DA NANG UNIVERSITY

UNIVERSITY OF ECONOMICS

GROUP WRITING REPORT

SUBJECT: INTERNATIONAL BUSINESS

TOPIC:
ANALYZING INTERNATIONAL BUSINESS VIDEOS ON YOUTUBE

Class: 48K02.1

Group: 1

Lecture :Tran Thien Tri

Members :Ngo Sy Tien Dung

Hoang Thi Minh Hanh

Ngo Thi Thuy Diem

Duong Xuan Mai

Da Nang,2024
 TABLE OF CONTENTS
I. CONTENT ANALYSIS............................................................................................................
1.Intellectual property (IP)..........................................................................................................
2.Global Supply Chain:...............................................................................................................
3.Trade Dispute...........................................................................................................................
II. THE RELATIONSHIP BETWEEN VIDEO CONTENT AND KNOWLEDGE
LEARNED IN INTERNATIONAL BUSINESS SUBJECT.....................................................
1.Intellectual property (IP)..........................................................................................................
2.Global Supply chain:................................................................................................................
3. Trade Dispute:.........................................................................................................................
4.Analyze content that expands or challenges knowledge learned in the video :.......................
4.1.Opportunities:....................................................................................................................
4.2.Challenges:........................................................................................................................
4.3.Impact on Specific Sectors:..............................................................................................
4.4.Moving Forward:..............................................................................................................
III.DISCUSS..................................................................................................................................
GROUP WRITING REPORT _ 48K02.1_GROUP 1

I. CONTENT ANALYSIS:

1. Intellectual property (IP):

- Intellectual Property (IP) refers to creations of the mind, such as inventions;

literary and artistic works; designs; and symbols, names and images used in
commerce. Specifically, the video is intellectual property in the chip industry.
+ In 2019, police in the US went to arrest Zongchang Yu but couldn't find him. Until
he appeared later in China as the CEO of his company that successfully made
software like ASML's. Thanks to help from the Chinese government his company
was flourishing. And his story was just one of several instances of IP theft in the
chip industry.
+ The Chinese government is supportive of IP theft because the Chinese government
realizes that its companies are in a position of relative weakness.
→ IP theft can help Chinese companies catch up with foreign competitors faster.
- Action to protect US intellectual property rights
+ In 2018, the Trump administration banned US companies from selling components
to ZTE, a Chinese tech company.
+ Then in 2019 it banned US companies from doing business with China's biggest tech
company: Huawei and its affiliates.
+ In 2022, the next president, Joe Biden, targeted China's chip industry more broadly.
+ First, it banned all US companies from selling advanced chips to China but it also
blocked Chinese design companies from using US made design software and US
made manufacturing equipment.
+ Plus, it banned global companies who use US semiconductor technology from
selling advanced chips to China as well.
+ The U.S was exploiting these choke points to stop China's chip industry in its tracks.

2. Global Supply Chain:

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- Global Supply Chain covers all the steps involved in manufacturing and delivering
a product or service when those steps take place in more than one country.
- The video describes the complex global supply chain for the semiconductor
industry, with different countries specializing in different stages:
+ Design: US, China
+ Manufacturing: Taiwan, South Korea
+ Assembly: China
- This supply chain relies on cooperation between companies in many countries. For
example:
+ ASML: the only company in the world that produces machines to manufacture the
most advanced chips, headquartered in the Netherlands.
+ TSMC: the world's largest chip manufacturer, headquartered in Taiwan.

3. Trade Dispute:

- Trade Dispute is a disagreement between countries about the products they trade
with each other, for example, about import taxes or limits on the number of goods
that can be imported.
- The fierce trade war in the chip industry between the US and China.
+ “Trump says he plans to impose a 10% tariff increase on China.”
+ “In 2018, the Trump administration banned US companies from selling components
to ZTE, a Chinese tech company.”
+ “In 2019, it banned US companies from doing business with China’s biggest tech
company: Huawei and its affiliates. These bans nearly bankrupted ZTE and dealt a
significant blow to Huawei”.
+ “In 2022, the next president, Joe Biden, targeted China’s chip industry more
broadly. First, it banned all US companies from selling advanced chips to China but
it also blocked Chinese design companies from using US made design software and
US made manufacturing equipment….”

