CHAPTER 3:

Comparing Economic growth – Economic development

Economic growth and economic development are related concepts, but have some key
differences:
Economic Growth refers to a quantitative increase in a country's real production of goods and
services, as measured by statistics like GDP or GNP. It entails rising productivity and
national incomes.
Key features of economic growth include:
● Increasing GDP/GNP
● Rising national incomes
● Rising productivity/output
● Often driven by technology, capital investment
Economic Development refers to qualitative improvements in the economy and in people's
quality of life. It implies both economic and social progress in a country.
Key features of economic development include:
● Improving living standards
● Advancing health care, education
● Poverty reduction
● Enhancing infrastructure, institutions
● Modernization, industrialization
● Higher employment, income equality
In summary:
● Economic growth deals with quantitative increases in economic output
● Economic development involves wider social and economic progress through quality
of life improvements and poverty reduction.
Economic growth provides means which allow economic development plans and programs to
proceed. Faster growth through increasing productivity and incomes makes more resources
available to enhance infrastructure, institutions, living conditions - enabling fuller economic
development.

Trả lời khác:

Economic growth" and "economic development" are related concepts, but they refer to

different aspects of a country's economic performance and well-being. Here's a comparison

between the two:

Definition:
● Economic Growth: Economic growth is the quantitative measure of the
increase in a country's output of goods and services over time. It is often
represented by the growth of Gross Domestic Product (GDP) or Gross
National Product (GNP).
● Economic Development: Economic development is a broader concept that
encompasses improvements in various aspects of the standard of living,
 quality of life, and well-being of a population. It includes not only economic
factors but also social, cultural, and institutional dimensions.
Focus:
● Economic Growth: Primarily focuses on the expansion of the economy's
productive capacity and the increase in the output of goods and services.
● Economic Development: Encompasses a wider range of factors, including
poverty reduction, improvement in education, healthcare, infrastructure, and
income distribution.
Indicators:
● Economic Growth: Measured by indicators such as GDP growth rate, GNP,
and other economic metrics that reflect the quantitative expansion of the
economy.
● Economic Development: Indicators include Human Development Index
(HDI), literacy rates, life expectancy, poverty rates, and other socio-economic
factors that reflect the overall well-being of the population.
Timeframe:
● Economic Growth: Typically measured over shorter periods, such as quarterly
or annual periods, to assess changes in economic output.
● Economic Development: Assesses progress over the long term, considering
sustainable improvements in living standards and social indicators.
Causes:
● Economic Growth: Often driven by factors such as increased investment,
technological advancements, increased productivity, and expansion of trade.
● Economic Development: Involves a more comprehensive set of factors,
including education, healthcare, social policies, institutional quality, and
governance.
Relationship:
● Economic Growth and Development: While economic growth is a key
component of economic development, the two concepts are not synonymous.
A country can experience economic growth without significant improvements
in living standards, indicating that growth alone does not guarantee
development.
Sustainability:
● Economic Growth: Can occur without considering long-term environmental or
social sustainability.
● Economic Development: Often emphasizes sustainable and inclusive growth
that considers environmental, social, and economic factors for the well-being
of current and future generations.

In summary, economic growth is a narrower concept that focuses on the quantitative

expansion of the economy, typically measured by GDP or GNP. Economic development, on

the other hand, is a broader and more holistic concept that considers improvements in various

aspects of human well-being over the long term.

Why does income increase make services develop?

→ Forces driving the growth of service. → When income increases, the demand will
increase as people are now able to afford more kinds of service. For example, their
demand for healthcare could increase since when people have more money, they start
paying attention to their health. Another example could be education service. Parents
with high income tend to send their kids to more prestigious schools regardless of tuition
fee. They might also hire qualified teaching assistants to help their kids study, or send
their children to extra classes in order to gain higher scores.
Advanced industries =>Advanced education services (Nước có nền CN phát triển sẽ có nền
giáo dục hiện đại, cơ sở vật chất tiến bộ)
Complex division of labor=> Innovations in services (allows people to specialize in
particular tasks, more efficient)
Growth in public sector=> Public services

There are a few reasons why increases in income tend to lead to more development of
services:

1. Service demand is highly income elastic. As people earn more money, they spend a higher
proportion of their income on services like restaurants, travel, entertainment, household help,
etc. There is strong demand for more and better services.

2. Higher incomes support more specialization and trade. With more disposable income,
people can afford to buy services rather than do everything themselves. This allows service
providers to specialize and develop expertise.

3. Rising incomes facilitate capital investment in services. Service businesses require long-
term investments in real estate, equipment, technology systems, training, etc. Higher revenues
and profits allow companies to fund expansion and improvements.

4. Higher-income consumers have more sophisticated demands. Wealthier customers demand

customized, premium experiences rather than just basic services. This spurs innovation - new
formats, offerings, branding, customer service models arise.

5. Talent and entrepreneurs are attracted to growing service sectors. Dynamic, high-potential
service industries pull in smart capital and workers looking for opportunities. More talent and
competition pushes more service development.

So in short, rising incomes provide more resources and incentives for both service consumers
and producers to boost demand, trade, specialization, investment, and ultimately accelerate
the development, diversification and quality of services overall. It's a virtuous cycle.

Trả lời khác:

The relationship between income increase and the development of services is often explained
through various economic and sociological perspectives. Here are some key reasons why an
increase in income can contribute to the development of services:

Rising Consumer Demand:

 ● As incomes increase, people tend to have more disposable income available
for spending. This higher purchasing power leads to increased demand for
various goods and services, including those that are considered non-essential
or luxury services.
Changing Consumer Preferences:
● With higher incomes, consumers often seek more convenience, leisure, and
specialized services. This shift in preferences can drive the development of a
wide range of service industries such as entertainment, travel, dining, and
personal care.
Diversification of the Economy:
● Economic development often involves a transition from an agrarian or
manufacturing-based economy to a more service-oriented economy. As
incomes rise, there is typically a shift towards services, reflecting a maturing
and diversifying economy.
Increased Business Opportunities:
● Higher incomes create opportunities for entrepreneurs to start new businesses,
particularly in service sectors where demand is driven by consumer
preferences and discretionary spending. This can lead to the growth and
development of various service industries.
Technological Advancements:
● Higher incomes can facilitate increased investment in research and
development, leading to technological advancements. These advancements, in
turn, can spur the development of new and improved services, ranging from
healthcare and education to entertainment and communication services.
Improvements in Infrastructure and Quality of Life:
● Increased income levels often lead to investments in infrastructure and
improvements in the overall quality of life. This can include better healthcare,
education, transportation, and recreational facilities, contributing to the
development of service industries associated with these areas.
Specialization and Expertise:
● With rising incomes, individuals and businesses may seek specialized and
expert services. This could include professional services such as legal,
financial, and consulting services, as well as specialized health and wellness
services.
Globalization and Trade:
● Higher incomes can enable increased participation in global trade, leading to
the exchange of various services across borders. This globalization can
contribute to the development of service industries that cater to international
markets.

It's important to note that the relationship between income increase and the development of
services is complex and multifaceted. The specific impact may vary depending on factors
such as cultural preferences, government policies, and the overall economic structure of a
region or country.
What are economic indicators and what are non-economic indicator? State the
definition first and then give some example ,and explain clearly
Economic Indicators:

Definition: Economic indicators are statistical measures used to assess and analyze various

aspects of an economy's performance. These indicators provide insights into economic trends,

conditions, and the overall health of a country's economy. They help policymakers,

businesses, and analysts make informed decisions about economic policies, investments, and

strategic planning.

Examples of Economic Indicators:

Gross Domestic Product (GDP):

● Definition: GDP measures the total value of all goods and services produced
within a country's borders over a specific period. It is a key indicator of
economic output and growth.
● Example: If a country's GDP is growing, it suggests that the economy is
expanding.
Unemployment Rate:
● Definition: The unemployment rate indicates the percentage of the labor force
that is unemployed and actively seeking employment.
● Example: An increasing unemployment rate may signal economic challenges
or a downturn.
Consumer Price Index (CPI):
● Definition: CPI measures the average change over time in the prices paid by
urban consumers for a basket of goods and services.
● Example: Rising CPI indicates inflation, influencing monetary policy and
consumer purchasing power.
Balance of Trade:
● Definition: The balance of trade represents the difference between a country's
exports and imports of goods.
● Example: A trade surplus occurs when exports exceed imports, indicating
economic strength.

Non-Economic Indicators:

Definition: Non-economic indicators are factors that provide information about aspects of life

beyond the economic sphere. These indicators focus on social, environmental, and cultural

dimensions, offering insights into the overall well-being and quality of life of a population.

Examples of Non-Economic Indicators:

 Life Expectancy:
● Definition: Life expectancy represents the average number of years a person
can expect to live, providing insights into healthcare, nutrition, and overall
quality of life.
● Example: A higher life expectancy suggests better overall well-being.
Literacy Rate:
● Definition: Literacy rate measures the percentage of the population that can
read and write, reflecting educational attainment.
● Example: Higher literacy rates are associated with improved access to
education and knowledge.
Environmental Sustainability:
● Definition: Environmental indicators assess the impact of economic activities
on the environment, including measures of air and water quality, deforestation
rates, and carbon emissions.
● Example: Reduced carbon emissions signal progress in environmental
sustainability.
Social Equality Indices:
● Definition: Social equality indices measure the distribution of wealth, income,
and opportunities within a society.
● Example: A lower Gini coefficient suggests a more equal distribution of
income.
Happiness Index:
● Definition: Happiness indices gauge the subjective well-being and satisfaction
of individuals within a society.
● Example: A high happiness index indicates a positive social environment.

