Business in Asia Assignment Task

Running head: BUSINESS IN ASIA
Business in Asia
Name of the Student
Name of the University
Author Note

1BUSINESS IN ASIA
Introduction
The economy of Asia is largely dependent on business opportunities and developed
countries of the continent are responsible for taking this business growth. In the recent times,
Asian countries have been facing the problem of ageing population and its harmful impacts on
economy. There are various countries in the southern regions of Asia like Japan, China, Hong
Kong, Singapore and others that contribute to the growth of economy of the continent. Very
recently, this challenge of ageing population has been faced by these countries (Walker &
Aspalter, 2014). In case of Japan, there are certain facts that have changed the outlook of
Japanese economy. Therefore, these challenges should be overcome by these countries for a
bright potential future and their ability to compete with the economies of other European
countries and United States. This essay will focus on the prospective challenges of Asian
countries and suggestions will be provided on how they can cope up with these issues in the
future.
Ageing population in Asian countries
Various Asian countries have been facing the problem of ageing population in the recent
times and it has hampered the growth of their business perspectives since older people are not
able to deal with latest changes in business system. Some o the pillars on which modern business
practices and global competitiveness stand on are advancement in technologies, providing
primary education and health facilities, efficiency in labor market, size of market, building up
quality institutions for business growth, development of financial market, efficiency in goods
market, sophisticated business systems and innovative designs for development of businesses
(Walker & Aspalter, 2014).

2BUSINESS IN ASIA
In this scenario, most Asian countries are not that much engaged in building innovative
designs for businesses and embracing technological advancements. These two segments have
become almost inseparable parts of business development. Countries like Japan and Hong Kong
are in 6th and 7th position in global competitive index (GCI) in 2014-15 as published by World
Economic Forum (Jones, 2014). The elements of business development for all countries are
based on three segments i.e. factor driven, innovation driven and efficiency driven. The business
organizations should always engage in gaining competitive advantage and it will only be
possible if they can recruit highly efficient, energetic and dynamic young people. This is where
the actual challenge lies. Countries that are included in evaluating Asian economy are Singapore,
Philippines, Cambodia, Myanmar, Thailand, Vietnam, Indonesia, Brunei, Malaysia and others.
China and India are two countries in Asia that have experienced enormous growth in modern and
traditional export growth through their business practices between 2000 and 2009.
There are other challenges regarding growth of economy in some Asian countries. Asia
had experienced rapid financial growth for some decades but income levels in those countries
were unequal. It must not be forgotten that most countries in Asian economy are completely
linked with patterns and trends in global economy as well (Jones, 2014). The lack of skilled
young people is probably the result of their inability to provide proper primary education to
children. This creates a gap between international standards of capabilities and their ability to
absorb those skills for their professional development (Chomik & Piggott, 2015). The estimates
of various international organizations have proved the fact that Asia is growing older than rest of
the continents.
As per the assumptions, it has been found that around 16% of total population of the
continent of Asia will grow older at more than 65 years of age. This might be the case at the end

3BUSINESS IN ASIA
of 2040. Therefore, it will be very difficult for them to cope up with the latest innovations that
would come across in the business industry. New types of business practices would come up and
people should learn to embrace all these things for a better future (Chomik & Piggott, 2015). It is
a good perspective from the health because of the rise in life expectancy of common people. O
the other hand, this perspective will surely be very fatal for growth of economies.
This business growth of Asia has already begun to lose its vitality because of ageing
population. As critics have pointed out, it must be clarified that Asia experienced the rapid
growth of its economy because of skilled workers at their prime youth. This ratio has completely
gone down because of several reasons. In addition with ageing population, countries like China
and Vietnam are going through a phase of rapid population growth (Romli et al., 2017). This
scenario can really be very dangerous for these countries with middle income. It will be difficult
for these countries if they do not tend to focus on maximum productivity to provide food and
shelter to all these people.
It has also been estimated through various research studies that population of working
age between 18 and 65 years will decrease around 10% from 2017 to 2030 at South Korea
(Knoke, 2018). This is definitely a huge concern for all business experts of Asia. Multinational
companies from USA and Europe will think twice before they could enter the Asian market.
Their foremost aim would be to use local labor supply at cheap cost so they can gain higher
profits. The middle class economy has grown in different countries of Asia and resulted in
integration of financial markets. This large amount of turbulence in economic perspectives
across Asia will definitely result negatively (Romli et al., 2017). The migration of labor markets
across Asia will also lead towards economic integration of Asian economy. Some historical links
or influences that are crucial to understand Asian business are influences from Indian and