tag:blogger.com,1999:blog-58012379945089218202024-03-07T22:31:34.244-08:00Bryan's India Trip BlogBryan deRegthttp://www.blogger.com/profile/07977339071559455111noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5801237994508921820.post-79906313990123962792013-07-22T11:37:00.001-07:002013-07-22T11:37:28.605-07:00Reflection<div dir="ltr" style="text-align: left;" trbidi="on">
<h1>
India Reflection <o:p></o:p></h1>
<h2>
By Bryan deRegt<o:p></o:p></h2>
<div class="MsoNormal">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> India was quite an experience that I
never thought I would have in my life. This idea became clear to me when I
stood in front of the Taj Mahal. Besides realizing how amazing the building
was, my only thought was “Wow, I am actually at the Taj Mahal.” I have seen the
statue of liberty, the tower of London, the David, and many other attractions.
I figure I will see the national monuments in Washington DC at some point and
places like the Eiffel Tower. The Taj Mahal was always a place I would not go
because I never thought I would find myself in India. Now, I can say I have
seen the Taj Mahal without having ever even seen the White House.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> The India trip was a main draw to
the Cal Poly MBA Program for me and now looking back, I think it lived up to my
expectations as the best part of getting my degree, both in what I enjoyed the
most and what taught me the most. My only experience with India prior to this
course was living with an Indian roommate. He was born in America but his
family still followed many traditional Indian cultures. That little experience
was nothing compared to what I witnessed when in India and really reshaped how
I view India and Indian culture.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> When comparing to other MBA courses,
India had a few things stand out that made me really think about what I learned
in class and how it applies to the real world. The most interesting connection
I made from the India class was to my Marketing Research class. In the class,
we focused on the analytics of marketing and what makes customers loyal to a
brand. We analyzed department stores in the United States and found a wide
variety of customer loyalty to different brands but found that the qualities
that lead to loyalty are having excellent products and even more importantly,
having excellent service to the customer. Customer service is the area that
India goes much beyond what Americans will do for their customers. <o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> Indians have very high customer
loyalty from what I witnessed and heard from the different businesses that I
visited. This makes sense because the customer service was of the highest
quality in the majority of establishments. The Lemon Tree Hotels were the best
example of the service that we came to expect in India. Immediately upon
arrival, employees were taking our bags and marking room numbers to bring them
to the room even as I arrived well after midnight. Then, throughout the trip at
breakfast, anything I could ever need was quickly brought to me whenever I
asked. This continued beyond just breakfast as any employee was happy to help
in any way possible. This type of service is always appreciated and I know that
if I am ever in India again that I will definitely book my stay at a Lemon
Tree.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> With service being so important to
Indians, there are some Western products that I am surprised have no become
more popular. One such product that I think could be successful in India is a
MenuClub type service. Family meals are a very big part of the culture but no
one always has time to cook a big meal. Food delivery service with many
different restaurant options could allow for families to order a full meal and
still have a traditional dinner without the hassle of cooking. Additionally,
deals could be tied into the service so the Indian attitude of wanting to beat
the seller could still be met. I think this is an idea that could make money
although would probably be slow in the beginning and take a few years to really
penetrate the market and would have to be aimed at younger individuals to
start.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> Bringing a Western product to India
is not the only money making opportunity though. India has some products and
ideas that could make money if brought to the United States. One night for dinner
we went to a village place that had cuisine from many different regions around
India and each individual could get food buffet style from anywhere they wanted
and even try from a multitude of regions. In addition to the food, there was
dancing and attractions such as a puppet show. A place like this could be very
successful in the United States. It would be a fun family outing that would be
different than the usual things that Americans do on a daily basis. The food
could either remain traditional Indian cuisine as Americans tend to enjoy
trying different cultures or could be switched to have foods from different US
regions. The buffet style food with many different options would allow everyone
in the family to eat something they like which I know is a problem for my
family at a lot of meals. In addition, the fun after the meal would keep
families at the venue for a longer period of time. If they sold drinks as well,
families would spend more money as they hang out for an extended period of
time. This could be a fun new idea if brought to the United States.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> In addition to bringing the
restaurant idea to the United States, all companies in the US could learn from
the practices of Indians. In India, there is an attitude to always say yes and
try to be helpful. This can cause some problems like when asking directions
because people will tell you where to go whether they actually know or not.
