Higher Nationals - Summative Assignment Feedback Form

Student Name/ID Hồ Hoàng Anh Duy

Unit Title Unit 25: Global Business Environment (5076)

Assignment Number Assignment 1 Assessor Trương Ánh Tuyết

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Table of Contents
I.Introduction: ......................................................................................................................................................... 3

II. Define the concept globalization in terms of different dimensions: ..................................................................... 5

2.1.Economic dimension: .................................................................................................................................... 5

2.2. Cultural dimension: ..................................................................................................................................... 6

2.3. Political dimension: ..................................................................................................................................... 6

III. Discuss key drivers of cost, market, environment, and competition affecting organizations to go globalization: . 7

3.1. Market Drivers: ............................................................................................................................................ 8

3.2.Cost drivers: .................................................................................................................................................. 9

3.3. Competition drivers: .................................................................................................................................... 9

3.4. Government drivers: .................................................................................................................................. 10

IV. The complexity of the strategic challenges that organizations face when operating in a global environment: ... 10

4.1. International trade law: ............................................................................................................................. 10

4.2. Global economy: ........................................................................................................................................ 11

4.3. Global supply chain:................................................................................................................................... 11

V. Conclusion: ....................................................................................................................................................... 12

VI. References: ...................................................................................................................................................... 13

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I.Introduction:
Encompassing 178 locations throughout 26 countries and territories, FPT is a valuable partner offering
services and solutions to hundreds of significant organizations across various industries, including high-
profile and Fortune Global 500 clients. Leading technology partners of the top technology companies in
the world, including SAP, Microsoft, GE, Airbus, Siemens, and Amazon Web Services... I was given the
task of composing a report on FPT's worldwide history over the last three decades in honor of the
organization's 35th anniversary.

Globalization has resulted in significant and enduring transformations. Every stage and phase of
globalization has a variety of transitions that affect a civilization as a whole and the planet itself in the
end. Globalization has exploded as a result of these technical breakthroughs, enabling swift and effective
communication across nations. There is no longer a need to communicate and disseminate information
via roads, highways, or airplanes because of technology and social media. In order to achieve the
objectives, interests, and benefits of any individual, group, or company, globalization helps society,
politics, culture, and economy. Globalization facilitates the attainment of objectives, benefits, and
advantages for people, groups, and businesses in social, political, cultural, and economic spheres. The
survival and advancement of civilization in this wealthy era are facilitated by globalization, which also
helps to integrate and connect trade and geography. The study also looks at the dynamics and effects of
globalization, as well as the dangers and difficulties that come with change for Vietnamese industries
and enterprises.

Therefore, the following report is divided into two parts:

(1) The author will define globalization and examine how it affects politics, the economy, culture, and
society.

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(2) The report aims to enhance your critical thinking abilities by providing you with real-world examples
of important information or data. Specifically, the primary impacts of growth in the selected field; In this
portion, the writer explains the rationale behind the industry selection and explores the YIP model's
framework description to illustrate how four factors drive industrial globalization. Lastly, the author will
assess the issues, dangers, and advancements in nations pertaining to the chosen industry and its
structure.

Methodology:
The author conducted research and found material online. Every piece of data included in this study was
gathered utilizing Google tools and secondary sources. To outline report requirements, data and
information are collected from reputable websites, books, and news stories. Secondary data supports
the study methodology and aids in content clarification. Yip models provide clarification on different
types of information retrieval procedures for gathering and assessing comments. Consequently,
secondary data information helps uncover a multitude of reliable and significant facts.

Among the top providers of information technology services is FPT (FPT Corporation, English: FPT
Group), whose full name is FPT Joint Stock Company (formerly called Technology Investment and
Development Company). largest news in Vietnam. Three primary areas of business for FPT Corporation
are technology, telecommunications, and education. FPT is among the top IT firms in Vietnam and in the
top 100 worldwide for trust services, having developed over the course of more than 30 years. Based on
data from the UNDP, this ranks as Vietnam's fourteenth-largest business in 2017.
This is Vietnam's third private company in 2012, according to VNReport. Based on the evaluation and
vote of VNReport, FPT Corporation is now rated 17th out of the 500 largest private companies in
Vietnam.

