese culture with the world community - The learning, interaction and understanding with other cultures is very limited With these restrictions on us that globalization is inevitable for any economy in the world 6-7/5/2002 days, took place at Hanoi National Conference on International Economic Integration The meeting reviewed the achievements in the process of international economic integration, pointing out the challenges and difficulties that we need to overcome to actively integrate in the future During the meeting the report of the Foreign Ministry.Over the past decade, Vietnam has in turn joined the international economic organizations and regional: to restore normal relations with the World Bank (WB), International Monetary Fund (IMF) and Bank Asian Development Bank (ADB), became a member of ASEAN, APEC, the implementation of the CEPT Scheme Chung, co-founder of ASEM In economic relations - trade served to date, Vietnam has signed 81 agreements Thung bilateral trade and investment, nearly 40 agreements to encourage and protect investment with other countries and territories in which negotiations judge to sign and ratify the Agreement on Trade of Vietnam - the U.S is a great content a / International economic integration has achieved encouraging results: a1 Vietnam facilitate political empowerment, economic diplomacy and the international arena, avoid discrimination, and create a stable basis for the favorable external economic activities a2 Contribute to expanding export markets: Due to integration, in 1990, export turnover of Vietnam reached only $ 2.4 billion and import value reached 2.75 billion U.S dollars in 2001 is to figure has reached 15.1 billion U.S dollars of export and import 16 billion dollars Many commodity groups have reached key export turnover of over $ billion as crude oil, textiles, fisheries and shoes The structure of exports has many positive changes, the proportion of industrial exports reached over 40% of total exports (in the early 90's when only less than 30%) The market is constantly expanding, from where only trade relations with East European countries are major, far Vietnam has trade and economic relations with 176 women? C and the territory? a3 To attract foreign investment and official development assistance (ODA): With an attractive investment policy, to date, more than 70 countries and territories investing in Vietnam, including many companies and large corporations have the financial resources - technology, contributing to changes in production levels of our country Total foreign investment commitments in the period 1998 - 2001 reached $ 40 billion, including capital made nearly $ 20 billion Regarding ODA, the following nine public meetings of donors, to date, total ODA commitments to Vietnam reached $ 21 billion, with a capital disbursements reached U.S $ 9.8 billion a4 Help to acquire scientific and technical and advanced management technology, contributing to staff training in business management and skilled technical workers a5 With these achievements in the fields of import, export and investment attraction and international financial support, international economic integration over time has contributed significantly to ensure high growth of Vietnam economy men, an average of 7% in the 10-year renewal period from 1990 to 2000 Create 350,000 additional jobs, improving people's life improvement The structure of the economy also improved, steps, share of industry in GDP was over 36%, services 39% agriculture, forestry and fisheries 24%, gradually creating an open economy, dynamic, able to adapt to the changes taking place in the world economy b / A number of milestones in the process of international economic integration of Vietnam: b1 Normalization of relations with financial institutions-International Monetary: WB, IMF, ADB b2 / 1995: SE pay for joining the WTO Past five negotiation sessions Most recently the 5th meeting held in Geneva in Geneva (Switzerland) from 10-11/4/2002 b3 / 1995: Signed the Framework Agreement on Economic Cooperation with the European Union (EU) b4 / 1995 ASEAN Member b5 / 1996 to implement the CEPT Scheme towards a Free Trade Area (AFTA) b6 / 1996: founders of Forum Asia-Europe Meeting (ASEM) with 25 members b7 11/1998 join the Forum for Economic Cooperation Asia-Pacific Economic Cooperation (APEC): 21 members b8 / 2000: Signed a bilateral trade agreement Vietnam-United States; with effect from 10/12/2001 b9 In 2007 in Vietnam officially joins WTO Looking back at the achievements of Vietnam after three years of joining WTO According to a report by Professor Nguyen Mai, former Vice Chairman of State Committee for Cooperation and Investment, and Chairman of Association of Enterprises with foreign capital investment After six years of significant losses (1999-2004), the second wave of FDI began in 2005 with the breakthrough in the years 2007-2008 with the growth rate is quite high Specifically, in 2006 which made a $ 4.1 billion and registered capital of 12 billion dollars by 2007 the corresponding figure was 8.03 billion dollars and 21.34 billion dollars and then up to 11, $ billion and $ 64 billion in 2008 According to statistics of the Department of Foreign Investment, FDI in 2009 decreased a lot compared to previous years (which made and registered