Effect of Asean Economic Integration

The Asia-Pacific Economic Cooperation is an organization that was established in the year 1989. The cooperation creates tangible effects and benefits for the people within the Asia-Pacific region through their projects. There are currently 21 members (can also be referred to as “economies”) in the organization. In a year, it is estimated that the APEC members propose about 100 projects. These projects usually focus in sharing knowledge and skills to other people. For example, promoting and accelerating regional economic integration. Regional integration is a procedure which

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim economies. APEC members are described as ‘economies’ because the APEC cooperative process is predominantly concerned with trade and economic issues, with members engaging with one another as economic entities. APEC promotes free trade throughout the Asia-Pacific region. It was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world; to fears that highly industrialised Japan (a member of G8) would come to dominate economic activity in the Asia-Pacific region; and to establish new markets for agricultural products and raw materials beyond Europe.(Andrew Elek)

In this assignment I am discussing some case study questions from chapter 7 and critical thinking discussion questions for chapters 8 and 9 of the Global Business Today text. These questions are for the individual week 3 assignment of our MBA 539 International Business class. These discussion questions are composed to increase the reader’s understanding of “the political economy of international trade”, “foreign direct investment” and “regional economic integration” as explained within Global Business Today (Hill, C., 2014).

In order to detach trade between the nations by minimizing or reducing the various forms of barriers that restrict trade between the nations, free trade agreements are signed. The North American Free Trade Agreements and the ASEAN Free Trade Area are regions where usually sign Free trade agreements. However in this investigation, ASEAN Free Trade Area (AFTA) will be discuss. AFTA has become the third largest trade bloc in the world and has gained importance to the society. In this investigation, the impacts of AFTA in Malaysia is being pointed out as for their benefits and their challenges faced.

As intended in the Global Europe strategy, the EU attempted to widen its trade market to East Asian economies. South Korea was the first for the EU to start that aim. Generally, tariffs on over ninety percent of goods are expected to be removed within 3 years and a total elimination of tariffs within 7 years for South Korea and within 5 years for the EU (Hwang and Kim, 2014). According to an econometric estimation, the most beneficial sector from the FTA should be the service sector, which could be liberalised up to seventy percent of the total (Copenhagen Economics and Francois, 2006). The level of the developments of agricultural trades between the two sectors was stationary as there is a large gap of surplus; the EU exported 1.39

Improving the value of exports is the primary goal of Thailand’s international trade policy. The Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) was established as an effective cooperative strategy for gaining market advantages through regional market integration. Thailand aims to capitalize on trade agreements by networking and entering partnership with neighboring countries. Currently, Thailand’s cross-border trade in the Greater Mekong Subregion (GMS) plays a crucial role in globalization, because it facilitates rapid and convenient trade and investment. Countries seek new export markets to disperse the risk of domestic market concentration, as evidenced by the economic recessions affecting

The Association of Southeast Asian Nations (ASEAN) is an intergovernmental organization founded on August 8, 1967. It initially consisted of five founding members, but as the organization grew to ten members, it failed to adapt to the changes, address issues within the region, and appeal to all of its members— and thus failed to guarantee cooperation.

Asia-Pacific Economic Cooperation, commonly abbreviated for APEC has 21 Pacific members, including all the major economies of the region and some of the most dynamic, fastest growing economies in the world. Statistically, APEC members have a combined Gross Domestic Product of over $16 trillion and carry out 42% of world trade. Over the past few years, APEC's role has grown in both depth and scope and now encompasses trade liberalization, business facilitation, economic and technical cooperation.

This article is aimed to reveal the impact of an executed part of ASEAN – China Free Trade Area to Thailand, by analyzing the problems, obstacles of exporting and the utilization of this free trading, throughout evaluate the impact in the present as well as offer suggestions, strategy and solutions, in order to assist Thailand earns the most advantage from this free trading.

“”The deadline set for 31 December 2015 for the “full” integration of the member states into the ASEAN Economic Community seems to have been more a symbolic onset of formal obligations in a long process where various policy and industry commitments have been made. The ASEAN Economic Community 2015 Blueprint was worked on from 2008 until 2015. It described four large ASEAN goals. Those goals were (1) Single Market and Production Base, (2) Competitive Economic Region (3) Equitable Economic Development and (4) Integration Into the Global Economy. (AECat-a-glance-2016_web_version2.pdf )

In the second place, we have open regionalism, in which groups of countries agree to reduce restrictions on trade both between themselves and with other countries, that is, external liberalization by trade blocs, although the degree of liberalization on imports from non-member countries doesn’t need to be as high as that for member countries. Within this approach, we can find the APEC (Asia-Pacific Economic Cooperation) that encompasses most of the East Asian

The most representative regional economic organization in East Asia is ASEAN, which was established in Bangkok and formed by five founding members, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei, Laos, Myanmar, Vietnam and Cambodia also joined successively to form the ten countries of ASEAN. ASEAN is abbreviated by Association of Southeast Asian Nations, which was built to contain the Communist forces with the purpose to steady military affairs and political neutrality initially. According to Tong (2005), the content of East Asian economic integration can be classified as Free Trade Agreement (FTA) and Comprehensive Economic Partnership (CEP). Previously, East Asian economic integration focuses on the operation of FTA which applies the zero tariffs on member countries; nowadays, economic cooperation agreement is inclined to CEP which contains wider issues of economic cooperation such as tariff reduction, deregulation of investment policy, enlargement of factors of production and etc. to draw the relation between member nations and achieve a higher level of integration (Jin, 2003). Moreover, the continuing goal of ASEAN is to promote the inter-regional economic development, enhance the partnership and maintain the peace in the region (Taiwan ASEAN Studies Center, 2014). Before Asian financial crisis, ASEAN is a representative of the regional economic organization that especially focuses on

The Australian Government’s White Paper anticipates that by 2025, the Asian region will be responsible for approximately half of the world’s output (Dept. of PM, 2012, p6). China and India are the main driving forces behind this progress, however the Paper further predicts that some Southeast Asian countries, such as Indonesia and Malaysia, will expand rapidly, contributing to this growth. Moreover, the Paper further discusses that living standards are forecast to increase drastically, modernising the Asian region even faster (Dept. of PM, 2012, p50). This increase in output and living standards within Asia could effectively strengthen the region’s dominion, as, according to Barnett (2003 p152), prosperity is closely linked to measures of wealth and globalisation.

The Association of Southeast Asian Nation (ASEAN) and ASEAN-India Free Trade Area (AIFTA) Agreement, both networking in regions, consists of different markets with a variance in economic development, along with its diverse cultures,’ making it one of the most competitive regions in today’s world. This would be the beginning to the relationship in forming a Framework Agreement on Comprehensive Economic Cooperation. This agreement has served as legal

The Asian continent enjoys a very rich mixture of complex cultures and this complexity is reflected in their economic, political, legal and business systems. Most Southeast Asian countries developed through primarily agricultural economies where industrial production has a limited influence until about 30 years ago (Oosterveer, Kamolsiripichaiporn and Rasiah 2006, p. 217). As industrial production increased rapidly over the last decades, the number of NIEs, newly industrialised economies, in the region has expanded to include countries such as Malaysia, Thai and Indonesia. This means that these countries have joined the more developed fist members of NIEs, Hong Kong, Singapore, Taiwan