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FPT, which focuses on technology and telecommunications as its primary business, presently has 46
systems. offices in 22 countries and has telecommunications infrastructure that covers 63/63 provinces
and cities in Vietnam. The company is also continuously growing its activities in the worldwide market.
FPT has always operated with the primary objective of giving client happiness through the best possible
goods, services, and technological solutions. With about 30,600 people working for the company overall
at the moment. In addition, FPT is always exploring and innovating new technological trends,
incorporating them into the broader global technological trend and strengthening its standing in the
global economy.

II. Define the concept globalization in terms of different dimensions:

The outcome of contemporary economic progress coupled with cutting-edge developments is
globalization. As a result, the quickening of ties, interdependence, and collaboration between nations,
regions, and peoples worldwide is seen as a hallmark of the internationalization process. A perfect
environment has been produced by globalization for the growth of several economic sectors.

Globalization is not a discrete idea that can be precisely described and quantified, nor is it a linear
process with definite starts and ends. Any person or circumstance can benefit from this when it is
properly defined and utilized. According to Nikitin and Eliot, globalization has as its main goals "the
establishment of an international market without sociopolitical control," process thinking, cross-border
policy transfers, knowledge diffusion, cultural consistency, and the re-creation of power, relations, and
discourse.

2.1.Economic dimension:
According to Kelly (2018) asserts that the trend of economic globalization cannot be reversed. The
process of increasing cross-border trade in goods and services, international capital flows, and rapid
technology innovation that makes the world economy increasingly integrated is known as economic
globalization. In the course of global economic development at the turn of the millennium, it defines the
constant expansion and integration of market boundaries, which was an inevitable trend. Economic
globalization is primarily driven by two factors: the ever-growing importance of technology in all forms of
production and marketing. Stated differently, the scientific and economic environment has resulted in
quick technical advancements, which in turn have contributed to the current rapid expansion of global
economies. The rapid expansion and development of the global economic system can only be attributed
to the increasing cross-border division of labor, which has reached the industrial chain level in national
firms.

Example:
• Given their substantial influence on the business's operations, macroeconomic issues are without a
doubt one of the most crucial external variables for FPT. Furthermore, the corporation is significantly

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impacted by economic variables like the GDP growth rate, level of disposable income, and employment
rate because of the nature of the products it manufactures and sells. Furthermore, changes in interest
rates and currency rates in relation to a firm's overseas operations are another significant economic
issue that impacts a firm's foreign revenues (Jonson and Scholes, 2006).

• International businesses have existed for centuries, such as the East India Company, which was
established in 1600 and was involved in the trading of tea and spices from Asia to Europe. Therefore,
international business for organizations gets easier because of tax agreements that enable businesses
avoid double taxation, free trade agreements like NAFTA, the free movement of goods and services, and
speedier services.

2.2. Cultural dimension:

According to Kelly (2018) argues that cultural homogeneity is fundamentally a way of life shaped by the
spread of ideas and goods known as cultural globalization. Globalization, largely due to the convenience
or allure of technology, has shown to be a step toward universality that would eventually make human
civilization nearly the same everywhere. This includes media, internet shopping, personal culture, and
foreign travel. This adds to the lengthy and significant cultural history of colonialism and the commodity
trade. People can participate in a variety of cross-cultural and cross-border social interactions as a result
of cross-cultural interaction. Social bonds are formed and strengthened by more than just material
causes. Cultural globalization includes the emergence of common beliefs and values as well as the
formation of personal and collective cultural identities. Consequently, an increasing number of cultures
and races are merged.

