POL202(10) Handout

POL202(10 Handout - POL 202(10 Regionalism Japan-Centered Structure of Regional Trade The dynamic postwar economy of Japan provided the drive and a

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POL 202 (10): Regionalism Japan-Centered Structure of Regional Trade : The dynamic postwar economy of Japan provided the drive and a model for development in the region, and made Japan the principal champion of greater regional association across the Asia-Pacific in the last third of the 20 th century The trade relationship between Japan and its neighbors has been transformed gradually – from an inter- industry vertical type, where primary products are exported to Japan and manufactured goods are imported from Japan, to an intra-industry horizontal type, where the immediate capital goods to produce manufactures are imported, and the manufactures are then exported, by the same firm. For the NIEs and ENIEs, Japan mostly serves as the source of intermediate goods (including technology) and the U.S. as the destination of exports. This allows for the appearance of a regional product cycle, as countries embarked on a vertical ascend of value adding from labor-intensive to capital-intensive to technological-based production As a replacement of the cold war clash of ideologies, economic competition among regional centers of power, with different forms of capitalism, may see Europe, North America, and Asia pitted against one another, to create and redistribute wealth Regional Integration : Regional economic integration ranges from the elimination of tariffs and non-tariff barriers to the harmonization of domestic regulations and policies, and even to the creation of a single currency area. Its most advanced form can be found in the European Union (EU), which now has a European Parliament and is a monetary union. The North American Free Trade Association (NAFTA) is at a lower level of integration, as it moves toward becoming a free trade area The earliest efforts at promoting regional economic cooperation were made by businessmen, in their annual gatherings called the Pacific Basin Economic Council (PBEC), started in 1967, and later by a gathering of economists in the Pacific Trade and Development conferences (PAFTAD), which began in 1968 as an initiative of the Japanese. In 1980, Japan and Australia organized the Pacific Economic
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This note was uploaded on 04/18/2008 for the course PSCI 000 taught by Professor Hongkong during the Fall '07 term at Mary Washington.

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POL202(10 Handout - POL 202(10 Regionalism Japan-Centered Structure of Regional Trade The dynamic postwar economy of Japan provided the drive and a

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