Markets Around the Globe
Increasing Foreign Investment
South Korea in Vietnam
The article, “South Korea Tops Sources of FDI in Vietnam” (2007) published in Asia Pulse News, states that South Korea has turned out to be Vietnam’s largest foreign investor. As a matter of fact, South Korea has replaced Singapore in this context by significantly increasing its foreign investment in Vietnam. South Korea’s total investment in Vietnam has increased to U.S. $10.33 billion in 2007. In the year 2006, the total investment had amounted to U.S. $2.7 billion only.
South Korea plans to continue investing heavily in Vietnam. The Vietnamese sectors in which South Koreans show the greatest amount of interest include entertainment, urban development, in addition to various high-priced property projects such as the building of the Landmark Tower in Hanoi – a seventy storey edifice expected to cost approximately U.S. $1.05 billion.
The Burgeoning Indian Market
“Funding Corporate India” (2006) published by The Economist Intelligence Unit describes India as the leading emerging market in Asia in terms of “private inflows from equity and debt issued and loans raised overseas by domestic companies.” India’s growth in this respect has averaged around fifty one percent every year. The country raised approximately U.S. $16 billion through equity issues as well as overseas borrowings in the fiscal year 2005-2006 – an immense increase of seventy five percent over the fiscal year 2004-2005.
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The article further explains the reason for the growth in foreign investment being experienced by India in our times. To put it simply, Indian businesses are refurbishing the old and building the new by exploring all domestic and foreign avenues to accumulate funds. What is more, these businesses find foreign funds available to them at low costs and with greater speed and flexibility.
The article, “China: Tianjin Rising” (2007) published in the Emerging Markets Monitor describes the rise of Tianjin as the third most important financial center of China. Providing statistics on the financial center, the article further explains that the city of Tianjin is where China tests new financial market reforms in addition to economic policies. Moreover, the city is located on the Bohai Sea, with easy access to the markets of Japan, South Korea, and many other nations. This is the reason why the city has managed to attract “significant FDI” with a value of roughly U.S. $20 billion (“China: Tianjin Rising”). Organizations such as Motorola, Toyota, Airbus, Samsung and GlaxoSmithKline are all represented in Tianjin at present. The city’s exports increased to U.S. 22.6 billion in the year 2006.
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Top Five Issues in Global Sustainability
The top five issues in global sustainability are the following: climate change, “energy efficiency, clean and adequate water, fresh air, and sufficient food for an expanding population (“AGS Research Portfolio”).”
Global warming may eventually put an end to human life as we know and live it. The rising of sea levels may lead to an increasing number of hurricanes. An ice age may also result. All the same, a vast number of scientists are of the opinion that the effects of global warming may be reversed by human beings, who also happen to have impacted the greenhouse effect by their actions. By burning fossils more efficiently, for instance, we may be able to counter the adverse effects of global warming (“Global Sustainability Issues,” 2006).
The Alliance for Global Sustainability describes this important issue in global sustainability thus: “Energy production and consumption lie at the very heart of economic development. While ensuring that energy demand by the world’s burgeoning population is met, all countries of the world today are concerned with achieving the ‘3 e’s’: environmental protection, energy security, and economic development (“Energy and Climate Change”).” Undoubtedly, this issue in global sustainability overlaps with the issue of climate change.
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Clean and Sufficient Water
Consumption of energy lies at the very heart of modern life. Even so, the need for clean as well as adequate water is equally if not more important than our need for energy. The Alliance for Global Sustainability describes this need thus: “Access to water is a key condition for food production and economic development. Water shortages contribute to poverty and starvation and severely constrain industrial development. Yet today, more than 2 billion people are living in areas of the planet affected by severe weather stress and that number is expected to grow to over 4 billion over the next 25 years (“Water and Agriculture”). What is more, life on earth cannot continue without adequate water. Likewise, health is impossible to maintain without clean water.
