Economic & Demographic Changes: Impact of Globalization & Policy | Môn Business Analysis and Valuation - Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

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1. How do economic organization and spatial changes affect Demographic, Political, Cultural,
Social, and Technological Changes?
Demographic changes refer to shifts in population characteristics, such as population growth,
changes in fertility and mortality rates, and alterations in the age distribution. These changes can
be influenced by economic organization and spatial shifts. For instance, Dubai, originally a small
fishing village, experienced a significant population increase and transformation into a global city
and business hub after the discovery of oil in the 1960s. This development attracted immigrants
seeking job opportunities and led to the construction of remarkable structures like the Burj
Khalifa, contributing to the city's growth.
Political changes can be influenced by economic organization as well. Changes in economic
structure can affect political stability and lead to shifts in governance and policy. For example, the
resignation of Nguyen Xuan Phuc, the president of Vietnam, after the departure of two deputy
prime ministers, signifies a major political leadership transition in the country. This highlights how
modifications in the economic structure can result in alterations in political structures.
Political changes can also involve policies implemented to address specific circumstances. For
instance, during the Covid-19 pandemic, the Vietnamese government enacted various support
measures for businesses, including tax reduction, tax deferral, and loan support. These policies
exemplify political changes aimed at assisting companies facing difÏculties during the crisis.
Cultural changes can occur from interactions between economic factors and the local culture.
Global brands, such as Starbucks, often adapt to the local culture when expanding into new
markets. In Hoi An, Vietnam, for instance, Starbucks created a rustic and ancient ambiance
distinct from its modern image in other countries, highlighting the brand's flexibility and
adaptability to local cultural preferences. This demonstrates how culture can change and evolve over time.
Cultural changes can also be observed in celebrations and traditions. For example, in Vietnam,
the nature of Tet (Lunar New Year) celebrations may change depending on the state of the
economy. If the economy is strong, people might have more disposable income to spend on
festivities, resulting in grander and livelier celebrations. Conversely, during periods of economic
weakness, people might choose to scale back their celebrations. lOMoAR cPSD| 59085392
Technological changes have a profound impact on society. Food delivery apps, such as Shopee,
Baemin, and Lazada, have revolutionized the way people order food and beverages in major cities
like Ho Chi Minh City and Hanoi. This technological advancement has provided convenience and
transformed the food industry.
Technological changes can also influence work arrangements. For instance, in Singapore, the
encouragement of remote work during the Covid-19 pandemic has led many companies to adopt
a work-from-home model. This shift has spurred the development of technologies that support
remote work, including online meeting applications, online project management tools, and online learning platforms.
Social changes encompass transformations in societal norms, values, and behaviors. In many
parts of Africa, traditional beliefs and financial constraints previously prevented women from
accessing education. However, in recent decades, various stakeholders, including non-
governmental organizations, the international community, and African governments, have
implemented educational programs to expand educational rights for women. These initiatives
have not only improved educational opportunities for women but have also contributed to the
overall economic and social development of the countries involved.
2. Why is the role of women important in society?
In the new generation and the era of Industry 4.0, women play a significant role in shouldering
the economic responsibilities of their families, moving away from the traditional notion that such
responsibilities solely rest on men. Women are now taking on leadership positions in companies,
creating job opportunities, and contributing to the overall GDP, thereby driving economic growth.
A notable example is Nguyen Thi Phuong Thao, the founder, and Chairwoman of Sovico Holdings
in Vietnam, who is not only the wealthiest woman in the country but has also made substantial
contributions to its economic development.
In addition to their economic contributions, women hold crucial roles in the social sphere,
particularly in areas like health and education, influencing the development of the next
generation. When women possess rights, access to education, and knowledge, they are better
equipped to care for their families and children. For instance, they can understand and maintain
a balanced diet by having knowledge of the various nutritional components in daily food.
Furthermore, women often take the lead in social movements, advocating for rights, equality, and justice. lOMoAR cPSD| 59085392
Recognizing and empowering women is not merely a matter of fairness and equality; it is a
prerequisite for societal progress and prosperity. Their active participation and contributions are
essential for the advancement of society.
3. Why can developed countries control HIV/AIDS?
In developed nations, individuals undergo regular HIV and AIDS testing on a monthly, quarterly,
or yearly basis, supported by comprehensive government policies. This proactive approach allows
countries to promptly identify cases and provide initial treatment, effectively preventing the
spread of the diseases. In some instances, the costs of testing and treatment are even covered by
the state, ensuring that individuals have access to necessary healthcare without financial barriers.