However, in business, this can be a very good policy when dealing with
customers. In the US, many companies are quick to say no when a customer makes
an odd request or wants something changed. By saying yes, whenever possible, it
sticks in that customers mind and leaves an overarching positive experience
with the company. I know I would be a frequent customer to establishments in
the US if I was treated with the same level of hospitality that I received
almost universally in India.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> The say yes attitude is something
that is in Indian culture but I believe it is also something that is aided by
being an emerging market. Indians are very hard working and trying to move to
that next level in society. The US does not have this same drive and instead
has a very high sense of entitlement. I was amazed to find out that the staff
at the Lemon Tree was mainly comprised of interns with college degrees. These
individuals were working hard in positions that I think many American college
graduates would feel was below them. The big lesson I saw from this is that it
is ok to start at the bottom of an organization even if you have an education
that makes you feel like you should be starting higher. With enough hard work
and skills, no matter where an individual starts they can probably emerge and
reach the higher levels. <o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> While the United States as the
developed market has the entitlement issue, developing markets like India have
their own constraints. The biggest constraint I witnessed to the Indian market
was the lack of infrastructure that causes problems in all facets of
businesses. The biggest issue I noticed was the roads and driving in general.
India has roads and plenty of them but they are not organized as well as the
United States. I think this plays into the lack of any driving rules that were
easily noticeable as we traveled which in turn leads to large amounts of
traffic. Whenever we visited a company, it always took a long time to go a
short distance because of traffic. Better infrastructure could drastically cut
down these traffic delays in my opinion. Besides the roads, more housing and
utilities are still needed. These are all expensive projects that the
government will have to fund for India to truly emerge as a world power. And as
long as the government has these additional expenses, it puts an extra strain
on the Indian economy that does not exist in developed nations.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> The lack of infrastructure is one of
the main issues I would have if I ever was asked to move to India for a job.
Going into the trip, I thought there was no way I would even consider it but
after spending time there, I think I may be open to the possibility for the
right job. However, I would have some conditions. In order to consider, I would
have to be set up with acceptable living quarters and have a driver because I
would never consider driving myself around India. It would not be safe for me
or for others. If those conditions were met, I now think that I am flexible
enough to live in India although it would still be difficult. The most
difficult issue for me would be food as I tended to not like the food during
the trip but if I was living there, I think I could survive cooking my own
meals and occasionally ordering some Domino’s which I was thankful was an
option occasionally on the trip. <o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> The meals were by far the area where
I was most out of my comfort zone. I am a very meat and potatoes type of meal
person. I do not eat salads and am as far from a vegetarian as probably is
possible. Therefore, when many of the meals in India only had vegetarian
options, I did not really eat besides bread and rice. Even though I was not one
of the more adventurous eaters, it still taught me a lot about myself being
around these meals. Most importantly, it taught me that in any business
situation, no matter what food is served, I can find enough to eat to get
through the meal and that is what ultimately matters to conduct the business.