Explanation:

Economic indicators focus on quantifiable economic factors that help analyze and understand

the economic performance of a country. They include metrics such as GDP, unemployment

rate, and inflation, providing valuable information for economic planning and policy

formulation.

Non-economic indicators, on the other hand, go beyond economic factors and encompass

dimensions like health, education, environment, and social equity. These indicators offer a

more holistic view of the overall well-being and quality of life in a society. Examples include

life expectancy, literacy rate, and environmental sustainability measures.

Both economic and non-economic indicators are essential for policymakers and analysts to

make comprehensive assessments of a country's development and guide decisions that go

beyond economic considerations.

Trả lời khác:

Economic indicators are metrics that are used to measure and track the health and
performance of an economy. Some key examples include:
● GDP (Gross Domestic Product) - Measures the total monetary or market value of all
the finished goods and services produced within a country's borders in a specific time
period.
● Unemployment rate - Indicates the percentage of individuals in the labor force that are
unemployed. Higher unemployment typically signifies weaker economic conditions.
● Inflation rate - Measures the rate of rising prices for goods and services in an
economy over time. Moderate, stable inflation is considered healthy but high inflation
can harm economic growth.
● Interest rates - The rates at which central banks lend money to commercial banks.
Interest rates influence borrowing and spending throughout the economy.
● Stock market performance - How equity markets and stock market indices are
performing provide insights into business and investor confidence.
Non-economic indicators on the other hand are not directly related to production or the
monetary economy but still offerindirect insights into socio-economic conditions and quality
of life. Some examples include:
● Life expectancy - Indicates overall population health and healthcare
infrastructure/standards.
● Literacy/education levels - Correlate to long-term human capital and innovation
potential in an economy.
● crime rates - Higher crime and lawlessness hurt economic activity via loss of
productivity and investments.
● Environmental quality - Pollution impacts public health and ecosystem stability
critical for sustainable growth.
● Happiness/well-being indexes - Provide a sense of social progress beyond just
income/financial metrics.
So in summary, while economic indicators directly measure monetary flows, non-economic
ones indirectly point to other determinants of long-term prosperity and development. Both
give a more holistic view of societal progress.

1. What does the Vietnamese country do to apply space shrinking?

Transportation technology:
+ It is important to build and develop infrastructure
+ Các ngành hàng
không, máy bay (Ex: Sân bay Long Thành)
+ Xây dựng các cảng nước sâu Communication Technology:
+ Việt Nam phóng vệ tinh VINASAT, PICO DRAGON => cần phóng nhiều vệ tinh hơn để
việc kết nối internet, GPS được tốt hơn.
+ Chế tạo smartphone của nước mình (Ex: B-Phone)
+ Nâng cấp hệ thống cáp quang.

Transportation Technology:

● Infrastructure Development: The development of infrastructure is crucial.

● Various Sectors: Various industries, including aviation (e.g., Long Thành Airport).
● Construction of Deep-Water Ports

Communication Technology:

● Satellite Launches: Vietnam has launched satellites like VINASAT and PICO
DRAGON. There is a need to launch more satellites to improve internet connectivity
and GPS.
● Manufacturing Domestic Smartphones: Production of smartphones within the
country, example: B-Phone.
● Upgrading Fiber Optic Systems: The enhancement of the fiber optic network is
necessary.

3.Do điều kiện địa lý mà Tp.HCM không xây dựng được cảng nước sâu, vậy biện pháp
nàođể có thể khắc phục được tình trạng này?

Constructing a deep-water port in Vũng Tàu (a satellite city) is proposed due to its favorable
coastal conditions and its proximity to Ho Chi Minh City (HCMC), a major urban center.
This initiative aims to leverage Vũng Tàu's coastal advantages for the establishment of a
deep-water port while strategically benefiting from its close proximity to HCMC.
Additionally, it is essential to establish a robust connection between HCMC and its satellite
city, emphasizing the need for upgrading and developing transportation infrastructure
between the two cities. An example of such an effort is the construction of the Long Thành-
Dầu Dây expressway, showcasing the commitment to enhancing connectivity and facilitating
efficient transportation links between these two urban centers.

4. When are externalization processes in the producer service?

The term "externalization processes" in the context of producer services generally refers to
the outsourcing or external sourcing of certain functions or activities by a producer or a firm.
Externalization involves obtaining goods, services, or resources from outside the organization
rather than producing or performing them internally. In the realm of producer services, such
processes may occur under various circumstances:
 Cost Efficiency: Externalization is often driven by cost considerations. If external
providers can deliver certain services more cost-effectively than in-house operations,
a producer may choose to outsource those services.
Focus on Core Competencies: Companies may externalize non-core functions to
concentrate on their core competencies. This allows them to direct their resources and
expertise toward areas where they can achieve a competitive advantage.
Globalization: In a globalized business environment, companies may externalize certain
services to take advantage of specialized skills or lower costs in other regions or
countries.
Flexibility and Scalability: Externalization provides flexibility, allowing companies to
scale their operations up or down based on demand without maintaining a fixed
internal infrastructure.
Access to Expertise: Externalizing services can provide access to specialized skills and
expertise that may not be available in-house. This is particularly relevant for complex
or highly specialized functions within producer services.
Technological Advancements: With rapid technological changes, companies may
externalize certain services to benefit from the latest technologies without the need for
constant internal investment and updates.

Examples of externalization processes in producer services could include outsourcing IT

support, customer service, logistics, research and development, or other functions that can be
effectively handled by external service providers. The decision to externalize depends on the
specific needs, goals, and strategies of the producer or company involved.

4. What is the benefit and drawback of service outsourcing?

Service outsourcing, which involves contracting out certain business functions or processes to
external service providers, can offer several benefits and drawbacks. These factors can vary
depending on the nature of the services, the industry, and the specific outsourcing
arrangement. Here are some key benefits and drawbacks of service outsourcing:

Benefits of Service Outsourcing:

Cost Savings:
● Benefit: One of the primary motivations for outsourcing is cost reduction.
Companies can often access lower labor costs, infrastructure expenses, and
operational costs in outsourcing destinations, leading to overall savings.
Focus on Core Competencies:
● Benefit: Outsourcing non-core functions allows companies to concentrate on
their core competencies. This can improve efficiency and innovation in areas
where the company excels.
Access to Specialized Skills:
 ● Benefit: Outsourcing enables access to specialized skills and expertise that
may not be readily available in-house. External providers may have a
dedicated focus and proficiency in specific areas.
Flexibility and Scalability:
● Benefit: Outsourcing provides flexibility in scaling operations up or down
based on demand. This can be particularly advantageous in industries with
fluctuating workloads.
Global Reach:
● Benefit: Outsourcing allows companies to tap into a global talent pool and
expand their presence in different markets without establishing a physical
presence.
Risk Mitigation:
● Benefit: Sharing certain business risks with external providers can help
companies mitigate potential challenges, especially in areas such as
technology or regulatory compliance.

Drawbacks of Service Outsourcing:

Loss of Control:
● Drawback: When outsourcing services, there may be a loss of direct control
over the processes and activities. Companies need to carefully manage and
monitor their outsourcing partners.
Quality Concerns:
● Drawback: Quality of service can be a concern, especially if the external
provider does not meet the same standards or does not align with the
company's values and quality expectations.
Communication Challenges:
● Drawback: Differences in language, culture, and time zones can create
communication challenges, potentially leading to misunderstandings, delays,
or misalignment of objectives.
Security Risks:
● Drawback: Outsourcing may involve sharing sensitive data with external
partners, raising concerns about data security and confidentiality. It's crucial to
establish robust security measures.
Dependency on External Providers:
● Drawback: Overreliance on external providers may create a dependency, and
if the outsourcing partner faces issues, it can impact the company's operations.
Negative Impact on Local Employment:
● Drawback: Outsourcing can lead to job losses in the company's home country,
potentially raising social and political concerns.

Successful outsourcing strategies involve careful consideration of these factors and

implementing effective management practices to maximize the benefits while mitigating
potential drawbacks. Each company should assess its unique circumstances and goals when
deciding whether and how to outsource services.

5. Israel's problem: Israel is a small country, the country is flooded, located next to the
Black Sea and is always in a state of serious water shortage. So what has the State of
Israel done to overcome this situation?

Desalination:
● Israel has become a global leader in desalination technology. Desalination
involves the removal of salt and other impurities from seawater, making it
suitable for consumption and irrigation. Israel has several desalination plants
along its Mediterranean coast, providing a significant portion of the country's
freshwater needs.
Water Recycling:
● Israel has implemented advanced water recycling and reuse systems. Treated
wastewater is extensively used for agricultural irrigation, reducing the demand
for freshwater. This approach helps conserve resources and ensures
sustainable water use.
Drip Irrigation Technology:
● Israel is renowned for its development and widespread use of drip irrigation
technology. This method delivers water directly to the plant roots, minimizing
water wastage and increasing the efficiency of agricultural water use.
Innovative Agricultural Practices:
● Israel has embraced advanced agricultural practices that focus on water-
efficient crops and techniques. This includes the cultivation of crops that are
well-suited to arid conditions and the use of precision agriculture to optimize
water usage.
Water Conservation Education:
● The government and various organizations in Israel actively promote water
conservation and awareness campaigns. These initiatives aim to educate the
public about the importance of water conservation practices in households,
industries, and agriculture.
Water Pricing and Regulation:
● Israel has implemented effective water pricing mechanisms and regulations to
encourage responsible water use. These measures include tiered pricing
structures and policies to prevent excessive water consumption.
Research and Innovation:
● Israel invests in research and development to continuously improve water
management technologies and practices. This commitment to innovation helps
the country stay at the forefront of water conservation and sustainability
efforts.

