Beyond China: The Current Debate on Globalization

Lately, globalization has been a hot button among US manufacturing managers. While there is currently much debate about creating production centers in China to lower costs, I propose that you look past China. Although China does offer cheap labor and materials, quality control is still a major issue. In addition, while government crack-downs are improving, Intellectual Property Rights (IPR) violations can found in every major city and they are much more difficult to control in a country as large as China. Then there is also the high level of corruption: you may need to pay manufacturers just to maintain quality levels. What manager wants to worry about these issues?

There are two other Asian countries that also offer cheaper labor solutions, without as many IPR and corruption headaches. One of these countries is Vietnam, specifically Ho Chi Minh City. Known as the “Pearl of the Orient”, this city is growing at a rapid rate and it desires to “become a hub of industry, services, science and technology in Southeast Asia” according to city officials. Vietnam has the fastest growing economy in Southeast Asia, with a recorded growth of 8.4% in 2005 and a GDP growth of almost 50% over the last 5 years.

The opening of the Vietnamese economy, through accession to the World Trade Organization (WTO), will create extensive opportunities for US companies. WTO accession requires the Vietnamese government to promote transparency and eliminate corrupt practices in its effort to participate in the global rules-based system, effectively reducing your investment risk. Some people might argue that Vietnam is even more corrupt than China, but this is incorrect – Vietnam is a smaller country, less isolated from the West, and is taking the WTO much more seriously than China. In addition, Vietnam has finalized intellectual property regulations and legislation that is concurrent with the TRIPs (Trade and Related aspects of Intellectual Property Rights) agreement administered by the WTO – thereby safeguarding foreign companies from IP violations. These are only some of the implications of Vietnam’s accession to the WTO that could tremendously benefit your organization.

Another country that is receiving increased Foreign Direct Investment is Thailand. As a creation of the Thai Ministry of Commerce, the Department of Export Promotion (DEP) plays an essential role in the promotion of international trade with Thailand. The DEP seeks to boost exports in an effort to grow their national economy. To achieve its goals, the DEP is focused on developing the country’s core competencies to add value to locally produced goods and services. Additionally, the application of new approaches to international trade including the DEP’s 53 Overseas Trade Promotion Offices, have facilitated the growth of Thailand’s international trading network.

What could the DEP’s strategy mean for your company? First, by employing superior technology in manufacturing, product quality levels will increase. Global sourcing for raw materials, machinery, and other inputs will allow the maintenance of competitive production costs. Thai manufacturers will receive assistance from the DEP to raise product quality to international standards. And the elimination of trade barriers through numerous free trade agreements is streamlining all business activities. These are just few of the benefits arising from trade in Thailand.

While there are benefits to producing and sourcing in China, it is important to evaluate other viable alternatives. Vietnam and Thailand offer many benefits to foreign manufacturers and welcome foreign direct investment.
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For additional information, contact Kelly Kasic, President of GLOBAL ID, LLC. – a Management Consulting and International Market Research Company. http://www.identifyglobal.com/ (720) 334-6982

Beijing Travel Tips

Whether traveling to China for business or pleasure, it is helpful to know what to expect when you hit the ground. Starbucks is the first thing that you will see upon leaving Customs in Beijing. This capital city is growing and updating rapidly as they prepare for the 2008 Summer Olympics; construction cranes decorate the horizon. Yet, red and pink roses beautify street medians, while trees line the immaculate sidewalks. The skies are clear and blue as the government has stepped up pollution control tactics.

As I traveled from one cultural icon to the next (don’t miss the Great Wall), I had no problem locating a good restaurant. While I preferred to avoid the Bat on a Stick (seriously), I did make my way into several local restaurants. Many offer pictures or English on their menus, but for those that didn’t, communication was not too difficult and I was always able to order a delicious meal – often for less than $8. For those visitors that must have “American Food” while traveling abroad – McDonalds, KFC, Pizza Hut, Taco Bell, and Starbucks are everywhere.

The people of Beijing were very friendly, curious, and polite. The taxis were not – be careful as you walk down the street, taxis do not always obey road rules.

Written by Kelly Kasic, President of GLOBAL ID LLC

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“Vietnam enters the WTO” – What could this mean for Your Company?

· Vietnam has the fastest growing economy in Southeast Asia, with a recorded growth of 8.4% in 2005 and a GDP growth of almost 50% over the last 5 years. The opening of the Vietnamese economy will create extensive opportunities for US companies.
· WTO accession requires the Vietnamese government to promote transparency and eliminate corrupt practices in its effort to participate in the global rules-based system – effectively reducing your investment risk.
· Vietnam has finalized intellectual property regulations and legislation that is concurrent with the TRIPs (Trade and Related aspects of Intellectual Property Rights) agreement administered by the WTO – safeguarding foreign companies from IP violations
· US companies will be able to pursue their rights through WTO dispute settlement and other WTO operations – promoting accountability and efficient dispute resolution process.
These are only some of the implications of Vietnam's accession to the WTO that could tremendously benefit your organization.

