ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 25: Global Business Environment (5076)

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Student name Phạm Trần Minh Hiếu Student ID GBS210603

Class GBS1004A Assessor name Đỗ Minh Tuấn

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Table of Contents
I. INTRODUCTION..........................................................................................................................................4
II. OVERVIEW OF GLOBALIZATION..........................................................................................................4
2.1. DEFINE THE CONCEPT OF GLOBALIZATION....................................................................................................4
2.2. EXPLAIN THE CONCEPT OF GLOBALIZATION IN TERMS OF DIFFERENT DIMENSIONS: ECONOMIC, CULTURAL, POLITICAL, SOCIAL
AND ITS EXAMPLE........................................................................................................................................................5
2.2.1. Economic globalization..............................................................................................................................5
2.2.2. Cultural globalization.................................................................................................................................5
2.2.3. Political globalization.................................................................................................................................6
2.2.4. Social globalization.....................................................................................................................................8
III. KEY DRIVING FACTORS OF GLOBALIZATION..................................................................................8
3.1. MARKET DRIVERS............................................................................................................................................9
3.2. COST DRIVERS................................................................................................................................................10
3.3. COMPETITION DRIVERS.................................................................................................................................12
3.4. GOVERNMENT DRIVERS.................................................................................................................................13
IV. KEY GLOBAL STRATEGIC COMPLEXITIES......................................................................................14
4.1. EXPLAIN THE COMPLEXITY OF STRATEGIC CHALLENGES FACED BY ORGANISATIONS WHEN OPERATING
IN A GLOBAL.........................................................................................................................................................14
ENVIRONMENT......................................................................................................................................................14
4.1.1. International trade laws............................................................................................................................14
4.1.2. Global economics risk and diversification strategy.................................................................................17
4.1.3. Environmental impacts and risk diversification strategies.....................................................................18
4.1.4. Global supply chain..................................................................................................................................20
4.2. MAIN CHALLENGES AND OPPORTUNITIES FOR THE COMPANY IN THE TEXTILE INDUSTRY COMPETING AT GLOBAL LEVEL.........21
4.2.1. Legislation and regulatory requirements.................................................................................................21
4.2.2. Monetary Environment.............................................................................................................................22
V. ROLES OF DIGITAL TECHNOLOGY AND INNOVATION......................................................................................23
5.1. IMPACTS OF DIGITAL TECHNOLOGIES AND INNOVATION IN METAL................................................................................23
5.2. CHALLENGES OF DIGITAL TECHNOLOGIES AND INNOVATION.....................................................................25
VI. RECOMMENDATIONS FOR GLOBALIZATION IN THE DIGITALIZED WORLD......................................................26
VII. CONCLUSION...............................................................................................................................................29
REFERENCES................................................................................................................................................29
I. Introduction.

The metal manufacturing industry is a fundamental and crucial component of the global economy,
covering the mining and processing of metals originating from either mineral raw materials or recycled
sources. My responsibilities as a Research Assistant at the KPMG Center of Insight, which is dedicated to
assisting senior research professionals, include a comprehensive exploration of the intricacies inherent in
the metals manufacturing industry, elucidating the factors contributing to its global presence. The paper is
divided into five major sections, beginning with an assessment of the fundamental causes and an
explanation of the globalization process. Following that, a closer investigation of the key driving causes
for globalization is done. The third section examines the complex global strategic problems that
organizations encounter while functioning in a globalized economy. Furthermore, the author looks at the
function of digital technology and innovation in the context of globalization. Finally, the research finishes
with an analysis and recommendations targeted specifically for enterprises dealing with the problems of a
globalized landscape. This contribution will be presented at the Vietnam Foreign Investment Agency's
upcoming Investment Promotion Conference, with the goal of providing valuable insights for discussions
about the global business environment and critical areas for Foreign Direct Investment (FDI) prospects in
Vietnam.

II. Overview of globalization.

2.1. Define the concept of globalization.

Globalization is neither a single notion that can be defined and contained in a certain time period, nor is it
a process that can be clearly defined with a beginning and an end. Furthermore, it cannot be fully
explained and applied to all persons and situations. Globalization involves economic integration, the
transfer of policies across borders, the transmission of knowledge, cultural stability, the reproduction,
relations, and discourses of power; it is a global process, a concept, a revolution, and the "establishment of
the global market free of sociopolitical control” (Nikitin and Elliott, 2000). All of these elements are
included in globalization. It is a notion that has been characterized in a variety of ways throughout the
years, with some implications alluding to progress, development, and stability, while others point to
regression, colonization, and instability. Despite these obstacles, this word has a slew of hidden motives.
According to Robertson (1994), Globalization may thus be described as the strengthening of global social
interactions that connect distant locales in such a manner that local events are impacted by events
occurring thousands of kilometers away and vice versa. Another recent definition, globalization refers to
the rapid movement and exchange

of goods and services such as people, money, commodities and services, technology, and cultural norms
throughout the world. One of the consequences of globalization is the encouragement and extension of
links between diverse groups and regions throughout the world (Kente et al., 2021).

2.2. Explain the concept of globalization in terms of different dimensions: economic, cultural,
political, social, and its example.

2.2.1. Economic globalization.

Economic globalization is one of the four major characteristics of globalization typically seen in
academic literature. Production, finance, markets, technology, organizational frameworks, institutions,
enterprises, and individuals are all manifestations of today's economic globalization. The phrase
"economic globalization" refers to the ubiquitous global movement of money, information, services, and
technology. It is increasing economic integration and interconnectedness of national, regional, and local
economies throughout the world by increasing cross-border movement of goods, services, technology, and
capital (Joshi & Mohan, 2009). This present boom has been considerably supported by industrialized
nations combining with emerging economies through foreign direct investment, lower business costs,
elimination of trade barriers, and frequent cross-border migration (Gao, 2000).

The metal production business is vital all over the world, transforming iron ore into a diversified range of
goods with an annual value of $2.5 trillion (Godden, 2019). In 2017, the sector employed more than six
million people, and the "added value" generated by its manufacturing processes totaled about $500 billion
(Godden, 2019). This statistic encompasses the industry's total costs, including labor costs, capital
expenditures, and net profits, and is the standard way for dividing global or national production (GDP)
across distinct sectors. When this amount is divided by the whole workforce, it is clear that the steel
industry has a phenomenal productivity rate per person that exceeds US $80,000, which is three times
more than the average seen across all sectors of the world economy (Godden, 2019). This not only
demonstrates the sector's substantial importance and scope, but also attests to its high efficiency in
manufacturing processes and human resource management. Aside from meeting the need for building
materials and industrial uses, the steel production industry contributes considerably to the global
economy's overall success.

