ASEAN

Solution Preview

1. Identify advantages and disadvantages of being a member of the ASEAN trading bloc. Identify membership conditions for the ASEAN and determine whether these will have a positive or negative impact on the bilateral or multilateral relations with the United States.

ASEAN was formed to speed up the growth of the economy, social progress & development of culture through helping each other out in equality and partnership while promoting peace & stability throughout the region, having respect for justice and the rule of the law amongst the countries in the South East Asian region, to strengthen the foundation for community of Southeast Asian nations which is prosperous and peaceful.

The creation of AFTA by ASEAN members was meant to remove the protective barriers to the various manufacturing industries that have so far impeded the growth of the ASEAN economy. While the creation of AFTA means that consumers will get to enjoy more goods, AFTA has also affected the manufacturing sector, especially in profit margins and increased competition from foreign competitors.

source:
http://www.megaessays.com/viewpaper/23165.html
http://www.megaessays.com/viewpaper/18915.html

The ASEAN Economic Community shall establish ASEAN as a single market and production base, turning the diversity that characterises the region into opportunities for business complementation and making the ASEAN a more dynamic and stronger segment of the global supply chain. ASEAN's strategy shall consist of the integration of ASEAN and enhancing ASEAN's economic competitiveness.

Launched in 1992, the ASEAN Free Trade Area (AFTA) is now in place. It aims to promote the region's competitive advantage as a single production unit.

The elimination of tariff and non-tariff barriers among Member Countries is expected to promote greater economic efficiency, productivity, and competitiveness, which is one of the key benefits for the member nations.

Further, the regional integration will facilitate movement of business persons, skilled labour and talents.

The decision to join the trading bloc can also be motivated due to the desire to have amicable relations with regional states, to attract foreign investment,

Few other benefits from the membership are:

ASEAN shall ensure that its work force shall be prepared for, and benefit from, economic integration by investing more resources for basic and higher education, training, science and technology development, job creation, and social protection.

ASEAN shall further intensify cooperation in the area of public health, including in the prevention and control of infectious and communicable diseases.

The development and enhancement of human resources is a key strategy for employment generation, alleviating poverty and socio-economic disparities, and ensuring economic growth with equity.

source: http://www.aseansec.org/64.htm

The primary disadvantage of being a member nation is the loss of sovereignity and independence of the member nations. Further, there could be several other economic disadvantages also. Weaker member nations such as Vietnam are essentially competitive not complementary, particularly in the ...