Other areas that affected my comfort zone was the lack of alone time that I am
accustomed to having at home and initially, dealing with people from such a
different culture and with different attitudes.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> When meeting people in India, it taught
me my most important lesson from the trip and changed me as a person. I learned
that although cultures and customs are very different, people are ultimately
very similar. This was learned in many different times throughout the trip
whether it was talking to people on the train ride, during business visits, or
just walking around the cities. However, the time it was most obvious was
during the cricket game against MET. I had no idea what to expect when Cal Poly
mixed with MET for a cricket game, but what I learned was that the MET students
were not very different from Cal Poly after all. Some students were very
competitive and wanted to be the best. Some students had no idea what they were
doing. Some students were just trying to be helpful to the Cal Poly students
and did not really care about the score. This is very similar to what I would
expect it to be like if a group of Americans were trying to teach MET how to
play baseball or football. Outside the game, when getting to talk briefly with
MET students, we were able to find common ground and talk in the same way I
would talk to a random American I just met. By learning that people are not
very different after all, I changed as I am more comfortable talking to
strangers because although everyone is different, I know that a common ground
can be found. <o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"> Overall, India was a great
experience. It is an experience that I will never forget because my outlook on
India has completely changed. From watching the news and pictures online, I had
an image of India that was not correct and now I feel like I have a good
understanding of Indian culture and an idea of how India actually looks. Now,
instead of just a third world country that is attractive to US business, India
has a new meaning. For me, India is an emerging market that will have an impact
on my career down the line. I am not sure how it will affect my career. It
might be doing business with an Indian company or even in India. More likely,
it might just be working with Indian individuals in the United States. Either
way, the trip will leave me better prepared when that time comes. Even if India
does not end up affecting my work life, if I travel back to the country, I
won’t be surprised this time how safe I felt the whole time and that I would
forget I was in a developing nation a lot during the trip. It truly was an
experience that cannot be replicated.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing">
<br /></div>
</div>
Bryan deRegthttp://www.blogger.com/profile/07977339071559455111noreply@blogger.com1tag:blogger.com,1999:blog-5801237994508921820.post-17094355096558713032013-06-13T23:53:00.003-07:002013-06-13T23:53:23.642-07:00Five Year Plan<div class="MsoNormal">
<b><span style="font-size: 14.0pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">India’s 12<sup>th</sup>
5 year Plan<o:p></o:p></span></b></div>
<div class="MsoNormal">
<b><span style="background: white; color: #333333; font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;"><br /></span></b></div>
<div class="MsoNormal">
<b><span style="background: white; color: #333333; font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;">What are
some of the main overarching implications of the most current Five Year Plan
that are likely to affect</span></b><span class="apple-converted-space"><span style="background: white; color: #333333; font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;"> </span></span><strong><span style="background: white; color: #333333; font-family: "Calibri","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-bidi;">businesses</span></strong><span class="apple-converted-space"><b><span style="background: white; color: #333333; font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;"> </span></b></span><b><span style="background: white; color: #333333; font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;">operating in India (both domestic and Western)?</span><o:p></o:p></b></div>
<div class="MsoNoSpacing">
The
first overarching implication of India’s most current Five Year Plan involves
the water resource for India. India has a water shortage despite strong
rainfall. Water shortfalls are common for companies when they have low
rainfall, but shortage with strong rainfall is a bad problem for a country to
face. Currently, India has 16% of the world population but only 4% of the fresh
water. This shows a significant larger portion of the world’s population lives
in India than fresh water is available to adequately meet everyone’s needs.
There is excessive use of water in the country to make matters worse due to
incorrect pricing in the industry in India. This is further compounded by the
fact that 80% of the water goes to irrigation and a quality issue with the
water. The quality issue is due to fertilizer, pesticide, and waste disposal
contamination. In order to fix these problems, India’s plan proposes the
creation of a regulatory body that hopefully will come up with new ways to aid
as many people as possible suffering from any water shortage.<o:p></o:p></div>
<div class="MsoNoSpacing">
A
second implication is the focus on the service industries. The service
industries will provide the greatest potential generator of employment moving
into the future for India. Information technology is project to only represent
12% of growth and is trivial to the overall employment so it can be ignored for
the most part. Not to be ignored, Tourism, hospitality, and construction are
major employers and the key to the planned growth in the 12<sup>th</sup> 5 year
plan of India. Tourism has the highest growth potential in the coming years.
This highest growth potential is supposed to last until 2021 but does not come
without any risks. The biggest problem for India’s tourist industry is the
capacity constraints from airports, hotels, security, and infrastructure. <o:p></o:p></div>
<div class="MsoNoSpacing">
A
third implication is the energy challenges that India will face going forward.