2.2.2. Cultural globalization.

Although the concept of cultural globalization first surfaced in the late 1980s, Western scholars swiftly
embraced it in the 1990s and early 2000s. According to some academics, accusations made against
cultural imperialism in the 1970s and 1980s are what gave rise to the idea of cultural globalization
(Mirrlees, 2013). International tourism, mass cultural media, and the Internet are the main channels
through which cultures are consumed globally. People can create large social networks that transcend
national and regional boundaries as a result of the exchange of cultures. The development of shared
knowledge and norms that individuals can use to define their own and other people's cultural identities is
one of the many ways that such social ties are formed and strengthened. As a result, many tribes and
civilizations become more connected (Steger & James, 2002). Cultural globalization is defined as the
global exchange of ideas, meanings, and values that extends and strengthens social relationships (Steger &
James, 2019).

Cultural globalization has provided Vietnamese dairy enterprises with a platform for collaborative
learning and adaptation to international market dynamics. This offers the Vietnamese dairy industry a
chance to grow internationally and support the country's economic growth. Vietnamese dairy products
have an opportunity to become more widely recognized as cultural globalization promotes a better
awareness and appreciation of the many culinary traditions found throughout the world. Significant
opportunities for TH True Milk and the Vietnamese dairy industry as a whole to adopt cutting-edge
technologies common in developed dairy-producing nations are also presented by the expansion. TH True
Milk used to need to import experts from Israel, but lately, its young professionals have filled in the
various roles that foreign experts had previously held. Moreover, TH True Milk actively seeks out and
acquires state-of-the-art technologies from countries with thriving dairy industries. This entails putting
into practice veterinary management technology from Total Vets in New Zealand and a herd management
system from Afifarm in Israel. A comprehensive technological approach at TH farm includes the adoption
of IVF technology for dairy cows with the goals of conserving high-yielding purebred cow genetic
resources and improving productivity, quantity, and quality of Vietnamese dairy cows. The TH True Milk
operation reflects the synchronous application of state-of-the-art technologies with the incorporation of
Industry 4.0 management technologies like SAP and Microsoft Dynamics NAV, along with innovations
like Amiad technology that ensures clean water for dairy cows, automatic watering systems, and advanced
humidity measurement (Anh, 2022).

2.2.3. Political globalization.

Political, economic, and cultural globalization are three of the four main dimensions of globalization that
are regularly debated in academic literature (Babones, 2008). Each academic defines political
globalization differently, resulting in inconsistencies. Political globalization, according to Steger (2003),
is the expansion and strengthening of political ties. A more thorough definition is provided by Crouch
(2012): The process through which global governance organizations like the World Bank, the
International Monetary Fund (IMF), and the World Trade Organization (WTO) acquire greater influence
is known as political globalization. Nonetheless, it does describe the emergence and impact of global non-
governmental organizations, social movement groups, and transnational advocacy networks that function
on a worldwide scale and essentially form a global civil society. Moghadam (2005) notes that there is a
growing "transnational state apparatus," a growing trend toward multilateralism (of which the UN is a key
player), and an upsurge in the activities and clout of national and international nongovernmental
organizations that act as watchdogs on the government. The creation of an international political system
and related organizations that regulate cross-regional trade is another idea (Modelski et al., 2007).
Nonetheless, these definitions share one characteristic. The term "political globalization" describes the
expansion and intricacy of the global political system. This system consists of national governments, the
governmental and intergovernmental institutions that support them, as well as non-governmental
organizations and social movement groups that are a part of the global civil society but are not subject to
any one government.

For instance Vietnam's textile and apparel sector has a lot of opportunities thanks to the RCEP Agreement.
Among other things, the RCEP Agreement's Rules of Origin are a big plus for Vietnamese companies
because they're easier to understand than in previous agreements. Compared to the EU-Vietnam Free
Trade Agreement (EVFTA) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP),
this agreement has more lenient commitments and liberal standards, which could open up significant
markets for the textile and apparel industry. Furthermore, by addressing shortages in the current supply
chain, the RCEP Agreement, which includes nations that are also parties to the CPTPP Agreement, is
anticipated to address issues pertaining to raw materials (VCCI, 2020).
Specifically, the RCEP Agreement is anticipated to mitigate challenges for Vietnamese textile and
garment businesses when exporting to China, opening avenues to tap into this vast market. Moreover,
Japan has emerged as a promising market. Previously, garments entering the Japanese market had to
demonstrate that the materials originated from ASEAN and Japan. However, given that Vietnam
traditionally sourced most of its materials from China, the RCEP Agreement now enables Vietnamese
clothing made from Chinese materials to be competitively sold in Japan (VCCI, 2020).

2.2.4. Social globalization.

Social globalization refers to a consistency in how individuals are treated, notably by their governments.
This kind of globalization is a result of information spreading more widely around the globe. People are
therefore not alone in their own countries and are conscious of the various realities and customs of other
nations. Moreover, social globalization affects a number of worker rights (Robertson, 1992). Human rights
violations can be brought to the public's attention through social globalization, which is fueled by easier
access to information and communication. It promotes understanding of other people's perspectives and
lends support to issues pertaining to human rights.

Globalization has had a significant impact on Vietnam's metal manufacturing sector in a number of social
domains. As a result of the introduction of cutting-edge production techniques from other countries and
new opportunities brought about by integration into the global supply chain, industry efficiency and
product quality have increased. However, increased price pressure and competition may have an effect on
workers' wages, making it more difficult to defend workers' rights and strengthen labor security. It is
notable that a multinational workplace has social integration and cultural diversity, which creates learning
opportunities but also calls for efficient management and adjustment to this diversity. The challenge of
aligning and sustaining society in the face of a quickly changing environment is another aspect of
globalization, one that necessitates flexibility from communities and businesses in order to meet new
demands. In the modern context of globalization, this dynamic highlights the industry's trajectory toward
sustainability and harmonious integration with the social environment (Tran and Smith, 1998).

III. Key driving factors of globalization.

According to George S. Yip (1992), globalization is driven by four factors: government drivers, cost
drivers, competitive drivers, and market drivers. This can be observed in Figure 1 below.
 Figure 1: Yip’s Framework of Globalization (George, 1992)

3.1. Market drivers.

Government drivers: government obstacles and the presence of economic unions are among the
problems of globalisation. To operate in a global market, a corporation must fulfill the government criteria
of the nations in which it intends to do business. Tariff barriers, subsidies to local enterprises in the target
nation, technical requirements imposed by the target country's government, ownership limits in the target
country, currency discrepancies, and impediments to capital and technology transfer are examples of
barriers. Regional economic unions such as the EU and COMMESA also lower trade obstacles for
European nations, putting those outside Europe at a disadvantage (Yip, 1995).