Example:
• The core of FPT culture is its people. Nonetheless, the principles that every member of our team
upholds and the culture we have established—which we are always working to enhance—are the
foundation of our success.

• Cuisine and dish assortment. Our grandparents probably remember an era before eating a lot of
foreign food. However, utilization of products and spices from throughout the globe is commonplace in
today's multicultural society. Restaurants serving Chinese, Indian, Japanese, and American food may be
found in most major cities worldwide. So keep in mind that culture encompasses more than just cuisine.
Cultures are more deeply rooted in the values and beliefs that various cultural groupings uphold.

2.3. Political dimension:

Political globalization, according to Modelski, G. & Devezas (2007), causes the volume and complexity of
items like regional and global systems to increase. Social change has an impact on national governments,
international organizations and their governments, non-governmental organizations (NGOs), and

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regional entities. Two of the most significant effects of international globalization are the demise of
nation-states and the rise of alternative political groups. One of the most blatant examples of
globalization on a global scale is the creation and growth of the UN. A complicated, dynamic, and ever-
evolving phenomenon is political globalization. Globalization has paved the ground for the emergence of
a global political framework and particular policies, to put it in evolutionary terms.

Political globalization (UN) is responsible for the establishment of international organizations like the
Association for Regional Cooperation in South Asia (ASEAN) and the United Nations. These institutions
were set up to facilitate the resolution of both internal and diplomatic disputes.

Example:
• FPT's political implications may differ from nation to nation due to the company's global operations.
Furthermore, these elements are subject to major change at any time due to the governments'
perpetual ability to adopt new laws, tariffs, or taxes. This shows that these elements, which are common
across the country, are outside the corporation's control or influence. In order to keep ahead of the
competition, FPT must therefore routinely evaluate the influence of these political issues and
incorporate them into its business plan.

• NAFTA was the main source of anti-globalization sentiment in the 1990s, since it was thought to have
reduced labor standards and resulted in the departure of blue-collar workers from the United States.
Numerous allies hold yearly exercises to cement their military partnership and safeguard their interests.
China intended to increase its influence throughout Asia and the Middle East, so it started the Belt and
Road Initiative as a commercial project.
The North American Treaty Organization was another international political arrangement created
following World War II. The European Union is a trading organization and treaty that is composed of 27
nations on the European continent. This is the treaty that replaces a number of prior political
agreements that were made to promote European integration following World War II.

III. Discuss key drivers of cost, market, environment, and competition affecting organizations to go
globalization:
Multiple variables contribute to globalization. The Yip Model, on the other hand, is the most effective
method of factor analysis. Yip lists four crucial factors to take into account when evaluating an industry's
level of globalization:

(1) Market factors

(2) Cost factor

(3) Competitor factor

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(4) Government factor

This is important for the worldwide marketability of the solution as well as its long-term profitability

3.1. Market Drivers:

One market factor promoting globalization and helping multinational firms is market standardization.
Globalization has increased the likelihood that marketplaces may have comparable customer
preferences and needs, such as a shared need for low-cost loans. The second feature of globalization-
induced standardization is the existence of foreign clients. People may now offer standardized
commodities in exchangeable markets, increasing their customer base and, consequently, their revenue,
thanks to globalization. Businesses can increase revenue by doing this and expanding the market for
their products.

Most Vietnamese businesses struggle to establish themselves as the top brands in telecoms technology.
Consequently, every producer concentrates their efforts on developing and branding a select few
product lines. important products which have qualities and abilities to give adequate goods for clients.
To confirm and keep the company's top spot in the sector, FPT consistently devises a plan to broaden its
product line and release the newest digital technology goods and services. FPT is regarded as the top
option for Vietnamese families due to its various accomplishments.

International Marketing: Facebook, YouTube, TV, Google, etc. Vietnam, like the majority of other
countries, has access to social media platforms like Facebook and YouTube, search engines like Google

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and Coccoc, and marketing outlets like television. Social networks are the most widely used online
advertising channel for Vietnamese businesses, according to a 2021 poll that revealed 55% of
respondents used them for online advertising. Traditional advertising forms like TV and print are the
second most favored media for online advertising, according to 48% of the respondents. Finally, it can be
said that Vietnam ought to join the international economy and broaden its market.