While Israel continues to face water scarcity challenges, these proactive measures have
significantly improved the country's water situation and serve as examples for other regions
grappling with similar issues. The combination of technological innovation, conservation
practices, and effective policies has allowed Israel to better manage its water resources.

6. Tại sao Europe sẽ có nguy cơ sụp đổ?

Cultural differences pose challenges within the European Union (EU). For instance, in the
United Kingdom, citizens often receive significant government support, leading to a tendency
to strike a balance without exerting excessive effort in income generation. On the other hand,
in Germany, renowned for its independence and industrious mindset, individuals consistently
strive for progress. Geographical economic variations are evident, with each country
producing distinct goods that may not necessarily find a market within the EU.

Divergent currency values among member countries significantly impact the calculation of
the collective Euro's value. This discrepancy has notably affected economically developed
nations, contributing, in part, to events such as Brexit, where the UK decided to exit the EU.

These issues have the potential to create internal divisions, fostering economic disparities and
a domino effect where the collapse of one nation may impact others within the region."

7. Từ những vấn đề trên, câu hỏi đặt ra là làm sao để ASIAN tránh khỏi bị sụp đổ như
EURO?
To avoid a potential collapse similar to that of Europe, Asian countries can implement
various measures to enhance stability and harmony within the region. Here are some
suggestions:

Economic and Political Cooperation:

● Strengthen economic and political cooperation among Asian countries to
ensure significant decisions are discussed and made collectively, fostering a
more stable and transparent environment.
Efficient Economic Management:
● Focus on efficient economic management, particularly maintaining and
reinforcing financial stability, minimizing public debt, and promoting
sustainable development.
Strict Monetary Policies:
● Implement strict monetary policies to minimize instability and discrepancies
in the values of currencies among Asian nations.
Enhanced Scientific and Technological Collaboration:
● Invest in research and development and collaborate in science and technology
to diversify production and increase opportunities for domestic consumption.
Labor Training and Skill Enhancement:
● Strengthen labor training and skill enhancement to meet the demands of the
modern labor market, optimizing production and enhancing competitiveness.
Environmental and Resource Protection Policies:
 ● Manage the environment and resources sustainably to minimize the impact of
climate change and ensure food security.
International and Regional Cooperation:
● Enhance cooperation with international organizations and neighboring regions
to address global challenges and build a strong Asian economic community.
Civil and Social Policies:
● Develop social policies, including education, healthcare, and social care, to
create a sustainable and developing society.

These measures can help Asia maintain and develop in a more stable manner, avoiding a
collapse similar to that experienced in Europe. However, each country should consider its
specific situation and apply appropriate measures accordingly.

8. Limit to service export growth in the semi-periphery and periphery?

TECHNOLOGY AND INFRASTRUCTURE

Technological limitations to the growth of service export growth in some LDCs (low-
developed countries) include the

fact that not all data can be converted to electronic form for use by computer and made

amenable to outsourcing. In addition, as we saw in Chapter 7 when discussing the digital

divide,

in Africa, for example, fewer than 16 percent of people are Internet users (compared to a high

of nearly 80 percent in North America) (see Table 7.3). Limited infrastructure, such as

telecommunications, reliable power sources, and financial services and distribution logistics,

can limit the growth of export services. While the type of infrastructure needed varies, most

IT-enabled services require dependable telecommunications and Internet access.

The city of Mumbai and the southern states in India—which have enjoyed the greatest
success

in attracting outsourced services—have benefited from their proximity to the landing points

of two submarine fiber-optic cables (see Figure 11.5). This has provided a competitive

advantage because fiber optics are usually cheaper and more efficient than satellite links.
While the DCs are well-connected by submarine cables, many LDCs are still not linked

into this telecommunications network, with the result that they are limited in their ability to

develop competitive bases for service exports. Figure 11.5 shows how the United States,
Europe,

and East and Southeast Asia have good cable capacity, but that only one major cable connects
parts of Africa to the rest of the world—the SAT-3 cable. In fact, in Sub-Saharan Africa, only

Angola, Benin, Cameroon, Côte d’Ivoire, Gabon, Ghana, Nigeria, Senegal, and South Africa

are linked directly to this cable.

EDUCATION AND TRAINING

Lack of education and training is a limiting factor in knowledge-intense services. While the
kinds of skill needed differ depending on the kinds of service, most outsourced IT-enabled
services involve information processing of various kinds. The strong software export
performance of India partly reflects government education and training policies that have
produced a large pool of technically trained English-speaking workers. Most software
companies are in Mumbai and Bangalore, where the software industry initially developed.
With other growing urban centers, specifically New Delhi and its surroundings, Andhra
Pradesh and Tamil Nadu, these five areas contain about 50 percent of India’s diploma-
granting technical institutions. Special skills are also needed for more routine services. Call
centers need workers not only with good language abilities but also solid customer support
skills, telesales abilities, data entry, and processing skills. But sustained strong growth in
service outsourcing to India, the Philippines, and South Africa depends on the continued
availability and low cost of the necessary worker skills. Despite success so far, there is
concern that LDCs such as India may not be able to keep pace with the demand for qualified
workers; shortages of trained workers can force wages up and make a country less attractive
as an outsourcing destination.

GOVERNMENT REGULATION AND POLICIES

The regulatory and legal framework in some less developed countries can place limits on the
growth of export services. There is a need for a competitive regulatory environment that
encourages competition among service providers, which includes a deregulated telecommuni
cations environment facilitating dependable and competitively priced service. Governments
in LDCs such as China still need to address the concerns of many in the United States and the
European Union in particular about poor data security and intellectual property protection.
Developed countries such as Ireland and Canada, as well as higher cost LDCs such as

Singapore, emphasize their strong regulatory frameworks compared to those in China and
even India when competing for service outsourcing work. The WTO’s General Agreement on
Trade in Services (GATS) covers all internationally traded services. The goals of service
liberalization in the GATS context are greater competition and nondiscrimination against
foreign services and service providers. The liberalization of services involves the reduction or
elimination of barriers that affect services certainly, but also the removal of legally
established monopolies or oligopolistic market structures, discriminatory taxation, and limits
on foreign investment in services. Further negotiations on the liberalization of services,
however, proceed slowly.

CORPORATE STRATEGIES

Corporate decision making can result in limited opportunities for service export growth in
some LDCs. Companies differ on their perception of risk and assessment of the benefits of
internationally outsourcing services. In some situations, for example, the information that is
to be processed can be confidential; this can increase transaction costs and limit the
desirability of outsourcing. Consequently, any assessment of the potential for service
outsourcing needs to include an analysis of corporate strategies and organizational
limitations.

9. Why BPO's ( business process outsourcing) services can be outsourced in other/

developing countries:

Business Process Outsourcing (BPO) services are often outsourced to other, often
developing, countries for several reasons:

Cost Savings:
● One of the primary motivations for outsourcing BPO services is cost savings.
Developing countries often offer lower labor costs, allowing companies to
reduce operational expenses while maintaining service quality.
Skilled Workforce:
● Many developing countries have a pool of skilled and educated professionals
who can perform various tasks efficiently. Outsourcing to these countries
allows businesses to tap into a talented workforce.
Focus on Core Activities:
● Outsourcing non-core functions such as customer support, data entry, and
back-office operations allows companies to focus on their core competencies.
This strategic shift can enhance overall business efficiency.
Time Zone Advantage:
● Outsourcing to countries with a significant time zone difference can provide
the advantage of 24/7 operations. This allows for continuous workflow and
faster completion of tasks.
Scalability and Flexibility:
 ● BPO providers in developing countries often offer scalable solutions, allowing
businesses to adjust resources based on demand. This flexibility is beneficial
for handling varying workloads.
Access to Global Talent:
● Outsourcing provides access to a global talent pool. Companies can leverage
the expertise and skills available in different regions, enhancing the overall
quality of services.
Advanced Technology and Infrastructure:
● Many developing countries have invested in advanced technology and
infrastructure to support BPO services. This ensures that outsourced tasks are
performed using the latest tools and systems.
Risk Mitigation:
● Outsourcing allows companies to share certain business risks with external
service providers. This includes risks related to market fluctuations, regulatory
changes, and technology advancements.
Business Continuity Planning:
● Outsourcing to geographically diverse locations provides a level of business
continuity in the event of natural disasters, political instability, or other
disruptions in one region.
Global Presence and Market Expansion:
● Outsourcing can help companies establish a global presence by working with
partners in different countries. It also facilitates market expansion and
adaptation to diverse cultural and linguistic requirements.
Innovation and Efficiency:
● BPO providers often bring in innovative solutions and best practices that
contribute to increased efficiency in business processes. This knowledge
transfer can benefit the outsourcing company.
Regulatory Compliance:
● BPO providers in certain countries may be well-versed in specific regulatory
requirements, ensuring that the outsourced tasks adhere to relevant laws and
standards.

Despite these benefits, it's essential for companies to carefully consider factors such as
cultural differences, data security, and communication challenges when outsourcing BPO
services to ensure successful collaborations with service providers in other countries.