In the metals industry, globalization is significantly driven by market forces that influence demand and
opportunities on a global scale. A notable recent trend is the increased demand for sustainable
transportation solutions, particularly the surge in production and adoption of electric vehicles (EVs). This
has led to a direct impact on the global market for metals such as lithium, cobalt, and nickel, crucial
components in EV batteries. The spike in customer demand for EVs has created a worldwide market for
these metals, necessitating intricate international trade and supply chain networks to meet the rising
requirements for EV batteries.

China has experienced substantial growth in the demand for car batteries, with a remarkable 70% increase,
and an 80% surge in electric car sales in 2022 compared to the previous year. Similarly, the United States
witnessed an 80% increase in demand for batteries despite an estimated 55% growth in electric car sales
by 2022 (IEA, 2023). This heightened demand has fueled a globalized market for these metals, prompting
collaborations among companies from different continents. These collaborations involve sourcing raw
materials from one region, processing in another, and distributing globally to satisfy the expanding global
demand for EV components.

To navigate this evolving landscape, transferable marketing strategies that highlight the importance of
sustainability and efficiency in mining and utilizing metals for EVs have become crucial. These strategies
enable companies to capture and maintain market share in this rapidly growing global sector. The
interaction between evolving customer needs, global supply chain channels, and adaptable marketing
strategies acts as a driving force behind the globalization of the metal industry, especially in the context of
emerging technologies like electric vehicles.

For countries like Vietnam, this trend presents both opportunities and challenges in the global metals
market. The opportunity lies in leveraging the rising demand for metals essential for producing EV
components. Vietnam, with its strategic geographical location and available natural resources like lithium,
can actively participate in the international supply chain. However, capitalizing on this opportunity
necessitates substantial investments in technology and infrastructure. Challenges include enhancing
production capacity, quality management, and competing with countries with established traditions in the
industry, such as China and South Korea. Moreover, developing a sustainable metals industry requires not
only efficient resource management but also investments in research and development to enhance
production processes and minimize environmental impacts.

3.2. Cost drivers

Cost drivers: In terms of cost drivers, running domestically saves money in three ways. The first
approach is to increase economies of scale. Scale economies refer to the manufacturing of things in
enormous volumes or quantities. Globalisation encourages the production of more items than the market
can support. This applies to both the purchase of supplies and the creation of output. Increasing scale
economies reduces costs, especially in sectors with high development costs (Yip, 1995). Differences
across nations may present an opportunity to lower global operations expenses. Companies, for example,
may choose to expand into countries or areas with lower labor or material costs. Some favorable logistics
may also provide a chance for organizations to engage in global marketplaces.

In the context of Vietnam's metal industry, these cost-driving factors present both opportunities and
challenges. Local enterprises, such as Viet Duc Steel Joint Stock Company and Vietnam Steel Corporation
(VNSTEEL), have initiated efforts to leverage global learning and experiences. By integrating advanced
technologies and best practices, they aim to enhance production efficiency, elevate product quality, and
mitigate production costs.

An effective supply chain strategy has become pivotal for metal manufacturers in Vietnam, with entities
like VNSTEEL successfully implementing optimization measures. This involves ensuring a stable supply
of high-quality raw materials while concurrently optimizing costs. The strategic geographical location and
improving infrastructure in Vietnam confer a distinctive advantage, enabling companies like Hoa Phat
Group to position production facilities strategically and minimize logistical costs. This optimization
reinforces their competitive edge by reducing operational expenses and solidifying market positioning.

Despite these opportunities, challenges persist. Pursuing arbitrage opportunities encounters hurdles,
particularly in relation to high research and development (R&D) costs. Companies like Hoa Sen Group
grapple with substantial investments in R&D to enhance manufacturing processes while ensuring cost
efficiency. Achieving economies of scale akin to global industry leaders poses a formidable challenge for
Vietnamese metal companies, requiring substantial investments. Striking a delicate balance between
innovation and cost management remains integral to overcoming these challenges.

The example of Hoa Sen Group encapsulates the intricate equilibrium between opportunities and
challenges within the Vietnamese steel industry. Strategic logistics decisions and sourcing efficiencies
enhance competitiveness, yet the ongoing struggle with R&D costs and scaling operations underscores the
complexities faced by industry players. Therefore, while cost factors pave the way for growth and
efficiency in Vietnam's metals industry, addressing associated challenges necessitates a nuanced approach,
balancing innovation and cost management for sustainable success in the global market. The
multidimensional impact of globalization on Vietnam's metal manufacturing industry, influenced by
market demand, cost efficiency, government policies, and fierce competition, underscores the need for
businesses to adapt to diverse markets, promote cost-effective products, and navigate government policies
affecting trade and market access.

3.3. Competition drivers

Competitive drivers: Competitive globalization drivers provide chances for globalisation. Globalization
is viewed as an integrated worldwide strategy rather than a basic international strategy in this situation
(Yip, 1995). Globalisation strengthens worldwide networks, increasing the interdependence of operations
across borders. This puts more emphasis on global cooperation and trading in global marketplaces. This
provides businesses with the opportunity to compete successfully. Globalisation puts further pressure on
competitors to adopt competitor strategies. This increases global firms' competitiveness and competitive
edge.

Within the steel industry, notable entities such as ArcelorMittal, POSCO, Nippon Steel, and Tata Steel
stand as major players, each emanating from diverse origins and maintaining a substantial global presence.
These industry giants exhibit distinct strengths, encompassing technological advancements, raw material
access, production expertise, and market penetration strategies, shaped by their respective countries of
origin and historical contexts. The multifaceted nature of these strengths significantly influences market
dynamics and fosters innovation within the industry.

Diversity among companies originating from different countries introduces a range of perspectives,
technologies, and approaches, fostering healthy competition and pushing the boundaries of production
efficiency, product quality, and sustainability. This diversity underscores the global nature of the metal
industry, where companies not only compete domestically but also participate on the international stage
through strategic alliances, joint ventures, and global supply chains. This intricate network of interactions
shapes the industry's landscape.

For metal businesses in Vietnam, this diversity offers opportunities for learning and collaboration with
companies from various countries. Collaborative efforts can facilitate the exchange of technology,
knowledge, and advanced manufacturing skills from nations with well-established metal industries.
Vietnam can leverage such collaborations to enhance product quality, refine production processes, and
bolster competitiveness globally. A noteworthy example is the Hoa Phat Group, a leading conglomerate in
Vietnam specializing in steel production. By adopting advanced production methods from developed
nations and implementing cutting-edge technologies, the conglomerate has achieved high levels of
automation and quality standards compliance, positioning itself both in the domestic and international
markets.

