Preview

The Possible Impact of greater economic integration among the Malaysia, Singapore and the rest of the ASEAN Countries

Best Essays
Open Document
Open Document
3564 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Possible Impact of greater economic integration among the Malaysia, Singapore and the rest of the ASEAN Countries
The Possible Impact of Greater Economic/ Regional Integration Among the Malaysia, Singapore and the Rest of the ASEAN and APEC Countries
Introduction
Economic integration is the bind of economic policies between different states through the partial or full abolition of tariff and non-tariff restrictions on trade taking place among them prior to their integration. (Balassa, 1967) The focus of economic integration is to lower the costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement. Economics integration and regional integration are very similar in many ways. Economic integration has a strong tie with regional integration.
Regional Integration is a method in which two or more states or nations form conformity to work collectively to create a mutual strength, wealth, and peace among each other. It is also an alleyway that persuades trades among the two or more states or nations by reducing the cost of trading and investments in this newly formed region. (De Lombaerde and Van Langenhove, 2007) The five main types of economic integrations are the free trade, the custom union, the common market, the economic union, and the political union. The free trade area (FTA) is the lowest level out of the five. It is a group of countries that dissipate trade barriers among themselves while each nation still upholds dissimilar external policies regarding toward nonmembers. The customs union is the next level up. With the addition to the framework of FTA, the custom union enforces common external policies on the nonparticipant members in order to fight trade diversion. The common market is the addition to what custom union offers. It authorizes the free movement of goods and people among the participating nations. The economic union is the accumulation to the features of the common market. The members fuse their economies into one by fixing the monetary, fiscal, and taxation policies. The policy union is


Cited: Acharya, Amitav. Singapore 's Foreign Policy: The Search for Regional Order. Hackensack, NJ: Istitute of Policy Studies/World Scientific, 2008. Print. Balassa, В. Trade Creation and Trade Diversion in the European Common Market. The Economic Journal, vol. 77, 1967, pp. 1–21 "Benefits Of Economic Integration | Benefits Of." Benefits Of Economic Integration | Benefits Of "Central Intelligence Agency." CIA. N.p., n.d. Web. 25 Oct. 2012. . "Central Intelligence Agency." CIA. N.p., n.d. Web. 25 Oct. 2012. . Chew, Ernest C. T., and Edwin Lee. A History of Singapore. Singapore: Oxford UP, 1991. Print. De Lombaerde, P. and Van Langenhove, L: "Regional Integration, Poverty and Social Policy." Global Social Policy 7 (3): 377-383, 2007 "Doing Business in Malaysia 2012" "East Asian Tigers - Definition." Dictionary, Encyclopedia and Thesaurus. N.p., n.d. Web. 25 Oct. 2012. . "Foreign Affairs and International Trade Canada." History and Membership of APEC. N.p., n.d. Web. 25 Oct. 2012. . Jovanovich, М. International Economic Integration. Limits and Prospects. Second edition, 1998, Routledge "Ministry of Foreign Affairs, Malaysia." - Organisation Of The Islamic Conference (OIC) and D8 "Ministry of Foreign Affairs, Malaysia." - Malaysia 's Foreign Policy. N.p., n.d. Web. 25 Oct. 2012. . "North American Free Trade Agreement (NAFTA)." Office of the United States Trade Representative. N.p., n.d. Web. 25 Oct. 2012. . "Overview." Overview. N.p., n.d. Web. 25 Oct. 2012. . Patel, Dimpel Nagin. "The Causes of Four Major Wars." Yahoo! Contributor Network. Yahoo! Contributor Network, 25 Nov. 2009. Web. 24 Oct. 2012. . Peng, Mike W. Global Business. Mason, OH: South-Western, Cengage Learning, 2011. Print. "Singapore Missions Worldwide". Ministry of Foreign Affairs, Singapore. 2007-03-31. http://notesapp.internet.gov.sg/mfa/dipcon/dipcon.nsf/SMAgent Tinbergen, J Van Ginkel, H. and Van Langenhove, L: "Introduction and Context" in Hans van Ginkel, Julius Court and Luk Van Langenhove (Eds.), Integrating Africa : Perspectives on Regional Integration and Development, UNU Press, 1-9, 2003.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Mgt 448 Week 2 Paper
    • 679 Words
    • 3 Pages