Phần developing nation (nếu hỏi thêm): To address the issue of providing continuous care,
developing countries need to strengthen the foundational elements of their national health
systems. These essential "pillars" are crucial for ensuring equitable and sustainable delivery of
treatments. The World Health Organization (WHO) has been working with countries and partners
to establish the following key components of the "HIV/AIDS health systems platform": 1)
Workforce procedures: This involves implementing measures to ensure anadequate
number of skilled healthcare workers, appropriate workforce placement, and safe working conditions. 2)
Procurement and distribution systems: Having effective systems in place for procuring and
distributing drugs and other necessary items is essential for delivering healthcare services. 3)
Fair financial systems: It is important to establish financial systems that protect individuals
from being pushed into poverty due to healthcare expenses while they are sick. 4)
Health information systems: Robust health information systems are necessary to provide
decision-makers and health system managers with timely information about individuals who may
otherwise fall through the cracks.
Among these components, the availability of a skilled healthcare workforce is particularly crucial.
For instance, the WHO has estimated that in sub-Saharan Africa, 682 million people may be
served by 600,000 health personnel. This ratio is significantly different from countries like Canada,
where 500,000 health workers serve a population of 31 million (about the population of lOMoAR cPSD| 59085392
California). If a similar ratio were applied, sub-Saharan Africa would require 10 million health
workers. To ensure access to basic healthcare services for everyone in the region, it is estimated
that between a third and four times the current number of health workers would need to be employed.
4, Why do developing countries easily fall into a debt trap?
The susceptibility of developing countries to falling into debt traps can be attributed to a
combination of factors. One primary reason is the high interest rates imposed on these countries
when they borrow funds. Lenders often perceive these countries as risky investments, resulting
in inflated interest rates. This creates a vicious cycle where the country is compelled to borrow
more to service its existing debts. The impact of high interest rates leading to a debt trap is
evident in the cases of Ghana and Sri Lanka. Rising interest rates have triggered capital flight,
currency depreciation, and increased borrowing costs in these developing economies, pushing them into debt distress.
Furthermore, developing countries are more vulnerable to economic shocks. These shocks can
range from fluctuations in commodity prices to natural disasters or global economic downturns.
Such events can further hinder their ability to repay debts. Structural issues also play a significant
role. Many developing countries struggle with weak institutions, corruption, and poor
governance, which impede effective debt management. Moreover, these countries often heavily
rely on external financing for development projects. If these projects fail to generate the expected
returns, it can lead to increased debt levels.
In conclusion, it is crucial for developing countries to implement sound fiscal policies, improve
governance, diversify their economies, and negotiate fair borrowing terms to avoid falling into
the perilous debt trap. By addressing these underlying issues, countries can better manage their
debts and mitigate the risks associated with borrowing.
5. What happens if the poor countries cannot return money to the dominant countries?
To repay their debts, nations are often required to fulfill certain conditions imposed by the
dominant countries. For example, countries with elevated levels of debt may need to export their
goods at lower prices or even provide them for free. Additionally, these nations may seek
international aid from nonprofit organizations to reduce their debt burden. To generate financial
resources and repay the dominant countries, the indebted nation may also need to strengthen
its cooperation with other nations globally. To repay their debts, nations are often required to
fulfill certain conditions imposed by the dominant countries.
6. Why should we think about “Think Global- Act Local”? lOMoAR cPSD| 59085392
The concept of "Think Global, Act Local" urges individuals and organizations to consider the needs
of their local communities while also considering the global implications of their decisions. It has
been applied in various areas such as urban planning, environmental sustainability, education,
and business. The phrase encourages individuals to have a global perspective and actively
participate in their local communities and cities.
There are several reasons why it is important to act locally while thinking globally. Firstly, it
emphasizes the importance of adopting a global mindset and taking responsibility for addressing
urgent issues through targeted actions. It promotes the idea that we should incorporate
environmentally friendly solutions into our daily choices and behaviors instead of waiting for
major breakthroughs to "fix the world."
