Currently our company is trading in medical equipment for the world famous company. Therefore, we've been performing global business. Why global business? Because, as global business includes deals take place outside the country, with different varieties depending on the objectives and great things about every individual, company or corporation. When conducting global business, our companies (or others in Vietnam) a whole lot of benefits such as economic growth and technological innovation. Globalization is an inevitable and objective, relative to rules developed market. However, in addition, globalization also has its limitations and obstacles for companies in Vietnam such as: Starting low on current economic climate, infrastructure and qualified people management, labor requirements activities, economical divergence between locations, the region makes the process of globalization is limited.
Challenge of culture, national identity, traditional ideals, economic, social, public evils. . . .
Currently, the U. S. is merely in the early stages of the process of international integration. But with deeper integration process, the business must manage these complicated. Therefore, Vietnam needs to thinking explicitly manage the economy takes on - all hoping to produce what you need - was out-of-date, to switch to modern management methods and efficiency of an economy wide open market only produce what they produce most efficiently. However, it should be emphasized is usually that the opportunities that globalization offers for different countries, different ethnic groups is not necessarily the same. Reviews can loosely, the developed countries more financially; more affluent will be writing many more opportunities to poor countries. That also means that globalization provides poor countries, many problems developing countries than in abundant countries.
Question II: Answer:
World is facing the recession, declining energy demand in major markets like U. S. and European countries. Besides energy, the demand for essential products also declined as the current economic climate is slipping into hardship. Economic depression of the world has impacted companies in Vietnam. Exports dropped to make the export products of Vietnam will be less, but so will affect GDP (down).
The cooperation and development between Vietnam and foreign lovers - which is influenced by the crisis - will be interrupted or stalled by the companions in financial difficulty. This impact of investment are tasks or in long-term development of Vietnam.
Smokeless industry is also undoubtedly affected. Water degradation, are in crisis, people will limit consumption and limit travel. Besides, the economical contracts authorized with foreign partners can be stalled which contract will never be signed. This is very causing losses to both business and bad effect on the development of Vietnam in the long run.
In Vietnam there a wide range of multi-national companies such as Toyota, Samsung. . . This is the company that the taxes they contribute significantly to GDP (or the government's budget earnings). But these businesses have subsidiaries in other countries, or father or mother companies in crisis countries have their branches in Vietnam of its children may also be damaged by bad route so the capacity to pay fees also do not dropped as effective as before. Stock market segments in the U. S. and Asia attended down Vietnam's stock price tumbled significantly.
World oil prices fell sharply in recent times so that administration income through the export of crude petrol is also reduced by.
The budget decrease is very much effect on the economy because the federal government will have less money to spend or spend money on developing general public services. This has indirectly has direct effect on people's lives.
In turmoil and economic recession, besides difficulties as well as new opportunities for businesses of Vietnam is on the global business market. The transfer businesses provides many benefits, because these goods from outdoors will be less than the prior price (money or other currencies decline). Gas prices lead to lessen commodity prices will have a tendency to decrease, thereby rousing usage. More consumers will stimulate economic growth. Learn from the experiences of other countries, to companies that steps to avoid falling into the car wound down by this crisis or slipping into a recession now.
Question III: Answer:
As we know, trade barriers are non-tariff procedures. This is the nature of the various tools of administrative and economical levers of federal participation or the regulations on technical criteria that have an effect on the export and import activities.
The impact of tariffs on brought in goods is simply increasing the price tag on imported goods and therefore reduces the competitiveness of goods for home products. Government prevents export subsidies and other methods put on increase exports, export funding also removed. The amount of protection for domestic products has been reduced to raise the degree of competition for domestic enterprises.
The support of the specialists is not a lot of and does not meet the real needs of the business. The support procedures, indirect subsidies from the federal government, the agencies for little if any business efficiency. Therefore, the government's plan is to leverage local organizations increased their competitiveness and development.
In general, the tariff insurance plan of the government in the current conditions have afflicted loosen constraints on trade, slowly but surely phasing out tariffs on the basis of multilateral contracts and bilateral. This seems to have become a craze in tax insurance plan now aspires to liberalize trade among countries in your community and protect the local market before the competition of goods from outdoors. Regarding trade liberalization, trade advantages to its members never to debate is basically because each country that will need full advantage of the resources it includes strength, eliminating the result of production not fruit, and folks will be consumer products cheaper with better quality.
Tariffs can be labeled in many various ways, by the method of taxation, tariffs are divided into special tax procedures, tax rates and taxes value mix. Regarding to duty purposes, the tariff is divided into financial and taxes tariff cover. As duty rates, tariff is divided into a maximum duty, minimum duty rates and duty incentives. Considering the perspective of countrywide taxation, the tax would bring duty earnings for the taxation. But standing on the sense of the whole economy, the tariff reduced the general welfare since it reduces the effective exploitation of resources of the world overall economy. It changes the balance of trade, regulating the export and import of a country. Import duty has an important role in safeguarding the home market, especially coverage of nascent establishments.