Trả lời khác:

There are several key reasons why BPO (business process outsourcing) services can be
outsourced to developing countries:
1. Lower labor costs - Labor costs in developing countries like India, Philippines, etc.
are significantly lower than developed western countries. This allows BPO firms to
provide the same services at a lower price point.
 2. Availability of skilled workforce - Many developing countries have invested heavily
in education and technical skills training over the past few decades. This has resulted
in a large pool of educated, English-speaking professionals available at lower costs.
3. Tax incentives - Governments in some developing countries offer tax incentives and
rebates to attract BPO/offshoring investments. This makes operating costs even more
competitive.
4. Similar timezones - Countries like India are strategically located within similar
timezones as Europe and North America, allowing for better collaboration and
quicker turnaround times.
5. Advanced infrastructure - Major locations for BPO have world-class infrastructure
including fiber networks, commercial real estate, outsourcing/SEZ parks etc. to
support large scale operations.
6. Regulatory clarity - Nations like India have developed clear, transparent regulations
and policies to encourage foreign investment in outsourcing services.
7. Economies of scale - Large BPO firms can achieve significant economies of scale by
concentrating operations in lower cost locations and gain operating efficiencies.
So in summary, the significant cost arbitrage combined with availability of skills and
infrastructure allow BPO services to be competitively outsourced to emerging markets.

10. Tại sao thế giới ưu tiên phát triển danh nghiệp tư nhân?

The world often prioritizes and encourages the development of private enterprises for several
reasons:

Enhanced Innovation and Creativity:

Private enterprises are typically agile and quick to adapt to market changes, fostering
innovation and creativity. Personal motivation and significant responsibility can drive
entrepreneurial individuals to think innovatively in their business pursuits.

Job Creation Opportunities:

Private enterprises are significant contributors to job creation within the economy.
Encouraging the development of private businesses can lead to the generation of new
employment opportunities.

Adaptability to Business Challenges:

Private enterprises are often more flexible and better equipped to face business challenges
quickly compared to larger organizations. This agility enables them to adapt swiftly to market
dynamics.

Contribution to Economic Growth:

Private enterprises can significantly contribute to economic growth by creating value-added
products and services, contributing to tax revenues, and playing a role in the overall
development of a country.

Diversification of the Economy:

Business diversity helps reduce economic risks. Private enterprises bring diversity and
flexibility in their operations, providing a variety of products and services.

Encouraging Innovative Management Thinking:

Private enterprises offer opportunities for innovative management thinking and

experimentation with new business models that might be challenging to implement in larger
organizations.

Promoting Entrepreneurial Spirit and Enhancing Competitiveness:

The entrepreneurial spirit in business promotes competition and encourages enterprises to

continually improve the quality of their products, services, and performance.

Facilitating Entrepreneurial Independence and Initiative:

Private enterprises empower individuals to make decisions and act swiftly without
undergoing extensive decision-making processes typical in larger organizations.

While promoting private enterprises brings numerous benefits, it is crucial to note that they
may not always be the perfect solution. A well-regulated and policy-supported system is
necessary to ensure fairness and sustainability in business development.

11. Why producer services as a progenitor to the new economy

There are several key reasons why producer services act as a progenitor to the new economy:
1. Knowledge-intensive: Producer services like finance, insurance, consulting, IT etc.
are knowledge-intensive industries. They drive innovation through new technologies,
business processes and ideas. This transitions the economy toward knowledge-based
activities.
2. Higher value addition: Producer services add more value through leveraging
intellectual capital rather than just transforming raw materials. They create higher
value services and solutions for other industries.
3. Cluster effect: Concentration of producer services leads to clustering of related
industries which share knowledge and collaborate. This cross-pollination stimulates
new business models, products and services.
 4. Human capital development: These industries invest heavily in reskilling/upskilling
human capital through on-the-job training and education. This improves the skills of
the local workforce over time.
5. Global connectivity: Producer services facilitate global connectivity through trade,
FDI, outsourcing etc. This international exposure helps domestic industries modernize
and access global markets.
6. Technological progress: Producer services drive technological progress through
innovations in logistics, telecom, software, finance etc. This diffusion of new
technologies upgrades the overall productivity and competitiveness of the economy.
7. Entrepreneurship culture: Their relative high-skills nature fosters an entrepreneurial
and risk-taking culture which incubates new startups across sectors.
So in summary, by leveraging knowledge assets, producer services enable the transition of
traditional economies toward innovation-led, skilled and globally integrated new economies.

Trả lời khác

Producer services" refer to a category of economic activities that primarily serve other
businesses rather than end consumers. These services play a crucial role in the functioning
and growth of the broader economy. Here are reasons why producer services are often
considered as a progenitor or catalyst for the new economy:

Knowledge and Information Economy:

● Producer services, such as information technology, consulting, and research
and development, are integral to the knowledge-based economy. In the new
economy, where information and knowledge are key assets, these services
drive innovation and competitiveness.
Technological Advancements:
● Many producer services are at the forefront of technological advancements.
They often pioneer new technologies and methodologies, contributing to the
overall progress of the economy and fostering a culture of innovation.
Globalization and Trade Facilitation:
● Producer services play a vital role in facilitating global trade and business
interactions. Services such as logistics, transportation, and financial services
enable companies to operate on a global scale, connecting businesses across
borders and contributing to the new globalized economy.
Efficiency and Productivity Gains:
● Producer services focus on improving the efficiency and productivity of
businesses. Services related to supply chain management, logistics, and
business process outsourcing help companies streamline operations, reduce
costs, and enhance overall productivity.
Entrepreneurial Ecosystem Support:
● The new economy is often characterized by a vibrant entrepreneurial
ecosystem. Producer services, including legal, financial, and consulting
 services, support startups and small businesses by providing essential
guidance, resources, and expertise.
Data Analytics and Decision-Making:
● Producer services in the field of data analytics and business intelligence
contribute significantly to data-driven decision-making. In the new economy,
where data is a valuable resource, these services empower businesses to make
informed strategic choices.
Innovation and Research Support:
● Research and development services, often a part of producer services, play a
crucial role in fostering innovation. They support businesses in developing
new products, services, and processes, driving economic growth and
competitiveness.
Professional and Specialized Services:
● Producer services encompass a range of professional and specialized services,
including legal, accounting, marketing, and design. These services are
essential for businesses to operate effectively and build strong market
positions.
Adaptability to Changing Markets:
● Producer services are often adaptable to changing market dynamics. They can
quickly respond to emerging trends and technologies, helping businesses
navigate the evolving landscape of the new economy.
Human Capital Development:
● Education and training services, which fall under producer services, contribute
to the development of human capital. A skilled and knowledgeable workforce
is a key driver of economic growth in the new economy.

In summary, producer services are seen as a progenitor to the new economy due to their
central role in driving innovation, supporting technological advancements, fostering a
globalized business environment, and contributing to the overall efficiency and
competitiveness of businesses.

13. Người ta nghĩ rằng E-Bay sẽ knock down Wal-mart trong thời buổi phát triển như
hiện nay, điều này có đúng hay không?

People speculate whether eBay could outcompete Wal-Mart in the current era of
development, and this issue is complex and contingent on various factors. Here are some
considerations:

Different Business Models:

eBay and Wal-Mart operate with distinct business models. eBay is an online marketplace
(C2C and B2C), facilitating direct transactions between buyers and sellers. On the other hand,
Wal-Mart is a retail giant with a focus on both offline and online sales. Comparing these two
models may not be entirely equitable.

Scale and Geographic Presence:

Wal-Mart has a large scale and widespread geographic presence with thousands of stores
globally. This provides a competitive advantage in terms of scale and the ability to serve
customers immediately. While eBay has a significant online market presence, it may not
directly compete with Wal-Mart's large and ubiquitous model.

Service Quality and Reliability:

Trust and service quality are crucial in e-commerce. Wal-Mart has an advantage in reliability
due to its longstanding reputation in retail. Conversely, eBay relies heavily on transaction
participants and may face challenges in ensuring consistent quality and reliability.

Customer Service and Maintenance:

After service delivery, ongoing customer support and maintenance become crucial. Wal-
Mart, with its physical stores, can provide immediate assistance. eBay, while having an
impactful online presence, may not offer the same level of immediate support.

Brand Trust and Credibility:

Wal-Mart has built a strong brand trust over the years. eBay's credibility is closely tied to the
trustworthiness of individual sellers. Building and maintaining brand trust may present
challenges for eBay.

Investment in Related Areas:

Both companies are investing in related areas to strengthen their positions. Wal-Mart is
focusing on e-commerce and fast delivery services, while eBay is expanding into online
payment and advertising. These strategic moves will impact their competitive landscapes.

Development in Associated Fields:

Both eBay and Wal-Mart are developing in associated fields to reinforce their positions. Wal-
Mart's emphasis on e-commerce and eBay's diversification into online payment and
advertising reflect their adaptation to changing market dynamics.

Technology Progress and Consumer Trends:

Technological advancements and changing consumer trends are influencing how companies
like eBay and Wal-Mart interact with customers. Their ability to adapt to these changes will
determine their success in the evolving market.

In summary, the question of whether eBay could surpass Wal-Mart in the current
developmental era is multifaceted. It depends on various business factors and strategies
chosen by each company. Both are actively evolving and adjusting their strategies to address
challenges in the dynamic market.

14. Trong thời buổi công nghệ phát triển như hiện nay, người ta lo sợ máy móc sẽ
chiếm công việc của con người dẫn đến tình trạng thất nghiệp tăng cao?

In the current era of technological advancement, there is growing concern that machines and
automation may take over human jobs, leading to a surge in unemployment. Here are some
reasons contributing to this apprehension:

Industrial Automation:
● Industry 4.0 and automation are progressively replacing human labor in
various industries. Smart machines can efficiently and swiftly perform tasks,
reducing the demand for human workers.
Artificial Intelligence and Machine Learning:
● Advances in artificial intelligence (AI) and machine learning make automation
systems increasingly intelligent. AI algorithms can undertake tasks that were
traditionally within the domain of human labor.
Robotics and Automation:
● The development of robots and automation in manufacturing and services
enhances the capability to substitute human labor. Robots can efficiently
 perform repetitive tasks, diminishing the need for human workers in certain
industries.
E-commerce and Automated Services:
● E-commerce and automated services are reshaping how businesses deliver
goods and services. Automated systems from order placement to delivery can
significantly reduce the labor force requirement.
Specific Industries Impacts:
● Certain industries, such as banking, customer service, and data management,
may face substantial impacts from automation and artificial intelligence.
Education and Skill Transition:
● Technology is altering the skill requirements in the workforce, potentially
creating a mismatch between the skills workers possess and those demanded
by the job market. This mismatch could lead to increased unemployment in
specific sectors.

