Group 3 - Ib1604 - Ibc201
Group 3 - Ib1604 - Ibc201
Group 3 - Ib1604 - Ibc201
Cantho, 07/2022
TABLE OF CONTENTS
I. ABSTRACT................................................................................................................................1
II. INTRODUCTION....................................................................................................................1
1. What is international business?.........................................................................................1
2. What is international trade?..............................................................................................2
2.1 There are two methods to understand international trade....................................2
2.2 Benefits and drawbacks of global trade...................................................................2
3. Business theory of culture..................................................................................................3
3.1 Organizational culture traits....................................................................................3
4. Global issues........................................................................................................................5
4.1 Safety and Welfare.....................................................................................................5
4.2 Unemployment...........................................................................................................6
4.3 Corruption..................................................................................................................7
5. COVID-19 Pandemic..........................................................................................................8
III. METHOS...............................................................................................................................10
1. Objectives..........................................................................................................................10
2. Methos................................................................................................................................10
IV. RESULT & DISCUSSION...................................................................................................11
1. The effects of the global economy before the pandemic, during the COVID-19
pandemic................................................................................................................................11
2. The effects of the global economy after the COVID-19 pandemic...............................17
3. Barriers to international business...................................................................................19
Tariffs..............................................................................................................................22
Quota...............................................................................................................................22
Non-tariff barriers.........................................................................................................23
4. Ethics in business..............................................................................................................23
4.1 Using labor................................................................................................................24
4.2 Environment.............................................................................................................24
4.3 Food safety................................................................................................................24
4.4 Ethical obligations of multinational corporations................................................25
5. Strategies and plans to solve the problem......................................................................25
V. CONCLUSION.......................................................................................................................27
VI. REFERENCES......................................................................................................................27
I. ABSTRACT
The Coronavirus (COVID-19) pandemic has been and is a public health threat, it
poses dangers to our lives and it is also a world economic threat. All countries, advanced
or less advanced economies are severely affected and are facing limitations in their
resource capacity with shortages becoming more acute in developing countries. The
Covid-19 pandemic is also the most serious economic challenge, even more, profound
than the Global Financial Crisis of 2008-2009. In 2020, the world economy will shrink
by 3.5%. For developing countries, which are heavily dependent on services, the impact
is especially severe. Southeast Asia's growth slowed by 3.9% due to a loss of
international tourism revenue, a decline in private sector investment, and a decline in
activity in the construction and mining sectors. The purpose of this paper is to present
global business issues and the impact of the pandemic on the world economy. This
current crisis is creating spillover effects throughout the supply chain. As a result,
countries that are heavily dependent on foreign trade are more negatively affected.
Besides, we can assess the industries seriously affected by the pandemic and come up
with appropriate solutions to revive the global economy.
II. INTRODUCTION
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2. What is international trade?
When used in a limited sense, international trade refers to the trading and
exchanging of physical items between nations to produce advantages that domestic trade
and exchange activities do not have or cannot match. International trade is appreciated
and understood in a broader sense, not just as a trade-in tangible item but also as a trade-
in good, along with the growth of international economic relations, especially in recent
decades. Intangible commodities, services, and investing for financial gain are also
included in this category of activities.
A very broad definition of international trade embraces all commercial activity on
the global market, including international trade and investment activities, from the
purchase and sale of physical manufacturing to services. such as transportation, tourism,
information, insurance, finance, credit, etc.
International trade can benefit nations by boosting their economies and those of
other nations with which they conduct business, but it can also reward big corporations
by boosting their profits. There is no market for small companies, such as national trade
and sales, which can aid businesses in growing their networks, connecting with new
clients, and generating considerable economic growth. International trade, however, can
also disadvantage small businesses because they cannot reach the same number of
consumers and offer the same pricing, including family-owned and local businesses'
competitive balance.
Participating in international trade not only helps nations develop their economy
but also enables them to set prices and rules that benefit all parties. Collaboration and
teamwork are essential for establishing a regulatory framework because they foster
positive political ties among trading states. International commerce can benefit the
economy of all parties involved because it creates new markets for countries to sell their
commodities on while also supplying the receiving nations with employment
opportunities and consumer goods. Global trade, however, can also harm the
environment because it necessitates the use of fuel-powered ships and aircraft for the
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manufacture and movement of goods and products. Global trade ultimately has the
potential to benefit society as a whole while harming smaller businesses and allowing the
biggest and most dominant firms to dominate the market.