Question IV: Answer:
Vietnam, from a command line economy has shifted to a market economy. Command current economic climate is an economic system by federal appointed business, shall determine the quantity and price. They are the time of production does not meet production focuses on or neglect to meet production requirements. When demand increases, combined with the complexity of services, government decision-making a lot more difficult, require more challenging decisions that lead to incorrect conduct to regulate the economy.
This phenomenon will not occur in a market economy, as with market economies do not are present for your choice of the federal government, individuals and companies can produce and operate goods which they can manufacture or business is not dependent on government so long as they think that they will profit. Thus, when moving from command word economy to advertise economy corporations Vietnam will have many more work at home opportunities, integration features and higher competitive.
To increase production, employees and companies must develop new products to market, or production of goods and services efficiently than rivals with lower costs or better quality more. International trade can contribute an important part in increasing productivity and promoting prosperity. When countries exchange goods and services they produce affordable, people in all countries involved in this process will profit more.
The most frequent discussion to justify the procedures have limited free trade - often by means of taxation on imports or restrictions on the import volume - that safeguarding jobs in some industries is wonderful for a country as personnel and business owners in these market sectors will have higher income and higher earnings, and spending the majority of that profit the country. This debate is partially appropriate but that's just area of the story. Safety of some manufacturers and workers also means that prices for goods and services they produce will be higher. That is detrimental to consumers and other producers are using such products as factors of production inputs as well as for the business when sales dropped because a few of their customers must pay more for products to be covered.
Question V: Answer:
Exchange rate is one of the problems are of particular interest in an economy, especially in the economies of producing countries, are gradually integrating in to the world market and participate in given work international. By international trade a task of the countries grows and requires the computation of price evaluation, the money with the spouse countries.
The change of exchange rate fluctuations affects the investment and international trade. When rates change, companies should develop flexible products to be easily personalized for the marketplace has higher demand. Increase productivity, improve product and crude costs through the actions of overseas companies in order to offset increased costs from exchange rate is necessary.
In addition, when rates change, the company will have to optimize resources and supply chain systems to limit the pace between the poor. Meanwhile, the business will seek to supply the perfect limit for low-cost, producing many types to limit exchange rate risk.
Finally, to limit exchange rate risk and improve corporate money, promote local resources, increasing income, expanding additional marketing programs to divert the money market into a far more powerful and stable more.
In the framework of a global economic recession, the finance institutions should budget slashes, maintenance of general population employee wage, chopping interest rates, capital restructuring, increased liquidity to lenders and other company. Immediate goal is to maintain a well balanced macroeconomic, inflation.
Question VI: Answer:
In the span of operations, central banking institutions can act as very important: to regulate the volume of money in circulation; setup and restructure the market stable purchasing power of money countrywide commander for the entire banking system.
Monetary insurance policy is the idea system, the procedures and steps of the Express of Vietnam to influence and regulate activities on money - the credit, bank and foreign exchange, create stability currency circulation to market national economic development. Monetary plan can be determined by one of two guidelines, such as tightening financial policy or financial policy growth. Monetary plan to pursue the following objectives: handling inflation, price balance, stable purchasing vitality of money, economic growth, and create careers. Monetary policy consists of three basic insurance policies: credit policy, foreign exchange procedures, and policies for their state budget. To put into action monetary insurance policy, and doing their functions, the central standard bank has used a number of tools such as reserve need ratio, interest rates; open market operations. . . Each tool has its own system and found different benefits and drawbacks.
Vietnam is along the way of integration and development, so lenders heed previously originated from state-owned bank after equalization, so they still offer available to its customers mental needs than their customers. However, current developments is seen that there were major turning point in the competition between the bankers and they were forced to check out the new development is to get customers and their brand concentrated. Financial sector - banking institutions in Vietnam have the ability to say growth to gradually develop in-depth, organized and more comprehensive. In parallel with superior governance composition, products and services are branding professional, modern is automatically required.
Currency exchange rate fluctuations are extremely important, profound effect on the company's business. The exchange rate steady, the amount put in could be more steady exchange rate fluctuations on a single product. Using the exchange rate comparisons to help businesses cut costs, time and increase revenue, minimize potential hazards brought by foreign exchange.
To manage exchange rate risk, financial contracts that businesses often use the word agreements (forwards), options, swap and credit agreements application. The operational techniques may be used to select the money invoice, netting strategy and lead / lag.