capital of 19.7 billion dollars respectively, and $ billion as of 11/2009) However, this is still an encouraging result in terms of FDI and international decline in many countries of FDI in the region decreased from 20 to 30% That reality reflects the reliability of foreign investors to Vietnam is high However, in the process of integration, the opportunities and challenges always mix together Besides the opportunities and advantages mentioned above, participate in the process of international economic integration, Vietnam enterprises face many difficulties and challenges, namely: - Businesses will be subject to increasing competitive pressure of imports and the foreign service at the local market Because, while integration with regional economies and the world, the domestic market must be "open", tariff barriers and non-tariff be reduced and eliminated, foreign companies are free by participating in trafficking, the supply of goods and services such as domestic enterprises on the basis of equality and non discrimination Besides, the traditional forms of support the State's very common for businesses in the economy, subsidies such as grants, subsidies, export credit support for incentives and rewards export monopoly Business should gradually cut down, removed Major difficulties for enterprises in the process of integration is the competitiveness of products and services of Vietnam enterprises are weak in comparison with other countries in the region and the world Quality goods and services generally is not good; less diversity in types, not commercial products or services clearly has an advantage on world markets due to quality and strong brands - The level of technology and equipment, business machines obsolete Current ratio of industrial enterprises of high-tech industry group only 20.6% (lowest among the ASEAN countries, except Laos, Cambodia and Myanmar share the code), industry groups average 20.7%, while the low-tech sectors accounted for 58.7%, leading to low labor productivity, consumption of fuels and raw materials more, low efficiency, the production cost of many products higher food import prices - The Vietnam enterprises at present, except for some enterprises with foreign investment, most (90%) are small and medium enterprises with limited resources in finance, difficult access to the source Official capital, often borrowing from unofficial sources at high interest rates, so capital costs are so expensive, limiting investment and technological innovation to expand and develop production and business - Ability to capture information and adapt to market requirements, changes in the international market is limited, so blocking these market opportunities by bringing integration According to a survey by the Chamber of Commerce and Industry of Vietnam's export capacity and competitiveness of industrial enterprises, only 23.8% of export enterprises, 13, 7% of firms with export prospects and 62.5% less likely to fully participate in exporting - Besides, with the export market is wide open, Vietnam's merchandise expanded to reach more international markets, the risk facing lawsuits against foreign dumping of export goods of Vietnam enterprises also increased According to statistics, from 1994 - 2005, Vietnam enterprises have to deal with 25 anti-dumping case of the water Typically, the anti-dumping lawsuit in the United States, European Union-related items catfish, shrimp, bicycles, shoes, leather IV-The following are some measures to curb the negative impacts of globalization and constant growth of the economy on a large scale The first is to good slogan "think globally, act local." The second is the implementation of economic growth go hand in hand with sustainable development, environmental clean-living blue-beautiful Tuesday is the successful implementation of business culture to avoid other forms of unfair business as dumping conflict conflicts, disputes the market Wednesday is to increase investment and development assistance ODA and FDI to developing countries and the 3rd world countries to reduce the wealth gap between countries Thursday is to change the institutions with which the legislation is to reduce the state's protection with some economy Summary: The growth of globalization or the explosion of economic growth are increasingly being expanded further on the spatial scale of the world, and I am sure it will develop further And indeed it is good or bad impact to our lives as we were by the government, major preparation by our good or not? Development and globalization as a general trend is inevitable of a society and modern civilization V – Long-term and overall benefits of globalization “The most benefit from globalization is that Vietnam can expand diplomatic relations and import-export market, and attract more foreign investment.”