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+ “Next, the US passed a law that would invest billions of dollars into its own chip
manufacturing companies…and finalized a deal with Taiwan’s biggest manufacturer
TSMC, to build manufacturing plants in the US”.

II. THE RELATIONSHIP BETWEEN VIDEO CONTENT AND KNOWLEDGE

LEARNED IN INTERNATIONAL BUSINESS SUBJECT

1. Intellectual property (IP):

- IB: Intellectual property (IP) - property that is the product of intellectual activity.
Can be protected using
+ Patents – exclusive rights for a defined period to the manufacture, use, or sale of
that invention.
+ Copyrights – the exclusive legal rights of authors, composers, playwrights, artists,
and publishers to publish and disperse their work as they see fit.
+ Trademarks – design and names by which merchants or manufacturers designate
and differentiate their products
- Video: Machine makes the most advanced semiconductor chips or microchips
Intellectual property is a part of property ownership. ASML's ownership of the
machine was violated by Zongchang Yu's theft. This act belongs to the category of
individual action. “Yu recruited other ASML engineers to his US company...that
they brought with them stolen information about AMSL's machine… and that it was
all backed by the Chinese government”. And to protect its property rights, the US
has issued drastic bans on China, such as banning US companies from doing
business with China's largest technology company and banning the sale of advanced
chips to China. , banning Chinese design companies from using American-made
design software and manufacturing equipment,....
 Explain the importance of IP protection in international business.
 Provide effective IP protections to encourage innovation.

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2. Global Supply chain:

- IB: The content in the video is linked to the globalization of production - Firms
source goods and services from locations around the globe to capitalize on national
differences in the cost and quality of factors of production like land, labor, energy,
and capital. Companies can lower their overall cost structure or/and improve the
quality or functionality of their product offering
- Video: At first, they only produced in the US, but later, they realized more
development potential such as earning more money, saving more labor costs, ... they
expanded the development market.
 Knowledge in IB has been proven by facts in videos such as:
+ “Many chip companies moved their manufacturing and assembly to factories in
Japan, Taiwan, South Korea and Hong Kong where labor was cheaper”. ⇒ Produce
more and spend less.
+ “Because of Moore's Law, advanced chips are substantially better than previous
generations. “ ⇒ Chip quality is increasingly improving.
 Explain the risks of depending on a single country for a critical technology
like chips. Provide effective supply chain management strategies to minimize
risk.

3. Trade Dispute:

- IB: Trade Dispute - a disagreement between countries about the products they trade
with each other, for example, about import taxes or limits on the number of goods
that can be imported.
- Video: Video analyzing the negative impact of the US-China trade dispute on the
chip industry of both countries through Donald Trump's actions "Trump said he
plans to increase tariffs on China by 10%". The application of these enhanced tariffs
could lead to increased retail prices of goods from China in the US. This could
increase Americans' consumer costs and reduce their purchasing power, leading to
China being affected by reduced export sales. Besides, rising costs may make the

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products of US businesses more competitive compared to imports from China in the

US domestic market. American consumers may prioritize choosing domestically
produced products to avoid paying additional tax costs and supporting domestic
businesses. This could create a competitive advantage for American businesses in
the domestic market. In addition, in the international market, if products from China
become more expensive, US businesses may also have a more competitive
advantage when exporting their products to markets other than the US. Therefore,
the imposition of enhanced tariffs can help strengthen the competitiveness of US
businesses in both domestic and international markets.
 Explain the causes, consequences and measures to resolve trade wars.
 Predict the impact of the trade war on other industries.

4. Analyze content that expands or challenges knowledge learned in the video :

- Vietnam in the US - China Chip War:

+ The intensifying competition between the US and China in the semiconductor
industry presents a complex situation for Vietnam, offering both opportunities and
challenges.
4.1. Opportunities:
- Investment Magnet: Vietnam can become a magnet for chip companies seeking
alternative production bases due to the ongoing the US - China tensions. This could
lead to significant Foreign Direct Investment (FDI) and economic growth.
- Tech Capacity Boost: By integrating into the global chip supply chain, Vietnam
can significantly enhance its technological capabilities. This would involve not only
infrastructure development but also upskilling the workforce.
- High-Paying Jobs: The chip industry offers high-paying jobs, which could
significantly improve the livelihoods of Vietnamese workers.
4.2. Challenges:
- Cutthroat Competition: Vietnam faces stiff competition from other regional
countries vying for the same chip-related investments.