In order to achieve the desired growth of 9%, India will need 6-7% growth in
each of the five years. This is higher energy achievement than what was
previously managed over the last twenty years. With this growth in required
energy, India will become much more dependent on foreign energy sources like
oil, natural gas, and coal. The overall dependence of India will rise from
36.5% to 38%. As dependence and need both rise, India will place more emphasis
on exploration and production.<o:p></o:p></div>
<div class="MsoNoSpacing">
A
final implication is on the railways in India. India has railways that carry 22
million passengers and 923 million of freight a day but are of poor quality.
The plan for India over the next five years is to create western and eastern
dedicated freight corridors. On top of the new corridors, the railways will
need substantial investment and improved financial performance. In order to
reach this improved performance, India plans to de-politicize the fare
structure of the railways in India. These are just a few important implications
of India’s 5 year plan as there are many more issues addressed. <o:p></o:p></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="background: white; color: #333333; font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;">What are some of
your key observations and takeaways from the 12th Five Year Plan?</span></b><b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
After
reading the five year plan for India, I had one major observation and takeaway
that always seemed to be in my mind as I thought about each point. India seems
to have a good sense of many of its issues and ideas for improvement. The
government has a good grasp and wants to see India have a promising next five
years. However, my biggest takeaway was that it seemed to be a lot of things
for the government to do to improve India. I did not find that many ideas
really were about stimulating the private sector to improve India and do a lot
of the government’s job for them. This should be the most desirable outcome as
will be the best for long term growth. The government can do a lot for its
people but ultimately, the people have to fund any government improvements. The
biggest growth in history has always been funded by private resources as this
allows for the developments and growth that is needed while also passing the
costs on to private sectors that will most reap the rewards instead of
citizens. I would like to see India focus more on this private sector.<o:p></o:p></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="background: white; color: #333333; font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;">Some economists
argue that 10% GDP is the minimum growth floor India needs to achieve to create
enough jobs for its markets and stability. The most recent plan appears to shoot
for growth for most of 2012-2017 at 8.2%. Can India achieve such growth over
the next four or five years? What may happen for them, and for us/the USA, if
they come in lower than that number?</span><o:p></o:p></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="background: white; font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;"> </span><span style="background: white; mso-ascii-font-family: Calibri; mso-hansi-font-family: Calibri;">I think India can achieve
the growth rate of the plan at 8.2%. In fact, I think it is necessary for India
to reach this goal for India to have a successful next five years. Whenever
reports like this are issued, I assume that the reported numbers are
optimistic. If the optimistic number is less than the growth economists feel is
needed for India to create enough jobs for market stability then India could be
in a difficult position going forward. Less growth then needed would mean that
unemployment would rise in India. This would increase the poverty that India
already faces as an issue in the company. In addition, this could slow the
education growth planned in the region if children are needed to work at a
younger age to help support their family. This could very easily lead to more
children going to work instead of college like India’s five year plan hopes to
accomplish. <o:p></o:p></span></div>
<div class="MsoNoSpacing">
<span style="background: white; mso-ascii-font-family: Calibri; mso-hansi-font-family: Calibri;"> For
the US, less growth for India will likely also affect the US market. If there
is less growth and opportunity in India, more Indians are likely to look for
work in other countries. This may not even be just low level workers but
skilled workers that feel they have better opportunities in the US. With high unemployment
rates currently in the United States, an influx of foreigners looking for work
will put more Americans out of work. Not achieving the growth that is necessary
would be a bad situation for both the US and India.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="background: white; color: #333333; font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;">What are some of
this plan’s targets and longer-term priorities? How do these differ from our
priorities in the USA, and why?</span><o:p></o:p></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="background: white; color: #333333; mso-ascii-font-family: Calibri; mso-hansi-font-family: Calibri;"> A
main target and long term priority for India is urbanization and improving life
for people living in the rural areas. This is very different than the
priorities in the USA. People living in the rural areas in America have the
necessary resources to live a life just as equal as people in the city even
though it may be very different by choice. Water is safe. Food is plentiful.
Technology is available. This is not the case in many rural areas for India.