For instance, the industry of export and import. Exporting is the act of shipping
commodities made in one country to another for consumption. Bringing products made
elsewhere into the nation for consumption is the process of importation. Local export
activities may also be included in export activities. Local exports have a similar economic
impact to exports even though the commodities haven't yet crossed international borders.
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The degree to which accuracy in work is expected of employees is determined by
this aspect of the corporate culture.
A culture that values attention to detail highly expects its workers to do their tasks
accurately, in contrast to a culture that values this quality less highly.
How this value of organizational culture is emphasized by results-focused and
non-results-focused businesses.
A corporation with a high-value culture that emphasizes result characteristics tells
its sales team to do whatever it takes to win orders.
Companies that embrace this aspect of their organizational culture also value how
decisions they make will impact all of their employees.
These businesses recognize the value of treating their staff with decency and
respect.
There is a widely held belief that organizational culture tends to moderate or erase
the impact of national culture. The logic of such conventional wisdom is that if a U.S.
MNC set up operations in, say, France, it would not be long before the French employees
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began to "think like Americans." Evidence is accumulating that just the opposite may be
true.
Hofstede’s research found that the national cultural values of employees have a
significant impact on their organizational performance. The cultural values employees
bring to the workplace are not easily changed by the organization. So, for example, while
some French employees would have a higher power distance than Swedes and some a
lower power distance, chances are “that if a company hired locals in Paris, they would,
on the whole, be less likely to challenge hierarchical power than would the same number
of locals hired in Stockholm.”
4. Global issues
Global concerns are matters of concern that affect the entire world on an
economic, social, and political level. These issues impede human growth in terms of
social and economic development. Here is a list of some of the pressing global concerns
that must be addressed for society to advance.
Some of the most urgent issues of our time are those related to security and
wellbeing. Millions of people around the world are impacted by issues like terrorism,
cybercrime, and natural catastrophes. Politicians, corporations, and international
organizations are all prioritizing these challenges. For instance, the State permits the
development of a park or a kindergarten in a neighborhood or industrial park. Then,
everyone enjoys the same benefits, including residents of residential regions and
employees of industrial zones. Another example is the fact that when hospitals are built,
people don't care who will be treated there, whether they are wealthy or not instead, they
just consider what categories of diseases can be treated for each patient hospital type.
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Everyone who requires medical care at that time will get it, and they'll all get the same
treatment. However, the choice of particular individuals or groups of individuals in terms
of welfare and security policy depends on their particular circumstances, which are
referred to as varied "levels of interest" in social welfare economics. Workers, for
instance, are concerned with finding work, making a livelihood, and maintaining living
conditions to ensure the reproduction of the labor force. Social welfare economics
demonstrates that the government plays a significant role in welfare and social security
and is the only entity that can address market flaws and shortcomings. Recalling the
aforementioned illustration of constructing a kindergarten and park. It is improbable that
any business has invested money if it is simply for profit. However, the government must
plan the construction in the interest of the general public (with the state capital).
4.2 Unemployment
Many people, especially those between the ages of 15 and 24, won't be able to find
a job and establish a sufficient way of life for themselves and their families without the
educational knowledge and skills required for employment. family. This will result in a
shortage of necessities like food, clothing, transportation, and livable conditions. To help
individuals escape poverty, there are organizations all around the world that educate
people on the skills required for jobs and interviews.
Retraining workers with outmoded job skills to work in fields that require people
with different skill sets is another strategy for addressing structural unemployment.
Robots have reduced the need for welders on auto assembly lines, yet automated
automobile assembly systems have increased the need for employees to maintain and
program them. Robotic assembly line maintenance and programming can be taught to
former assembly line welders who lost their employment when robots were introduced.
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Less structural unemployment occurs in the economy for workers who successfully
undergo retraining to operate and program automated production lines.
4.3 Corruption
5. COVID-19 Pandemic
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history of all nations, including major economies. And the Covid-19 epidemic's negative
effects would significantly slow growth.
Through its hubs, the COVID-19 epidemic is significantly affecting the global
value chain. During the COVID-19 pandemic, hard-hit countries are also centers of the
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global production network such as China, Japan, South Korea, and the US. When the
pandemic broke out, social distancing measures were implemented, and many production
activities were halted. The supply chain is interrupted, affecting global trade and
investment activities, thereby reducing the growth of the world economy in general and
many countries and regions in particular.
