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LEE WEI SHAN B1103003

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Module/Subject Code ECO 204
Module/Subject Name International Trade
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Dr. Vignes Gopal Krishna
r
Due Date 27/11/2020
Assignment Title/Topic Assignment 3 INDIVIDUAL ASSIGNMENT 
Intake (where applicable) Semester 3, 2020
Word Count 2575 Date/Time

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Signature: LEE WEI SHAN Date:26/11/2020

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Globalization to maintain economy sustainability 1

Introduction

In order for us to answer the question in which is globalization is actually the only

way towards economic sustainability of a country both within and between countries, we

must first have an understanding of what is globalization. Globalization is described as a

system pointed toward broadening business activities worldwide and advancing worldwide

participation because of specialized advances and social, political, ecological and different

improvements fixated on worldwide techniques.

The point of globalization, so as to arrive at a bigger number of products, assets and

clients the objective is to offer associations a vital favorable position with decreased running

expenses. This serious methodology is worked by broadening capital, producing and

extending new business possibilities through the opening up of extra business sectors and

admittance to new crude materials and assets. Asset expansion is a key practice that broadens

the range of products and assets offered inside various organizations. Diversification

improves establishments by a decline of corporate danger factors, the dispersion of interests

in different areas, the misuse of business openings and the procurement of even and vertical

of organizations. (Moghadam, 2020)

Industrialized or industrialized nations are specific nations with high financial

development that follow financial definition with such financial prerequisites, for example,

the International Monetary Fund (IMF) and the United Nations (UN) and the World Trade

Organization (WTO), just as the Gross Domestic Product (GDP), the Industrialization and

Development Index (HDI). The United Kingdom, Belgium, Denmark, Finland, France,

Germany, Japan, Luxembourg, Sweden, Norway, Switzerland and US are totally evolved

nations as indicated by these definitions. (Moghadam, 2020)

Globalization to maintain economy sustainability 2

Components of Globalization

Gross domestic product, industrialization and the Human Development Index ( HDI)

are the mainstays of globalization. Gross domestic product is a total an incentive for a

nation's general monetary achievement which is the customer estimation of every single

completed item and administrations fabricated at the outskirt of a nation for a year.

Industrialization is a component that, fueled by specialized progression, transforms a country

into a modernized mechanical or agricultural nation and adds to social change and monetary

development. The Human Development Index comprises of three segments: future of a

nation's populace, grown-up proficiency evaluation, and pay instruction. (Vo & Nguyen,

2018)

Globalization brings provincial, homegrown, and sub-public redesign. In explicit, it

incorporates fabricating rearrangement, unfamiliar trade and money related market

convergence. This impacts neoliberal monetary and social ties at a worldwide level by

multilateralism and microeconomic wonders, for instance market rivalry. The rebuilding of

the cycles of improvement impacts the class structure, the business cycle, mechanical

application and budgetary structure and association. (Vo & Nguyen, 2018)

In response to the main question, I strongly agree that globalization is the only way

for a country to achieve economic sustainability both within or between countries. The reason

being globalization has huge impact on a country’s economy, both via FDI flows, GDP

growth and. 2 countries will be selected in order for a robust mode of critical discussion to be

made, one is a developed country which is China and another I will be using a developing

country which is Vietnam. (Moghadam, 2020)

Body of discussions
Globalization to maintain economy sustainability 3

Globalization in China

China, the world's biggest critics of globalization, is very surprising from one nation

in different periods of development, attributable to an absence of worldwide financial request.

Globalization additionally benefits most non-industrial nations through capital, advances, HR

and regulatory abilities. Then again, created nations depend principally on the negative job

that they can utilize other global speculation, front line innovation and aptitudes on the board.

It is a quickly rising economy which benefits China. This happens generally in view

of their low creation and work costs. Numerous Western organizations have moved so as to

select Chinese work. Through its monetary framework, China adequately limited its

destitution by depending principally on exchange and worldwide speculation with different

nations. While the Communist Party has run China's political framework, its procedure and

its approaches have become a greater member in globalization, empowering financial

development and progress. (Chen, 2020)

In 2001, China 's entrance into the World Trade Organization (WTO), by coordinating

the world economy and more globalization, reinforced its economy further. Because of their

participation in the WTO, they reserve the option to give every other part and global people

with non-oppressive treatment. Value covers will not be utilized for this reason to secure

homegrown ventures and specialist co-ops. The World Trade Organization, so as to restore

and re-dispatch Chinese new laws in accordance with the arrangement, required the

guidelines limiting Chinese fare sponsorships on rural items. To upgrade China's fare system

and connect completely in unfamiliar exchange. China must acknowledge the potential under

the WTO that effectively improves its fare framework. China must acknowledge this chance.

