1. Response posts
1. Select two peers to respond to.
2. Take on the role of an Asia economy manager. Read their recommendations thoroughly then provide some rationale as to why you think their recommendations are persuasive (or not).
3. At least one reference per peer.
Asian countries are investing heavily in digital technologies to grow their economies, because it is the way of the future. The majority of people have smartphones. Most people have become depend on them. Profitability is in innovation. “The use of digital technology is transforming – indeed, disrupting – all sectors, notably services such as logistics and finance, but also industrial production and agriculture.” (n.d., 2019). Asian countries are very attractive to foreign investors, because population is high and the need is there. Technology and consumerism is as popular in Asian countries as it is in America. “In 2019, China was the second-largest recipient of foreign direct investment in the world.” (Bloommenthal, 2022). The foreign direct investment is the capital invested in a country that provides services both in their country and throughout the world market. Financially is it attractive to investors due to the Chinese government allowing “financial incentives in the form of tax breaks, grants, low-cost government loans, and subsidies” to investors. Recognizing the importance of e-commerce allows investors to prioritize and allocate investments ahead of the curve.
Attached is a 2019 chart showing China’s key measures in areas such as innovation, public institutions, strong judicial independence, clear property rights, efficient government, and infrastructure. It shows that Finland is leading the way in most areas. China can improve in all areas but should focus on clear property rights and judicial independence as both have mid-level scores. Infrastructure is the best key measure for China.
Bloommenthal, A. (2022, January 31). 6 Factors Driving Investment in China. Retrieved from Investopedia: https://www.investopedia.com/articles/economics/09/factors-drive-investment-in-china.asp
n.d. (2019). The Digital Economy in Southeast Asia. Retrieved from Digital Development Partnership: https://openknowledge.worldbank.org/bitstream/handle/10986/31803/The-Digital-Economy-in-Southeast-Asia-Strengthening-the-Foundations-for-Future-Growth.pdf?sequence=1&isAllowed=y
Schwab, K. (2019). The Global Competitiveness Report 2019. Retrieved from World Economic Forum: https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
When it comes to digital technologies, the increase of using this allows for expansion to a wider variety of consumers. Time has shown that digital technology is a major part of our current lives and will continue to be as time progresses. Being aware of this and acting upon this at an earlier stage allows for a company to be ahead of the curve. The use of e-commerce and digital technologies allows for an organization to have access to larger markets, which also means there is a larger chance for investors and investments (Sedik, 2018).
When it comes to key measurements that will attract investors, the aspects are general in concept, yet will be specific to those individuals. An important aspect when it comes to investors deciding to invest in another country is a level of consistency. This aspect shows there is a level of stability, however that is only a part, there still needs to be a good chance of a return on investment. Four key measurements that attract investors to Asia countries would be their infrastructure, public institution, efficient government, and innovation (UNCTAD, 2021). Each of these measurements offer important aspects for investors, especially considering the recent impact of COVID-19, if these aspects continue to go in a positive relation, it shows promises. These promises can present the aspect of the risk is worth the outcomes.
Out of these key measurements the two that improvement can be focused on would be innovation and infrastructure. The use of innovation is something that always help with growth and providing components that the public will want and need. Hospitality is something that places can struggle with especially when global pandemics occur. In the aspect of hospitality, the use of innovation with digital technology can help increase those who would visit and take part of hospitality activities. The use of a face recognition on check in, can allow guests a piece of mind with social distancing and still travel (Morgan, 2020). Infrastructure is an important aspect to any community and how activities are conducted. Tourism is also impacted by the infrastructure of a community which also is connected hospitality, which is a struggling aspect in Asian countries (UNCTAD, 2021). A way for improvement of this would be apps that tourist can use that makes it easier for them to purchase the local currencies. This would then allow for the economy to grow with the inflex of finances in the communities.
Morgan, B. (2020). 10 Examples Of Customer Experience Innovation In Hospitality.
Sedik, T. (2018). Asia’s Digital Revolution.
UNCTAD. (2021). Investment flows to developing Asia defy COVID-19, grow by 4%. .