Secondly, this philosophy extends beyond individual behavior and is relevant to corporate,
governmental, and personal conduct. For businesses, it highlights the need to adapt branding and
marketing strategies to suit specific regional audiences. For example, Vie ON, a popular OTT
platform in Vietnam, exemplifies the "Think Global, Act Local" approach by employing various
strategies to optimize image quality for different devices. It demonstrates how a Vietnamese
company has successfully combined local demands and preferences with a global perspective on
technology and content standards.
In conclusion, "Think Global, Act Local" is a powerful approach that encourages us to be mindful
of our impact on the world while taking tangible steps at the local level to bring about positive
change. It recognizes the interconnectedness of global challenges and the importance of
grassroots actions in creating a sustainable and inclusive future. 7. What are the physical, social, cultural, political, and environmental phenomena/processes/patterns?
Our universe encompasses several types of phenomena, processes, and patterns across different
domains. Here is a summary of each: 1.
Materials/Processes/Physical Phenomena: This refers to observable and quantifiable
natural phenomena or processes. Examples include meteorological patterns, wave propagation,
erosion, and natural disasters like earthquakes and hurricanes. It also encompasses patterns seen
in nature, such as symmetries, spirals, and stripes. lOMoAR cPSD| 59085392 2.
Social Phenomena/Processes/Patterns: Social phenomena are behaviors, ideas, and
actions that occur within a community or group of individuals.
Examples include competition, conflict, marriage, divorce, and immigration.
These occurrences exhibit social patterns, which are like the spatial and geographical aspects of cultural groupings. 3.
Cultural Phenomena/Processes/Patterns: Cultural phenomena encompass the shared
customs, values, and behaviors of a society. Examples include language, religion, ethnicity, and
gender, which vary across various locations and regions. Cultural patterns and processes also
involve the spread of culture and its characteristics over time and place. 4.
Political Phenomena/Processes/Patterns: Political phenomena pertain to governance
structures and procedures. Examples include political possibilities, framing processes, mobilizing
structures, protest cycles, and contentious repertoires. The spatial and geographical
characteristics of political groups reveal political patterns. 5.
Environmental Phenomena/Processes/Patterns: These refer to the patternsand processes
that occur within ecosystems. They can be influenced by endogenous ecological processes, such
as species interactions, as well as exogenous environmental factors like climate. The examination
of the spatial structure of ecosystems is crucial for understanding ecological processes and
developing sustainable management strategies.
Overall, these phenomena, processes, and patterns contribute to the multidimensional nature of
our universe, encompassing physical, social, cultural, political, and environmental aspects.
8. Please explain why the economic organizations (foreign companies/global firms) invest their
economic activities in one country; they cause many changes in technology, politics, culture,
society, demography, and environment on different scales of global, regional, and local. Give examples
Developing nations can increase their income and employment by encouraging exports and attracting
foreign investment. They can also strengthen the operations of their domestic private sector businesses and lOMoAR cPSD| 59085392
raise the necessary funds for development by transferring technology and management knowledge.
• Demographic changes: Since global economic changes, demographic changes have been followed.
Ex: In the past, if you studied in provinces where you could not afford it, you had to study at a local school,
but today, because of the development of social and academic levels, students can move to big cities such
as Ho Chi Minh City to study and enjoy the better educational environment, particularly for International University. • Political changes:
• The government should adjust policies to attract investmentand support for the firms.
Ex: Lower land taxes. The Government in Viet Nam has issued many policies. It supports land for
businesses such as a 50% reduction in land rent for 2011-2014 and an adjustment to
reduce the rate of calculating the available land rent from 1.5% to 1%.
• The government adjusts policies about the environment.
Ex: Formosa Ha Tinh seriously pollutes the marine environment causing mass fish deaths in four centrals
provinces from Ha Tinh to Thua Thien - Hue. This led to the government's new policy about
the standard methods that the firms must follow to protect the environment.
• Labour: Protect labor by adjusting labor salary policy, rights, and obligations, and control the
firm’s labor salary policies. • Culture changes:
• Change in the culture of customer services:
Ex: Southwest Airlines have a substantial change in culture turning fileoriented into the employee experience they
invest in and building a superior experience for the staff to improve business performance. • Online shopping: lOMoAR cPSD| 59085392
Ex: During Covid-19, people worldwide are blocked in houses to protect their health before the virus, so
they must buy products on social platforms such as Lazada, Shopee, and Tiki which became popular at that time. • Social changes:
Ex: - Women can go to work and participate in social activities such as leaders in
companies but not stay at home as before,
• People think more openly about gender such as marriage same sex. • Marry foreigners.
