...the Association of Southeast Asian Nations (ASEAN), the GMS5 countries (GMS countries minus Yunnan province in China) and China entered into the ASEAN China Free Trade Agreement (ACFTA). Under the ACFTA, each country is obligated to implement gradual tariff reductions for the exports of ACFTA partners. As a result of the commitments made in the ACFTA, tariff rates of Chinese exports to GMS5 countries have been lowered, as have been the tariff rates for exports from GMS5 countries to China. An analysis of trade flows before and after the ACFTA has shown that trade between China and the GMS5 countries has increased significantly since the signing of the ACFTA, in particular for goods whose tariff rates were reduced under the ACFTA. A similar trend can be observed in the trade relationship between China and Cambodia, although some Cambodian exports eligible for lower tariffs have seen relatively slow growth due to difficulties faced by exporters in meeting China’s import standards for agricultural products such as cassava, live animals and fish. These findings suggest that the ACFTA has been a significant driver of the rapid expansion of trade between the GMS5 countries and China, at least for products that do not have to comply with extensive health and food safety standards. Relative First, China is a huge and dynamic economy, and its growing demand for goods and services from ASEAN could serve as a new engine of growth. ASEAN looks to China as its future primary export...
Words: 782 - Pages: 4
...Table of Contents Introduction to Copenhagen Conference and Kyoto Protocol 2 ASEAN and Copenhagen Conference 3 Climate Change as an Issue 4 Sustainable Development 5 Impact of Kyoto Protocol on ASEAN 7 Challenges faced by ASEAN under Kyoto Protocol 9 Conclusion 11 Referencing 12 Introduction to Copenhagen Conference and Kyoto Protocol In 1992, countries coupled together for an international treaty, the United Nations Framework Convention on Climate Change. However, by 1995, countries realized that provisions of emission reductions in the Convention were insufficient. Due to this reason, they launched negotiations to reinforce the global response to climate change. These negotiations lead to the adoption of an agreement known as Kyoto Protocol (United Nations Framework Convention on Climate Change, 2013). The Copenhagen Climate Change Conference held in Denmark raised climate change policy to the highest political level. 115 world leaders attended this high-level segment, building it one of the major gatherings of world leaders ever outside UN headquarters in New York. More than 40,000 people that represent governments, nongovernmental organizations, intergovernmental organizations, media, faith-based organizations UN agencies applied for accreditation (UNFCCC, 2013) The Copenhagen Accord enclosed numerous key elements on which there was strong union of the views of governments. This incorporated the long-term goal of limiting the maximum global average temperature...
Words: 2412 - Pages: 10
...Executive Summary One of recently formed regional groups was the ASEAN (Association of SouthEast Asian Nations) that comprises of 10 nations together. Together they are performing an important part in the global economy. With their increasing growth and continued togetherness the ASEAN’s presence is being recognized on the world map. East Asia is proving to be one of the world’s highly dynamic and fastest growing regions. These export driven economies are vast and hence required to develop an understanding of their model of business operation. My report gives information on the history on formation and emphasizes on the trading and integration between these ten economies that are members that forms the ASEAN to bring about a common platform in terms of fields like trading, manufacturing, finance and so on. The purpose of the report is to evaluate ASEAN’s formation and to view the possible favorable and unfavorable conditions. The different factors, the benefits of the integration and its limitations are described in the report below. With respect to my findings and details in the report through different sources on the internet, I feel that the formation ASEAN has benefited these countries and in turn helped them to make their mark in the global market place that is day by day becoming cost oriented. Introduction A regional integration is a method where in different states put into place an agreement to help develop cooperation through regional rules and institutions. The...
