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Moreover, there are so many companies , institutions , specialized suppliers concentrate in the cluster so the employees have a good condition to develop and it opens up more opportunities for finding Job so the cluster help attract best talent and produce specialized and experienced employees to reduce search and transaction cost in recruiting. On the other hand, each member can be easy to find and access specialized information which accumulated within the cluster so promote the flow of information and make information more transferable to facilitate technological and knowledge spillovers.
The linkage between complementarities business such as hotels, restaurants, outlets and so on are more and more closed. The complementarities development signal opportunities for many employees, develop flowing services to gain more profits as well as create employment opportunities. The cluster also raise in marketing . Let enhances reputation of a location in a particular field so it’s easy to attract customer, easy to meet their need when they want to do business. For example entertainment in Hollywood, finance on Wall Street, consumer electronics in Japan .
Finally, clusters are often make it easier to compare performance among local rivalry so clusters play important role in competition to renew, reform and spark innovation and new business. B. From the case study on building a cluster in Costa Rica, what was the strategy to build on the Intel success and to further develop the cluster? Intel was seeking a location outside of the Southeast Asian countries, they want to find a best region for setting up assembly and testing plant. Intel was considering two site in Latin America or Eastern Europe where can met their generic criteria because they didn’t want to put all their eggs in one basket.
They dismissed the Eastern European alternative because they did not believe that any of the countries were completely disassociated with the old Soviet-style model. So Latin America was the best choice especially Costa Rica. They researched and analyzed all things about Costa Rica liked strengths, weaknesses, opportunities and threat. They realized that Costa Rica is located in Central America. It was pretty close to US. “Had the best education system in Central America with the highest literacy rate (95%)”1 English was widely spoken.
Computer and Internet users increased continuously. Government was focused on science and technology development. The country enjoyed a political stability with half a century of peace and democracy. Intel also was very clear about what they need at present. They needed a constant supply of high-quality electricity gave some requirements and conditions for Costa Rica before signing the agreement along with profits and investment receiving from this contract. At the same time, Costa Rican government had some reformations to adapt the concept of clusters. 2 .
What does an understanding of economic geography allow a company to understand a) when it is choosing locations, b) seeking to find the market potential for certain products and c) developing economies of scale? Economic geography is the study of the location, distribution and spatial organization of economic activities around the worlds. So understanding clearly about economic geography is very useful for a company which wants to do business. When it is choosing locations: Geography plays a critical role in business development. Economic geography helps them answer this question of where economic activities take place.
So companies can now exactly where have economic developed or undeveloped. They understand deeply about characteristics of this site such as natural resource, climate, politics, population, transportation. They can be very clear about strengths and weaknesses. They know division of labor and labor quality in this location. Thereby they can conduct more successful in business. Moreover, location also determines what type of goods or services a company will do business. After all, geography affects strongly enduring success. Therefore location needs to be considered and chosen carefully.
Seeking to find the market potential for certain product for certain product Economic geography is an area of global competition. Competition in today’s economic is far more dynamic. Understanding the economic geography helps companies have an overview about all markets in the world. Companies can very clear about what a potential market is and where they can seek it. Understanding that a potential market is a place where have many people interest in the product with less competition and lower risk. For example the emerging market such as BRICE (Brazil, Russia, India and China) or
CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa). Those markets are favored for several reasons such as a diverse and dynamic economy or a young, growing population and so on. Developing economies of scale? Developing economic of scale means increase and expand scale of production to reduce cost per unit and raise productivity which is major factor in global competition. A company can do it very smooth if they can understand deeply the economic geography which allows a company can find the way to widen the scale of production.
They employ sophisticated methods, use advanced technology or offer unique products or service. And one of a best way to develop economic scale is building cluster. A cluster allows each member gain more profits as if had greater scale without losing flexibility. However it requires a company must have a good knowledge of the geographical characteristics of each region that is equipped by economic geography. 3. If the Leader of Vietnam asked for your consultation on how to further develop the market economy of the country what would you tell him to do? Nowadays, Vietnam is on integrative and developing trend in economy.
So what would we do in international economic integration is rapid and long-term development, getting out of backwardness, becoming a developing country driven by industrialization and modernization. Therefore government should have some telecommunication. Infrastructure: Developing infrastructure system must be synchronized across the country, each branch, each region and each local. Building and upgrading services public systems. Increase the management and improve the quality of construction. Appealing, attracting strongly investments from companies, entrepreneurs, enterprises in mommies and foreign.
Using efficiently capital such as ODD. Education: Modernizing physical infrastructure, school equipment in the direction of national standards Strengthen vocational training for students in mountainous area Expand the scale of training Jobs to meet the society’s need in some fields such as agriculture, industry, education, health, transportation, science and technology. Technology: – Applying science and technology in advanced in management, production, business. – Promoting management, quality and protection of intellectual property rights.
Building facilities, equipment, research centers, laboratories, information technology, database systems to service for scientific research. Telecommunication Developing telecommunications to meet communication needs. Modernizing facilities, broadcasting technology. Research-building radio system multi-channel cable TV, interactive TV, TV on demand. 4. What do you plan to do when you graduate from VIVIAN? How does economic geography prepare you? When I graduate from VIVIAN, I will study abroad for a previous of time to get master degree in one of three countries Singapore,
United Kingdom or United State. It depends on my LILTS certificate and family economy. After coming back Vietnam, I will find a Job related my study. However, I’m sure that I will never go sailing. Because It’s so boring, I don’t want to live far my family. I want to do business on shore for a company which links foreign country so I can earn more money and when I have enough experience and capital I will operate and develop a my own company. One more thing, Cape Town (South Africa) is my dream, I really want to be here one times and I will chase my dream forever.
Economic geography helps me have an overview about economic and society development especially the emergence of China as a superpower. Having a good knowledge about geography and understanding how and where economy activities are taken. Furthermore, I can know about sectors and regional economic of some typical nations in the world such as I-J, US, Japan, India, China or some major cities and major seaports which is very useful for my Jobs. It also helps me aware of the potential market such as BRICE, CIVETS as well as strengths and weaknesses of the market and development orientation.