- Said deputy minister of commerce, Luong Van Tu in the conference of “Take advantange of globalization” held on st July 2010 in Hanoi Positive indices after integration Economics 1- Eradicate hunger and poverty more effectively by creating 7.5 million jobs between 2000 and 2005 In 2005, the unemployment rate in urban areas reduced to 5.3% The labor force in countryside was used up to 80% 2- Per capita income increased dramatically from $200 in 1990 t0 about $640 in 2005 In the period between 2006 and 2010, the macro economy was estimated to be relatively stable with the average annual growth rate of about 6.9% GDP per head was estimated to be higher than the target ($1,200 per head) and Vietnam would not be listed as a low income country GDP in 2015 would be about $200billion and per capita income would be $2,100 which is 1.7 times higher than that in 2010 Distribution of global GDP, in 1989: Distribution of global GDP, 1989 Population Composition Income 10 Richest 20% 82.7% Monday 20% 11.7% Tuesday 20% 2.3% Wednesday, 20% Poorest 20% 2.4% 0.2% Source: United Nations Development Program Human Development Report 1992 [1] 3The human growth index increased from 0.498 in 1990 to 0.688 in 2002 In 2005, Vietnam ranked 112th out of 117 surveyed countries 4Healthcare system and specialization medication was improved and equipped with advanced technology The prevention of social diseases gained positive results The average life expectancy rose from 68 in 1999 to 71.3 in 2005 5- Industry and construction: 43 – 44% 6- Service industry: 40-41% 7- National budget accounted for about 21-22% of GDP 8- Total export turnover has grown 16% per annum 9Total social investment accounted for 40% of GDP (including 65% domestic investment and 35% foreign investment) 10- The number of tourists coming to Vietnam increased by 15% per annum 11- Education could meet the demand of overal innovation 12- Traffic system developed across the country fuelling the national development 13- Policies were no longer governed by the subjective viewpoints of the state organs 14- Tax polices became more transparent 15- Businesses have always changed in order to adapt with the market economy 11 Polictics: 1With multilateral policies, Vietnam has built up diplomatic ties with 180 countries in the world so far This fact led to the co-operation between Vietnam and othes in many other fields 2Vietnam’s position in the world has been improved Vietnam has made considerable contribution to both regional and international conferences showing that it is a responsible, capable, and potential nation Culture: 1- Vietnamese cultural idientities were known more widely 2- More activities have been held to absorb the cultural quintessence of the world Due to such long-term benefits of globalization, it is a must for all countries to join in the process VI Opportunities and challages to Vietnam and domestic businesses and proposals of economic experts 1Basically, globalization is the expansion of market beyond national boundaries It is the natural desire of powerful nations which have higher productivity than others The principle is that wider market and more consumers result in higher benefit 2Rich countries have exploited natural resources and cheap labor forces in poor ones with the pretexts of investment and technology transference In fact, businesses in developing countries were offered less advanced machines or only used as device suppliers 3The gap between the rich and the poor has become bigger Farmers and workers keep doing their job at home and abroad 12 4Vietnamese girls get married to foreigners Due to the cultural disparities, most of them divorce but fail to prove the capability of bringing up their children Some even work as prostitutes in Southeast Asia, Taiwan, and South China 5- Arable land gets shrunk and farmers have to seek for jobs of low salary 6- Enviromental pollution becomes worse The investigation measures are ineffective 7- Corruption keeps growing Governmental policies seemingly add more oil into fire 8Infrastructure can not meet the demand of social development The traffic casualties are more than 30 a day 9Theoretically, globalization must be operated on the basis of such principles as equality, mutual benefit, and non-interference into internal affairs Practically, these principles have been violated in many cases, some of which are unacceptable For example, Vietnam was sued for dumping bycicles into European market 10- The equality between nations is now slim It is governed by power and wealth Under the auspices of UN, some powers can even wage wars with such countries as Iraq and Syria 11- The consequences of orange agent in Vietnam have not been compensated 12- Vietnamese fishermen were detained, navy soldiers were shot dead, Paracel Islands were occupied, and fishing activities at sea was banned periodically by the powerful neighboring country without any convincing reasons 13- Powers gave themselves ironic rights to force or punish others For example, once they had produced enough nuclear weopons, they asked others to sign the treaty of nonprolification of nuclear weapons To be fair, that treaty should include two points First, nuclear weopons are not allowed to be produced in any nations Second, all the available nuclear weapons must be destroyed 14- In today’s situation, people rais the question if globalization is Americanization or at least Westernization Will globalization movivate the principle ‘the great fish eat the small’ 15- Ecomically, globalization has impact on many aspects of a society, especially culture Let’s take Vietnamm as an example After integrating for a short time, Vietnam has to cope with the rampant trend of decadent lifestyle 16- The cultural identies that we wish to develop are now in