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III. METHOS
1. OBJECTIVES
2. METHOS
To find out the problems affecting the world economy after the great economic
recession caused by Covid-19, research methods must be accurate and fully exploited.
From determining the methods that will be used in the research, different approaches will
give different research results. Differences in the use of research approaches in
information research are based not only on the collection of data but also on the practical
consequences of investigating and interpreting the findings. However, when applying the
appropriate method, the research paper will become harmonious and the contents,
arguments, and concepts will be generalized according to the model from low to high,
from narrow to broad. Thereby, the information will be comprehensive, accurate, and
meet some specific criteria. The research has been carried out based on the research
method is qualitative research, the secondary data is collected through documents and
data in the form of “non-numeric” to get detailed information about the subject research
through scholarly articles, journals, publications, websites, and online journals and
sources. At the heart of the methods is the transparency used including why, how, and for
whom they are taken in the particular research context so that they can be discussed,
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collected, analyzed, and construed. It is important to use relevant citations to support the
findings. Besides adding more information, context with emphasis, or real-life examples.
1. The effects of the global economy before the pandemic, during the COVID-19
pandemic
The world economy is still going up and developing strongly. Although the world
economy had declined before the pandemic, everything was still under control. All
activities have standards and so do people. Economists have painted a picture of a good
change and development of the economy. Everyone thought that nothing would destroy
this normalcy until Covid 19 appeared. No one could have expected that this is a turning
point that changes a lot of things about the world and especially affects the economy. It is
considered a serious crisis that severely affected the world only after World War II.
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annual rate for the first quarter/quarter of 2020 and 32.9% for the second quarter.
Consumer spending in the US is down 10% in 2020 compared to 2019. The UK economy
shrinks by in the second quarter of 2020, 20,4%. After nearly 30 years of growth,
Australia is in a recession when the country's economy shrank 7% in Q2 2020. Japan's
GDP fell by 27.8% from April 2020 to June 2020. Not only that, Covid 19 has upset the
rankings of those the world's largest economy led to many countries falling into the Great
Depression at that time.
For agriculture, the pandemic has had a strong impact, agriculture is considered
one of the essential sectors of the economy worldwide large people. Some places
specializing in growing vegetables and fruit trees had to temporarily stop production
because they could not be sold, some vegetable farms lacked labor due to social
distancing, and the main difficulty was in the consumption of vegetable products to the
harvest, the transportation of products, leading to low prices of agricultural products,
especially fruit trees. In aquaculture, the operation faced difficulties due to the high price
of animal feed, which increased production costs, some industrial farming
establishments, after being sold, do not dare to re-operate. Some fish and seafood
products have difficulties in consumption until the harvest season, the selling price is
low, affected by the low price of seafood as raw materials for processing because
processing enterprises reduce purchasing and processing export variables. The pandemic
makes trade between countries and continents more difficult, closing borders and
restricting the import of goods has caused serious disturbances. The proof is that during
the severe pandemic, some countries in the world have difficulty accessing goods such as
African and Middle Eastern countries. Vietnam was also severely affected at that time,
during the pandemic, our food source was in serious shortage. The closure of all seaports
and airports or a massive reduction in the transport capacity of agricultural goods could
cause significant disruptions in global supply chains including agricultural commodities
and foodstuffs. Some border gates bordering Vietnam are temporarily closed or increased
disease prevention measures are when goods pass through the border gate, wholesale
markets such as Ba Ria market, and Thu Duc market in Ho Chi Minh City are closed, and
some markets in the province were also blocked, tourism activities, restaurants,
restaurants were closed, etc, which disrupted the supply chain of agricultural products of
the province, the transportation and circulation of goods when 19. Southern provinces
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and cities applying Directive 16 of the Prime Minister have been greatly affected, causing
the consumption of agricultural and aquatic products by farmers across the country in
general and several fruits and aquatic products in particular, the province faces many
difficulties, can't sell or consume very slowly, prices are low, transportation costs are
high. However, the more serious problem is food insecurity, which harms people's health.