Despite these concerns, there are differing perspectives on how technology can create new
opportunities and change the labor market. Many believe that technology can generate new
jobs and necessitate the development of new skills among workers. Consequently, managing
the transition of professions and providing skill retraining become crucial factors in
mitigating the negative impacts of automation on the labor market.

15. Ví dụ về perfect traded interdepend perfect traded interdependencies with

cluster:Hollywood movie industry

16. Spatial interaction and constraints of new transportation, new communication and
nanotechnology?

SEA TRAVEL - CONTAINERIZATION

Advantages • Cheaper over long distances

No cost in building transport routes (seas/oceans already exist) Good for bulky low-cost
nonperishable goods e.g. coal Costs are spread over a large area (modern container ships hold
thousands of containers) Containerization has sped up the process of loading and unloading.
Unlike planes, containers can be directly transferred to lorries and trains. Refrigerated
containers now allow more products to be transported

Disadvantages::

Much slower than air travel Some countries are landlocked so can not receive shipments
Ships are expensive to build - steel is expensive There are long waiting lists for large
containers ships Oil prices are expensive so fuel for ships is expensive Some routes have to
be built and maintained and enlarged e.g. Panama and oues Canal Some shipping routes have
to be dredged Ports are expensive to build and can damage delicate wetland areas Risk of
attack by pirates and cost of protecting ships e.g. Horn of Anca Ships can have accidents and
cause environmental damage e.g. someone reefs Cargo can be lost overboard in bad weather
Can encourage smuggling

AIR TRAVEL

Advantages:

Fast over long distances

Planes don't get stuck in traffic, unlike cars and lorries Good for highvalue perishable goods
e.g. flowers, animals

Can reach landlocked countries

Disadvantages:

Planes cause a lot of pollution (noise, air and visual) - contribute greenhouse effect Cost of
flying is expensive, especially as the price of oil increases Airports are expensive to build and
take up large areas Can only carry small loads compared to ships Air routes are fixed

Planes can be canceled due to bad weather

• Aircraft are expensive to build and maintain

• Waiting lists for aircraft are long

17. .Why US don't require Thailand produce all product?

The United States, like most countries, doesn't require Thailand to produce all products for
several reasons:

Global Trade and Specialization:

● Countries engage in global trade to benefit from specialization. Each country
focuses on producing goods and services in which it has a comparative
advantage, meaning it can produce more efficiently or at a lower opportunity
cost than other countries. This principle allows for greater efficiency and a
wider variety of products in the global market.
Economic Interdependence:
● Countries recognize the benefits of economic interdependence. By trading
with other nations, they can access a diverse range of goods and services that
 might not be efficiently produced domestically. This interdependence fosters
economic cooperation and strengthens international relations.
Resource Allocation and Efficiency:
● Requiring a country to produce all products domestically could lead to
inefficient resource allocation. Some countries have abundant natural
resources, skilled labor, or technology that make them more efficient in
producing certain goods. Specialization and trade allow these resources to be
used most efficiently.
Consumer Choice and Affordability:
● Global trade provides consumers with a broader range of choices. By
importing goods from various countries, including Thailand, consumers can
access diverse products that meet their preferences. This competition often
leads to lower prices, benefiting consumers.
Economic Growth and Development:
● Encouraging countries to specialize and trade fosters economic growth. It
allows nations to focus on industries where they have a competitive advantage,
leading to increased productivity and innovation. This, in turn, contributes to
overall economic development.
Global Supply Chains:
● Many products are part of global supply chains, with components produced in
different countries. Restricting production to a single country could disrupt
these supply chains, affecting industries and businesses around the world.
Trade Agreements and Treaties:
● Countries often enter into trade agreements and treaties that promote free and
fair trade. These agreements aim to reduce barriers to trade, including import
restrictions. The United States, like many other nations, participates in such
agreements to facilitate international commerce.

In summary, the United States and other countries recognize the benefits of specialization and
international trade. This approach allows nations to efficiently allocate resources, promotes
economic growth, and provides consumers with a wider array of choices. Rather than
requiring countries like Thailand to produce all products domestically, the emphasis is on
fostering a global economic system built on cooperation and mutual benefit.

CASE STUDY OF CHINA AND WALMART

18. What are China's benefits when becoming out sourcing products of Walmart?
When China becomes an outsourcing partner for Walmart, both China and Walmart gain
various benefits. Here are some of the advantages for each party:

Benefits for China:

Employment Opportunities:
 ● The outsourcing arrangement creates employment opportunities in China. The
manufacturing sector, in particular, experiences growth as it fulfills Walmart's
demand for various products.
Economic Growth:
● The influx of outsourcing contracts contributes to China's overall economic
growth. The manufacturing and export sectors become major drivers of the
economy, leading to increased GDP.
Foreign Exchange Earnings:
● Exporting products to Walmart allows China to earn foreign exchange,
strengthening its reserves and contributing to a favorable balance of trade.
Technology Transfer:
● Collaboration with Walmart exposes Chinese manufacturers to advanced
technologies and production methods. This can lead to technology transfer and
knowledge exchange, benefiting China's industrial capabilities.
Global Market Presence:
● By being a key outsourcing partner for a global retail giant like Walmart,
Chinese businesses gain visibility in international markets. This exposure can
attract more business opportunities and foreign investments.
Scale and Volume:
● Walmart's large-scale retail operations create significant demand. China, as an
outsourcing partner, benefits from the economies of scale, allowing
manufacturers to produce goods in large volumes, reducing per-unit costs.
Diversification of Industries:
● Becoming an outsourcing hub for Walmart encourages diversification in
China's industrial base. Different sectors, such as textiles, electronics, and
consumer goods, may thrive as they cater to Walmart's diverse product range.

Benefits for Walmart:

Cost Efficiency:
● Outsourcing production to China often results in cost savings for Walmart.
The lower labor and production costs in China allow Walmart to offer
products to consumers at competitive prices.
Product Variety:
● China's manufacturing capabilities enable Walmart to access a vast array of
products. This diversity allows Walmart to offer a wide range of goods to its
customers, meeting various preferences and demands.
Supply Chain Efficiency:
● China's well-established supply chain infrastructure facilitates efficient
transportation and logistics. Walmart benefits from streamlined supply chain
operations, ensuring a steady and timely flow of products to its stores.
Flexibility and Agility:
 ● China's manufacturing sector is known for its flexibility and ability to adapt
quickly to changing market demands. This agility benefits Walmart, allowing
it to respond promptly to consumer trends and preferences.
Competitive Edge:
● Outsourcing to China gives Walmart a competitive edge in terms of pricing.
The cost advantages allow Walmart to maintain competitive retail prices and
potentially attract more customers.
Global Sourcing Strategy:
● By sourcing products from China, Walmart implements a global sourcing
strategy that leverages the strengths of different regions. This strategy
enhances Walmart's resilience to market fluctuations and supply chain
disruptions.
Collaboration and Relationship Building:
● Establishing a strong outsourcing relationship with Chinese manufacturers
fosters collaboration and mutual understanding. Walmart can work closely
with Chinese suppliers to improve quality, innovate products, and ensure
ethical production practices.

In summary, the outsourcing partnership between China and Walmart is mutually beneficial.
China gains economic advantages, employment opportunities, and exposure to global
markets, while Walmart benefits from cost efficiencies, a diverse product range, and a well-
established supply chain. This collaboration contributes to the globalization of supply chains
and the interconnectedness of the global economy.

Trả lời khác:

China has derived several economic benefits from becoming a major outsourcing source for
Walmart and other major retail chains:

1. Job creation - Walmart production contracts have helped boost Chinese exports and created
millions of manufacturing jobs in China over the past few decades. This absorbs excess labor.

2. Technology and knowledge transfers - Working with Walmart and other buyers has helped
improve Chinese factories' logistics, supply chain, and production technologies. This helps
China move up the value chain.

3. Infrastructure development - Chinese local governments invest to attract and retain

Walmart production contracts, building roads, power plants, ports etc. This builds capacity.

4. Export revenues - The surge in exports to major buyers like Walmart has brought China
huge export revenues and trade surpluses, supporting economic growth.

5. Economies of scale - Large production runs for big buyers like Walmart have allowed
China to reap greater economies of scale, boosting productivity.
6. Competition and efficiency - Competing for large Walmart orders induces Chinese
manufacturers to keep improving efficiency, quality and competitiveness.

In summary, serving as a major outsourced supply source for Walmart and other giants has
tremendously benefited China's industrialization, employment, skills development,
infrastructure, export income and overall competitiveness. It remains a major strategic
industry.

How many partners of Wal-Mart in China?

over 7,000 suppliers in the country to provide 95 percent of the merchandise in different
stores

How China firms cooperate to outsource the products?