the danger of being forgotten or distorted Actually, globalization brings us both opportunities and challenges Hopefully, the benefits outnumber the losses 17- The increasing economy growth rate leads to the rise in pollution and the contribution to climate change Powerful countries are the culptits damaging the common house of mankind So 13 far, there have been no agreements for the benefits of all Vietnam is one of the countries that suffer most a) Proposals to the government: 1Investigate foreign investments thoroughly Limit investments into sectors that Vietnamese businesses can compete with others 2Protect labourers, increase the minimum salary to million, reduce the working time to days a week, and pay double for overtime workers 34foreigners Do not business license on agricultural area Re-check the policies of issuing passports to Vietnamese citizens who plan to marry 5Focus on improving infrastructure, especially traffic system and encourage people to use public transportation Taxes should be imposed basing on areas and levels of income 6- Investigate if regulations on environment are respected by industrial parks 7- Sponsor researches to apply clean technology into production 8- Invest more into programs to relieve poverty 9Educate people to use Vietnamese products This is a key for dmestic businesses to stay firm in the market 10- Give more priorities to domestic businesses so that they can compete with foreign 11- Make the national defense strong enough to deal with opposing elements 12- Build up multilateral relations and befriend with all countries to seek for support ones 13- We should deal with China flexibly and avoid direct confrontation Balance the relations with Russia, U.S, and China 14- Research on the ways to deal with the consequences of climate change For example, there must be effective measures to control floods and sea rise in Central Vietnam Negotiate with countries in the upper section of Mekong River to co-operate for mutual benefits b) Effects of globalization on businesses and measures 1- The number of businesses has increased rapidly in the process of globalization 2- Those who can not compete have to quit or move to other jobs 3Businesses not receive support from Vietnamese consumers who prefer foreign trade names regardless of the costliness 14 4The investment policies are not really appropriate Specifically, foreign companies entered Vietnamese market too early and overwhelmed domestic trade names; especially in automobile, motorcycle and bycile industries c) Proposals to businesses: 1- Focus on products which have advantages from geological locations 2Make a strategic development plan and hire experts to research on market; thereby satisfying the consumers’ demands better 3compete Applying superior technology and effective management method is the best way to 4Establish production leagues to exchange experience and have stronger influence on the governmental policies VII-A when companies decide on the mode and location for conducting business globally to deal with any external resistance An international investment company will encounter resistance when deciding to invest abroad, often it is reflected in development strategies 1- Macro environment: - Language barriers Can say, English is the main language of communication on the international market Most business people in Asean countries are fluent in English, especially Singapore, where the use of English in the national administration In Hong Kong, English is important in school education Although English is the language commonly used in international business, but the water is very hard to find people know English For example, when traveling to several African countries like Congo, Côte d'Ivoire, the French business people should know, or if it to France, most likely they only speak French, or when traveling to China, the great majority number of business people only communicate in Chinese (Mandarin) or if the South American countries, they should know Spanish and if the Russian or Eastern European countries should know Russian Speak the language of the partner is useful in building a good relationship with them, but the general rule is that we should not trade in a foreign language unless they use it fluently, if not will have to focus on language rather than on the content of the negotiations, thereby increasing time to negotiate and can lead to misunderstandings or conflicts with customers - On social and cultural needs of different countries Most of our business today is still in early stages of the "sales pitch" to seek customers abroad through the promotion of trade, are trying to sign the memorandum and the higher is the 15 commercial contract to share its market share, even in small quantities Therefore, from marketing to negotiation are mainly held in foreign countries Thus, our main business is foreign to negotiate with the natives! This positions us to be business people in mind throughout the process of marketing, negotiating in foreign countries, because then we're dealing with people who have language, social customs, habits, education level was training and experience we are different On the other hand, the cultural differences between countries requires business people we must learn to be appropriate behavior, if