In less developed and developing countries due to a lack of resources to maintain
production and ensure food safety and security of supply. Difficulties come from both
buyers and sellers. Supermarkets' limited supply capacity to replenish after an
unprecedented increase in demand. Fresh food is also greatly affected due to the inability
of farmers or agricultural units to transport from the place of production to the local
market or the logistical problems associated with transporting agricultural products to
supermarkets in the country or exported elsewhere. Food exports and imports plummeted,
businesses went bankrupt, lost income, unemployment, poverty, and inequality. The
pandemic has had far-reaching effects on international relations outside of agriculture. As
a country with a tradition of agriculture like Vietnam, it has had a profound effect on
farmers, when most of their income is thanks to vegetables and fish. Canada is the
world's fifth-largest agri-food exporter and its agriculture has also been significantly
affected. They operate in an internationally competitive environment subject to many
economic and political influences. However, the shock of the rapid spread of the COVID-
19 pandemic is unprecedented in its rapidity and magnitude of impact. The demand
shock arises from falling incomes as much of the rest of the economy closes and the shift
from meals consumed outside the home to consumption indoors requires repositioning of
some supply chains response. Despite short-term shortages of some foods, there are
always enough substitutes on the shelves to make a wide selection of foods available. The
prices of foodstuffs and foodstuffs have increased continuously due to the high demand
for home storage and the shortage of workers in this field. These effects relate to
restrictions imposed by countries on movement and interaction, loss of labor, and
reduced demand due to the closure of restaurants and hotels. The agricultural sector is
highly interconnected. A survey to investigate the impact of COVID-19 on the businesses
of 679 agricultural workers, farmers, and ranchers from 43 different US states. Nearly
90% of respondents expect a negative impact on their business, while about 30% of them
worry about contracting the new coronavirus. In this investigation, ranchers and farmers
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are also concerned about the unexpected situation of the market as well as the health of
the workforce as well as their loved ones. The negative impact of COVID-19 on food
security can be mitigated through increased local production and short food supply
chains. The globe faces several challenges in transporting many food products. Exports
and imports of countries have been reduced during the pandemic.
Industry and
estimated that more than 5 million businesses worldwide are affected. The pandemic
started in China, which has a global business network. A report by global business
research firm Dun & Bradstreet said that areas affected by 100 cases and confirmed
Covid-19 again, as of February 5, are home to more than 90% of enterprises in China. Of
which, about 49,000 enterprises in these regions are branches and subsidiaries of foreign
companies. Nearly half have subsidiaries in areas of influence based in Hong Kong while
the US accounts for 19%, Japan 12%, and Germany 5%. According to the OECD, global
trade is down 10.2% in 2020 and foreign direct investment is down 40%, causing major
disruptions in supply chains. A massive cut in the kernel usage standard leads to an
increase in corporate defaults in 2021, especially in sectors hit hard by the global
shutdowns. In most countries, unemployment is rising but is checked by restrictive, job-
retention measures such as short-term work or pay schemes. It has begun to strengthen its
national and global leadership, with the closure of many factories and production
facilities, disruption of supply chain models, and the profitability of multinationals. It has
hit the service business heavily, especially in industries that involve face-to-face
interactions such as retail trade, entertainment, hospitality, and transportation. While
fashion, furniture, and electronics retailers follow government directives to temporarily
close, food retailers, as necessary, continue to trade to allow customers to purchase food
items. When Covid-19 compiles and restricts travel, brands affect the source of raw
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materials and input materials of enterprises, including enterprises producing chemicals
such as analysis, protective plants, enterprises of textiles, leather, and footwear, paper
production, and wood products, steel production, and trading, construction enterprises.
This enterprise is missing the source of resources that start to affect the activity is the
business output, fulfilling pre-ordered orders, thereby affecting the revenue and signal of
the business. Service industries such as tourism, transportation, warehousing, retail,
finance and banking, insurance, real estate business, medical services, education, and
training are strongly affected by fluctuations in total income. The strongest influence is
the tourism industry (travel, accommodation, catering, and travel services). Due to the
spread of the disease, many countries have taken measures to shine, restrict travel, and
increase epidemic testing, so the demand for cross-border travel has decreased. Domestic
tourism demand also reduces disease and reduces people's income. The University of
Oxford (2020) reported that “the travel and tourism industry has been hit hard by the
economic disruption from the COVID-19 storm, with impacts on both tourism supply and
demand”. Tourism represents about 75% of the tourism economy in countries that are
likely to decline significantly. Tourism is one of the most important industries
worldwide, and one of the leading contributors to countries' GDP. Workloads are
overwhelmed by the surge in booking cancellations, canceled events, shuttered doors,
and attractions closing instantly noticed in other parts of the supply chain - catering
services, and restaurants. When the Covid-19 translation appeared in Vietnam, the
General Statistics Office conducted a survey of businesses and the results showed that up
to 85.7% of surveyed businesses were affected by the Covid-19 epidemic. Industry -
construction, and service sectors are affected by 86.1% and 85.9% of total enterprises.