Words: 1631 - Pages: 7
...Convergence and Its Implications for a Common Currency in ASEAN Kraiwinee Bunyaratavej, Eugene D. Hahn ASEAN Economic Bulletin, Volume 20, Number 1, April 2003, pp. 49-59 (Article) Published by Institute of Southeast Asian Studies For additional information about this article http://muse.jhu.edu/journals/ase/summary/v020/20.1.bunyaratavej.html Access provided by Bangor University (24 Feb 2014 20:30 GMT) ASEAN Economic Bulletin Vol. 20, No. 1 (2003), pp. 49-59 Convergence and Its Implications for a Common Currency in ASEAN Kraiwinee Bunyaratavej and Eugene D. Hahn The successful introduction of the euro brings renewed interest to the topic of whether similar approaches might be successfully implemented in other regions. One region that may be a promising candidate for this process is Southeast Asia, comprising the ASEAN member countries. These nations have long seen the value of co-operation in order to promote peace, stability, and economic growth. Nonetheless, important differences between the euro area and the ASEAN zone suggest that a wholesale importation of the European approach may be inopportune at the moment. The issues are examined by using economic convergence modelling perspectives. In general, the findings clearly suggest that further work remains before ASEAN will be able to fully benefit from having a single currency area. I. Introduction this is an achievable, or even a desirable, goal. The recent successful introduction of a common ...
Words: 5307 - Pages: 22
...injustice, countries cooperate and construct the World Trade Organization. WTO promotes the free trade zones and equal trade regulations to increase competition in global market. But regardless of the size of the business there are regulations to govern exports and imports. To minimize these losses from barriers and regulations is important. Thus, there are regional trade blocks to associate nations at a governmental level to promote trade and defend the members against competition. The defense mechanism against global competition obtained through making tariffs on goods produced by member countries, import quotas, government subsidies, and technical and non-tariff barriers. As trade is not an isolated activity member countries also cooperate in political, security, climatic, economic and other issues affect the region. Countries participate regional blocs because of its advantages in trade and economy. Transaction costs between countries will be eliminated. It will be easier to compare prices between participants. Uncertainty caused by exchange rate fluctuations will be blocked. The inflation in member economies will decrease. It will reduce the cost of the firms and increase the trade. But also there are some disadvantages but they are not as much as advantages. There can be instability of the system, which means demand of the markets, can change rapidly and it will take time to keep up. There can be over estimation of benefits, because one countries output can be...
Words: 2937 - Pages: 12
...integration is most developed in east Asia, but only because of manufacturing supply chains linked to global markets. South Asia is the most malintegrated region in the world. And east and south Asia are much less integrated in finance than they are in trade and FDI – due to highly restrictive national policies governing financial markets. Asia’s existing FTAs are “trade light”. They are largely limited to tariff cuts, but have barely tackled non-tariff regulatory barriers in goods, services and investment, and are bedevilled by complex rules of origin requirements. An APEC FTA initiative has gone nowhere – entirely predictable given such a large, heterogeneous grouping. An east-Asian or a pan-Asian FTA, by discriminating against third countries, would compromise regional production networks linked to global supply chains. Moreover, huge economic gaps and enduring political differences will stymie Asian regional integration for some time to come. As for regional monetary and financial cooperation, it is embryonic, very soft and confined to east Asia. Asian regional integration is not likely to come about through top-down regional policy initiatives. The key to future regional and global integration is renewed unilateral,...
Words: 12833 - Pages: 52
...------------------------------------------------- THE CHANGING BUSINESS ENVIRONMENT - LB5228 ASSIGNMENT TASK 2 KARTHIK NAMANI 12806313 KARTHIK NAMANI 12806313 An essay On: The rise of South East Asia and the effect of China Submitted to: Professor Chris Leggett An essay On: The rise of South East Asia and the effect of China Submitted to: Professor Chris Leggett The rise of South-east Asia and the effect of China Contents I, Introduction II, Body 1. Literature review: 2. South-east Asia Economic potentials 3. South-east Asia recent Economic performance 4. The likelihood to become significant players in the global economy Prospects and assessments 5. Implication on global economic III, Conclusion I, Introduction Asia is the most dynamic region in the world economy at present. The development of Asia is twice the rate when compared to the other regions. The policy orientation, which stresses free movement of capital, goods and services across the national boundaries are the reasons for the growth which is possible now. The economic efficiency and transfer of technology which foster shifts in productions and comparative advantages are the results of the enhancement. (Chong) Because of the Global Financial Crisis, Southeast Asia has been the Gold rush modern- day as international companies clamor to get a piece of the action. As the major part of the young population of 600million and the increasing middle class people are the...