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- Skilled Labor Shortage: The semiconductor industry requires a highly skilled

workforce. Vietnam may need to invest heavily in STEM education and training
programs to meet this demand.
- Geopolitical Risks: The US - China chip war could escalate into broader
geopolitical tensions, potentially disrupting trade and impacting Vietnam's economy.
This tightrope walk between the two superpowers could be precarious.
4.3. Impact on Specific Sectors:
- Economy: The chip industry can be a major driver of economic growth through
increased FDI, job creation, and technological advancements.
- Technology: Integration into the chip supply chain would significantly enhance
Vietnam's overall technological capacity and expertise.
- Workforce: While high-paying jobs are attractive, Vietnam needs to address the
potential skill gap by focusing on STEM education and fostering a culture of
innovation.
 Additional Considerations:
+ Taiwan's Role: Taiwan is a critical player in the global chip supply chain. Any
instability in the Taiwan Strait due to the US - China tensions could disrupt the
entire industry, impacting Vietnam as well.
+ Environmental Impact: Semiconductor production can be resource-intensive.
Vietnam needs to develop a sustainable approach to this industry, balancing
economic benefits with environmental responsibility.
4.4. Moving Forward:
- Vietnam needs a well-defined strategy to capitalize on the opportunities presented
by the US-China chip war while mitigating the risks. This could involve:
+ Investment Incentives: Creating attractive investment packages for chip companies,
including tax breaks and streamlined regulations.
+ Education Reform: Prioritizing STEM education and vocational training programs
to build a skilled workforce for the semiconductor industry.

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+ Infrastructure Upgrade: Investing in infrastructure improvements to accommodate

the needs of chip manufacturers.
+ Environmental Regulations: Implementing regulations to ensure sustainable
practices within the chip industry.
→ By carefully navigating this complex situation, Vietnam can potentially emerge
as a significant player in the global chip landscape.
- The role of international organizations: The video focuses on the actions of
nations, but the role of international organizations such as the World Trade
Organization (WTO) in managing trade disputes and promoting free trade is not
mentioned.
III. DISCUSS

1. The discussion about the important issues in this video:

- The video revolves around the following important issues:

+ The US and China are in a cold war over computer chips. In particular, the US owns
and increasingly creates more advanced semiconductor chips. The first
semiconductor chips invented in the 1950s by engineers in the US. ⇒ Pioneering
chip manufacturing technology has played an important role in helping the US
become the world's largest economy. At the same time, it demonstrates the
modernity of American science and technology.
+ All stages of designing the chips, manufacturing them, and assembling them into a
package for installation into the product are made in the US. However, they have
realized that this production has disadvantages, so they need to integrate and have a
global supply chain. ⇒ Recognizing the disadvantages of producing alone is an
opportunity for the US to integrate, expand access to more advanced technologies
and gain a competitive advantage in chip manufacturing technology.
+ In order to shorten the gap in the semiconductor chip war, with the support of China,
Yu stole US intellectual property and this angered the US and other governments
and issued many bans that caused China to be in trouble. ⇒ In hastily closing the

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gap in the semiconductor chip competition, China has taken an unpredictable

action. This behavior makes the conflict between the US and China increasingly
tense.

2. The opinions and evaluates how video can be applied in international business:

- The video is very useful and suitable for application in both chapter 1 and chapter
2 of the international business course.
+ For chapter 1: Video can help students understand globalization and especially
global supply chains (or globalization of production). The video describes a
complex international supply chain for semiconductor chips. International business
relies on these intricate networks of companies from various countries working
together to produce a final product.
+ For chapter 2: Creating semiconductor chips will help students clearly understand
what intellectual property is. And with the act of copying and stealing intellectual
property rights from China and the bans that the US places on China, it is a way to
help students know about intellectual property violations and actions needed to
protect it.
- The US and China compete to dominate the chip industry, but they also collaborate
with other countries that possess necessary technology or resources. This showcases
the competitive and collaborative aspects of international business.

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