Written by Yeukayi Nenjerama - Facilitator of Sales and Marketing in Asian Cultures for Study Aboard.

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Shanghai’s Gem of the French Concession

A visit to Shanghai would not be complete without dinner at "1931" – a famous Bar and Restaurant in the French Concession area, approximately 15 minutes away from the Bund. Without reservations, tables are usually not available until after 10 p.m., which is about the time that this bustling city starts to come alive. I was seated around 10:30 p.m. on a Thursday night in late May with a group of 5 others. Instantly, I fell back in time.

Our waitress wore a royal blue qipao dress (a high necked, traditional piece typically worn in Shanghai during the 1930s). Her hair was pulled back in a tight braid that seemed to match her stern expression. The tables were very small and the wooden chairs were adorned with velvet cushions. The walls were decorated with pictures from the 1930's era set on top of flowed wallpaper. A wooden curio cabinet was backed against one wall holding dishes made of china along with various pieces of art.

The food was as amazing as the ambiance. We decided to sample and share many dishes, as is customary when eating with a group in China. While everything was delicious, I particularly enjoyed the thin wraps that were called pancakes which we stuffed with delicious duck and finely chopped vegetables in a soy-like sauce. I was not disappointed with any of the dishes and was surprised when the bill came to only 600 Yuan (about $78 US) which included several pints of beer for all of us.Brushing past the long curtains to leave, I collected a "souvenir" – a business card for "1931" with a picture on one side and a map and phone number on the other. This marketing tool is creatively used by restaurants and hotels so customers can show to cab drivers when they want to return.

You will feel incredibly safe in the French Concession section, as you should in most areas of Shanghai – disturbing foreigners is a crime! After leaving "1931" finish the night by walking down the cobble stone streets to the Ruijin hotel – an old colonial mansion. Inside building 4 you will find a unique bar called "Face". This is the perfect location to have an after dinner cappuccino while seated on the spacious patio or enjoy a slightly-above-average-price martini while relaxing on one of the plush couches.

For additional information on Shanghai travel, contact Kelly Kasic, President of GLOBAL ID, LLC. – a Management Consulting and International Market Research Company.
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Summer Palace Pleasure

There are many cultural sites that make Beijing a vacation destination; the Great Wall, the Forbidden City, Linggu Temple, Dr. Sun Yat-sen’s Mausoleum, the Temple of Heaven, and Tiananmen Square to name a few. A month ago I traveled to all of these sites, but none of them impressed me as much as the Summer Palace. Don’t get me wrong, the Great Wall is certainly impressive and not to be missed, but after about an hour of walking you still are looking at a lot of bricks.

The Summer Palace is located about 9 miles northwest from the heart of Beijing. This imperial palace sits atop a lush, green hill overlooking the large, blue Kunming Lake. Originally built in 1153 under the Jin Dynasty, the palace received its name in 1888 when Empress Dowager Cixi used silver to repair and restore it. Walking through the palace you are instantly taken back in time.

In order to tour the Summer Palace, you must climb several small stairs that wind and cut through large boulders – but this cultural tour is not dangerous nor is it strenuous (there were even women performing Tai-Chi in a stone courtyard midway up the hill). When you reach the top there is a breathtaking, nearly panoramic view of the Lake and the land. But, your tour is not complete. Next you must walk through the vibrantly painted rooms and halls, past the towering pagoda, to the lakeshore. There you will take a dragon-shaped boat across the Lake to an island. The neatly manicured island is attached to the 17-Arch Bridge. Cross over this magnificent bridge to a vendor-lined, cobblestone street. Make sure to enjoy an ice cream treat before riding another dragon boat back to the entrance of the remarkable Summer Palace.

You will want to have an empty memory card to take several pictures of this brightly painted Palace set atop a hill.

­­­­­­For additional information on Beijing travel, contact Kelly Kasic, President of GLOBAL ID, LLC. – A Management Consulting and International Market Research Company. http://www.identifyglobal.com/

The Shanghai Experience

After recently returning to Denver from several weeks in China, I can’t wait to revisit. The purpose of this trip was to tour several businesses discussing their triumphs and struggles in the “New China”, but I also spent many days enjoying the tremendous cultural icons of this unique country.

With towering sky scrapers and an endless nightlife, Shanghai is a truly amazing experience. I recommend staying downtown near the Bund as there are several attractions close by. Your trip would not be complete without a visit to the Urban Development Center in Shanghai, followed by a leisurely stroll through the park in the People’s Square, located in the heart of the city. One thing to be aware of is that everyone will attempt to speak English to you as you peruse the shops.

After visiting the Pearl of the Orient, make sure to visit the French Quarter, specifically the restaurant 1931 – but, don’t expect to get a reservation before 10pm, the infamous restaurant is always packed.

Overall, I was surprised at how extroverted and friendly the people of Shanghai were – truly hospitable!

Written by Kelly Kasic, President of GLOBAL ID

Visit Our Website! http://www.identifyglobal.com/