(Şimşek, 2019)
Globalization to maintain economy sustainability 4

Be that as it may, it offers China the capacity to change its system and incorporate

with the worldwide economy and have a charming climate in accordance with the WTO rules

for business and unfamiliar speculation. This will decrease the level of political structures

misuse that at that point pulls the record and rankings as China turns out to be more alluring

to worldwide speculators and merchants. "Being trailed by the main flood of unfamiliar

interest in China and the production of non-state firms, China's twofold digits GDP

development was somewhere in the range of 1983 and 1985." (Şimşek, 2019)

"With the Chinese Government's market change of 1988, which brought about frenzy

purchasing and level swelling, development eased back in 1989-1991. Dropping major fixed

venture programs, easing back homegrown interest and diminishing unfamiliar speculation

were therefore by the June 1989 slaughter in Beijing " The administration consented to infuse

4 billion RMB into the economy as a monetary impetus program involving principally

foundation and human resources ventures as of late that began to bring down China's

development rate. (Chen, 2020)

As the rural businesses are currently transformed into urban areas and manufacturing

plants, the industrialization and development in the framework and venture area in China has

definitely decreased the agribusiness area by a level of GDP from 29 percent to 13 percent in

1997 to 2003. It might likewise be that all different areas have created substantially more than

cultivating. This monetary advancement was extremely luring toward the Western

development market, which later finished in the Chinese government globalizing and

liberating a more market-based economy. The new example development rate in Asia is 1.7%

over different countries, on normal 9.4% in the most recent decade. (Chen, 2020)

Globalization permits China to utilize unfamiliar venture better to improve its modern

development. Since work costs are separately low in China, unfamiliar venture turns out to be
Globalization to maintain economy sustainability 5

profoundly appealing. The more work use, the newer specialized businesses may accelerate

the high development, so that China's modern area can contend universally.

Also, globalization has set off an ascent in the measure of exchange before 1978 in

China. Exchange China occurred in a state structure of unfamiliar exchange firms hoarding

all outside exchange. The approach limits imports where sends out just purpose to be paid for

imports. Under the plan, imports were restricted. The cycles have improved fundamentally

throughout the most recent 20 years and the exchange China has developed massively,

expanding the portion of world exchange. (Chen, 2020)

After the globalization, market opening and liberation of the Chinese economy,

unfamiliar direct venture and transnational endeavors (FDI and TNC). In new agribusiness,

innovative enterprises, coordination’s and development, FDI and TNC have advanced this.

They focus on western locales and state-possessed organizations re-designing. Worldwide

capital has been a major development driver. Fast turn of events, notwithstanding, has made a

few issues, for example, high expansion rates in metropolitan territories and monetary

disparity among areas and social classes. (Chen, 2020)

Globalization in Vietnam

In Vietnam, the economy inevitably turned out to be essential for the worldwide

market, after the nation started the "Doi Moi" stage in 1986. Vietnam has reformist increase

to worldwide associations and monetary establishments just as coordinated effort with

different nations for corresponding flourishing, which guarantees it will have the option to

work near help the solidness, popular government, and development of all nations in the

worldwide network. Vietnam re-joined in 1992 and 1993 the World Bank (WB), the IMF and

the Asian Development Bank (ADB). Numerous remarkable worldwide monetary exercises

occurred in 1995. Vietnam acquiesced to ASEAN and consented to the ASEAN Free Trade
Globalization to maintain economy sustainability 6

Region, marked the European Union (EU) Cooperative Agreement and standardized binds

with the USA, and called for enrolment of the WTO. Most eminently, Vietnam turned into

the conventional individuals from the World Trade Organization (WTO) in 2007, following

eleven years of conversation. Vietnam turned into the world's biggest worker's guild, and was

the official member of Asia Pacific Economic Co-activity (APEC). Vietnam has since joined

the greatest play area trade, where the two chances and difficulties are impartial for every

nation. It very well may be summarized, notwithstanding, that over the most recent 20 years