Aviation is affected 100%, accommodation services 97.1%, catering services 95.5%,
activities of travel agencies 95.7%, education and training 93.9%, Textile and garment
Garment, leather production, leather products, electronic manufacturing, manufacturing
all have an impact rate of more than 90% (General Statistics Office, 2020). Many
manufacturing sectors of Vietnam depend heavily on imported raw materials and fuel,
mainly from China, Korea, Japan, the US, and the EU. Tourism revenue in the first eight
months of 2020 was estimated at more than VND 13,000 billion, down 54.4% over the
same period last year (GSO). According to the Vietnam Logistics Service Association
(VLA), enterprises in the transportation industry are also significantly affected by the
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epidemic. Domestic and international routes are closed, and revenue from air freight,
railways, and deceleration roads. The real estate business is also strongly affected by the
Covid-19 pandemic, including the field of commercial space leasing, offices for rent,
hotels, and apartments. Employees at real estate exchanges lack both the supply to offer
and the demand for transactions, resulting in no revenue. Many business premises are
returned or rent reduced. Many real estate enterprises are in the situation of having to
suspend operations.
Positive influences
The covid-19 pandemic has also given people a different perspective on life and
work. This time of social distancing has shown us the strong development of technology.
A series of meetings, conferences, and events take place online. That has shown us the
great potential of the internet that we did not realize before the pandemic. Remote
working, remote learning, and remote control of things, not only save time and costs but
also helps people adapt to the digital transformation context of the new era. Online
services from buying and selling clothes, shoes, machinery, and household appliances to
food, food, and necessities have had the opportunity to expand the service sector and
increase the number of customers as well as the number of customer sales. A prime
example is Amazon, which has created a total of 100,000 full-time and part-time jobs
online since the outbreak of Covid-19. Thanks to the tremendous growth during the
pandemic, these services are expected to continue to grow even after the pandemic is
defeated. Businesses are aiming to operate operations with robots, the epidemic does not
affect robots because they can work tirelessly, and can replace humans working in heavy,
toxic environments. This will also contribute to the development of the country's artificial
intelligence industry.
After a long time, all economic activities have been severely reduced in the world,
and have been expecting a revival after the Covid-19 pandemic. The world economy
began to show positive signs again. However, the ability to recover is quite different from
country to country and depends on the strength of the industry. The United Nations
Industrial Development Organization (UNIDO)'s latest World Manufacturing Report
shows that the pace of economic recovery varies considerably across regions and
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countries. In particular, China recovered the fastest with a growth rate of 38.2% in the
first quarter of 2021, partly due to the relatively low comparative base of 2020. On the
other hand, industrialized economies face another wave of infections in the fall of 2020,
forcing them to reintroduce stricter containment measures. UNIDO's report also showed
that the high-tech sector recovered at a faster rate, while the low-tech industries had a
slower growth rate compared to the same period last year. The model of the gradual, step-
by-step, and deliberate opening is quite widely used. Countries allow people who have
completed vaccinations or have recovered from the disease within 6 months, or have
tested negative to travel and participate in public activities. Supported tourism activities
reopening and many attractive incentives help attract visitors after a long time at home.
