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Assignment 1-Free trade in China

Assignment 1-Free trade in China - delay the implementation...

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Myers Elliotte 2/12/2011 International Marketing http://www.chinadaily.com.cn/bizchina/2010-02/08/content_9442865.htm New Free trade zone to benefit China China has always been known to export cheap and inexpensive goods but with the launch of CAFTA that could soon be changing. CAFTA stand for China-ASEAN Free Trade Area and is now the world’s largest free trade zone. With this new agreement CAFTA is set to dominate an area that has 1.9 billion people in this Asian market. Starting on Jan 1 st , 2011 90% of good between China, Indonesia, the Philippines, Thailand, Singapore, Malaysia and Brunei will be tariff free. Many European and North American markets are now scared that this could possible attack their business structure. Even with this new power agreement between these countries, some are still worried in the long run it will hurt their economies. For example the Indonesian President has been under pressure from his own parliament to
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Unformatted text preview: delay the implementation of CAFTA. Indonesia who is a major car producer but does not have its own internal company is in the works of launching its own Indonesian car company. China no longer has the cheapest labor in the world so a lot of Chinese companies are making their products in Thailand and other Asian countries and sending them back to China. The new CAFTA agreement won’t affect companies that are doing this. For example Haier, a company that makes refrigerators and other appliances said they are doing well and that this free trade agreement will only help their company. The Yuan has started being widely accepted now in many Asian countries and with this new trade agreement it could possibly become the new Euro in Asia. Free trade is ultimately helping these countries out a great deal and for a lot of these countries that are not democracies it is amazing that CAFTA has even happened....
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