However, navigating the diverse competitive landscape entails contending with formidable adversaries
equipped with substantial resources, advanced technology, and extensive manufacturing experience.
Notably, competition from global players such as China, Japan, South Korea, the United States, and
Europe poses significant challenges to Vietnam's metal industry. China, in particular, with its vast
production capacity and cost advantages, has established dominance in the global metal market. To
effectively compete, Vietnam's metal industry must continually enhance its capabilities and innovate to
adapt to the demanding and diverse competitive environment.

3.4. Government drivers

Market drivers: Market standardization is one of the market factors driving globalization, which helps
multinational firms. As a result of globalization, the market is more likely to have comparable customer
tastes and demands, such as a worldwide desire for inexpensive loans. The presence of worldwide
clientele is the second component of standardization as a result of globalization. As a result of
globalization, it is also conceivable to offer standardized items on transferable markets, so extending one's
consumer base and, as a result, one's revenues (Yip, 1995).

Government dynamics exert a profound influence on the metals industry, shaping trade policies,
technological standards, and manufacturing regulations. The impact of government actions on the global
operations of the metals sector is substantial. Trade policies play a pivotal role, acting as either catalysts
for opportunities or barriers hindering international engagement. Bilateral or multilateral trade agreements,
such as the United States-Mexico-Canada Agreement (USMCA) and the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP), have the potential to lower trade barriers, reduce
tariffs, and simplify customs procedures. These initiatives aim to foster international trade in metals and
may open new avenues for metal exports. Conversely, the absence of favorable trade agreements or the
dissolution of existing ones could impede market access, constraining the metals industry's global
expansion prospects.
Standardization of technology norms, especially those related to steel or aluminum production, plays a
crucial role in streamlining manufacturing processes and promoting interoperability across regions. For
instance, standardized specifications for steel grades facilitate global trade by ensuring consistent quality
standards across borders. Government policies hold significant promise for Vietnam's metal industry,
offering opportunities for growth. The advocacy of favorable trade policies and participation in free trade
agreements can significantly broaden export opportunities for metals on the international stage.
Government-backed initiatives to establish common technological standards can optimize metal
production processes, enhance product quality, and facilitate integration into the global supply chain.
Furthermore, the imposition of uniform regulations governing production and consumption management
can bolster occupational safety and environmental protection, thereby enhancing the reputation and
reliability of Vietnam's metal industry in the global market.

However, these policies concurrently present challenges for Vietnam's metal industry. Changes in trade
policies can introduce uncertainty and exert pressure on businesses to adapt to alterations in import taxes
or trade conditions with international partners. Additionally, adherence to technological standards and
regulations may necessitate substantial investments in infrastructure and production processes, imposing
financial and technical pressures. In the face of competition from countries with robust metal industries,
Vietnam must enhance its competitive capacity to both sustain and expand its export market. Thus,
navigating and evolving within the international business environment presents a myriad of challenges
while offering substantial opportunities for Vietnam's metal industry.

IV. Key global strategic complexities.

4.1. Explain the complexity of strategic challenges faced by organisations when operating in a global

environment.

4.1.1. International trade laws.

*Definition of international trade laws.

International trade laws are a set of rules and regulations that control the international exchange of
products, services, and intellectual property. These laws are intended to encourage fair and transparent
trade practices, safeguard enterprises' and consumers' rights and interests, and settle disputes that may
occur in the context of international commerce. Businesses that participate in international trade must be
aware with and comply with these rules in order to guarantee that their trade operations are performed in
line with legal standards and to reap the advantages and protections provided by international trade
regulations (Warburton and Christopher, 2010).

Trade agreements and negotiations, intellectual property rights, investment clauses, competition policies,
import and export rules, taxes, customs charges, and dispute resolution procedures are only a few of the
many topics covered by international trade laws. Regional trade organizations, bilateral or multilateral
trade agreements, national governments, and international organizations like the World Trade
Organization (WTO) create and uphold these rules (Warburton and Christopher, 2010).

*Some of most influential international trade laws.

The World Trade Organization (WTO) Agreements; Vietnam officially joined the WTO in 2007 and
became its 150th member. Since then, Vietnam has significantly advanced global integration and
innovation.

Furthermore, Vietnam can direct its efforts toward perfecting the institutional framework for market
economic development and confidently integrate more fully, widely, and successfully into the global
community through the WTO and more than 500 bilateral and multilateral agreements in a variety of
fields, including 17 free trade agreements (FTAs) to which Vietnam is a party (15 agreements have been
signed and entered into force, and two agreements are in negotiation) (Phong, 2022). Furthermore, this
encompasses other accords, including the Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS) and the General Agreement on Tariffs and Trade (GATT). Trade restrictions, taxation,
and intellectual property rights are all governed by these agreements, and they all have a significant
impact on Vietnam's economic dealings with other WTO members.

Vietnam has negotiated and joined several Free Trade Agreements (FTAs), opening up numerous
opportunities and challenges for the metal manufacturing industry. These FTAs have expanded the export
market, providing favorable conditions for industry players to access the international arena. The
reduction of tariffs and elimination of trade barriers create an environment conducive to increased
competition, encouraging Vietnamese enterprises to enhance quality and reduce prices to meet the
challenges of the global market. Furthermore, the FTAs bring opportunities for the sharing of advanced
technologies and management methods from international trade partners. This can contribute to
improving production efficiency and management practices within the metal manufacturing industry in
Vietnam. The adoption of international standards and compliance with related regulations set a high bar
for quality and safety, prompting businesses to elevate their production standards to meet international
requirements. Moreover, FTAs open up possibilities for diversifying the supply chain and raw materials,
helping to mitigate risks associated with dependence on a limited number of sources. The signing of these
agreements also promotes global economic cooperation, enhancing trade relations between Vietnam and
its partners, providing a foundation for the sustainable development of the metal manufacturing industry
amidst international integration.

Vietnam has made significant efforts to strengthen its Intellectual Property Rights (IPR) system, and
this has had positive implications for the metal manufacturing industry. The protection of IPR helps
establish and enhance product authenticity and brand reputation, ensuring confidence from both
consumers and international partners. With robust IPR, the Vietnamese metal manufacturing sector can
safeguard its technologies, stimulate foreign investments, and mitigate instances of counterfeit trade.
Moreover, compliance with IPR not only ensures product authenticity but also creates opportunities for
international business collaboration within the metal manufacturing industry. The protection of
technology and innovation is not solely a legal matter; it serves as a crucial catalyst driving innovation
and sustainable growth in the Vietnamese metal industry.

These international trade regulations have a big effect on MNCs operating in Vietnam. They provide
MNCs better access to markets, lowered trade restrictions, and legal safeguards for their capital and
intellectual property. These rules have encouraged foreign direct investment, made it easier to develop
supply chains, and helped Vietnam's economy thrive. Due to these trade rules, multinational corporations
have been able to grow their operations, get access to preferred trading circumstances, and seize new
business possibilities.