Along with that, technology has become the mainstay, facilitating the promotion of the
"new normal", while human consumption and labor trends have changed to suit the new
situation. Living safely with Covid-19 also changes people's thinking and lifestyle. It can
be said that the proactive and flexible adjustment of Covid-19 response strategies has
created a turning point to help many countries return to the "new normal" life and
economic recovery. In the World Economic Outlook (WEO) report released on October
12, 2021, the IMF forecasts that global economic growth in 2022 will reach 4.9%, of
which the US will increase by 5.2%, Europe by 4.3%, Japan rose 3.2%, China increased
by 5.6%. After recovering, global trade is estimated to reach 9.7% in 2021 and is
expected to continue to increase by 6.7% in 2022. Besides, many countries have been
stepping up the implementation of programs and planning socio-economic recovery. In
the current period, many countries have given priority to restoring production and supply
activities in the face of supply-demand imbalances and production supply chain
disruptions to create a resilient business environment for the business sector in the future
growth recovery phase. Not only escaping the "black shadow" of recession, but the world
economy in 2021 has also recovered faster than expected and regained growth
momentum, despite the complicated developments of the Covid-19 pandemic. It can be
said that the world economy has the strongest recovery momentum in the first months of
the year when countries gradually reopen.
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3. Barriers to international business
The birth and development of the World Trade Organization (WTO, 2022) have
contributed to marking a prosperous period for the process of trade liberalization on a
global scale. International trade makes it easier to trade goods between countries, helps to
limit imports, and promotes exports, thereby increasing the standard of living of countries
in particular as well as of the entire world in particular, laying the groundwork for
national and economic development. Data from the General Department of Customs, for
instance, show that two-way trade between China and Vietnam in 2021 totaled 165.8
billion USD, an increase of 24.6 percent over the same period in the previous year. In
comparison to 2020, the amount of merchandise exported to this market was close to $56
billion, an increase of 14.5 percent, and the amount of merchandise imported from a 30.5
percent increase brought China's total to nearly $110 billion. Countries can easily
integrate into the world and access the global market when trade "opens" doors.
However, to reap the full benefits of trade, nations that engage in it must try to fully
utilize their advantages and seize opportunities. That is why national governments
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constantly erect obstacles to stop foreign businesses from entering and competing there.
International trade barriers are another name for these obstacles.
The term "international trade barriers" or "trade barriers" is a concept used to refer
to the policies and regulations of a country, a region, or an economic bloc on controlling
business operations to stop and restrict merchandise imports. Although this term is being
used quite commonly, up to now, no concept describes this term exactly. The concepts in
the current economy are only relative, not showing all of their actual values and
properties. To expand the market, countries often tend to participate in the globalization
of world trade to both benefit businesses, protect the market for domestic enterprises, and
deal with when countries will set several policies and measures to limit imports when
goods are brought in from abroad.
In general, world trade barriers bring businesses a lot of benefits, such as it helps
countries regulate the macro economy, protect national security, social ethics, and
environmental protection. The first is the benefit of regulating the macro-economy,
macroeconomics is a broad, overarching concept of the world economy, it does not focus
on a particular enterprise or country but covers the whole economy of the world.
Macroeconomics refers to the study of issues covering the entire economy (For example,
national output, economic growth, inflation, unemployment, aggregate supply, aggregate
demand, policies, international trade, etc). When there are international trade barriers, the
above factors will be operated in a unified, old-fashioned form. Based on the situation of
domestic production and consumption, the government will set out policies to implement
measures to regulate the number of imported goods, to meet the needs of consumers
while still ensuring the quality of goods ensure benefits for domestic enterprises, and at
the same time can promote the potential of the country. In addition, international trade
barriers also help workers stabilize jobs and stable incomes. Thanks to trade barriers,
governments of countries can control the number of goods imported, direct the
consumption of goods in the country, tax high taxes on goods that are not encouraged to
use, and ban the import of unused goods (For example, the US is one of the largest
trading partners of Vietnam, at the moment the US is taxing very high taxes on the goods
that Vietnam has exported to the US, which is honey with a tax rate of 412, 49%, more
than double the tariff that the American Honey Producers Association originally
proposed at 207% through quotas to protect the domestic honey market.). The second
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benefit is to protect national security, social ethics, and environmental protection, to
ensure that the above elements on trade barriers will help the country avoid unnecessary
unexpected situations such as war, conflict, and anti-corruption of criminal gangs. By
banning and minimizing the import of weapons and poisons, banning the import of
unhealthy products such as opium, addictive substances, etc., to maintain social security
and minimize Many events that affect the culture and morality of people in particular and
the whole society in general. Policies prohibit the import of products that pollute the
environment such as lead, sulfur, benzene, aromatic hydrocarbons, heavy hydrocarbons,
and some additives. Furthermore, international trade barriers can protect consumers
against goods, unfair competition, and political retaliation from trade. One of the most
important positive elements of the use of trade barriers is consumer protection. Goods
imported into the country will go through strict censorship and packaging processes,
absolutely avoiding the situation that consumers give bad feedback about goods or goods
that affect the health and life of consumers.