This makes it very understandable why India has to have different priorities
than the USA. It is important that India’s plan is able to help bring clean
water, food, education and technology to the rural areas to help them develop
and be a key component to the growth of India over the next five years.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="background: white; color: #333333; font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;">What were some of
the accomplishments (and failures) from some of India’s previous Five Year
Plans?</span><o:p></o:p></b></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="background: white; color: #333333; mso-ascii-font-family: Calibri; mso-hansi-font-family: Calibri;"> Previous
five year plans have had many accomplishments for India. One such
accomplishment is an Increase in National Income. India’s national income has
been on a steady rise since India began having five year plans and they hope to
see this continue with their next five year plan as this is a strong indicator
of economic development. Second, there has been a strong development in
agriculture. There has been a steady upward trend since India began having five
year plans. Third, much like agriculture there has been a development of
transport and communication. In fact, the first two plans had more than a
quarter of the total outlay developed to this area. Finally, throughout the
plans, there have been many successful steps to increase employment. These are
just a few examples of accomplishments that India has had under their previous
five year plans. There are also many failures of the plans but I think the
biggest drawback of the plans has been the unequal distribution of income and
wealth. This is an issue that is beginning to face the US and a wide wealth gap
is never something that a country wants to achieve. There are other failures
but I feel overall the plans have had more success than failure.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<b><span style="background: white; color: #333333; font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-size: 11.0pt; mso-hansi-font-family: Calibri;">Do you think this
type of strategic planning is possible in the USA? Would the pros outweigh the
cons, and what would be some of the pros and cons of a Five Year Plan in the
USA? If a Five Year Plan option was presented to American voters as a
constitutional amendment, would you vote for or against it, and why?</span><o:p></o:p></b></div>
<div class="MsoNoSpacing">
<br /></div>
<br />
<div class="MsoNoSpacing">
<span style="background: white; color: #333333; mso-ascii-font-family: Calibri; mso-hansi-font-family: Calibri;"> It
is not possible for the USA to have this type of strategic planning. Our
democracy is built upon a lot of elections and this does not provide the stability
for a five year plan to have a chance to be enacted. Instead, I consider the
USA having multiple two year plans that different interests push and they
eventually become what happened over the period. There would be pros to this
type of plan for the USA in that it would provide more stability, but the cons
of losing some of the electoral process would not be easily sold to American
citizens or to the political party that is not currently in control. If a Five
Year Plan option came up for vote, I would vote against it as I feel
flexibility is very important and think a balance between parties is very
important in our system and worry a five year plan would put too much influence
into the hands of too few individuals.</span><o:p></o:p></div>
Bryan deRegthttp://www.blogger.com/profile/07977339071559455111noreply@blogger.com2tag:blogger.com,1999:blog-5801237994508921820.post-38891929933177089702013-03-22T12:06:00.003-07:002013-03-22T12:07:10.643-07:00Book Review: The Elephant and the Dragon<br />
<h1>
Book Review: The Elephant and the Dragon<o:p></o:p></h1>
<h3>
Author: Robyn Meredith<o:p></o:p></h3>
<h2>
What the rise of India and China means for all of us?<o:p></o:p></h2>
<h3>
By Bryan deRegt<o:p></o:p></h3>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">In
<i>The Elephant and the Dragon¸</i><span style="font-size: small;"> Robyn
Meredith paints a concerning future for American workers. As an MBA student, it
made me wonder a little bit how much my degree will help me stand out as I
enter the job market. The book focuses on the repercussions of a global job
market especially as India and China have emerged as economic powers. She uses the analysis of India as an Elephant
and China as the Dragon. India is the elephant that has been slowly gaining
economic strength. China is the dragon that has emerged with a fast rise to