China has a well-established ecosystem for firms to cooperate and outsource products. This
collaboration involves various entities, including manufacturers, suppliers, intermediaries,
and global clients. The process typically involves the following key aspects:

Manufacturing and Suppliers:

● Manufacturers: Chinese manufacturers play a central role in the outsourcing
process. They have the production capabilities to manufacture a wide range of
products, from electronics to textiles and more.
● Suppliers: Suppliers provide raw materials and components necessary for the
manufacturing process. Efficient supply chain management is crucial for
meeting production demands.
B2B Platforms and Trade Shows:
● B2B Platforms: Online business-to-business (B2B) platforms, such as Alibaba,
Made-in-China.com, and Global Sources, serve as digital marketplaces where
Chinese firms can showcase their products and connect with international
buyers.
● Trade Shows: Trade shows and exhibitions provide opportunities for Chinese
firms to exhibit their products, network with potential clients, and explore
collaboration opportunities.
Export and Import Agencies:
● Export Agencies: Export agencies facilitate international trade by helping
Chinese firms navigate export regulations, documentation, and logistics. They
can assist in finding international buyers.
● Import Agencies: Import agencies in other countries may work with Chinese
firms to facilitate the importation of goods, handling customs procedures and
compliance.
Logistics and Shipping Companies:
● Logistics companies in China manage the transportation and shipping of
products. They play a crucial role in ensuring that products reach their
destination efficiently and in good condition.
 Technology Platforms:
● Technology platforms, including communication and project management
tools, enable effective collaboration between Chinese firms and their
international clients. These platforms facilitate communication, file sharing,
and project tracking.
Quality Control and Inspection Services:
● Quality control is crucial in outsourcing arrangements. Chinese firms often
collaborate with third-party quality control and inspection services to ensure
that products meet the required standards before shipment.
Legal and Compliance Services:
● Legal and compliance services help Chinese firms navigate international trade
regulations, intellectual property protection, and legal aspects of outsourcing
agreements. Ensuring compliance with relevant laws is essential for successful
collaboration.
Custom Manufacturing and OEM/ODM Services:
● Many Chinese manufacturers offer custom manufacturing and original
equipment manufacturing/design (OEM/ODM) services. This allows
international clients to have products designed and manufactured according to
their specifications.
Payment and Financial Services:
● Payment and financial services, including online payment platforms and
banking services, facilitate secure financial transactions between Chinese
firms and international clients. Escrow services are often used to build trust in
financial transactions.
Government Support and Trade Policies:
● Chinese firms benefit from government support and trade policies that
encourage export-oriented businesses. Government initiatives may include
incentives, subsidies, and support for firms engaged in international trade.

Overall, the cooperation to outsource products from China involves a complex network of
entities working together to ensure the efficient production, quality control, and timely
delivery of goods to international markets. The success of these collaborations often depends
on effective communication, trust-building, and adherence to quality and regulatory
standards.

Trả lời khác:

Here are some key ways Chinese companies cooperate to facilitate outsourcing of products:
● Manufacturing hubs: China has established large manufacturing hubs like
Guangdong, Shanghai where thousands of SMEs cluster with supporting industries
like components suppliers. This fosters collaboration.
● Business groups: Certain Chinese groups like Hangzhou City, Wenzhou model
strengthen industry clusters through cooperation in financing, market access,
technology exchange between members.
 ● Industry associations: Powerful industry associations like China Toy & Juvenile
Products help standardize processes, certifications, provide training and organize
overseas trade promotions jointly.
● Trading companies: Large trading houses like Li & Fung, DDH act as intermediaries,
consolidating orders from multiple brands and distributing work to cooperating
factories in clusters.
● Industrial parks: Special economic zones provide shared infrastructure support and
resources to attract investment in outsourcing parks where manufacturers can jointly
bid for contracts.
● Government incentives: Initiatives promoting industry upgrades, joint B2B platforms
help SMEs band together to access financing, technology, compete for larger
outsourcing orders together.
● Shared services: Cooperatives for raw material procurement, product testing, logistics,
waste disposal help reduce costs for participating SMEs serving outsourcing clients
jointly.
So in essence, industrial clustering and cooperative business models facilitate Chinese SME
collaboration to achieve scale, efficiency and better serve global outsourcing markets.

What is your most interesting in this story?

The scale of collaboration and the challenges in the supply chain: Walmart stands as one of
the largest global retailers with a vast network of thousands of stores. Meanwhile, China
holds the position of being the world's largest manufacturing hub. Achieving a seamless flow
of goods from production to distribution requires effective coordination with a multitude of
suppliers, manufacturers, and logistics partners. An intriguing aspect of their outsourcing
narrative lies in how Walmart successfully navigated and optimized such an extensive and
intricate supply chain system.

What are China's benefits when becoming out sourcing products of Walmart?
Numerous Chinese companies can reap substantial profits through collaborations. Walmart's
partnership with Tencent Holdings, a prominent Chinese technology conglomerate,
exemplifies this trend, as both entities explore innovative retail solutions and digital
initiatives. Such collaborations present opportunities for China to boost its GDP, reduce
unemployment, attract foreign investments, foster infrastructure development, and encourage
additional investments in the industrial sector.

The integration of producer-driven and buyer-driven approaches has significantly contributed

to economic and business growth. Walmart's stringent quality control measures ensure that
products imported from China align with company standards and meet consumer
expectations. Collaborative efforts with Dada Group enable Walmart to provide efficient and
convenient grocery delivery services based on customer feedback and satisfaction.
In terms of product availability, Walmart maintains close relationships with its Chinese
suppliers to ensure a consistent flow of goods that aligns with consumer demand. For
instance, if there is a surge in demand for a specific electronic device, Walmart
communicates the situation to its Chinese suppliers, prompting an increase in production to
meet the elevated demand in Walmart stores."

What does Vietnam do to apply space shrinking technology?

a. Transportation technology:

● Creating a solid foundation for future investment in the construction of a synchronized and
efficient transportation infrastructure system.

● Developing, expanding, and upgrading the seaport system and river port to make ocean
transportation one of the primary transport lines.

● Giving special attention to the growth of ocean shipping, North–South sea transport, and
inland waterways.

● Building deep–water seaport.

● Maintaining the existing National Highway 1A and North–South Railway. b.

Communication technology:

● Focusing on providing digital infrastructure and services such as digital services, fiber
optic infrastructure, digital payment, and cloud services.

● Increasing the number of satellites in orbit to increase the value of GPS and the Internet.

● Increasing and protecting the quality of the fiber optic system.

● Applying 5G in big cities such as HCMC, Ha Noi, Da Nang.

Transportation technology:

+ It is important to build and develop infrastructure

+ Các ngành hàngkhông, máy bay (Ex: Sân bay Long Thành)

+ Xây dựng các cảng nước sâu Communication technology:

+ Việt Nam phóng vệ tinh VINASAT, PICO DRAGON => cần phóng nhiều vệ tinhhơn để
việc kết nối internet, GPS được tốt hơn.

+ Chế tạo smartphone của nước mình (Ex: B-Phone)

+ Nâng cấp hệ thống cáp quang

19. What is the best benefits China get after outsourcing ?

Here are some of the major benefits China has realized through outsourcing:

1. Export growth: Outsourcing manufacturing for foreign companies has boosted China's
exports massively. Chinese exports grew from under $200 billion in 1991 to over $2 trillion
by 2014.

2. Job creation: Chinese factories producing goods for foreign firms employ tens of millions
of Chinese workers. Outsourcing job growth has helped China ease unemployment pressures.

3. Technology and skills transfer: Working with foreign firms has brought increasing
technology, management know-how, and advanced production techniques into China. This is
helping China move up the value chain into higher-skill production.

4 Infrastructure: Government investment in roads, ports, energy and communications

infrastructure to support outsourcing manufacturing zones has modernized China's
infrastructure.

5. Cluster/agglomeration effects: Tech, supplier and skill clusters formed around major
outsourcing centers amplify economic benefits for host cities/regions. This drives leading
edge R&D.

6. Foreign capital: Outsourcing FDI brings non-Chinese capital into the Chinese economy,
supplementing domestic savings. This funds expansion.

In summary, by becoming the "world's factory" through extensive outsourcing relationships,

China has realized tremendous economic growth, job creation, enhanced productivity and
positioning for more high-end manufacturing and services. The outsourcing engine powering
China's rise remains a strategic priority.

Trả lời khác:

When China becomes an outsourcing partner for Walmart, both China and Walmart gain
various benefits. Here are some of the advantages for each party:

Benefits for China:

Employment Opportunities:
● The outsourcing arrangement creates employment opportunities in China. The
manufacturing sector, in particular, experiences growth as it fulfills Walmart's
demand for various products.
Economic Growth:
 ● The influx of outsourcing contracts contributes to China's overall economic
growth. The manufacturing and export sectors become major drivers of the
economy, leading to increased GDP.
Foreign Exchange Earnings:
● Exporting products to Walmart allows China to earn foreign exchange,
strengthening its reserves and contributing to a favorable balance of trade.
Technology Transfer:
● Collaboration with Walmart exposes Chinese manufacturers to advanced
technologies and production methods. This can lead to technology transfer and
knowledge exchange, benefiting China's industrial capabilities.
Global Market Presence:
● By being a key outsourcing partner for a global retail giant like Walmart,
Chinese businesses gain visibility in international markets. This exposure can
attract more business opportunities and foreign investments.
Scale and Volume:
● Walmart's large-scale retail operations create significant demand. China, as an
outsourcing partner, benefits from the economies of scale, allowing
manufacturers to produce goods in large volumes, reducing per-unit costs.
Diversification of Industries:
● Becoming an outsourcing hub for Walmart encourages diversification in
China's industrial base. Different sectors, such as textiles, electronics, and
consumer goods, may thrive as they cater to Walmart's diverse product range.