not difficult to market transactions - The geography, climate, price: will affect transportation, the initial investment amount - Population: quality, structure, population growth will influence the determination of market demand - Income level: the index is assessed by GDP purchasing power to influence the market - Political Institutions: Stable or not, the corruption, the mechanisms and policies for investment companies Understanding of law and administrative procedures of the countries participating in international business for enterprises as well as problems for companies Not all companies participating in international business and understanding of all procedural laws of other countries, especially Vietnam Besides the variation in exchange rates also affect greatly to the international business To develop and market expansion into the international trading firms need to have broader strategic vision and strategic and business methods in more detail Industry environement - Direct opponents - Alternative products in the future - System of suppliers - System of distributors Cultural features Cultural features should be taken in to consideration before investing Today, you will not be successful if you not understand cultural features in busisness Good command of technology is not enough to fully develop one’s potential Cultural featueres in business include: Hierarchy and equality : To understand people’s conception about power, to what extent they serve powerful individuals, how they express their ideas indepently and creatively Focus on group work : To make individuals understanf that their success at work is estimate through the group that they are in 16 Relations : To build up good relations at work is to improve the confidence among people and work performance Information exchange : To understand ways people communicats, verbal or non-verbal And the ways they express their ideas Conception about time : To make people arrange their time and follow the schedule It is very important to management work Acceptance of changes : Understand to what extent people control their life, accept risks, and adapt the changes The interest in work and balance betwwen work and life : To consider people work to live or live to work Can they exchange their time for opportunities to get promoted in the company 4- Outer environment of a company The assets of the company lie in the knowledge of employees, not in production line Knowledge is the most important factor to be successful In fact, it is most challenging to nurture and develop it Recruitment: Key cadres are recruited on the following criteria: be natives, good command of English, year experience or more, understanding Chinese culture and good knowledge of Vietnamese culture 1- Patient enough to pursue the set goal 2- Flexible in management 3- Sensitive about cultural featues 4- Endurance at work 5- Ability to build up relationship 6- Work independently 7- Ability to devise investment and marketing plans 8- Quality of products and service 9- Production and product quality management skills 10- Capability of doing research and developing products 11- Financial factor VIII-The multinational companies that succeed in international business and that is the key to success of the enterprise 17 Multinational companies, often abbreviated as MNC (Multinational corporations from the letters) or MNE (Multinational Enterprises from the text), is the only concept to production companies or service providers at least two countries The large multinational companies have a budget in excess of the budget of many countries Multinational companies can have great influence on international relations and the economy of the country Multinational companies play an important role in the process of globalization, some argue that a new form of MNC is formed corresponding to globalization - that is associated with global enterprise Structure of multinational companies Multinational companies can be grouped into three broad groups according to the structure of the means of production: * multi-national company "horizontal" production of the same products or similar in the different countries (eg McDonalds) * multi-national company "vertical" has production facilities in some countries certain products produced as input for its production in other countries (eg Adidas) * multi-national company "multiple dimensions" have production facilities in different countries that we cooperate with both horizontal and vertical (eg Microsoft) The graph on the development of the Multi National Corporation Multinational companies is growing Since 3000 only multi-national companies in 1900, this had increased to 63,000 Along with 821,000 affiliates worldwide, though these companies are directly used only 90 million workers (of which about 20 million in developing countries), but has created more than 25% of world GDP gender - 1000 leading companies own 80% of industrial output in the world The richest companies (93 out of top 100) is located in the U.S., Japan and Europe, but the common assumption that large companies is no longer true American In 1962, nearly 60% of the 500 multinational companies in the world is leading the U.S., by 1999 this proportion is only 36% Currently multi-national companies and business, core