ASEAN BUSINESS - ASEAN BUSINESS BY : LEE JEONG HOON I nter-...

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ASEAN BUSINESS BY : LEE JEONG HOON I nter-regional trade and specialization have resulted in increased efficiency in production and consumption. But with the country's sovereignty, interstate commerce is not as free as before. Many obstacles to selling goods to other countries or vice versa. Barriers to sell may occur from the state or from state sellers who buy. These obstacles make the cost of traded goods more expensive. Therefore, abolition or reduction of costs (barriers) is expected to increase trade and prosperity in all countries involved in this trade. That is the basic assumption of the need to create free trade agreements / FTA. Since 1 January 2010, ASEAN and China FTA has implemented. That is, trade between ASEAN and China should be free of obstacles or if any, barriers to trade can be reduced . The purpose is to improve efficiency and increase in production and consumption in the two areas. Eventually, prosperity in ASEAN and China will also increase. With the FTA, China will get benefit from market expansion. They can increase exports to ASEAN. On the other hand, ASEAN will also be a big market of China. ASEAN exports to China will increase. However, the problem is not that simple. There are always losers, but there is a winner. In ASEAN, for example, there will be losers, namely those who produce goods that are more expensive than that produced by China. With this FTA, China will flood production in ASEAN. Consumers in ASEAN will be lucky to be able to consume goods more cheaply.
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This note was uploaded on 10/11/2010 for the course MANAGEMENT 087287 taught by Professor Hahaha during the Spring '10 term at Illinois Central.

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ASEAN BUSINESS - ASEAN BUSINESS BY : LEE JEONG HOON I nter-...

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