International Business Environment Argumentative Essay Example

new consumers and implementing market innovations, the perspectives of Vietnamese partners and executives may not be as relevant and could even be a disadvantage (Abuza 2001, p.23). However, this does not mean that Starbucks should completely disregard their Vietnamese partners and executives. Rather, they should carefully evaluate the pros and cons of these relationships before making any decisions.

Table 1 indicates that the Vietnamese economy is currently experiencing a period of strong growth following a challenging period. In 2004, the GDP growth rate was recorded at 7.25 percent while the macroeconomic environment reached a state of balance, as reported by VVG's Economic Indicators in 2007. Vietnamese businesses and the government alike have recognised and capitalised on the potential for trade and investment with Asia, as noted by Grossheim and Houben in their publication from 2001 (p. 69). Vietnam is establishing itself as a driving force for progress and development throughout the Asian region.

In 2007, Vietnam experienced a growth rate of 8.5% in their GDP primarily due to the industry and construction sector. Despite constraints in previous years, gross fixed investment increased by approximately 20% in 1993, as well as notable growth in both exports and imports.

Index Mundi 2007 highlights how Vietnam's development in market conditions and opportunities is in line with the rest of Asia (CIEM 2002). Vietnam has established a unique model of development, which contrasts with the gradual market development of European and American countries. Although some other Asian countries have progressed at a faster rate than Vietnam, none have made such significant advancements in development. Therefore, Vietnam's shift from a controlled local market to a thriving, refined, more consumer-oriented market

scheme has become a blueprint for other Asian nations to follow.

Starbucks faces various difficulties when trying to enter Vietnam. The Vietnamese might perceive this move as excessive globalization, distasteful and as an example of American cultural domination. This could certainly irritate Vietnamese nationalists. Leaders in Vietnam have communicated their stance that modernization does not equate to Westernization. Throughout Asia, there is a distinction between a push for a more modern society and the preservation of cultural and societal norms that differ greatly from those in the West.

The significance of Vietnam has risen due to its status as a prosperous, advanced society that deviates from Western norms (Abuza 1998, p. 1109).