In other words, "trade barriers" bring countries a lot of benefits, that's why there
are now many countries that have been participating in the trade process between
countries. However, behind those benefits are inadequacies, affecting the trade process
between countries. Those disadvantages include unfair competition or retaliation from
trade that can lead to a trade war, etc. In addition, trade barriers also affect small
businesses, because many countries today depend on trade to fuel their domestic
economies and the application of trade barriers can be detrimental to cripple their
economies, thereby negatively impacting international relations. In terms of unfair
competition and trade retaliation, every country involved in international trade will have
to face stiff competition from major powers. Unfair competition is understood as
unethical competitive acts in the business, contrary to the rules of good faith and honesty,
and harmful to the interests of governments, businesses, and consumers of other countries
with the common goal of winning customer acceptance and loyalty. One of the most
typical unfair competition affecting the economies of other countries can be mentioned as
dumping (Still an example of the honey market of Vietnam and the US. The reason why
the US has imposed a very high tax on this item is that the ability to produce honey in the
US is very low, a colony of bees can only produce 25kg of honey, whereas Vietnam can
produce 70kg, and the selling price of Vietnamese honey will be lower than that of the
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US, then consumers will tend to look for cheaper alternatives to consume, which will
make US honey not this is the reason why the US chooses this form of dumping to bring
benefits to domestic honey producers. this is again a threat to the Vietnamese honey
market in the US). In international trade between countries, it is inevitable that retaliation
or unfair competition in trade will be inevitable. If countries can't come up with measures
to deal with it but still persist, the situation of war will be severe trade war will take
place.
: Are taxes imposed on imported goods to protect trade and regulate domestic
import and export activities in many forms because low or high commodity prices affect
the market's purchasing power and the volume of exports and imports. Depending on the
purpose, the tariff can be high or low. For example, if the government wants to encourage
exports and imports, the tariff will be low, and if it wants to restrict exports and imports,
the tariff will be high. Although it benefits some countries in the region, it threatens other
neighboring countries. Economists have also argued that free trade remains an ideal form
of national prosperity. Tax is a means of increasing the costs incurred by consumers of
imported goods, indirectly affecting the needs and welfare of consumers. Still, tariffs are
an essential source of budget revenue government. In other words, import taxes are paid
by domestic consumers and the impact of tariffs makes imported goods more expensive.
On the other hand, if domestic manufacturers depend on imported raw materials,
machinery, equipment, or input products in the production process, the cost of that
product will increase, and consumers will be affected. Consumers are still the losers.
Consumers tend to lose out with tariffs, where taxes are collected domestically. For
example, the US and China have started a trade war since 2018, and in recent times the
Covid-19 pandemic originating from China is breaking out everywhere, which is also one
of the reasons why the US has hit the market. Very high taxes on medical products from
China. However, this decision of the US, partly caused a shortage of supply for the
country because the US was the largest epidemic area in the world at that time. That said,
the tariffs that the US has imposed on goods imported from China have greatly limited
the US's disease prevention and control, and US consumers will have to face goods with
high risks and outrageously high prices.
: This is one of the limitations imposed on a country's ability to import or export
goods during a given period. Often these barriers will be related to licensing. Quotas are
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seen as a tool for the government to directly manage the number of goods involved in the
trade. From there, the government can find problems and timely remedy protection
targets. For example, when the world is struggling against Covid-19 is also a time when
all import and export activities are limited because the supply is high, but the demand is
small, the government must set policies to manage the number of goods certain to be able
to profit from exports but still meet domestic demand.
: Non-tariff barriers are policies that hinder, affect, or resist the entry of foreign
goods to protect domestic goods through other means than the imposition of direct taxes.
For example, limiting the market access conditions of imported goods, limiting the
volume and value of goods traded internationally, impeding the growth rate of
international trade turnover and the growth rate of each country's goods economy,
increasing the cost of imported goods and reducing consumer benefits, and reducing the
competitive motivation of domestic entrepreneurs. These measures can affect the value of
goods as well as the time it takes them to reach consumers.
4. Ethics in business
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development of each country. Currently, issues in international business include
employment, environment, food safety, and ethical obligations of multinational
corporations.