Benefits for Walmart:

Cost Efficiency:
● Outsourcing production to China often results in cost savings for Walmart.
The lower labor and production costs in China allow Walmart to offer
products to consumers at competitive prices.
Product Variety:
● China's manufacturing capabilities enable Walmart to access a vast array of
products. This diversity allows Walmart to offer a wide range of goods to its
customers, meeting various preferences and demands.
Supply Chain Efficiency:
● China's well-established supply chain infrastructure facilitates efficient
transportation and logistics. Walmart benefits from streamlined supply chain
operations, ensuring a steady and timely flow of products to its stores.
Flexibility and Agility:
● China's manufacturing sector is known for its flexibility and ability to adapt
quickly to changing market demands. This agility benefits Walmart, allowing
it to respond promptly to consumer trends and preferences.
Competitive Edge:
 ● Outsourcing to China gives Walmart a competitive edge in terms of pricing.
The cost advantages allow Walmart to maintain competitive retail prices and
potentially attract more customers.
Global Sourcing Strategy:
● By sourcing products from China, Walmart implements a global sourcing
strategy that leverages the strengths of different regions. This strategy
enhances Walmart's resilience to market fluctuations and supply chain
disruptions.
Collaboration and Relationship Building:
● Establishing a strong outsourcing relationship with Chinese manufacturers
fosters collaboration and mutual understanding. Walmart can work closely
with Chinese suppliers to improve quality, innovate products, and ensure
ethical production practices.

In summary, the outsourcing partnership between China and Walmart is mutually beneficial.
China gains economic advantages, employment opportunities, and exposure to global
markets, while Walmart benefits from cost efficiencies, a diverse product range, and a well-
established supply chain. This collaboration contributes to the globalization of supply chains
and the interconnectedness of the global economy.

Trả lời khác:

China has experienced several benefits as a result of outsourcing. Some of the key advantages
include:

Economic Growth:
● Outsourcing has significantly contributed to China's economic growth. By
becoming a major outsourcing destination, China has attracted a substantial
amount of foreign investment, leading to the development of industries and
increased GDP.
Employment Opportunities:
● The outsourcing industry has created numerous job opportunities in China,
especially in manufacturing and related sectors. This has helped alleviate
unemployment and contributed to poverty reduction.
Foreign Exchange Reserves:
● Outsourcing has boosted China's foreign exchange reserves. The income
generated from exporting goods and services to other countries, including
through outsourcing contracts, has increased China's foreign currency
reserves.
Industrial Diversification:
● Outsourcing has facilitated the diversification of China's industrial base. The
country has become a manufacturing hub for a wide range of products,
including electronics, textiles, and consumer goods, leading to a more
diversified and robust economy.
Technology Transfer:
 ● Through outsourcing relationships, China has gained access to advanced
technologies and manufacturing processes. This has facilitated technology
transfer and contributed to the development of the country's own technological
capabilities.
Global Market Presence:
● Being a prominent outsourcing destination has increased China's visibility and
presence in global markets. Chinese companies that engage in outsourcing
partnerships have the opportunity to expand their reach and establish a global
footprint.
Infrastructure Development:
● Outsourcing has driven infrastructure development in China. The need to
support manufacturing and logistics for outsourced products has led to
investments in transportation, communication, and other related infrastructure.
Foreign Direct Investment (FDI):
● Outsourcing has attracted significant foreign direct investment (FDI) into
China. Multinational companies looking to benefit from China's
manufacturing capabilities have invested in facilities, technology, and
partnerships within the country.
Knowledge and Skill Enhancement:
● Engaging in outsourcing has allowed Chinese workers to acquire new skills
and knowledge. Exposure to international business practices and collaboration
with foreign companies has contributed to the enhancement of China's human
capital.
Economic Competitiveness:
● The outsourcing industry has played a role in enhancing China's economic
competitiveness on the global stage. The country's ability to offer cost-
effective manufacturing solutions has positioned it as a key player in the
global supply chain.
Innovation and Research Collaboration:
● Outsourcing relationships often involve collaboration in research and
development. This has led to innovation in various industries as Chinese and
foreign companies work together to improve products and processes.

It's important to note that while outsourcing has brought significant benefits to China, it has
also led to challenges such as environmental concerns, labor issues, and debates over
intellectual property. China's ongoing development strategies include efforts to address these
challenges while continuing to harness the positive impacts of outsourcing for sustainable
growth.

20. Why India and Philipines are the main outsourcing destination?

Here are some key reasons why India and the Philippines are major outsourcing destinations:
Large English-speaking workforce: Both countries have a large, young and educated English-
speaking workforce that can communicate well with global clients.

Cost advantage: Labor costs in India and the Philippines are significantly lower than
developed countries, allowing outsourcing companies to achieve big cost savings.

Industry-friendly policies: The governments of India and Philippines have proactively drafted
policies and created special economic zones to attract outsourcing investments.

Skill development: Extensive technical training institutes and universities ensure steady
supply of skilled professionals in areas like IT, analytics, customer support etc.

Timezone advantage: The timezones in these countries overlap with Europe and America,
allowing round-the-clock work without disruptions.

Scalable infrastructure: Cities like Bangalore, Delhi, Manila have built world-class
infrastructure of office parks, telecom networks and connectivity to support large outsourcing
companies.

Innovation ecosystem: Emergence of tech startups and shared services have created
innovation in niche domains like engineering R&D, software products etc.

Experience and expertise: Decades of experience in outsourcing have made India and
Philippines streamlined and reliable outsourcing hubs for global enterprises.

So in summary, competitive advantages in language, talent and costs along with operational
ease make them preferred offshoring locations.

Trả lời khác:

India and the Philippines have become primary outsourcing destinations for several reasons,
and each country offers unique advantages that attract businesses looking to outsource
various services. Here are some key factors contributing to their prominence:

India:

Large English-Speaking Workforce:

● India has a vast pool of English-speaking professionals, making it an attractive
destination for English-language customer support, technical support, and
business process outsourcing (BPO) services.
Educational System:
 ● India has a strong educational system that produces a large number of
graduates in fields such as information technology, engineering, finance, and
business. This well-educated workforce is essential for outsourcing
knowledge-intensive tasks.
Cost-Effectiveness:
● Labor costs in India are relatively lower compared to many Western countries,
making it cost-effective for businesses to outsource various functions,
including software development, customer service, and back-office operations.
Robust IT Infrastructure:
● India has invested significantly in developing a robust information technology
(IT) infrastructure, including high-speed internet connectivity and state-of-the-
art technology parks. This infrastructure supports IT outsourcing and software
development.
Experience and Expertise:
● India has been a prominent outsourcing destination for several decades,
gaining extensive experience and expertise in handling diverse outsourcing
requirements. This experience makes it a reliable choice for outsourcing
partners.
Time Zone Advantage:
● India's time zone (UTC+5:30) allows for a significant overlap with business
hours in Europe and the Americas. This facilitates real-time collaboration and
communication between outsourcing teams and clients in different parts of the
world.
Government Support:
● The Indian government has been supportive of the outsourcing industry,
implementing policies to encourage foreign investment and business process
outsourcing. Special economic zones (SEZs) and other incentives attract
outsourcing companies.

Philippines:

Proficient English-Speaking Workforce:

● Like India, the Philippines has a large pool of English-speaking professionals.
The proficiency in English makes it a preferred destination for voice-based
services such as call centers and customer support.
Cultural Affinity with the West:
● Filipinos share a cultural affinity with Western countries, particularly the
United States, which is a significant market for outsourcing services. This
cultural similarity contributes to effective communication and customer
engagement.
Customer Service Orientation:
● The Philippines is known for its customer service orientation. The workforce
is trained in providing high-quality customer support, making it an ideal
destination for companies looking to outsource customer-centric functions.
 Cost-Effective Labor:
● Labor costs in the Philippines are competitive, making it an attractive option
for businesses seeking cost-effective solutions for customer service, technical
support, and other outsourcing needs.
Government Support and Incentives:
● The Philippine government actively supports the outsourcing industry,
offering incentives to attract foreign investment. Economic zones, tax breaks,
and other initiatives encourage outsourcing companies to establish operations
in the country.
Educated Workforce:
● The Philippines has a well-educated workforce with a strong focus on higher
education. Graduates in fields such as information technology, business, and
engineering contribute to the country's capabilities in handling outsourced
tasks.
Time Zone Advantage:
● The Philippines shares a similar time zone (UTC+8) with many Asian
countries, allowing for efficient collaboration with businesses in the region.
Additionally, it provides extended coverage for clients in the Western
hemisphere.

In summary, India and the Philippines have become outsourcing hubs due to their skilled,
English-speaking workforce, cost-effectiveness, supportive government policies, and
infrastructure capabilities. These factors make them preferred destinations for various
outsourcing services, including customer support, IT services, and business processes.