business is increasingly moving to developing countries Thanks to the skills and information technology networks for the transmission 18 of digital information more easily, this process more quickly A recent report by consulting firm Bain & Co estimates that by 2006 outsourcing market for foreign services (offshoring) in India will increase by 57% and the market in Russia will increase by 45% Along with the increased integration of the managers of different nationalities Will more and more nationals of other directors with the nationality of the company that they work Multinational companies increasingly successful in their business to international markets as they export more products to expand the market share of large business, when they expand internationally to take advantage of the incentives investment from the country of operation, there are sources of cheap labor in countries where they not IX-Why some industry / commerce a global reach, while others continue to maintain domestic and regional pages Reasons to international business activities 1- Many people tend to think that global business is only based on the ability to seek and exploit opportunities in foreign markets However, there are other factors which can be grouped into two types: active and passtive Each type has its internal and external features 1.1 Active reaction A Internal features - Administration: perhaps, the main reason that a company runs international business is to meet the administration demand by seeking new markets It is applicable in not only a large company but also in a medium-small one - Economic effectiveness basing on sphere: The shortest way to increase the proceeds and decrease production cost is to boost the competitiveness in both domestic and foreign markets As a resut, the research and advertisement cost will be less - Economic effectiveness basing on fields: A company can get profits by effectively exploiting their work force and technology to provide new products for foreign markets Investment to renew everything is not applicable in this case - Experience: is important to be successful in both domestic and foreign markets B External features - Opportunity to gain profit: a company wants to business globally because it will have more products consumed and more interest - Opportunity to increase productivity: is a decisive factor to market expansion With high economic effectiveness, a company is always willing to enter a foreign market 19 - Service quality is globalized: as an international customer, one often prefers foreign products Automobile producers always require their suppliers to provide their branches abroad original devices Likewise, international companies prefer working with the same advertisement organ in all countries in which their branches are located Failure to globalize service, a company will lose their customers to others - Advantage of geographical location: Foreign markets not only provide a multinational company opportunity to increase profit but also cheap work force (employees, infrastructure, research fund, governmental support, and others) Taking advantage of this, a multinational company can reduce their production cost and improve product quality However, research and development work should always be taken into consideration - Deal with competitors: Apart from opportunities, there are many challeges in a foreign market Especially, these challenges come from opponents whose market is their homeland Therefore, opening branches in other countries is just an act of controlling opponents By doing this, a company can give the appropriate and timely measures 2.2 Passive reaction A Internal featues 1Domino effect: is indicative of passive reaction of administrators As the number of multinational companies has risen, many administrators try to follow to avoid being seen as outdated ones 2Excessive goods in store: is a common situation in many companies In fact, it is hardly found a company that has never faced the situation For the companies that produce shortlived products like garment or civil electronics, the possibility of getting outdated is always high This can ruin their trade names Thus, they try to export their goods abroad For the companies making classy items, they try to sell products of poor quality to the markets where the quality requirement is low This will help them protect their trade names and maintain the price in their targeted markets Excessive productivity: To deal with excessive goods in store, many companies have controlled their productivity This seems to be not effective because of the rise in production cost Some have limited their sphere and laid their workers off However, the most profitable way is to spare excessive productivity for foreign markets By doing this, a company does not need to limit their productivity to deal with the rise in production cost The option is also chosen by many which have periodical excessive productivity 3- Distribute risks: Some believe that they may risk more lossess if they business in only one field and one place To avoid the risk, they can diversify products and markets on regional 4- 20 or international basis Those who focus on a single field often reduce their risks by globalizing their business activities B External features: Unexpected