In overall, these international trade rules have been very important in developing competitiveness,
promoting economic integration, and reshaping the Vietnamese business climate for multinational
corporations. International trade regulations have an influence on multinational corporations (MNCs) in
the metal manufacturing sector by altering supply chains, affecting sourcing choices, fostering innovation,
and advancing ethical business practices. accountability.

*Challenges and opportunities international trade laws for the textile industry.
Under the influence of international trade law, the metal manufacturing industry encounters several
significant challenges. One of the primary challenges is the necessity to comply with the regulations of
international trade agreements, imposing substantial pressure on businesses to adjust and enhance
production processes to meet increasingly stringent global standards. In addition, the escalating
competition resulting from international trade poses both opportunities and challenges, demanding
businesses to implement flexible strategies to sustain and expand market share. Protecting intellectual
property becomes a critical challenge, as companies must contend with the risk of unauthorized replication
while ensuring the security of technological innovations in the context of intense global competition.
Market fluctuations and changes in tax policies present additional uncertainties, requiring industry players
to demonstrate flexibility in adapting to these shifts. Monitoring and adapting to these changes are crucial
for maintaining stability and effectiveness in the ever-evolving global business environment. Overall, the
metal manufacturing sector must confront and strategically navigate these challenges to survive and thrive
in the era of deepening international integration.

4.1.2. Global economics risk and diversification strategy.

The global economy holds a central position in influencing the challenges confronted by Multinational
Corporations (MNCs) engaged in the export of metal products in Vietnam. Numerous elements within the
global economic landscape have the potential to exert considerable influence on these corporations,
heightening their susceptibility to diverse risks.

The volatility of commodity prices stands out as a crucial factor impacting Vietnamese Multinational
Corporations (MNCs) involved in metal production. These corporations heavily depend on the prices of
essential raw materials like iron ore, scrap steel, and other metals for their manufacturing processes.
Variations in commodity prices, driven by shifts in global demand, supply dynamics, geopolitical
tensions, or market speculation, have a direct impact on the costs of raw materials. Abrupt increases in
prices may elevate production expenses, influencing the profitability of these corporations. Conversely,
price reductions can result in inventory devaluation or production slowdowns, affecting competitiveness
and financial stability. For instance, in 2022, amidst global economic challenges marked by high inflation,
industries reliant on steel experienced sluggish growth. The surge in steel production costs, coupled with
reduced demand for steel, resulted in a 15% decline in the output of raw steel and various steel products
compared to the same period in 2021. By December 2022, steel production and sales had decreased by
21% and 14%, respectively, from the corresponding period in 2021 (Mohommad, 2023).
Furthermore, the interconnectedness of the global economy expose Vietnamese Multinational
Corporations (MNCs) involved in metal production to systemic risks. Occurrences like global economic
downturns, instability in financial markets, or geopolitical conflicts can yield far-reaching repercussions.
These macroeconomic shocks have the potential to curtail the worldwide demand for metal products,
erode investor confidence, disrupt supply chains, and adversely affect the operations and financial
performance of MNCs in Vietnam's metal production sector. As an illustration, trade disputes involving
major economies, such as the tensions between the US and China, can introduce instability into Vietnam's
export markets for metal products. Products from China impacted by tariffs, particularly those
manufactured by domestic companies, may inundate the Vietnamese market (presenting challenges to
domestic production) or be falsely labeled as Vietnamese goods destined for export to the US (elevating
Vietnam's exposure to potential penalties) (IPCS, 2021). Throughout episodes of global economic
downturns, such as the 2008 financial crisis or the COVID-19 pandemic, the global demand for steel and
other metal products experienced a substantial decrease. This diminished demand had repercussions for
Vietnamese metal-producing MNCs, resulting in excess inventory, production cutbacks, and financial
strain due to diminished revenue and sales.

This illustrates that Multinational Corporations (MNCs) in Vietnam's metal production sector are
vulnerable to diverse risks originating from the global economy. These risks collectively influence their
profitability, market access, and operational stability, underscoring the need for strategic risk management
and adaptable business strategies to navigate challenges presented by the global economic environment.

4.1.3. Environmental impacts and risk diversification strategies.

The metal production industry, while playing a crucial role in various sectors of the global economy by
supplying essential materials for construction, transportation, electronics, and diverse applications,
inevitably induces environmental ramifications. A notable environmental concern associated with metal
production revolves around the release of greenhouse gases and various pollutants throughout the
extraction, processing, and refining stages of metals. Operations such as smelting and refining discharge
deleterious gases into the atmosphere, thereby contributing to air pollution and climate change. These
emissions pose legal and reputational risks for entities within the metal production sector. The
proliferation of environmental regulations, implementation of carbon taxes, and adherence to more
stringent emission standards can exert a substantial impact on industry operational costs and overall
profitability. For example, consider aluminum smelting operations in a major industrial hub such as
Shenzhen, China. The aluminum production processes involve the release of substantial pollutants,
including greenhouse gases like carbon dioxide and perfluorocarbons. These emissions contribute to air
pollution and have adverse effects on the local environment and public health. Criticisms and community
opposition have emerged due to the environmental impact of aluminum smelting, reflecting a growing
awareness of the industry's ecological footprint. In a specific case, reports in 2019 highlighted concerns in
Shenzhen, where numerous aluminum production facilities collectively emitted a significant volume of
pollutants, impacting both air and water quality. This sector included enterprises engaged in the
manufacturing of aluminum products, chemical processes, and associated metallurgical activities (Gulec,
2023).

For example, in the vicinity of Hanoi, textile dyeing facilities have been reported for discharging
untreated wastewater into nearby rivers and water bodies. This has resulted in the presence of hazardous
chemicals and dyes, negatively impacting water quality and aquatic life. Local communities relying on
these water sources for agriculture and daily activities face health risks due to the ingestion of
contaminated water. The environmental risks associated with water pollution from textile dyeing
operations can lead to legal consequences, fines, community discontent, and damage to the reputation of
the companies involved. This issue underscores the importance of implementing sustainable water
management practices and stringent wastewater treatment measures within industrial processes to mitigate
adverse environmental impacts.

In response to these challenges, both the Vietnamese and Chinese governments have introduced
regulatory measures aimed at mitigating the environmental impact of the metal manufacturing
industry. Robust laws and regulations have been implemented, emphasizing the control of emissions, the
advocacy for cleaner production methods, and the enforcement of proper waste management practices. As
an illustration, the Ministry of Natural Resources and Environment in Vietnam has implemented penalties
for firms that breach environmental regulations, fostering adherence to guidelines and the integration of
cleaner technologies. Furthermore, there is a growing emphasis on sustainable practices and technological
innovations within Vietnam's metal manufacturing sector. Certain enterprises have initiated investments in
eco-friendly technologies, encompassing the incorporation of energy-efficient procedures, the adoption of
recycling initiatives, waste reduction efforts, and the exploration of alternative materials and production
methods. These endeavors collectively aim to mitigate the ecological impact of the industry.
4.1.4. Global supply chain.