Controlling air pollution is another issue of immense importance in global sustainability. The control of industrial pollution, in particular, would also have an impact on climate change.
Our world cannot sustain consumption patterns like those of Western Europe in diet. It seems that Malthus’ urgency in dealing with the food problem with respect to population had only the Western Europe style consumption patterns in view. The world as a whole does not identify with affluence and extravagance. All the same, it is the global economist’s task to address the issue of bettering living standards for all people occupying the planet. Sustainable consumption,
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then, includes a distribution of affluence to some extent. “Respecting the limits of the planet’s environment, resources and biodiversity,” we cannot disrespect the planet’s human resources (“Securing the Future,” 2005). Besides, our resources for food production have limits that we must respect to ensure that famines such as those of Africa become rarer over time.
Africa and the Integrated World Market
Africa’s integration into the world market entails the opening up of its economies to the forces of the global market. An accompaniment to this integration is consumerism. Moreover, “indigenous cultural production” must now be replaced by “mass-produced imported products (Adams & Goldbard, 2007).” The privatization of public companies has been encouraged by the integration (Adams & Goldbard). African industry must additionally become more export-oriented so as to reap the true benefits of globalization (“African Industry 2000,” 2005).
Kwain writes that the African culture has been influenced by the continent’s integration into the world market as the Africans are increasingly becoming individualistic and materialistic – traits that are typically associated with the Western culture. Furthermore, the people of Africa are realizing the need to learn international English so as to increase their trade in the world market.
The integration of Africa into the global market additionally involves multinational enterprises bringing changes in the corporate environment, both in terms of the business culture and technological expertise. In point of fact, globalization has facilitated the incorporation of
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swift technological changes in addition to the development of new management abilities that the African countries did not appear to be in a position to achieve on their own. The most important change in terms of the organizational culture in Africa is the adoption of information technology by African businesses. Today, an increasing number of African organizations are considering information technologies to improve themselves (Costa, 1999).
Culture of an African Republic: Ethiopia
The diverse culture of Ethiopia incorporates a variety of languages spoken by approximately eighty ethnic groups. The literature of this northeastern African republic mostly consists of translated Hebrew and Greek religious texts into Ge’ez – one of the oldest surviving languages on our planet – in addition to Tigrigna and a modern dialect of Amharic. The Ethiopian Orthodox Tewahedo Church continues to use Ge’ez. The Church has its own special customs, despite the fact that it is known to have been heavily influenced by Judaism (“Culture,” 2007).
The culture of Ethiopia is largely patriarchal. Men are granted more freedom than the females. Additionally, men are known as breadwinners, whereas women are expected to remain as housewives. Both sexes use woven cotton for their clothing. Their traditional costume is known as Netella or gabbi, which women adorn with colored embroidery for themselves. Their national dish is known as wat – spicy, hot stew which is typically consumed with injera or spongy, large pancake made with water and flour. Coffee, too, is a favorite of the Ethiopians. Their traditional coffee ceremony for roasting, grinding, and sharing coffee in small cups is a
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celebrated event. Other events of cultural importance in Ethiopia include Saints Days, other festivals of a religious nature, and weddings (“Culture”).
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Adams, D., & Goldbard, A. (2007). Community, Culture, and Globalization. The Community
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Costa, P. D. (1999). Africa: Globalization and the Information Age. University of Pennsylvania –
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Global Sustainability Issues. (2006, Nov. 24). City of York Council. Retrieved Oct.
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Kwain, Y. The Impact of Globalization on African Culture. University of Southern Denmark.
Retrieved Oct. 14, 2007, from http://www.csus.edu/org/capcr/documents/archives/2006/ConferenceProceedings/kwame.pdf.
Securing the Future: Delivering UK Sustainable Development Strategy. (2005). Defra. Retrieved
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South Korea Tops Sources of FDI in Vietnam. (2007, Aug. 22). Asia Pulse News. Retrieved Oct.
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