Words: 3177 - Pages: 13
...Trade and the Evolution of Product Quality in AFTA Illustrative paper For GSM 5123 STUDENT I Introduction With the formation of AFTA, the role of trade within and between ASEAN member countries has become increasingly important. Central to the discussion has been the role of intra-industry trade (IIT), defined as the simultaneous import and export of goods from the same industry. Past studies on the performance of Malaysian bilateral or multilateral IIT flows has been general in the sense that these studies has been conducted by covering all Malaysian based manufacturing industries. Our interests here in presenting a close examination of intra-industry trade in the Malaysian natural resource intensive industries (NR) are two fold; firstly is our untested conviction that these NR industries represents genuine Malaysian IIT in comparison to the Malaysian based technology intensive industries which are wholly foreign owned. Another reason given for this apparent lack of attention is a tendency to concern ourselves with the high growth TI industries. It is feared that increased competition from other ASEAN countries could prove detrimental to the domestic producers in these industries. The concentration on manufactures is also defended because a large proportion of all imports and exports is made up of manufactured products. In 1994 total exports of manufactures were RM 112.2 RM (billion) while imports totaled 124.9 RM (billion). This compares with non-manufactures...
Words: 2218 - Pages: 9
... The East Asia’ Regional Economic Integration In the past twenty years, the East Asian economies realized the freedom of foreign trade and direct investment (FDI) because of the influence of GATT/WTO and APEC and as a result, it further promotes the economic growth of East Asia. The mutual economic dependence of each countries has increased a lot and therefore, close economic cooperation among Asian countries is necessary for healthy economic development. Many countries try to deepen their cooperation by establishing agreement and carrying out negotiation or discussion (Kawai 2004). Besides, the East Asian countries want to have their own institutions where they have vital voice in decision making after the financial crisis. As a consequence, the regional economic integration become an inevitable trend. The structure of this essay is organized as follows. The first part of this essay will discuss the driving forces of East Asia’s regional economic integration, including the failure of the WTO and APEC, and the financial crisis. The second part will illustrate how regional organizations of East Asia are developed in aspect of trade cooperation and financial cooperation and then followed by the difficulties...
Words: 2796 - Pages: 12
... qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwe...
Words: 6175 - Pages: 25
...economies this year in China and ensuring that the benefits are widely felt, said President Benigno Aquino III on the eve of the archipelago’s commencement as APEC 2015 Chair. Establishing a more inclusive economic environment across the Asia-Pacific will be the focus of collaboration in APEC over the coming year, revealed President Aquino in a kick-off speech in Manila on Monday evening. It set the tone for the APEC Informal Senior Officials’ Meeting on 8-9 December in Legazpi City, Albay that will mark the first assembly of member economies as part of APEC Philippines 2015 and decide their agenda priorities. “One week from now, we’ll be demonstrating a thousand per cent effort – the first visitors for APEC 2015 will set foot in our country, and the Philippines will have the distinct privilege of hosting the next chapter in one of the largest joint efforts to improve trade and cooperation amongst major economies,” said President Aquino. “Here, within our communities, leaders from government and the private sector will map out the future of the Asia-Pacific.” “This gathering’s significance is magnified when one considers that, in a world where many economies are reeling from uncertainty, Asia-Pacific economies have, for the large part, sustained a relatively good level of growth,” he explained. “It is for this reason that the Philippines has chosen to orient this year’s APEC towards making certain that this growth has tangible effects on the lives of all our peoples.” The...
Words: 2430 - Pages: 10
...Investments | 4 | 2.6 | Services | 5 | 2.7 | Intellectual Property(IPP) | 5 | 3 | Aim, Benefits and Risks of Signatories and Stakeholders | 5 | 3.1 | Signatory | 5 | 3.1.1 | Aims and Motives | 5 | 3.1.2 | Benefits | 6 | 3.1.3 | Risks | 7 | 3.2 | Stakeholder | 7 | 4 | Impact of the USSFTA on Third Parties: The ASEAN Countries | 8 | 5 | Assessment of Implementation | 9 | 6 | Conclusion: Assessment of Success/Failure | 10 | 7 | Bibliography | 12 | 1. INTRODUCTION (Elea) In this report, we will analyze the impact of the US-Singapore Free Trade Agreement (USSFTA) on Singapore’s trade and on its relationships with its Asian neighbors. Singapore being the first South Asian country to enter into a bilateral free trade agreement with the United States, we wanted to focus our analysis on the impact on its trade only. Indeed, it is quite obvious that this agreement is beneficial for the US, but we thought it was interesting to study what advantages Singapore would get out of it. Also, Singapore being a member of the Association of the Southeast Asian Nations (ASEAN) since the 1960’s, we wanted to study how the USSFTA impacted these countries in particular. They are indeed Singapore’s closest, and most similar neighbors. Did they benefit from the agreement with the US as well? Did their relationship with...