Multinational corporations (MNCs) engaged in Vietnam's metal manufacturing sector confront various
complexities when managing their global supply chains. One notable challenge pertains to global supply
sourcing. These MNCs often grapple with difficulties in procuring raw materials and components from
diverse countries. Fluctuating commodity prices, geopolitical tensions impacting trade, and disruptions in
the supply of essential resources pose considerable obstacles. Additionally, ensuring the quality and
consistency of the origin of raw materials while adhering to international standards becomes imperative.
Overcoming these challenges is essential for MNCs to sustain a stable input supply for their
manufacturing processes.

For instance, the COVID-19 pandemic significantly disrupted global supply chains, affecting Vietnamese
metal manufacturers. The disruptions led to challenges in acquiring raw materials and components due to
lockdowns, trade restrictions, and logistical hurdles. In 2020, some manufacturers encountered delays in
sourcing materials like steel, aluminum, and copper owing to supply chain disruptions caused by factory
closures and restricted global transportation.

Moreover, challenges are inherent in the manufacturing process. Despite Vietnam's competitive
advantages, such as lower labor costs, the establishment and efficient management of production lines
entail overcoming various barriers. These encompass compliance with local regulations, ensuring safety
and welfare for workers, upholding consistent quality standards, and optimizing production efficiency.
Additionally, obstacles may arise in technology transfer and cross-border knowledge-sharing, attributed to
differences in language, cultural nuances, and diverse business practices.

Distribution channels and supply chain management introduce an additional layer of intricacy.
Coordinating the transportation of finished goods to global markets necessitates a robust infrastructure.
Challenges, such as insufficient transportation networks, intricate customs procedures, and divergent
regulations among countries, can result in delays and heightened costs. Moreover, adapting distribution
strategies to align with varied market preferences and consumer behaviors in different regions demands
flexibility and a profound understanding of the markets. The transportation and logistics infrastructure in
Vietnam present challenges for multinational corporations (MNCs). Notably, the underdeveloped road and
rail networks contribute to time-consuming and costly transportation of goods within the country and to
export ports. For instance, companies operating in the metal manufacturing sector often grapple with the
efficient movement of heavy and bulky goods from production facilities to ports due to inadequate
transportation infrastructure.

4.2. Main challenges and opportunities for the company in the textile industry competing at global
level.

4.2.1. Legislation and regulatory requirements

The metal manufacturing sector in Vietnam navigates a nuanced legal terrain marked by the integration
of domestic statutes and global benchmarks. Adhering to stipulations concerning environmental
conservation, safety protocols, labor statutes, and international trade agreements presents substantial
complexities. Specifically, ensuring conformity with the European Union's REACH (Registration,
Evaluation, Authorization, and Restriction of Chemicals) regulations emerges as a critical imperative for
exporting metal goods to EU member states. Failure to comply may result in formidable market entry
impediments or substantial penalties, thereby influencing the competitiveness of a company.

In recent years, Vietnam has intensified its focus on environmental sustainability, manifesting in the
implementation of stringent governmental regulations aimed at controlling pollution and fostering
sustainable development. This regulatory landscape significantly influences the operations of the metal
manufacturing industry. Achieving compliance with these heightened standards necessitates substantial
investments in cutting-edge technology, streamlined processes, and skilled human resources. Striking a
balance between adherence to environmental principles and the preservation of operational efficiency
becomes imperative. Furthermore, the metal manufacturing sector in Vietnam is susceptible to the
impacts of evolving trade policies and tariffs, particularly in the context of ongoing trade tensions between
major economies like the U.S. and China. Navigating these intricate regulations demands adaptive
strategies and unwavering vigilance to ensure compliance, all while maintaining product quality and
competitive pricing. Despite these challenges, the legal environment also presents avenues for growth
and distinction. Companies that invest in sustainable practices and align with international standards can
gain a competitive advantage in the global market, where environmental consciousness holds increasing
value. Collaborative engagements with governmental bodies and industry associations offer invaluable
insights into impending regulatory changes, enabling proactive adjustments to strategies and ensuring
alignment with new requirements.

In summary, Vietnam's metal manufacturing industry operates within a dynamic legal landscape,
demanding continual adaptation to both domestic laws and international standards. Companies prioritizing
compliance and innovation to meet evolving regulations can strategically position themselves in the global
market, attain a competitive edge, and foster sustainable growth.

4.2.2. Monetary Environment.

Vietnam's metal manufacturing industry operates within a dynamic currency environment shaped by
currency fluctuations, economic policies, and global market dynamics. Exchange rate fluctuations,
particularly involving major currencies like the US dollar or the Euro, wield significant influence over the
cost structure of raw materials, imported machinery, and export revenues. Notably, abrupt increases in the
value of the Vietnamese dong against the US dollar can substantially inflate the costs of imported
materials, impacting the profitability of metal manufacturers heavily reliant on foreign suppliers. During
periods of economic volatility or global currency shifts, Vietnamese metal manufacturers encounter
challenges in upholding stable production costs, thereby affecting profit margins. The sector's reliance on
imported materials and equipment renders these companies susceptible to currency risks. Moreover,
changes in the global economic landscape, such as adjustments in interest rates by major central banks or
geopolitical tensions impacting commodity prices, can further complicate the currency environment.
These fluctuations have the potential to disrupt production plans, influence pricing strategies, and heighten
financial risks for companies in the metal manufacturing sector. However, the currency environment also
presents strategic opportunities for companies to diversify risks and explore cost-effective measures.
Implementing effective risk mitigation mechanisms or leveraging futures contracts can serve to minimize
currency risks, providing stability in procurement and pricing. Additionally, identifying and capitalizing
on new markets or adjusting product portfolios based on currency trends can assist companies in
optimizing revenue and profit margins amidst currency fluctuations. Furthermore, evidence suggests that
companies employing flexible financial strategies and actively monitoring and managing currency risks
can adeptly navigate the challenges posed by the currency environment. Collaborating with financial
experts and leveraging innovative financial tools emerge as essential components in assisting companies
to adapt to the evolving currency landscape, thereby positioning themselves competitively in the global
market.

V. Roles of digital technology and innovation.

5.1. Impacts of digital technologies and innovation in metal .

Digital technologies and innovations have brought about a profound transformation in the metal
manufacturing industry, giving rise to smart production management systems and the advent of Industry
4.0.