Vietnam has been engaged with unfamiliar consideration and has been effectively engaged

with the cycle of globalization for a long time from 2007. (Vo & Nguyen, 2018)

In 2007 Vietnam turned into the official partner of the World Trade Organization

(WTO), the world's principle exchange associations, following eleven years of talks. Vietnam

has since joined the greatest play area trade, where the two chances and difficulties are even-

handed for each country. It can be summarized, notwithstanding, that over the most recent 20

years Vietnam has been associated with unfamiliar consideration and has been effectively

engaged with the cycle of globalization for a long time from 2007. (Vo & Nguyen, 2018)

In 2007 Vietnam turned into the official member of the World Trade Organization

(WTO), the world's fundamental exchange associations, following eleven years of talks.

Vietnam has since joined the greatest play area trade, where the two chances and difficulties

are even-handed for every nation. In a nutshell, Vietnam has occupied with the worldwide

joining measure throughout the previous 20 years and for a long time since 2007 has

effectively partaken during the time spent globalization. (Nathan, 1999)

I. Globalization advantages and prospects for the Vietnamese economy

Incorporation into the world market has offered the Vietnamese economy numerous

genuine focal points and prospects.1. Expanded income from trades Fare turnover has
Globalization to maintain economy sustainability 7

steadily developed since 1990, when Vietnam joined ASEAN in 1995 and expanded firmly

when Vietnam joined the WTO in 2007 because of entrance into the worldwide and

worldwide economy. The ascent in send out deals is found in the table underneath

In 2007, trade turnover in the nation hit USD 48 billion, 21.3% over 2006 or more the

administration's 3.1% objective. Fish, rice, espresso, vegetable, elastic, cashew nuts and

pepper were Vietnam's primary fare items with quick fare turnover. (GSO) GSO

A sharp ascent in send out turnover in the nation brought about the second year of

World Trade Organization. In 2008, trade income added up to 62 billion dollars, up 29.5

percent from 2007. (Moghadam, 2020)

Fare incomes of 56.6 billion U.S. dollars in 2009 were required to decay by 9.7

percent in 2008. However, during the downturn, rates plunged. In 150 nations and regions,

Vietnamese merchandise have been broadly sent out, remembering for some spots work

devouring areas, for example, garments, footwear and gadgets that are profited by WTO

individuals. (Nathan, 1999)

The article of clothing and apparel industry is a case of quick changes in sends out

since entering the WTO. Following US$ 7.7 billion in the fare of those merchandise in 2007,

Vietnam has developed as one of the world's 10 greatest exporters of materials and clothing.

The US market represented 56 percent of the worldwide income, driven by the EU (1,45

billion – 1,65 billion dollars) and Japan (700 million dollars). (Nathan, 1999)

2. Fast FDI Investment (FDI) increment)

Vietnam is an alluring objective for worldwide speculators as a WTO member. In

2008, FDI Recorded rose to US$ 71,000,000,000 contrasted with just US$ 12,000,000 out of

2006. Despite the fact that responsibilities made by FDI dove to $21.4 billion a year ago
Globalization to maintain economy sustainability 8

because of the worldwide money related emergency, the measure of duties continued as

before as before 2007. (Nathan, 1999)

For the three years under WTO enrolment, Vietnam's total detailed FDI hit $114

billion, 4.5 occasions the 2006-2010 objective. In it, in the course of recent years $29.5

billion was paid out. Over the most recent 20 years, the information for FDI in Vietnam are

summed up in the following table:

3. Affectability, resilience and productivity increment for organizations

WTO participation implies that Vietnam enters an enormous "play area" on which

Vietnamese organizations need to manage huge and intensely subsidized goliath players-huge

worldwide companies. Furthermore, decreases in customs obligation and steps against levies

have made the homegrown economy more alluring prompting the broadening of the

administration market. Every one of these causes have provoked combination and personal

growth of homegrown firms (both state- and privately-owned businesses). Vietnamese firms

have spent assets to normalize their cycles and items since they are aware of these challenges.