    Mgt 448 Week 2 Paper

    Integration and agreements made will reduce tariffs barriers that are associated with trades of goods, services and the factors of produced goods between countries (Hill, 2004). As this paper will demonstrate a proper analysis of how integration will promote global advantages in business, and will deliberate the disadvantages and advantages of integration. Therefore touching basis of contrast and comparing the development of economic stages within a region and the effect on the process of development of business globally.…

    • 679 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Fins2622 Notes
    • 6821 Words
    • 6 Pages

    Fins2622 Notes

    Stepping stone to globalisation  What is regional Economic Integration? o Agreements between groups of countries aimed at reducing…

    • 6821 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Mgt Wk 2 Indy Paper
    • 795 Words
    • 4 Pages

    Mgt Wk 2 Indy Paper

    Regional Integration in the European Union has both economic and political advantages. Integration reduces trade barriers within a region and according to Hill (2009), countries can specialize in the production of goods and services more effectively when unrestricted free trade exists. This creates greater world production and stimulates economic growth. Regional integration also increases the exchange of technology and knowledge furthering economic growth. In the European Union, integrating the countries increased the economic and political weight of each member state and increased its chance to compete against larger countries, such as the United States, in the global market.…

    • 795 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Regional Integration Ireland and the European Union
    • 1165 Words
    • 5 Pages

    Regional Integration Ireland and the European Union

    First let us look at (regional economic integration). The (REI) “Agreements among countries in a geographic region are to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other”(allvoslog 2009)…

    • 1165 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Eu vs Nafta
    • 1743 Words
    • 7 Pages

    Eu vs Nafta

    Wessels, W. 1997. An Ever Closer Union? A Dynamic Macro Political View on Integration Processes. Journal of Common Market Studies 35(2):267-299…

    • 1743 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Cultural Sensitivity in Global Marketing: Australia and Malaysia's Relations
    • 1110 Words
    • 5 Pages

    Cultural Sensitivity in Global Marketing: Australia and Malaysia's Relations

    Malaysia ranks second in terms of Australian investment in the ASEAN countries (MITI 1993). During the 1980s both countries began to strengthen joint economic, trade and social ties. This process of bridge-building had its successes and failures. Most of the problems were caused by the meeting of two cultures with quite different historical, political and social origins. Some clashes were inevitable. The management and resolution of these conflicts has taken time, patience, sensitivity and respect from both nations (Woolcott 1991).…

    • 1110 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Nafta - North American Free Trade Agreement - Impact on the U.S., Canada and Mexico
    • 2323 Words
    • 10 Pages

    Nafta - North American Free Trade Agreement - Impact on the U.S., Canada and Mexico

    The North American Free Trade Agreement (NAFTA) is one of the most influential and extensive treaties in the world and is the expansion of the legacy Canada-US Free Trade Agreement of 1988 (Private Rights, 2001, Mayer, 1998). The agreement governs the whole spectrum of North American trade and it history extends from hemispheric cooperation on the largest scale ever seen (Private Rights, 2001). NATFA is a treaty between Canada, Mexico and the United States and was intended to cultivate greater trade between these three countries (Private Rights, 2001). NAFTA was put into effect in January of 1994 and has since been updated to include two significant additions, the North American Agreement for Environmental Cooperation (NAAEC) and the North American Agreement for Labor Cooperation (NAALC) (NAAEC, n.d., NAALC, n.d.). The NAAEC was an addition in response to environmentalist concerns that the United States would begin to lower its environmental standards if all three countries did not come to an agreement related to environmental regulation (NAAEC, n.d.). The NAALC augments NAFTA and attempts to create the groundwork for cooperation between the three countries for the resolution of labor issues and to promote increased cooperation between trade unions and social organizations working for improved labor conditions (NAALC, n.d.). Most recently the integration of the Security and Prosperity Partnership of North America has worked to encourage cooperation related to issues of national security (Security and Prosperity, n.d.). One of the most significant aspects of NAFTA is its elimination of tariffs on goods shipped between Canada, Mexico and the United States (Private Rights, 2001). United States goods were mostly sold to Canada and Mexico were accompanied with high tariffs (tax placed on imported goods) (Private Rights, 2001). As you can imagine, Mexico and Canada did not wish to incur these tariffs, as such these goods were not sold in North America.…

    • 2323 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Regional Integration for and Against Articles
    • 772 Words
    • 4 Pages