Employees have the right to work in a safe and clean environment, have the right
to be protected from all dangers, and refuse dangerous work that is not suitable for their
abilities. If the enterprise's leaders do not have measures and policies in place to protect
employees and do not control the safety of facilities, it will not meet acceptable standards
and may result in dangerous situations. Unnecessary situations for employees such as
accidents, injuries, etc. In addition, many leaders cut costs and wages of employees for
very unreasonable reasons that make employees work in a bad environment. The school
lacks conditions, is precarious, exploits the labor of employees, etc. The above actions
are unethical in business.
4.2 Environment
The environment is the common property of all mankind, if we do not protect the
environment, people will destroy their own lives. The environment is considered one of
the very important issues because, at present, there are many enterprises, factories,
industrial parks, etc. In the process of production, discharging wastes directly into the
environment without going through any treatment steps causes serious pollution, and
affects people's health. Although they know it's not right, because they put their interests
and business interests first instead of the interests of the community, they defied doing
these unethical acts. Therefore, every business should consider carefully and should put
the interests of the community first, and operate ethically to protect the living
environment of people.
It can be said that food safety is the most painful and concerning issue at the
moment. Food products are produced through strict processes and regulations of
businesses, so businesses play a key role in this regard. In addition to the authorities,
inspecting food hygiene, the issue of responsibility and ethics of business and production
[GROUP 3. IB1604.GA] 23
people is an extremely important factor in the quality of production. The food will never
fall into contamination, be unsafe, or affect the health of consumers if the producers work
ethically, and always control and manage every production process. In addition, to do
this, state agencies, the people, and the media need to promote propaganda so that
businesses can recognize and be aware of the responsibilities that businesses need to do
to protect the environment and community defense.
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5. Strategies and plans to solve the problem
The pandemic has had more profound impacts on SMEs because they have very
limited resources and vulnerable supply chains and business-to-business and business-to-
customer relationships. row. In this context, it is expected that after the pandemic, many
of these businesses will disappear because the "new normal" will require changes in
business management and infrastructure. To mitigate this risk, countries, and businesses
need to identify the critical aspect of business recovery during the ongoing pandemic and
post-COVID-19 period. To adapt to the new normal, businesses need to focus on product
innovation, process innovation, and management system innovation. Innovate to develop
new products that meet new market needs.
Depending on the industry you're in, your clients may have some specific pain
related to covid 19. Strategically dig into customer mindsets the pandemic is affecting
customers how what is keeping them up at night and how can you help them. You can
then tailor your sales and marketing design to how you address your customers'
challenges and concerns. When talking about customer psychology, since the pandemic
took place, people have formed a mentality of fear of crowds, dislike of jostling, in favor
of practical and quick actions. They don't want to have to jostle at the mall to buy goods,
they don't want to wait in long lines to eat their favorite food. Therefore, online trading
and home delivery have become more developed than ever. Online sales websites handle
quickly and help consumers access safe products during the pandemic. Restaurants and
eateries have changed their management, gradually shifting to take-out and home
delivery.
Besides restoring production in businesses, tourism is also a factor that needs to be
restored. For human resources in the tourism industry to gradually recover and prosper
again in the context of many difficulties, it is necessary to have many comprehensive and
synchronous solutions for enterprises. Firstly, enterprises should streamline their
apparatus, rearrange job positions, and try to retain key personnel with preferential
regimes so as not to spend a lot of time searching. Enterprises need to train and retrain
tourism human resources for the recovery period through practical training programs
enterprises and review and develop in-depth human resource training programs, creating
output is high-quality human resources. Focusing on ensuring safety when organizing
tours, with activities such as the medical declaration, receiving guests, building products,
[GROUP 3. IB1604.GA] 25
and creating trust for customers so that they can use our services with peace of mind.
Secondly, businesses need to actively plan to recruit new employees and contact old
employees who are on leave, design many preferential regimes and create favorable
conditions to attract employees to return safely to work.
Third, it is necessary to receive financial support from the Government and at the
same time have policies to support unemployed workers, so that they do not quit their
jobs. The Government considers supporting businesses with a 0% interest loan package
to pay salaries to employees to maintain the human resources of enterprises. In addition,
it is necessary to have policies to support, train and create jobs so that there is no
disruption of labor in the tourism industry.
V. CONCLUSION
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