21. What is the limitation of countries that new technology can't access those location?

(chẳng hạn như geography: có nhiều núa địa hình hiếm trở khó có thể kết nối đc Internet;
goverment thinking chẳng hạn như ở Trung Quốc chính phủ ko cho các mạng xã hội nước
ngoài vào kinh doanh ở nước họ chỉ để cho công ty nước họ làm điều đó như Alibaba còn ở
Triều Tiên thì chính phủ nước họ ko cho phép được sử dụng Internet hay cập nhập thông tin
ở các nước khác ..; về financial ở một số nước nghèo họ ko có đủ tài chính để nhập khẩu
technology, social: fastfood thì được ưu chuộng ở Mỹ nhưng ở châu Âu thì người dân muốn
ăn kiêng và ăn những đồ ăn healthy nên họ không sử dụng fastfood)

Population:
● Rural Areas and Remote Villages: In sparsely populated or remote areas, the
deployment of advanced technology infrastructure may be challenging due to
the lower population density, making it less economically viable for
technology companies to invest in such regions.
● Low Population Density Regions: Areas with low population density might
not attract the necessary investments for the deployment of advanced
technologies, as the potential user base may be limited.
Economy:
 ● Economic Disparities: Regions or countries with significant economic
disparities may struggle to provide widespread access to new technology.
High-tech infrastructure deployment often requires substantial investments,
and economically disadvantaged areas may lack the resources to keep pace
with technological advancements.
● Limited Financial Resources: Developing or economically struggling
countries may face challenges in adopting new technologies due to budget
constraints. Access to technology often depends on a nation's financial
resources and its ability to invest in modern infrastructure.
Society:
● Digital Divide: Socioeconomic factors contribute to a digital divide, where
certain segments of the population, often marginalized or underserved
communities, lack access to new technologies. This divide may be exacerbated
by issues such as income inequality, education disparities, and urban-rural
divides.
● Cultural and Social Resistance: In some societies, cultural or social factors
may impede the adoption of certain technologies. Resistance to change,
cultural norms, or concerns about privacy and security can influence the
acceptance and use of new technologies.
Geography:
● Remote and Inaccessible Areas: Geographical challenges, such as
mountainous terrain, dense forests, or isolated islands, can hinder the
deployment of technology infrastructure. Building the necessary physical
infrastructure, such as laying fiber-optic cables or setting up cellular towers,
can be logistically difficult and expensive in such areas.
● Natural Disasters: Regions prone to natural disasters, such as earthquakes,
floods, or hurricanes, may face difficulties in establishing and maintaining
technology infrastructure. Disasters can damage existing infrastructure,
disrupting access to technology.
Regulatory Environment:
● Stringent Regulations: Stringent regulatory environments can impede the rapid
adoption of new technologies. Regulatory hurdles, bureaucratic processes, and
legal complexities may slow down the deployment of advanced technologies
in some locations.
Security Concerns:
● High-Risk Areas: Locations facing high levels of political instability, conflict,
or security concerns may find it challenging to attract technology investments.
Companies may be hesitant to invest in regions where the safety of
infrastructure and personnel is uncertain.

Addressing these limitations often requires a concerted effort from governments,

international organizations, and the private sector to bridge the digital divide, promote
inclusive growth, and ensure that the benefits of new technologies reach diverse populations
and regions.
22. Why Israel have to supply their technology in agriculture?
Israel has become a global leader in agricultural technology, often referred to as agtech or
agritech. There are several reasons why Israel has focused on developing and supplying
technology in agriculture:

Harsh Environmental Conditions:

● Israel faces challenging environmental conditions, including arid and semi-
arid landscapes. The country has successfully overcome water scarcity and
desert conditions through innovative agricultural practices and technologies.
As a result, Israel's expertise in dealing with harsh environments is valuable
for other regions facing similar challenges.
Water Management Solutions:
● Israel is renowned for its advanced water management solutions, including
drip irrigation and precision agriculture techniques. These technologies enable
efficient water usage in agriculture, maximizing crop yields while minimizing
water wastage. This expertise is crucial for regions dealing with water scarcity
issues.
Global Demand for Food Security:
● With the global population steadily increasing, there is a growing demand for
food security. Agricultural technology plays a vital role in increasing crop
productivity, improving the quality of yields, and ensuring sustainable food
production. Israel's agtech contributions contribute to addressing these global
challenges.
Innovation Ecosystem:
● Israel has a vibrant innovation ecosystem, including research institutions,
startups, and established companies, that fosters the development of cutting-
edge technologies. The collaboration between academia, government, and the
private sector has led to the creation of innovative solutions in agriculture.
Startups and Entrepreneurship:
● Israel has a high concentration of startups and entrepreneurs dedicated to
developing technologies that enhance agricultural practices. The startup
culture encourages agility, creativity, and a willingness to take risks, all of
which contribute to the rapid advancement of agtech solutions.
Government Support:
● The Israeli government has actively supported research and development in
agriculture and technology. Funding initiatives, incentives, and policies aimed
at promoting innovation have played a crucial role in the growth of the
country's agtech sector.
Export Opportunities:
● Israel sees international markets as significant opportunities for its agricultural
technologies. By exporting agtech solutions, Israel not only contributes to
global food security but also generates economic benefits through the sale of
innovative products and services.
Collaboration with Global Partners:
 ● Israel actively collaborates with international partners, including governments,
organizations, and companies, to share knowledge and implement agricultural
technologies worldwide. This collaboration enhances the global impact of
Israeli agtech solutions.
Focus on Sustainability:
● Israel's agricultural technologies often prioritize sustainability, including
resource-efficient farming practices, organic farming methods, and
environmentally friendly solutions. This aligns with the global trend towards
sustainable agriculture and responsible resource management.

In summary, Israel's focus on supplying agricultural technology is driven by its ability to

address local challenges, a commitment to innovation, and a recognition of the global
demand for solutions to improve food security and sustainable agriculture. The country's
expertise in water management, precision agriculture, and other agtech areas positions it as a
valuable contributor to the global agricultural sector.

Trả lời khác:

Israel has become a leading supplier of agricultural technology due to its ability to thrive in a
challenging environment and limited arable land. The country's expertise in areas such as
water management, recycling, and the development of high value-added and innovative farm
products has enabled it to overcome its own agricultural limitations. As a result, Israel not
only produces most of its own food but also exports a significant amount of agricultural
produce annually. The country's agro-technology, from irrigation and efficient water
management to fertilization techniques and genetically improved crops, has significantly
improved local yields. Israel's agricultural innovations are not only benefitting its own food
production but are also being shared globally, with the country planning rural development
projects in various other nations. The Israeli AgTech ecosystem is characterized by hundreds
of startups developing innovative technology to address global agricultural challenges, and
these solutions are being implemented around the world, strengthening Israel's economy and
contributing to global food security.

23. About traditional handmade products in the era of innovation technologies will they
fail to find the global market?

Challenges:

Mass Production and Efficiency:

Innovation and technology often enable mass production, making it more efficient and cost-
effective. Traditional handmade products may struggle to compete with large-scale
manufacturing processes in terms of volume and price.

Global Supply Chains:

The rise of global supply chains and e-commerce platforms may favor products that can be
easily standardized, produced in large quantities, and shipped globally. Traditional handmade
products may face logistical challenges in reaching a wide audience.

Competition with Mass-Produced Alternatives:

In some markets, consumers may prefer mass-produced alternatives due to lower costs and
consistent quality. Traditional handmade products might find it challenging to compete on
price and volume.

Access to Technology:

Artisans and craftspeople creating traditional handmade products may face barriers in
adopting and leveraging technology for marketing, e-commerce, and production. Lack of
access to technology could limit their visibility and reach.

Opportunities:

Unique and Authentic Appeal:

Traditional handmade products often have a unique and authentic appeal. In a market where
consumers value craftsmanship, cultural heritage, and individuality, these products can stand
out as distinctive and offer a unique selling proposition.

Storytelling and Branding:

The story behind traditional handmade products, the artisan's craft, and the cultural
significance can be powerful elements in branding. Authenticity and a compelling narrative
can attract consumers who appreciate the heritage and craftsmanship embedded in the
products.

Niche Markets and Artisanal Movements:

There is a growing trend toward niche markets and artisanal movements. Consumers who
prioritize quality over quantity and support sustainable and ethical practices may seek out
traditional handmade products, creating a niche market for these offerings.

E-commerce Platforms and Global Reach:

Technology has facilitated the growth of e-commerce platforms, allowing artisans to

showcase and sell their products globally. Online marketplaces provide opportunities for
traditional handmade products to reach a broader audience beyond local markets.

Customization and Personalization:

Handmade products offer the potential for customization and personalization, catering to
consumer preferences for unique and tailor-made items. Technology can be employed to
facilitate personalized experiences and customization, enhancing the value proposition.

Collaboration with Designers and Innovators:

Collaboration with designers, innovators, and technology experts can infuse traditional
handmade products with contemporary elements. This fusion of traditional craftsmanship
with modern design and technology may attract a broader audience.

In conclusion, the success of traditional handmade products in the global market in the era of
innovation and technology depends on a combination of factors, including their ability to
leverage authenticity, storytelling, niche markets, and the opportunities offered by e-
commerce and customization. While challenges exist, the unique qualities of traditional
handmade products can position them as sought-after items in a market that values
craftsmanship and individuality.

Trả lời khác:

Traditional handmade products may still be able to find global markets in the era of advanced
technology and mass production for a few key reasons:
● Authenticity and heritage: Many consumers seek authentic, traditional crafts that
preserve cultural heritage and history. Technology cannot replace theseunique
qualities.
● Premium/luxury segment: There is a growing market for high-end, premium
handmade products made from natural/ethicalmaterials that are sustainably sourced.
Customers are willing to pay more for craftsmanship.
● Niche, customized demand: Handmade products allow for more personalized
customization and smaller production runs not feasible through machines. This
creates niches.
● Developing economies: Many traditional craft clusters are in rural/underdeveloped
areas. Handicrafts provide livelihoods and exports for these communities despite
competition.
● Experiential tourism: Unique handicrafts are an important part of cultural tourism
offerings. Experiencing craft-making traditions attracts visitors.
● Online marketing: Global e-commerce platforms help artisans better market and sell
directly to international buyers, overcoming distance barriers.
● Collaboration opportunities: Partnerships between crafts clusters and
designers/technology firms can apply more modern designs, techniques to appeal to
global customers.
So while mass production dominates, traditional handicrafts will continue finding global
demand by leveraging their uniqueness and filling experience/niche oriented market segments
if artisans adapt to modern trade and marketing channels.
25.