Globalization Extra Credit 2
GlobalizationExtra Credit 2
Part1: Articles Themes and Summaries
Accordingto an article written by Dien on March 5 2014, the expansion ofVietnamese cheap labor is providing good investment opportunities forinternational companies. The article titled, “Vietnam’s cheaplabor may turn out to be a hard sell” evaluates the Vietnamesecheap labor market that is instigated by expanding economy andincrease in qualified workers. In globalised societies, one of theeffects of international investment is low wages. One of the effectsof globalization is low wages and exploitation of localprofessionals. In Vietnam, some international corporations, forexample Samsung, are taking advantage of the cheap labor in thecountry to start their operations. The companies are finding thecheap labor market in Vietnam as profitable since its reducingproduction expenses.
Inan article titled, “Vietnam urged to ease barriers to foreignretailers”, ThanhNien contributorshave called upon the government of Vietnam to review its globalinvestment policies to embrace international retailers. Theselimitations have highlighted the need for encouraging local andregional differentiation. Globalization in respect of localgovernments refers to a trend in which local communities are becomingmore persuaded by global trends and the same time seeking todifferentiate their localities. The onset of globalization hasinfluenced the need for businesses to embrace diverse workforce inorder to succeed. This therefore calls for embracing and making useof cultural diversity in business for easier penetration to theglobal market. One of the advantages in making use of culturaldiversity in business is increasing the level of expertise from amongthe employees. When people from different cultures are integratedinto a business environment, they bring with them differentexperiences that help in the development of business strategies andideas.
Ina newspaper article titled “Vietnam may consider canceling AsianGames”, the author evaluates Vietnam’s decision to reconsider oneof its global breakthroughs in sports and international tourism.However, the high cost of planning coupled by citizens’unwillingness to participate is forcing the country to reconsider itsmove. It also causes unplanned expenses and may even lead to thecollapse of most Vietnam organizations. The unforeseen expenses leadto organizations failure in the retention of the qualified employeesin Vietnam. Attrition is rampant in the Vietnam IT sector ranges from25 to 30%. Call centers are also affected by the attrition factor.The high attrition rate leads to the low wage rates of employees.This is a negative aspect of motivation in that most employees quittheir jobs in an effort to seek greener pastures from othercountries. This has ruined many companies in Vietnam leading even tothe closure of some of the organizations.
Inthe newspaper’s article titled “Vietnam telecom giant to beprivatized”, the author considers the effects of Vietnam’sforeign investment policies and their effects on internationalinvestors. There are various mandatory promises and agreement termsthat must be drafted before a merger or acquisition is allowed. Bothparticipating parties make these promises and they are centered onthe development of the new formed mergers, protection of employeesfrom the acquired company and all other important aspects pertainingto the two participating companies and the new mergers so formed.Mergers and acquisitions have been found to have various effects tothe corporations involved, the management teams as well as theemployees. The senior management teams of both sides involved in themerger and acquisitions make various decisions, and these decisionsmay affect the employees, corporate growth and the employment status.The decisions that these parties make influence the motivation levelof employees, careers and livelihoods.
Inthe article titled “Foreign investors like Vietnam: Malaysiansecurities firm” written by ThanhNien News correspondenceonMarch 8 2014, the author demonstrates the opportunities in thecountries for foreign investors. Varietyof potential employees from which to hire, is also provided incultural diversity. This is because there are many experiencedindividuals from all corners of the world. The contribution of theseindividuals can only be experienced if business managers embrace theaspect of a cultural diversity into business. With the realization ofthese benefits in cultural diversity, gaining knowledge ininternational management becomes essential in order tocomprehensively combine the theoretical knowledge with practicalskills for the success of business. Other than expertisecontribution, the diverse cultures of the world bring with themcreativity as increased production since the individuals are uniquelytalented and are therefore in a position of ensuring maximumproduction to the benefit of the corporation.
Inthe article, “Price war seen as Thai rice glut swamps market” byBloomberg written on 3 April 2014, it is evident that each nation’sopenness or willingness to transnational investment and trade is amajor boost to its economy. Based on recent economical reviews,there is still speculation over the benefits of economicglobalization. We can see this effect not only in the multi-countryeconometric analyses but also in the recent experiences of individualcountries. Vietnam, for example, has experienced surges in economicgrowth since liberalizing its trade and inward investment policies.Researchers claim that economic globalization improves a nation’shealth in that the gross general production per capita goes hand inhand with the nationwide sociopolitical status.
Part2: Globalization and Diversity
Vietnamis one of the countries experiencing steady economic growth amidstits delicate past that has been marred by internal and externalconflicts. The country’s economic growth is expected to hit 5.6%this year due to industrial revolution and expansion of agriculture.The country is making drastic efforts to emerge as a regionaleconomic hub through advanced trade, agriculture and informationtechnology. The socioeconomic wellbeing of Vietnam has been improvingover the years. According to Thanh Nien Newspaper, a tribune ofVietnam’s Youth Association, Vietnam has embraced globalizationthrough expansion of trade across the region. Through variousarticles presented in the newspaper, Vietnam appears to be in theinitial stages of embracing globalization due to the significantexpansion of manufacturing sector, wage issues among employees andre-evaluation of trade barriers from foreign investors.
Globalizationis suggested to be the acceleration of a certain tendency that haspersistently captured the society. This is in both liberalization ofexchange and the increasing interdependence of societies. In orderto meet the vital necessities of the society, any change in theeducation sector should be adapted because it affects the societybroadly. Education has to be constantly developed to meet newerpriorities as the development towards globalization speeds up. Thisrequires the rethinking of educational goals, structural reform, theadaptation of teacher training and educational content, andreconsideration of issues such as certification and the developmentof educational policy.
Similarly,a great connection exists between local governance and globalizationin light of the importance of international pressure on the social,economic and environmental issues that face many local governmentstoday. Economic and fiscal limitations have reduced the ability ofmany of the world’s local governments to meet their communityexpectations. Attrition is an issue of concern in Vietnam. Vietnamexperiences high levels of attrition, which reduces the level ofmotivation in employees. In addition, the country is not ready toembrace regional developments, for example, hosting the 2019 AsianGames. In order for Vietnam to advance in its local and foreignpolicies, it must automate its production. One of the advantages ofautomation is the reduction of labor costs. When a machine is usedinstead of human workers, there will be saved cost regarding paymentof workers since their number will decrease as production increases.The automation machines require no pay and hence so helpful inreducing labor costs. Other than this, automation relieves the burdenof carrying out activities that are beyond the human capabilities.For example in ports, the use of automated cranes to lift heavy goodssaves both energy and protects humans against injuries from heavyworkloads.
Oneof the advantages in business and the world as a whole of business isefficiency. The use of technology increases efficiency in terms ofspeed, clarity and timeliness of delivery. If for example there wereneed to send a message over long distances, emails would be fast,reliable and safer than postal mails. In addition, the time taken tocarry out a given task is minimized with the use of technology. Thisis because, unlike humans, technologically advanced equipmentsneither wear nor are they subjected to emotional or physical stress.This makes them fast and precise thus decreasing the outputtime-span.
ThanhNien. LatestNews and Information About Vietnam.Thannien News, 2014. Web. 7 April. 2014.