The Apec Economic Blueprint : The Asean Economic Plan Essay

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)

This agreement was created in 1994, its goal is to establish a stronger trade relationship between them. The US goal was to build a bloc to compete more equally with European and Asian markets (InvestingAnswers, 2018)

For example, Sainsbury’s has target customers in the emerging countries by providing new products which customers have not purchase it before which causes the demand of product to be high. In this case, it can help the market economy to boost up, increase the brand reputation and the revenue of Sainsbury’s. In addition, diversification is an advantage of emerging market towards business. (Pendleton, n.d.) For example, diversification is an advantage of Sainsbury’s due to they can be suffering when the local economy face a downward turn.

Feridhanusetyawan, Tubagus. " Preferential Trade Agreements in the Asia-Pacific Region” July 2005. Web. 7 Apr. 2012.

To properly consider the impact of integrating with the global economy on China, Japan, India and Southeast Asia, it is useful to first define the global economy. When did it come into being? Frank (1998) posits that a global economy had existed since the start of the thirteenth century. Although financial flows were limited, there was a burgeoning exchange of commodities between Asian and European economies. Of the Asian economies, China and India stood out for the extensiveness of their trade links and magnitude of their trade volumes. Both countries traded with Southeast Asia, the Islamic world, the Mediterranean and European countries. In addition, China traded with the Middle East and North Africa.

Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across

3. The BIMP-EAGA agreed to adopt the strategic direction to establish BIMP-EAGA as a food basket for ASEAN and the rest of Asia and a premier ecotourism destination. By this it gives huge benefits to BIMP-EAGA and BIMP-EAGA can earn more income and have free excess of trade all around ASEAN based on the terms and conditions given.

each country to localize the principal centres of demand for each kind of product. So, the

Globalization has created a paradigm shift in the ways by which firms conduct their business. The convergence of world economies has minimized-and in some cases eliminated-both legislative and geographical barriers to international production and sale of goods and services. The flip-side of this process is the increased competition for world markets created especially by the threat of multinational firms to local firms (Garry & Litan, 1998). Local firms must find ways to compete and survive the threat of take-over and crowding out of the market by multinational producers who enjoy favorable economies of scale. This is effectively achieved by ways of in themselves creating this very economy of scale; expanding business operations helps them lower the marginal cost of production allowing them to therefore provide a favorable pricing policy within the market.

We live in a world where different economic systems exist and its existence is can create balances or imbalances in the economical arena. These economic system can be characterized as Laissez-faire economy, command economy and a mixed economy, implemented by each state. Within those segments of economy, a country can have companies following different structures of industries in the marketplace with distinctive levels of competitions.

Since the last century, each country had begun to understand the importance of the cooperation. Consequently, The European Union [EU] was established in November 1, 1993. After that, other European countries became the member of the EU to promote the development of the whole Europe. Currently, the US, the only superpower country in this planet, is still looking for the assistance with the EU and Japan, South Korea and etc. The establishment of the World Bank, the World Trade Organization verifies the significance of the cooperation as well. Hence, for the future of globalization in East Asia, East Asia countries should set up an East Asian Union to guarantee the growth of all East Asia countries as well as to counteract

Despite our geographical and economic focus on Asia, Australia’s culture is heavily influenced by its’ British colonial past and the close friendship we enjoy with the United States. The cultural gap between Australia and the rest of the Indo-Pacific region, therefore, leaves our businesses in a weaker position to negotiate with our Asian neighbours. However, the businesses that both understand and are able to adopt the expected Japanese protocols of negotiation will most likely succeed in not only signing a deal, but also, in establishing a long-term mutually beneficial business relationship for the future. All aspects of negotiation in Japan are firmly rooted in the traditional hierarchical structure of Japanese

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

ASEAN was officially founded in August 1967 when five founding member states jointly signed the Bangkok declaration. Since then ASEAN experienced number of threats, such as security threat in cold war, economic and financial threat in 1997 East Asia Economic crisis, and now being in the security dilemma between the United States and the People’s Republic of China, prominent major powers attempting to dominate the region, despite all the threat, ASEAN set its goal to become a community in December 2015 which has lot of potential to contribute to the world stage but it also has countless number of challenges, mainly caused by its diversities, nationalism and lack of