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Diskusi 5 Bahasa Inggris Niaga
Diskusi 5 Bahasa Inggris Niaga
Human capital plays a very strategic role in supporting the competitiveness of a country
or region. Foreign investment into Southeast Asia led to the assimilation of new
technologies and at the same time increased productivity. The increase in productivity
took place because it was partly supported by the condition of the need to compete
with imported goods. Competition leads to improvements in domestic technology, and
therefore increases productivity. Improvements in productivity occurred mainly in
business sectors with high growth rates, such as the textile and apparel, leather, and
machinery and equipment industries (Choudhri and Hakura 2000). Foreign direct
investment in Southeast Asia began with a joint-venture system with more limited
spillovers or technology transfer, before allowing stand-alone operations of foreign
multinational subsidiaries. Foreign direct investment also results in capital imports, in
which new technologies are usually realized. Initially, importers on world markets
offered exporters from developing countries to provide products with detailed
engineering, managerial instructions and specifications, as well as to facilitate the
assimilation of new technologies. Then, competitive pressures in foreign markets
require greater efficiency and growth in Total Factor Productivity. Exportation, thus, is
not a way for Asean members to exploit their comparative advantage, but also an only
important learning vehicle and mechanism for achieving technology transfer. The ability
of countries in the region to assimilate new technologies depends on the quantity and
technical capabilities of local engineers. Engineers are sent overseas to identify the
advanced technology needed to compete in world markets. Technology adoption then
leads to a learning by doing process for engineers and skilled workers, resulting in
spillover effects within and between industries.