order: in many cases, a company enters a market by chance because it received an unexpected order That market then may become its strategic one Unattractive domestic market: Many think that opportunities to business in foreign markets cause a domino effect because the number of multinational companies has soared In fact, the poor business effectiveness in domestic makets is the key factor pushing businesses to foreign ones A domestic market is not attractive enough to businesses because of their structure For example, the limited size of the market, the poor demand, stiff competitiveness, and pressure from trade union, ect are factors that businesses can not attach to their traditional market As a result, the number of multinational companies has been on the rise in several past decades Counter attack the competitors: Normally, there are two options for a multinational company: defend and counter-attack It may defend to protect the market share and avoid direct confrontation However, attacking opponents on their own land is the best way In this situation, the opponents have to globalize their business activites and compete The race is started right in the homeland of the competitors Political pressure: multinational companies may get the pressure from their government in the integration process Economically, the government may intervene because they wish to absorb more foreign currencies through export activities Besides, they may urge the companies to creat more jobs or contribut to improving their political power on international scale Through above analyses, only some companies succeed in entering foreign markets because of the following reasons: Objective reasons: 1- Export products face disadvantages in foreign markets For example, it is hard to business on fish sause in Vietnamese market 2- There is no demand in the foreign market For example, Americans are not interested in scooters 3- There is political barrier banning companies to exploit oars and some others to with security and national defense 4- High-technology machines are sometimes banned Subjective reasons: 1- Businesses lack interal factors mentioned above (personnel, organization structure, trade 21 name, production sphere, and finance) 2- Proceeds at home are not enough to expand the market abroad X-implement measures to search for international markets: Introduce new products and bring products to market new Companies always have new creative to find a new product that does not distract the customer with their old products or old products no longer made in the hearts of consumers Take advantage of existing customers to launch new products with potential value Along with that is extended to the larger market potential than the last Such telecommunication company Viettel military is a strong brand in Vietnam are trading various types of telecommunication services in Vietnam and other ancillary services as 2G, 3G for additional types of service companies Industry has developed and test 4G services in Vietnam As in the U.S and other developed countries such as Japan, Western European countries have developed this site for a long time But Asia is still underdeveloped To further increase our customers and expanding company Viettel has opened the market of telecommunications services in a number of other countries will deploy 4G to add new services in these countries to increase the diversity of services The development of new markets can help to gain access to new customers, but also requires an operating system with good policies and customer service possible Registered trademark In Vietnam the trademark registration has been neglected and copyright infringement and trademark is an alarming situation To integrate with the general trend of global economic integration requires businesses more aware of copyright issues as well as the brand of the business from being an international litigation due to problems with copyright infringement other companies Associated companies and joint ventures with strategic partners A merger or combination of shares of companies best, expanding client base, improve intellectual property rights and good conduct of business will be a right direction for businesses Along with the expansion of international business due to lack of knowledge about administrative procedures or laws of the host countries, companies can joint venture with strategic partners in that country in many different forms together to form the standing of the business in that country XI-The Internet has enormous impact to the issue of globalization The market is growing and changing daily, consumption increases, the business environment has improved significantly - sometimes only a single place to find the best trading conditions which are in abroad Business news international stature to have export licenses to become a joint venture company or factory, but whether you choose the business form of any event they must abide by the 22 rules underlying business to reach customers as legal, accounting, protection of intellectual property and compliance with the laws of host countries Internet is a global information system, since its inception the internet has created a revolution in information and bring a lot of utilities and applications for humans Thanks to the