3.2.Cost drivers:
Globalization has given multinational corporations a plethora of options in various domains. They have
discovered innovative ways to lower expenses and raise revenues by diversifying their interests into
other nations. For instance, when it comes to factories, their manufacturing firms give Bangladesh,
Vietnam, Cambodia, and China first priority. A inexpensive yet skilled labor force, an abundance of
resources, an easy commute, and minimal operational costs are some of the factors mentioned. Two
outcomes of globalization are the opening of borders and possibilities for nations and transnational
corporations. Globalization has created new opportunities that have increased and complicated
competitiveness.

Positive logistics: In Vietnam, the logistics industry expanded by roughly 12–14% in 2018 over 2017.
Including all companies that operate on the lines of rail, road, sea, inland canal, air, etc., there are 3,000
transport and logistics companies in existence at the moment. Vietnam's transportation and logistics
sector offers a lot of untapped potential and early growth prospects. With the expansion of the transport
and logistics sector, Vietnam will soon be ready to challenge China as the region's new manufacturing
hub. With an annual growth rate of 14–16%, this is one of the service industries in Vietnam that has
experienced the quickest and most steady growth in recent years.

Businesses around the world can accept that sourcing costs and efficiency differ from nation to nation.
Two additional expenses of globalization for businesses are the ability to achieve global efficiency and
the high expenditures associated with research and development.

3.3. Competition drivers:

The increase in trade brought about by globalization is causing the country to grow quickly and steadily.
This progress has led to a tremendous deal of competition. The competitive aspect greatly encourages
dealers to advertise their items more extensively. But if the neighborhood doesn't advance, growing the
company or the area will have unexpected repercussions.

Due to the increased global market competitiveness, businesses are being forced to "play" abroad. This
dynamism is a result of strong international connectivity, two-way trade, and significant foreign direct
investment (FDI) activity. They may be facing more competition from other continents since they are
respected by the neighboring nations. It is the competitor's globalization as well as their driving force. As
the company expands, everyone else has to adapt or risk falling behind. Due to the abundance of

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competitors, the strongest of which are VNPT and Viettel, FPT may have numerous challenges in this
area.

3.4. Government drivers:

Lower tariffs and nearly universal access to foreign direct investment are the results of free trade policies
and market deregulation. Just a few recent examples include the World Trade Organization (WTO)
established in 1995 and the General Agreement on Tariffs and Trade (GATT) established in 1947, as well
as the opening and commercialization of Eastern Europe.

Laws and government regulations also aid in the internationalization of the consumer electronics sector.
Various policies have been put in place by a number of governments to aid in the development and
expansion of the consumer electronics industries in each nation. To assure economic growth and
development based on each nation's economic, cultural, social, and resource expansion as well as deep
international economic integration, provide a synchronized, stable, and equitable policy framework.
expansive. expansive. Fulfill product demand from clients while ensuring there is enough available for
them to integrate and create a civilized society. To ensure quality and consistency, FPT must follow
industry guidelines and offer users cutting-edge, entertaining equipment.

FPT's vision and strategy are very astute, and they plan for major dangers that are expected to occur so
that they can be dealt with quickly (resolving risks). Vietnam has a large export market network based on
bilateral and global free trade agreements, as well as a developing trade and investment environment.
Thanks to its experience gaining access to markets across multiple nations, FPT is a company that is
expanding. But FPT is always in jeopardy due to intense rivalry from rivals like Viettel.

IV. The complexity of the strategic challenges that organizations face when operating in a global
environment:
Among the challenges faced by any multinational organization worldwide are international trade law,
global supply chains, and the global economy. Because of this, MNCs encounter issues for which they
need to find suitable answers. Additionally, MNCs might be a good substitute for passing laws. In order
to better grasp the legal difficulties in numerous markets, FPT will be the subject of additional inquiry in
this matter.