A huge number of Vietnamese organizations have arrived at worldwide prerequisites

in assorted businesses, including article of clothing, transportation, utility, media transmission

and food make: ISO 9000, ISO 14000. What's more, they have entered new regions, for

example, Europe, the Middle East and Africa notwithstanding existing business sectors, for

example, the US, Japan. Representative readiness and top-notch staff are being invested with

additional energy. Co.opmart, the Hoang Anh Gia Lai party, the Sai Gon vacationer and the

VNPT are a few huge Vietnamese organizations that have a decent intensity. This is likewise

a motivating force for state-possessed organizations to rebuild their exercises forthcoming

public wellbeing and appropriations. Something else, and on the homegrown market they
Globalization to maintain economy sustainability 9

would be crushed. The Vietnamese firms would then turn out to be more fruitful and viable

under market tension. (Nathan, 1999)

4. More beneficial administrative system for exchange

Worldwide financial joining and WTO participation have offered Vietnam an

occasion to refine its approach and lawful structure, to be more straightforward, economical

and unsurprising, to stick to WTO rules and to add more global speculators to the market. For

instance, the Foreign Investment Legislation accommodates adaptable foundation guidelines

'Undertakings with unfamiliar venture can change the speculation structure to separate, join

or incorporate it with others. Set up joint endeavours can, in specific situations, become

completely claimed global capital organizations. Also, a joint association with a

neighbourhood accomplice isn't compulsory. Worldwide speculators reserve the option to

browsed three sorts of venture set down in the Foreign Investment Act. (Nathan, 1999)

The managerial outstanding burden has likewise been sliced from 60 working days to

45 working days for ventures in the class of assessment and issuance of speculation licenses,

and for ventures in the classification of speculation licenses enrolment to 30 working days.

Also, almost 5,700 authoritative papers at the sum total of what stages have been considered

in Project 30 of the Government to reinforce managerial change. It would annul excess or

undesirable records. A 30 percent cut in all legitimate papers has been declared by the Prime

Minister. Vietnamese government builds up internet business and e-government to improve

the administrative cycles, along these lines making productive relations between divisions,

firms and residents. (Nathan, 1999)

Vietnam is presently viewed as a full enrolment of the WTO as an individual from the

WTO. The atmosphere for creating worldwide business sectors in Vietnamese organizations

is sheltered. At the point when exchange debates happen, they ought to be gotten comfortable
Globalization to maintain economy sustainability 10

consistence with the WTO compromise measure. "An unfamiliar court will be administering

Vietnamese organizations, which implies we have more advantages to guard our own

advantages." (Ho) As in the past "catfish-war" situation, Vietnam's tra-and basa unloading

questions, for example, homegrown law is not, at this point an activity and we can implement

such real retaliatory instruments in the light of WTO codes. Over the span of making

unfamiliar exchange approaches and taking a section making an all the more reasonable and

objective global exchange association framework Vietnam would have equivalent remaining

with different nations. (Nathan, 1999)

Conclusion

Based on the discussion done above, we can clearly come to a understanding that

globalization is paramount for any country to improve on themselves and also to achieve

economic sustainability, as globalizations would also require the nation to improve on

themselves in order to do business globally. This as a result would drive up economic

development in any country thus the sustainability both within and between the countries.
Globalization to maintain economy sustainability 11

Reference List

Vo, X., & Nguyen, D. (2018). Vietnam and Other Asian Countries in the Process of

Globalization. Asian Journal of Law and Economics, 9(1). https://doi.org/10.1515/ajle-2018-

2001

Chen, Z. (2020). Globalization and global governance. China International Strategy Review.

https://doi.org/10.1007/s42533-020-00050-y

Şimşek, O. (2019). Transformation of Globalization and the Role of China. Sosyoekonomi,

185-196. https://doi.org/10.17233/sosyoekonomi.2019.02.11

Nathan, M. (1999). Vietnam: Is Globalization a Friend or a Foe? Southeast Asian Affairs

1999, 1999(1), 339-357. https://doi.org/10.1355/seaa99t

Moghadam, V. (2020). What was globalization? Globalizations, 1-12.

https://doi.org/10.1080/14747731.2020.1842095
Globalization to maintain economy sustainability 12

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