    Regional Integration for and Against Articles

    The regional integration of the Association of Southeast Asian Nations (ASEAN) includes Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar, and Cambodia.…

    • 772 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Nafta: the Good, the Bad and the Ugly
    • 1374 Words
    • 6 Pages

    Nafta: the Good, the Bad and the Ugly

    Lenderman, Maloney and Serven, (2007). THE “NEW REGIONALISM” AND NORTH-SOUTH TRADE AGREEMENTS. Retrieved on August 28, 2008, from UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT Web site: http://www.unctad.org/en/docs/tdr2007ch3_en.pdf…

    • 1374 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Global Trends
    • 1306 Words
    • 6 Pages

    Global Trends

    Regional economic integration has been one of the most evident trends in the global economy. Sovereign states have created supranational organizations such as the WTO and the EU that are international unions in which member states transcend national boundaries. Businesses want to globalize in order to expand their markets and increase profits. Free trade agreements open doors to such opportunities and help promote economic integration. Other such important integrations that have taken place in other parts of the world are NAFTA, APEC, ASEAN, MERCOSUR, etc.…

    • 1306 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Regional Integration for or Against Articles
    • 1043 Words
    • 5 Pages

    Regional Integration for or Against Articles

    The ASEAN Pursues EU article provides one instance of a region in support of regional integration. “The European Union organized a group of nations with different currencies and languages - and profits followed” (Conde, 2007, para. 1). As per this article grouping currencies from various nations would assist regional integration, also assist the economic system of the region and build stronger relationships. The Association of Southeast Nations (ASEAN) desires to try the identical technique that the EU had earlier encouraged and integrate currencies in the areas. In the past former prime minister of Singapore Lee Kuan Yew had rejected this idea (Jazi, 2008). Instead, the prime minister believed that the country could achieve this objective but perhaps after 50-80 years. To start the process they would require writing a charter however the organization has opposed during the past because of the different financial systems in the region. This is currently in the starting phases however it has been stated that it will be a legally binding charter just like the one in the European Union, taking into consideration that any members who do not abide by this charts principles as well as procedures would need to incur on sanctions. To put it differently, ASEAN desires to turn…

    • 1043 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Nafta Eu Compare Contrast
    • 395 Words
    • 2 Pages

    Nafta Eu Compare Contrast

    The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Mexico, Canada and the United States. It creates a three way trade bloc in North America. The agreement was made on January 1, 1994. The trade bloc is the largest in the world as of 2010.…

    • 395 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Cultural Values In The United States
    • 1636 Words
    • 7 Pages

    Cultural Values In The United States

    There are four different types of economic integration and the first one I will describe is Free Trade Areas. Free Trade Areas involve abolishing all trade restrictions of a particular group, although each country included in this group is free to keep their own regulations with other “non-member” countries. Current Free Trade Area groups include the Latin American Free Trade Association (LAFTA) and the European Free Trade Association (EFTA). Another form of economic integration is an Economic Union, where the group implies complete integration of a group of countries’ economic activities. This results in harmonized and coordinated fiscal and monetary policies, and economic activities of member nations. A Customs Union is an external tariff against “non-member” countries. For example, when Labatt Blue products are sold in America, they are hit with Customs tariffs and taxes, increasing the price of Labatt’s trade agreements with American companies. Lastly, Sectoral Integration is when a common market is established within a given group of products. Members of the “Inner Six” created this type of integration in the coal and steel market within their respective European…

    • 1636 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Judgment Of The Court Of Justice In Tobacco Advertising
    • 3840 Words
    • 10 Pages

    The Judgment Of The Court Of Justice In Tobacco Advertising

    There have been different levels of intensity of market integration, and each one introduced in their own right, as a way of trying to end up with a ‘full union’. The different states of integration are as follows;…

    • 3840 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    Regional Financial Integration in the GCC
    • 3529 Words
    • 15 Pages

    Regional Financial Integration in the GCC

    The paper then moves on to examine the effectiveness of the creation of this trading bloc through conducting an analysis on four key areas to trade. These areas include the analysis of integration through Commodity Trade and Service Trade, financial and monetary integration, integration through infrastructure, and finally integration of the GCC along with other Arab countries and establishment of PAFTA.…

    • 3529 Words
    • 15 Pages
    Best Essays
    Read More

Related Topics