power. Meredith explains how both emerged in more detail throughout the book. The most interesting part of her explanation to me is her discussing the differences in work that college graduate look for between countries and how the job market is affected. She mentions at one point that college graduates in India are happy to take a job answering an 800-number to listen to American's complain. This is example is meant to demonstrate that China and India are willing to do jobs for cheaper than Americans even as they may be just as highly qualified as the United States. Overall, the book does a good job explaining the situation but does not do very much to offer solutions for America.<o:p></o:p></span></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">The difference between job desires among individuals in the United States versus China and India. Americans have an attitude that if we go to college we should be able to find a good job with a good salary and begin our work experience. This has not been the case in recent years as unemployment rates have been high and recent college graduates are having trouble finding work. From my own experience, I am completing my MBA and it is a difficult job market. An MBA now just makes me one of many versus twenty years ago when an MBA would make workers stand out from the crowd. India and China do not have this same attitude. College graduates are happy to take jobs for salaries that Americans would not consider working for that little. A graduate with a degree in computer science in America used to be looking at some top jobs in Silicon Valley that pay as much as $120,000 per year. This is obviously a top job that anyone would be happy to have. Meanwhile, in India, a similar job will attract a college graduate as well but to be the same IT professional, the salary in India may be only $5,000 per year. That is a $115,000 difference. It is easy to see why IT work has seen a mass exodus from the United States to India.</span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">The question for us as American workers is how we are going to react to this change. I think the biggest area that Americans need to adapt is in our attitude. I know growing up that I always thought that I would go to college, get my degree, and have multiple job opportunities to do what I wanted. When the time came after I finished my undergraduate degree, this was not a reality. The job market is difficult and just having a college degree doesn't mean that I have the right to a high paying job. As I entered the MBA program, I knew this would help in the job search but again it is not a golden ticket to a six figure salary. Americans need to adopt the attitude that there are now people who are just as skilled as us all over the world who work for much cheaper so this is going to bring down salaries and job availability in the United States. There are no longer job markets for each specific country but instead there is a global job market. </span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">Meredith discusses many more issues but one particular that she brings up is that China and India are very different. We tend to group them together in America because they are emerging powers in the east but they are not very similar at all. India has major infrastructure problems. A few of Meredith comments on India's infrastructure are:</span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"> "India doesn’t have enough power plants and electricity supplies are so unreliable that lights--and computer screens--regularly flicker in downtown business districts." </span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">"Indian airports are so shabby they have become a national embarrassment." </span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">"Companies must navigate antiquated customs processing, variations in taxes and byzantine rules for transporting goods between Indian states in addition to the crumbling highways, decrepit airports, and what-me-hurry ports."</span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">These quotes give a great idea of the infrastructure problems that companies still face when doing business in India. China on the other hand has some of the best infrastructure in the world. In an interview, she asks the question if you landed at an airport in Shanghai or at JFK in New York if you would be able to look around and tell which is the developing country. This affects what type of jobs are moving to each country. </span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">China has become the world's factory. They have the infrastructure and ability to build the large factories. Combined with a large base of workers it is not surprising that anytime you buy a toy in America it is no surprise to see it have "Made in China" on it. Meredith explains this shift, "Instead of doing the inventing as the West watches on with envy, China excels at building Western inventions cheaper than Westerners can build them at home. China has shifted from a hub of invention to one of rote production." For Americans, it means that there is still room for the innovators but the factory workers are going to have more difficulty finding work as it can be done just as well for much cheaper in China.</span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">Since China is the world's factory, Meredith describes India as becoming the world's back office. As I have already mentioned, IT jobs have been a big mover to India because of the qualified labor and cheaper salaries. The IT and call market industry in India now represents 5% of the countries GDP. America has in a way accepted the loss of these jobs as most of us know that when we call an American company, we will be talking to someone in India. This hurts the lower skilled workers in the US, but saves companies money. Unless Americans are willing to take much lower salaries, these jobs will not be coming back but new jobs can take their place.</span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNoSpacing">