4.1. International trade law:

There are numerous distinctions in commercial law. Trade barriers, international treaties, and
international trade are the only three crucial topics that will be the subject of this research. Government
laws that limit external commerce are the first type of trade barriers. Trading may become impossible
due to trade barriers, or they may increase the cost and complexity of conducting business.

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Tariff barriers are one kind of business barrier, according to Cambridge (2020). An import tax is what this
is. Imports lose competitiveness as the cost of manufactured items rises. Conversely, trade is hampered
by non-tariff obstacles, such are laws and ordinances. For instance, it could be challenging to export if
multinational corporations adhere to intricate manufacturing requirements. Second, a trade agreement
is an arrangement, such the removal of import taxes, between two or more organizations that
establishes the legal foundation for a competitive market. The European Union (EU), the Asia-Thailand
Economic Cooperation Partnership Agreement, and the Central America Free Trade Agreement (CAFTA)
with the Democratic Republic of the Congo are examples of free trade agreements in the Americas. ApEP
(APEC) Binh Duong. Global trade agreements include the North American Free Trade Agreement
(NAFTA).
Both FPT's and its competitors' regulatory requirements shall be followed. FPT needs to give this some
serious thought. The Japan Fair Trade Commission's (JFTC) regulation is the first concern. Adhere to the
same regulations and safeguard free-enterprise marketplaces as the FTC. FPT can lessen the
manufacturing sector's ability to get around outdated copyrights.

4.2. Global economy:

The linked economies of numerous nations worldwide are collectively referred to as the global economy.
The countries involved in these economic booms may experience favorable or unfavorable outcomes.
The world economy is, to put it simply, transactional. The world's two biggest economies' financial
commerce contributes to global economic growth. The majority of these transactions take place
between nations.

Kosy (2012) asserts that the existence of bigger and more experienced rivals, particularly in local
markets, is making foreign trade and investment more challenging for companies. guidance. A variety of
issues arise from national regulations designed to fulfill regional and WTO obligations, such as
technological impediments and the drawbacks of preferential treatment. Many firms, particularly those
accustomed to government assistance and those that have pledged financial support, have been greatly
stressed by the recent lack of government protection. courtly. in addition to technology. Vietnamese
enterprises must increase added value in their processing and production in order to stay competitive
and grow. More precisely, added value calls for collaboration between companies and the government
and is equivalent to the present value that businesses provide to the manufacturing and business
process. Certain constraints result in low profitability and added value, which forces the business to
make significant adjustments to enhance manufacturing procedures. In sales and distribution, service
development is essential to delivering value.

4.3. Global supply chain:

4.3.1. The terms "global supply chain" and "global supply chain management":
A global supply chain, which sources goods and services, can be formed by a network comprising several
nations. Chain management is the process of guaranteeing the prompt and secure delivery of

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commodities as they move from producers and suppliers to distributors, retailers, and other global
distribution points.

4.3.2. Global operations:

The practice of finding and acquiring the components or raw materials required to make a good or
service from other markets is known as global sourcing. Global sourcing comes in two flavors: single and
multi-source. Single sourcing refers to using just one provider; multi-sourcing refers to using several
providers.

Global Production: Global manufacturing is the process of supplying goods and services to markets and
clientele located abroad. Export, domestic assembly, and domestic production are the three primary
categories of global manufacturing. The process of introducing state-produced items into international
markets is known as export. Local assembly, on the other hand, entails producing materials or
components inside a company before modifying or packing them elsewhere. Local manufacturing is the
process by which a business produces things locally while obtaining raw materials or components from
other nations and manufacturing them there.