• Technological changes: Developing technologies lead to techuse in any industrial firm.
Ex: Banks transform money systems and encourage using mobile money to transfer money to employees. 9. Compact: Advantage: •
Easy to manage: Smaller states are often easier to govern and manage compared to larger
states due to their smaller geographic size and population. •
Improved communication: Smaller states can facilitate better communication and
coordination among their citizens and government authorities, leading to more efÏcient decision- making processes. •
Easier to defend: Smaller states may have advantages in terms of defense and security as
their smaller borders can be more easily monitored and protected. Disadvantage: •
Limited natural resources: Smaller states may have fewer natural resources compared to
larger states. This can pose challenges in terms of economic development and resource
sustainability, as they may have to rely more on imports or find alternative ways to support their economies. 10. Elongated: Advantage: lOMoAR cPSD| 59085392
• Diverse landscapes: The country offers a range of landscapes, including mountains and rivers,
which can provide opportunities for various economic activities such as tourism, agriculture, and water-based industries.
• Suitable location for sea and river economies: The country's location, with access to both the
sea and river systems, can be advantageous for engaging in maritime trade, fishing, and delta
river agriculture. This can contribute to economic growth and development. Disadvantage:
• Defense challenges: The country's geographical features, such as difÏcult terrain or long
coastlines, may pose challenges in terms of defense and security. Protecting borders and
coastal areas can require significant resources and strategic planning.
• Governance difÏculties in peripheral areas: The country's size and geographic location may
make it challenging to effectively govern and provide services to remote or peripheral regions,
particularly in the north and south. This could lead to disparities in development and access to
resources and services between different areas of the country. 11. Core periphery model:
• Wealthy and developed countries like the USA, Japan, Europe, and Australia.
• Economically and culturally significant.
• Active participants in the global economy.
• Centers of innovation, creativity, and technological advancements.
• Dominated by service industries.
• Rich and powerful nations with control over media and finance.
• Exploit resources and labor from less developed countries. Semi-Periphery model:
• Middle or developing countries such as most of Asia, Latin America, Saudi Arabia, and Iran.
• Benefit from the global economy.
• A mix of agriculture, manufacturing, and shifting towards service-based industries. lOMoAR cPSD| 59085392
• Increasing urbanization and economic growth.
• Exploit resources and labor from poorer countries while being exploited by wealthier nations. Periphery model:
• Poor countries such as the Middle East, Togo, Zambia, and Ghana.
• Lagging in benefiting from globalization.
• Economies primarily based on resource extraction or agriculture.
• Exploited by more developed countries for their labor and resources.
12. No governmental organization, economic organization, Spatial changes
A non-governmental organization (NGO) is an organization that operates independently of any
government and is typically not-forprofit. NGOs, also known as civil society groups, are
established at local, state, and national levels to advance social or political objectives, such as
environmental conservation or humanitarian causes.
NGOs can focus on various issues such as healthcare, emergency medical assistance, education,
infrastructure development, advocating for minority rights, supporting the impoverished, or
reducing crime. These organizations play a crucial role in addressing societal needs and
promoting positive change.
Economic organization refers to the coordination of various factors of production, including
land, labor, and capital. It is an essential aspect of large-scale contemporary production.
Entrepreneurs, often referred to as organizers or captains of industry, play a vital role in
economic development. The actions and initiatives of entrepreneurs have been instrumental
in the economic progress of many wealthy countries like the United States and the United Kingdom.
Economic organization can be categorized into several types: 1.
Sole proprietorship: A business owned and operated by a single individual. lOMoAR cPSD| 59085392 2.
Partnership: A business formed by two or more individuals who share ownership and responsibility. 3.
Joint Stock Company: A business entity with ownership divided into shares of stock held by shareholders. 4.
Cooperative Organization: An organization owned and operated by its members who
share common goals or needs. 5.
State Undertakings: Economic activities managed and operated by the government.
The “Spatial change” refers to changes that occur in a specific area or location. Monitoring
variations in the Normalized Difference Vegetation Index (NDVI) across different zones within
an area can help identify stressed vegetation, distinguish distinct species, indicate changes in
weather conditions, and serve other purposes related to distinguishing characteristics and patterns.