internet that people's awareness as well as the development of society are pushed to a new step, the activities of political, economic, cultural, social, no longer limited by national borders anymore, but global So the internet has very far-reaching effects of globalization, especially in the field of trade and international marketing of products and services, it is shown in the following aspects: - Create and expand its business, exporting directly to different customers in different countries with large scale, with quick speed and efficiency, greatly reduced cost compared to other channels previous traditional sales with online sales methods Website created by commercial enterprises and business continuity capabilities 24/24 hours a day, days a week with a very low cost This activity is not required to supervise employees like customers in the ordinary supermarket sales, does not require costs of the sales, inspection and control system, referral system and promote products , accounting system, ordering all done automatically by the website has quickly while ensuring absolute accuracy Facilitate simplification of administrative procedures, the paperwork, increase efficiency of trade transactions For example, the motorcycle company Sufat Vietnam are producing a strong brand motorcycles in Vietnam is mainly the market of inexpensive motorcycles The company is selling primarily serve rural residents and low income people The company now wants to expand international business exporting cars to poor countries and other developing countries such as Laos Cambodian or African countries The company just put the product image, price and other support services on the internet from which customers and business partners to act as agents can check directly from the Internet and order directly with companies by the method of online sales through the company website The main impacts of: - The concept of distance is no longer - They can trade directly with each other by mail, Skype, send photo Video Without the need to meet - You can open, kiosks, online - Advertising on the Trade Promotion simple cheap intenet - The management of multinational companies become more transparent roots favorable, with online meetings, the regime of daily reports via email 23 - People not need to take the place of production and business establishments, just sitting in the office, or use the device 3G, GPRS Wifi Can track the camera anywhere in the world Thanks to the internet that my business can progress rapidly with the global scale "From there we want to see the expansion of globalization, the Internet is indispensable Online access also helps businesses overcome differences in time zones Brenna said, "If I forget to say something to the customer, can I give them information over the network and they can get this information in the morning when arriving to work Thanks to the internet that my business can progress rapidly with the global scale "From there we want to see the expansion of globalization, the Internet is indispensable XII- Conclusion: Globalization will develop at greater rate and have stronger impact on mandkind We are approaching the concesus in economic, social, and cultural fields since there will no national boundaries, governements, conflicts among groups of people, and weath gap Globalization will meet the material and spiritual demands of all in the world community Such definition may be mistaken However, we hope and wish that day would come Thank Professor: Dr Larry Williams & Dr Dung has equipped us with very useful knowledge about international business management Thank the organizing committee program PGSM Sincerely ! References: Bộ ngoại giao, Tồn cầu hóa hội nhập kinh tế Việt Nam, Nxb Chính trị Quốc gia, Hà Nội, 1999 Dominique Wolton, Tồn cầu hóa văn hóa, Nxb Thế giới, Hà Nội, 2006 Đỗ Lai Thuý, Văn hoá Việt Nam nhìn từ mẫu người văn hóa, Nxb Văn hóa thơng tin, Tạp chí VH – NT, Hà Nội, 2005 Nguyễn Huy Hoàng, Mấy vấn đề triết học văn hóa, Nxb Văn hóa thơng tin, Hà Nội, 2002 Thanh Lê, Hành trang văn hóa, Nxb Khoa học xã hội, 2005 Samir Amin Francois Houtart (chủ biên), Tồn cầu hóa phản kháng 2002: Hiện trạng đấu tranh, Nxb Chính trị Quốc gia, Hà Nội, 2004 Mahatir Mohamad, Tồn cầu hóa thực mới, Dương Thủy, Huỳnh Hoa, Xuân Nguyễn dịch, Nxb Trẻ, thành phố Hồ Chí Minh, 2004 24 Thế giới phẳng Thomas L.Fredman Quản lý xuyên văn hóa : Charlene M Solomon & Micchael S Schell 10 http://thongtinphapluatdansu.wordpress.com/2009/08/25/3689/ 11 http://vi.wikipedia.org/wiki/To%C3%A0n_c%E1%BA%A7u_h %C3%B3a#T.C3.A1c_.C4.91.E1.BB.99ng_c.E1.BB.A7a_to.C3.A0n_c.E1.BA.A7u_ho.C3.A1 12 http://answers.yahoo.com/question/index?qid=20061127185616AAr2p5C 25 ... investment and development Economic globalization may bring negative consequences on the environment and society Because the opening to receive the resources, the achievements of science and technology,... transference from more developed countries - Domestic businesses are isolated Domestic businesses are protected but not competitive They not have access to advanced technology and Vietnamese economy... Those who can not compete have to quit or move to other jobs 3Businesses not receive support from Vietnamese consumers who prefer foreign trade names regardless of the costliness 14 4The investment