Additive Manufacturing (AM) has emerged as a cutting-edge technology in the metal manufacturing
industry, particularly in the fabrication of metal parts. Commonly referred to as 3D printing, AM has
revolutionized the production of metal components by enabling the fabrication of intricate geometries and
customized parts with enhanced mechanical properties (All3DP, 2023). This technology has gained
widespread popularity within the manufacturing community due to its distinct advantages over traditional
processes. Metal additive manufacturing methods, such as direct metal laser sintering, exhibit the
capability to produce intricate and high-value metal components, rendering them suitable for critical
applications, including aerospace components (Bruschi et al., 2022). Moreover, studies have explored the
cost effectiveness and analysis of AM, revealing its potential for cost savings and increased manufacturing
flexibility compared to conventional manufacturing processes (Thomas, 2016).

The advent of 3D printing technology has exerted a profound influence on the landscape of globalization.
A noteworthy impact of 3D printing in the realm of globalization is the phenomenon of production
localization. Historically, global supply chains heavily leaned on centralized manufacturing facilities,
often situated in regions with lower labor costs. However, 3D printing facilitates distributed
manufacturing, empowering companies to fabricate goods locally or in proximity to the point of
consumption. This localization strategy yields benefits such as reduced shipping costs, shortened delivery
times, and mitigation of risks associated with disruptions in global logistics operations. Industries,
particularly aerospace and automotive sectors, have witnessed a transformative shift towards the adoption
of 3D printing for manufacturing parts and components. For instance, in the aerospace domain, 3D
printing is employed to manufacture intricate and lightweight parts that were previously challenging or
cost-prohibitive to produce. This shift has engendered a more decentralized manufacturing approach for
aerospace components, enabling companies to lessen reliance on specific suppliers and enhance their
agility in responding to market demand fluctuations (Thomas, 2016).

Another illustrative example underscoring the influence of 3D printing on globalization pertains to the
healthcare sector. Across the globe, medical organizations and researchers leverage 3D printing for the
fabrication of patient-specific implants, prosthetics, and medical devices (Thomas, 2016). This
technological application facilitates swift prototyping and production of personalized medical solutions,
thereby diminishing lead times and enhancing global access to healthcare.

Moreover, the integration of the Internet of Things (IoT) with robotic systems is reshaping dynamics and
fostering the development of next-generation devices. Recognized as a pivotal facilitator for advanced
services in manufacturing, IoT technologies, constituting the Industrial Internet of Things (IIoT), are
actively employed in the industrial domain, including metal manufacturing (Bader & Michala, 2021). The
amalgamation of IoT devices and sensors has given rise to the establishment of smart factories within the
metal manufacturing sector. These sensors are embedded in machinery and equipment to capture data
related to temperature, pressure, vibration, and other critical parameters during metal processing. The
utilization of this data facilitates the optimization of production processes, automatic parameter
adjustments, enhanced product quality, increased productivity, and reduction of waste in the metal
manufacturing industry. Furthermore, IoT represents a strategic shift towards interconnected
manufacturing processes, enabling seamless communication among entities in the supply chain. This
interconnectivity promotes higher flexibility, responsiveness, and leaner production, ultimately leading to
reduced production costs (Lam et al., 2020). Additionally, IoT plays a crucial role in equipment
management and maintenance within the metal manufacturing industry. Sensors can monitor the status of
machinery and equipment, offering insights into potential issues or maintenance requirements. This
proactive approach enables the metal industry to implement predictive maintenance, minimize production
downtime, and enhance the reliability of production equipment.

The integration of Internet of Things (IoT) devices and sensors has exerted a profound influence on
globalization, presenting new opportunities and transforming the landscape of global production and
business operations. IoT facilitates the interconnection of devices, enabling data exchange over the
internet, thereby fostering extensive information automation and management. A notable illustration of the
impact of IoT on globalization is evident in the realm of industrial production. Smart factories leverage
IoT to establish connections among devices, machinery, and automated systems. Sensors are deployed on
these devices to gather data pertaining to performance, productivity, energy consumption, and operational
status (Junior et al., 2021). Subsequently, this data is subjected to analysis aimed at optimizing production
processes, reducing waste, and enhancing global production efficiency.

5.2. Challenges of digital technologies and innovation.

In the realm of metal manufacturing, the integration of digital technology and innovation presents both
facilitators and hindrances for companies engaged in global operations. Primarily, advanced digital
technologies such as 3D printing, IoT, AI, and robotics offer the potential to elevate the global standing of
companies in the metal manufacturing sector. These technologies contribute to heightened efficiency in
the production process, facilitating rapid adjustments to evolving market demands across various regions.
For instance, 3D printing allows for customization and localized manufacturing, diminishing lead times
and enabling companies to address diverse market requirements without encountering hindrances related
to equipment or logistics. Additionally, these technological advancements enhance the optimization of
supply chain management by furnishing real-time data and analytics. IoT sensors embedded in machinery
gather invaluable insights, paving the way for predictive maintenance, streamlined inventory management,
and more efficient logistics. This optimization fosters smoother global operations, minimizes delays, and
augments responsiveness to fluctuations in the market.

Nevertheless, the adoption of digital technology in the global landscape of the metal manufacturing
industry is not without its challenges. The initial investment necessary for deploying and integrating these
technologies can pose a substantial obstacle, particularly for smaller companies. This financial
impediment may impede their capacity to compete on a worldwide scale, given that larger competitors
have more resources available for technological advancements. Moreover, the escalating cybersecurity
risks are of growing concern as companies increasingly rely on digital systems and data exchange. Cyber
threats present a notable hazard to global operations, as any breach or attack has the potential to disrupt
production, compromise sensitive data, and undermine customer confidence. Companies must allocate
resources to robust cybersecurity measures to mitigate these risks, presenting a challenge, particularly for
small businesses with limited resources. Furthermore, persistent technological disparities and adaptation
challenges among regions with varying levels of infrastructure and technological expertise exacerbate the
situation. This incongruity can erect barriers for companies operating in less technologically advanced
sectors, impacting their ability to consistently propel digital innovation on a global scale.

In summary, digital technologies present significant opportunities for global expansion in the metal
manufacturing sector, enhancing operational efficiency, customization capabilities, and optimizing supply
chain management. Nevertheless, it is crucial to carefully address challenges such as cybersecurity risks,
skill gaps, and regulatory complexities. Companies that adeptly harness digital innovations while
mitigating these challenges stand poised to thrive in a global landscape, securing a competitive advantage
and extending their market footprint.

VI. Recommendations for globalisation in digitalized world.

Globalization in the metal manufacturing industry presents significant opportunities and challenges that
necessitate strategic adaptation for sustained growth and survival in the global market. Employing George
S. Yip's four driving forces model for analysis, the author delineates key prospects and obstacles
encountered by the industry amid the globalization trajectory.