FPT uses an efficient system of product production lines and products transportation that has been
developed, synchronized, and enhanced over time to reduce costs, preserve efficiency, and increase
production productivity. consequences for the natural world. FPT has to pay more for coordination than
other international manufacturing sectors. Because it is done more effectively and with less waste,
domestic assembly saves money. Lean management applications help cut down on unnecessary
spending in industrial processes.

Distributing products or services to clients worldwide via a distribution network is known as global
distribution. Joint ventures, acquisitions, and development ownership are its three primary lines of
distribution. A joint venture is a process by which two or more companies formally agree to work
together and distribute resources fairly. While buying local companies to achieve direct access and wide
distribution is the definition of acquisition. Additionally, multinational companies have the option to
start from scratch when building their distribution network.

V. Conclusion:
Both globalization and the contemporary corporate landscape have undergone significant
transformation. As a result, both FPT and enterprises in general need to grow and adapt as needed. It is

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imperative to take part in the process of repair and responsiveness to the challenges that come with the
shift to globalization. If not, the enterprise environment will gradually disappear and deteriorate.
particularly now that globalization is picking up speed and momentum. Since FPT is a worldwide
organization, research is necessary to make sure that its incorporation is suitable for the specific needs
of each nation. When the digital services sector launches a new product to broaden its market, it can
adjust its rules, standards, and tactics to better reflect changing economic realities. Globalization gives
firms a lot of energy since everything in the corporate environment has to align with current affairs or
political concerns. Furthermore, the economy has been significantly impacted by a large number of the
specific incidents and causes that were previously discussed in this study. It is anticipated that soon,
businesses and the global financial system would experience both positive and bad repercussions of
globalization, along with some unforeseen upheavals.

VI. References:

Managerial economics (2023) Wikipedia. Available at:

https://en.wikipedia.org/wiki/Managerial_economics (Accessed: 5 April 2024).

Al-Rodhan, N. (2014) Definitions of globalization: A comprehensive overview and a proposed definition-

the international relations and security network ETH Zurich; June 19, 2006, Academia.edu. Available
at:
https://www.academia.edu/2969717/Definitions_of_Globalization_A_Comprehensive_Overview_
an
d_a_Proposed_Definition_The_International_Relations_and_Security_Network_ETH_Zurich_June
_19_2006 (Accessed: 5 April 2024).

Organization definition & meaning (no date) Merriam-Webster. Available at:

https://www.merriamwebster.com/dictionary/organization (Accessed: 5 April 2024).

Drivers of Globalization: Integration of theories and models by Markus Bauernfeind - books on Google
Play (no date) Google. Available at:
https://play.google.com/store/books/details/Drivers_of_Globalization_Integration_of_Theories_a?
id =SXTUTICHEwQC&gl=US (Accessed: 5 April 2024).

Benería, L. (no date) Gender, development, and globalization : Economics as if all people
mattered, in SearchWorks catalog. Available at: https://searchworks.stanford.edu/view/11392262
(Accessed: 5 April 2024).

Home (no date) MindTools. Available at: https://www.mindtools.com/a1ecvyx/hofstedes-

culturaldimensions (Accessed: 5 April 2024).

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Marketing management: What is it and why does it matter? (no date) Coursera. Available at:
https://www.coursera.org/articles/marketing-management (Accessed: 5 April 2024).

Effects of economic globalization (no date) Home - National Geographic Society. Available at:
https://www.nationalgeographic.org/article/effects-economic-globalization/9th-grade/ (Accessed:
5 April 2024).

Speech to the 59th Annual Meeting of the National Association for Business EconomicsTao Zhang, D.M.D.
(2017) Global economic challenges and opportunities, IMF. Available at:
https://www.imf.org/en/News/Articles/2017/09/25/sp092517-global-economic-challenges-
andopportunities (Accessed: 5 April 2024).

Global Supply Chain Management: Trends, Challenges & Insights (no date) Gartner. Available at:
https://www.gartner.com/en/supply-chain/insights/global-supply-chain-management (Accessed:
5 April 2024).

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