<span style="font-family: Times, Times New Roman, serif;">Overall, Meredith does a good job describing the emergence of China and India and how it relates to the United States job market. The book is a good read for anyone interested in globalization but I would have liked to have read more about solutions. I had already known about the emergence of China and India but did not know how I could take advantage of this situation. I think this is the big question and I still do not know the answer.</span></div>
<div class="MsoNoSpacing">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt;"><br /></span></div>
Bryan deRegthttp://www.blogger.com/profile/07977339071559455111noreply@blogger.com1tag:blogger.com,1999:blog-5801237994508921820.post-32731713369132158892012-12-06T16:44:00.004-08:002012-12-06T16:49:52.958-08:00Book Review: The Post-American World<br />
<h1>
</h1>
<h1>
Book Review: The Post-American World<o:p></o:p></h1>
<h3>
Author: Fareed Zakaria<o:p></o:p></h3>
<h2>
Are new countries emerging to challenge the United States as the world’s
leader?<o:p></o:p></h2>
<h3>
By Bryan deRegt<o:p></o:p></h3>
<div class="MsoNormal">
<br /></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">“This is not a book about
the decline of America, but rather about the rise of everyone else.” This is
Zakaria’s opening line of <i>The
Post-American World</i> and a point he has continued to make as he discusses
his book. However, not everyone agrees with his assertion that he is not
writing about the decline of the United States. Republicans made attacks on
President Obama when he was photographed walking with the book during his first
presidential campaign. The argument was that President Obama believes in this
post-American world and that the US will fall from the elite. Mitt Romney said,
“This is a president who fundamentally believes that this next century is the
post-American century.”<w:sdt citation="t" id="1580174110"><!--[if supportFields]><span
style='mso-element:field-begin'></span>CITATION Zak \l 1033 <span
style='mso-element:field-separator'></span><![endif]--> (Zakaria, 2012)<!--[if supportFields]><span
style='mso-element:field-end'></span><![endif]--></w:sdt> These attacks have
been rebuffed by most critics but it did draw attention to Zakaria’s book. Zakaria
himself even wrote a rebuttal to Romney in the Washington Post explaining that
his book is not about the decline of the United States. Ultimately, if
anything, the publicity helped Zakaria as his book became a part of national
media. Not all press is good press though for Zakaria. In August 2012, Zakaria
was suspended from both Time magazine and CNN because he was found to have plagiarized
several paragraphs from another author in one of his Time columns. This has no
effect on his book but does change the credibility of the author a little bit.
However, when reviewing the book, the key question comes back to whether the
book predicts the fall of America or the rise of other nations. My question is
whether there is really a difference and if it matters?<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Before getting into why
America may decline or where emerging countries might have an edge over the United
States in the future, it is important to look at where the US has advantages.
Zakaria gives his point of view but it is not clear that he is correct. He lays
out some clear advantages and others have their own as well. Two such American
advantages are demographics and innovation.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">In the short-term, the
biggest threat to the US is Europe. Europe is strongly developed and has the
only financial centers that can rival America. In fact, London is probably the
dominant financial center in the world right now although an argument can be
made for New York. However, future demographics for the United States and
Europe show a clear American advantage. The US population is predicted to
increase by 65 million by 2030 while Europe is predicted to remain relatively
stagnant. More importantly, while the US population increases, the amount of
children will continue to outnumber the elderly. Europe is predicted to be the
opposite with the amount of elderly doubling the amount of children. This is a
problem for countries because if a country gets too old then the working class
will begin to shrink while having to support a larger elderly population. This
puts a large strain on the economy unless the elderly continue to work until a
later age. The elderly tend to also consume less. Economic growth is driven by
consumption. Therefore, these demographics give America a clear advantage over
Europe.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Innovation is an American
advantage demonstrated best by the quality of US universities. People from all
over the world come to America because they can get the best higher education.
Even public high schools in the US are stronger than many think as they are
good at encouraging critical thinking. This education system leads to
innovation in the economy. The US has an elite ability to create new ideas and
in some ways more importantly, has the ability to commercialize these ideas.
