Here comes the Globalization that cannot be avoided anymore. It is caused by the “Push and
Pull” factors (Misra, 2007). Moore and Fernie (as cited in Bruce, 2004) stated that push factors apply peculiarity and less viable conditions of the home market, while the pull factors apply attractive condition of the foreign market. One of the implications of the globalization is the signing of Free Trade Agreement (FTA) among South East Asia countries.
Assosiation of South East Asian Nations (ASEAN) – in 1967 , was formed by Indonesia,
Malaysia, Philippines, Singapore, and Thailand with the aim of fostering peace and security ion the region. Brunei Darusslam alters itself with Asean in 1984, whereas between 1995 and
1999 Cambodia, Lao People’s Democratic Republic (Lao PDR), Myanmar, and Vietnam
(CLMV) joined (Yue, 2013) – is one of the factors that push and pull factors of the globalization. As Yue (2013) stated that the factors are slowing recovery from the crisis financial of Asian, and the Rising of the economic of the Peoples’s Republic of China (PRC) and India.
In ASEAN Summit held in Bali 2003, The leaders of the ASEAN countries reached the aggreement to accelarate a form of Free Trade Area in ASEAN that known as the ASEAN
Economic Community (AEC) to 2015 which was planned in 2020 before (Yue, 2013). The objectives of AEC 2015 is a single market and production base, a competitive region of economic, equitable development of economic, and integration to the global economy. It was originated in 1992 by 6 ASEAN countries and expanded to all the countries in ASEAN. Also in 2010 China joined AFTA. The simple idea is that by implementing AFTA, the tariff barriers of moving products among ASEAN countries are set to be 0 -5 percent by the latest
2015. Is that a benefit? Of course, it is. Now any Indonesian business person can export his/her products to other countries as well. Not only
References: Lim, Zachary Z. (2014). The Multilingual Reality in American Business. Retrieved February 20th 2014 from http://trace.tennessee.edu/utk_chanhonoproj/1683 Chia, S. Y. (2013). The ASEAN Economic Community: Progress, Chalanges, and Prospects. Bruce et al. (2004). International Retail Marketing, A Case Study Approach. Oxford: Elsevier.