A pivotal opportunity arises in the form of expanded market access, fueled by the escalating global
demand for metals. Additionally, entering into free trade agreements emerges as a strategic avenue,
providing the industry with enhanced prospects for exporting metals to international markets. Moreover,
such agreements facilitate the exchange of technology, knowledge, and advanced manufacturing skills,
fostering cross-border collaboration with nations boasting well-established metal industries.

However, concomitant with these opportunities, the metal manufacturing industry confronts a spectrum of
challenges. Foremost among these challenges is the intensification of global competition, placing
companies under considerable competitive pressure. Furthermore, fluctuations in trade policies introduce a
layer of instability, compelling businesses to swiftly adapt to changes in import taxes or alterations in
trade conditions with international partners. These challenges underscore the imperative for industry
players to adopt adaptive strategies that balance risk and reward in the dynamic landscape of globalized
metal manufacturing.

In the contemporary digital and globalized landscape, enterprises within the metal manufacturing sector
face the imperative of surmounting challenges while strategically leveraging opportunities to ensure
optimal growth. Realizing the benefits of augmented market access necessitates a proactive approach from
companies, involving not only the exploration of new geographical territories but also the identification
and penetration of diverse segments within existing markets (Wiersema and Bowen, 2007). This
multifaceted diversification strategy serves to mitigate the impact of regional economic fluctuations,
fostering resilience by diminishing reliance on any single market. Moreover, a judicious expansion of the
product portfolio emerges as a crucial tactic in meeting the varied needs and preferences of consumers. By
addressing diverse market demands, organizations enhance their competitive standing and fortify their
market position in the dynamic and multifaceted metal manufacturing industry.

In the realm of intense competition, the imperative for businesses to foster innovation becomes paramount
for both survival and prosperity (Indrawati et al., 2020). Nurturing a culture of innovation is essential to
elevate operational quality and ensure continued relevance within the industry. Prioritizing stringent
quality assurance measures aligned with international standards is crucial, as it serves to guarantee
customer satisfaction and retention. Simultaneously, the optimization of production processes to achieve
cost reductions without compromising quality emerges as a strategic necessity for sustaining
competitiveness within the global market. Moreover, strategic attention to marketing performance
becomes imperative for organizations seeking a competitive edge and sustainable profitability in the
globally competitive landscape (Gursoy et al., 2022). A nuanced examination of key global strategies
reveals both opportunities and challenges. The prospect of bilateral and regional Free Trade Agreements
(FTAs) stands out as a significant opportunity, fostering favorable conditions for investment and
harmonizing legal standards with trading partners. Additionally, the safeguarding of proprietary
technologies and production methods in the metal industry is facilitated through robust intellectual
property laws. Conversely, the metal manufacturing industry confronts formidable challenges.
Fluctuations in commodity prices constitute a primary challenge, exerting a direct impact on production
costs. Moreover, environmental challenges loom large, particularly concerning emissions during the
production process. Businesses must grapple with these multifaceted challenges while leveraging strategic
opportunities to navigate the intricacies of the global business landscape effectively.

Likewise, organizations must institute comprehensive measures to effectively address the aforementioned
challenges. To tackle issues arising from volatile commodity prices that exert an impact on production
costs, businesses can adopt strategic risk management approaches (Ding et al., 2019). These approaches
encompass diversifying raw material sourcing options and employing financial instruments such as futures
contracts or hedging mechanisms to navigate price fluctuations successfully. The development of robust
forecasting models emerges as a pivotal consideration for organizations, facilitating accurate predictions
of commodity price movements. For instance, the precise forecasting of agricultural commodity prices
holds the potential to mitigate risks associated with price fluctuations (Gu et al., 2022). Furthermore, the
integration of advanced techniques such as deep learning and news topic modeling into the forecasting of
commodity prices has demonstrated its efficacy in providing valuable insights into the factors influencing
price fluctuations (Chuluunsaikhan et al., 2020). This enhanced predictive capability empowers businesses
to make well-informed decisions and proactively implement strategies to alleviate the impact of price
fluctuations on their operational landscape.

Subsequently, in addressing environmental challenges associated with emissions during production, it is

imperative for companies to give precedence to sustainability initiatives. Organizations should augment
the incorporation of eco-friendly technologies, implement energy-efficient production processes, and
curtail carbon emissions. This approach serves the dual purpose of not only aligning with global
environmental regulations but also fortifying brand reputation and appealing to environmentally conscious
consumers.

Ultimately, the application of digital technology and innovation presents both opportunities and
challenges. The foremost opportunity lies in the potential for global growth facilitated by the integration
of digital technology into the production process. Additionally, innovations contribute to the optimization
of supply chain management through the provision and analysis of data. Nonetheless, the primary
challenge in adopting digital technology is the substantial investment required. Furthermore, there are
associated risks concerning cybersecurity and technological disparities between nations.

To address these challenges, enterprises should first recognize the significance of integrating digital
technology and innovation and devise appropriate financial strategies. According to Zhang et al. (2021),
the incorporation of digital technology in metal manufacturing can enhance competitiveness and
performance. Moreover, digital manufacturing technology can bolster business competitiveness and foster
the development of circular economy business models. Therefore, businesses must prioritize investments
in technologies directly contributing to improved production efficiency, such as automation, the Internet
of Things (IoT), and data analytics, which can yield substantial long-term cost savings and operational
enhancements. Concurrently, organizations should formulate robust cybersecurity protocols, invest in
secure infrastructure, and implement encryption measures. Collaborating with cybersecurity experts,
sharing industry best practices, and staying abreast of evolving threats can effectively mitigate
cybersecurity risks. Notably, during the integration of digital technology, organizations must adhere to
regulatory compliance related to data privacy, intellectual property rights, and ethical considerations.
Establishing a robust compliance framework, engaging legal counsel, and conducting regular audits can
safeguard against legal and ethical risks associated with adopting digital innovation.

By implementing these strategic recommendations, metal manufacturing organizations can adeptly

navigate the challenges posed by globalization while capitalizing on the numerous opportunities it
presents, ultimately fostering sustainable growth and competitiveness in the international market.

VII. Conclusion.

To sum up, the dynamic changes in today's business environment and the widespread impact of
globalization require proactive adaptation and ongoing personal development in the metal manufacturing
sector. The business environment may become outdated if conflicts resulting from the ongoing shift
towards globalization are not effectively addressed and mitigated. This is especially important in light of
the current globalization's momentum and acceleration. Globalization is also a powerful stimulant for
business, but it necessitates conformity to the political and current events that are dominant in the business
world. As this study has explained previously, a number of incidents have had significant effects on the
economic landscape. Future repercussions of globalization are expected to have an impact on businesses
and the global financial system in both positive and negative ways, including unanticipated negative
effects and fluctuations.

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