This innovation will help America remain an economic superpower.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Not everything makes the
future look as bright for the United States. There are also many disadvantages
which help form the basis for Zakaria predicting the rise of other nations and
a post-American world. The two disadvantages that I will focus on are America’s
political landscape and America isolation.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Politics in the United
States have become dominated by extremists on both sides of the aisle. It is
difficult for any politician to get elected out of the Democratic or Republican
primaries while being moderate. This creates candidates who are unlikely to
reach across the aisle and work with the other party on an issue. Additionally,
if a politician does decide he disagrees with his party on a major issue, he is
unlikely to be supported by the party base when he runs for re-election. This
is an issue because as the saying goes, “A politician’s first job is to get
re-elected.” This focus leads to very short sighted politics. Zakaria discusses
the political landscape by comparing to the British Empire. The British had
bankrupted themselves following World War I and the economy did not recover and
missed out on the boom the US economy received following World War II. Britain
was able to stay a strong power because of their political leaders like Winston
Churchill. America is facing the opposite problem of having a strong economy but
weak political leaders that is a disadvantage for America.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Isolation is the other
major disadvantage facing the United States. America tends to equate the modern
world with the western world while feeling that the American way is the best
for all countries. Zakaria argues that America especially the politicians needs
to be more open to other cultures and allow for diversity in the way situations
are handled. Along these same ideas, he makes an argument that the war on
terror is stretching the US too think and better diplomacy would be more
effective going as far to say that military action is what terrorist want from
the US. <o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">With these advantages and
disadvantages in mind, Zakaria outlines six guidelines for the US to follow. America
needs to “Choose” specific goals. As new countries emerge as superpowers, they
will be less influenced by America and make decisions off their own agenda.
America will need to get used to not getting everything and anything they want.
Second, the US needs to “Build broad rules, not narrow interests.” America
needs to give up power to international bodies instead on issues alone. Broader
guidelines and long term goals should be the focus over short gains like the
war on terror. Along these same lines, the US should focus on “Being Bismarck
not Britain.” The British Empire tried to always be as strong as their rivals
while Bismarck tried to be the diplomatic hub of Europe. The US should not
focus as much on being the strongest military power in the world and instead be
an international peace maker. To help accomplish these goals, America should “Order
a la carte.” The US is in an ideal position as a member of NATO and the UN
along with other international bodies. Different situations would be better
solved by different organizations and the US should take advantage of having
different options. Along with allowing the international bodies to do more,
America needs to begin “Thinking asymmetrically.” The war on terror is
expensive and makes the US military thin so new approaches need to be tried.
Finally, America needs to remember that “Legitimacy is power.” For a long time,
the US was the only superpower and the world was ok with that. However, the US
lost a lot of their international recognition and legitimacy by entering the
Iraq War without much international support. American ideals can still be
important to the world but America’s actions have to support these ideals in
order to maintain and gain back legitimacy in the eyes of the international
committee. <o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Personally, I disagree
with Zakaria that the US will lose its position in the world. While there are
emerging countries like Brazil, China, India, Turkey, etc., they all have major
issues to getting on the same level as the United States in the international
community as a superpower. To be on the same level, the country would have to
have the same type of economic, political, and military strength as the US has
able to maintain and seems likely to continue to maintain in the future.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Globalization probably makes
it more difficult for a superpower to fall than it was in the past so the
British Empires and older superpowers are not necessarily relevant to the
current United States. Financial markets worldwide are very focused on America
(as well as London.) This is a big area where China cannot match the US because
of their closed economy and lack of currency freely traded in the market.
Additionally, companies are becoming large international conglomerates who have
as much if not more power than international governments. Political donations
by the companies even allow them to shape government decisions. Many of the
largest companies are focused on the US market giving the US an edge on
competitors. This edge is likely to maintain as Americans are large consumers
who have a culture that embraces going into debt unlike Japan where their
culture embraces savings.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<div class="MsoNoSpacing">
<span style="font-size: 12.0pt;">Besides globalization, the
other big issue that will aid the US as they try to maintain their role as
world superpower is the American military strength and international alliances.
The US has the most powerful military right now and continues to invest a lot
of money into defense so there should not be a drop off in the future. Many of
the top defense contractors are based in the US so this always gives an edge
into new military innovation. Besides pure military power, the US has strong
alliances with most other world powers. Mexico and Canada are also strong
allies on each border protecting America from ever having to fight a war on its
own land while having outposts close to emerging world powers if military
conflict did arise. This strong military position as well as being an economic
power leaves the US well positioned for the future although Zakaria does have
some strong arguments to the contrary. <o:p></o:p></span></div>
Bryan deRegthttp://www.blogger.com/profile/07977339071559455111noreply@blogger.com0