Words: 4388 - Pages: 18
...ASEAN IN TODAY’S WORLD 2013 The Economic Structure and Employment of the Philippines This paper is written to accomplish the requirement of ASEAN Economics Studies of ASEAN Today’s World 2013 in Ateneo de Manila University, Philippines Lecturer: Prof. Victor S. Venida, Ph.D. Written by: Nur Isnaini Masyithoh Faculty of Economics and Business Universitas Gadjah Mada 2013 I. Background Sectorial Structures of World Economies According to World Bank, one way to determine the structure of economy is by analyzing its three main sectors; agriculture, industry, and services in the country’s total output and employment. Initially, the agriculture is the main sector of developing countries. The shift comes to industrialization and post-industrialization. Industrialization assumed to increase and replace the agriculture because modernization refers to specialization of economic function, monetization of transaction, and homogenization of goods and services (Venida, 2000). The homogenization is formed by the improvement and innovation in technology enhancing the agricultural products. As the requirement of productivity and quality in agriculture increases, the innovation and function of technology has become the obstacle of the growing industry. Source: World Bank (http://www.worldbank.org/depweb/beyond/beyondco/beg_09.pdf) As the income rises, goods become immaterial. People no longer rely on materials since needs are already satisfied. Instead, they will concern about services including...
Words: 2610 - Pages: 11
...China-ASEAN Economic Relations: Development And Future Challenge. Abstract: In recent 15 years, The development of China-ASEAN trade and economic relations has of great significance, not only for both sides but also for the whole East-Asia region. This paper to discuss the latter that is regional implications of 15 years’ development of China-ASEAN trade and economic relations and find the problem and challenge in China-ASEAN trade relations, as well as provide some further consideration for both sides’ trade and economic relations. Introduction Since the economic reforms and open-door policy of1978-79, China's economy has been growing rapidly and more particularly since 1990 when growth has averaged 10% a year. China's external trade has been growing at an even faster rate of 15% a year since 1990, and it has also annually drawing from the lessons of the financial contagion of 1997. Economic links between ASEAN and China through trade, investments and tourism have prospered throughout the 1990s. Perhaps, equally important, China's maintenance of the value of the renminbi (RMB) during the economic crisis of 1997, served as a regional anchor preventing what could possibly have been successive rounds of competitive devaluations. This clearly prevented the crisis from becoming more acute for ASEAN countries and yet this put China’s own exports at risk, as much cheaper goods from the crisis-plagued region competed with Chinese goods. Another important milestone that contributed...
Words: 6269 - Pages: 26
...process of globalisation is best defined as a movement towards greater economic integration between countries through reduction in the barriers to free trade. The process of globalisation accelerated in the 1990a and 2000s due to the spread of new cost saving technology in transport and communications and the deregulation of financial markets. Indonesia is the largest economy of the South East Asia economic region, having the fourth largest and the 19th largest economy; it is an emerging economy that has increased international integration in recent decades. Although Indonesia has a large economy, it also has a very large population, estimated around 237million people in 2010. Having low standard of living with a national income of $3600 per person, this makes Indonesia rank 147th in the world for income level. This classifies it as a low-middle income economy by the World Bank. Indonesia’s low level of income means that it suffers from a relatively high incidence of poverty, around 30% of the population lives on less than $US1.25 per day. Indonesia suffers from low levels of economic development. According to the United Nations, Indonesia’s HDI of 0.734 is below 110 other economies. Income Inequality in Indonesia, as measured by its Gini index of 37.56, is similar to other economy in the region such as Malaysia and Vietnam. The distribution of income is more equal than in many countries, such as Thailand, the Philippines, or major economies such as China or the United States. This...
Words: 1853 - Pages: 8
