Introduction
Many countries look to import and export their goods or services they produce in their country in order to increase gross domestic product (GDP) or to obtain the product at a cheaper price. The Regional Comprehensive Economic Partnership (RCEP) is a partnership agreement that will expand the free trade region in the major Asian countries and increase the benefits. The Association of Southeast Asian Nations (ASEAN) is the sole carrier of the RCEP which plans on integrating the “Plus six”, partners China, Australia, Japan, India, New Zealand and South Korea in order to achieve the expansion of free trade. This free trade agreement plans on bringing together the three largest economies in Asia in hopes to achieve economic activity with China as one of the leaders. It will also create one of the largest trading blocs in the world.
China has one of the fastest growing economies in the world. The country is one of the largest exporters in Asia and is one of the three superpower countries. Centralized around (ASEAN), the (RCEP) plans on offering a more in depth free trade agreement. The 10 countries involved with ASEAN and the “Plus six” countries plan to hopefully expand their trade in the region with RCEP by 2015. In hopes to create the largest trade bloc in the world, the RCEP is hoping to form a regional trade agreement with China, India and Japan, Asia’s three largest
economies. However, the more countries involved with an agreement the harder it is to maintain the same terms that will satisfy and compile with each country.
Data
Although the final settled agreement of the RCEP project the GDP total of all the three super countries together to be around $19 trillion US dollars, the RCEP may not gain the full econo...
... middle of paper ...
...hra, R.. (2013, Aug. 2 ). In RCEP: Challenges, opportunities for India. Retrieved Apr. 20, 2014, from http://idsa.in/system/files/artic.pdf Guoqiang, Tang . "Prospects for Asia Pacific Economic Integration." China Institute of International Studies. China Institute of International Studies, 19 Mar. 2014. Web. 28 Apr. 2014. . Wignaraja, Gabneshan. "Why the RCEP matters for Asia and the world." East Asia Forum. N.p., 15 May 2014. Web. 29 Apr. 2014. . Sinha, Rohit, and Geethanjali Nataraj. "Regional Comprehensive Economic Partnership (RCEP): Issues and Way Forward." The Diplomat. N.p., 30 July 2013. Web. 23 Apr. 2014. .
...lict. Neighboring countries will want to maximize their own revenues and in order to do so, they will set their own prices for goods and services.
Economic integration is the joining of economic policies between different states/regions. This eliminates tariff and non-tariff barriers to the flow of goods, services and factors of production between the regions. Economic integration has varying levels referred to as trading blocs; these are a form economic integration. A trading bloc is a group of nations that have been made a bilateral or multilateral agreement. There are four types of trading blocs. The least advanced level is the Free Trade Area. The features of this level is that reduced tariff barriers between signatories, which at times are abandoned altogether and there is free movement of labour and capital and the non-member countries have an independent set of tariffs against member countries. The second level of economic integration is the Customs Union. This is a Free Trade Agreement plus a common external tariff. Member countries agree to reduce tariff barriers among themselves and they have in common, this is referred to as tax harmonisation. The Common Market is the third level of trade blocs. This has features of the Customs Union plus free movement of capital and labour and some policy harmonisation such as similar trade policies to prevent certain member countries having an unfair advantage. The European Union is an example of a Common Market and is an economic and political partnership that involves 28 European countries. It allows goods and people to be moved around and has its own currency, the euro, which is used by nineteen of the member countries (The UK excluded). It also has its own parliament and sets rules in a wide range of areas such as transport,...
Secondly, the existence of merchant may maintain the stability in border areas (South-East). And the oversea trade is also an extremely part of the tribute system that can display China’s powerfulness. Lastly，the author calls for lax of business environment and tax policy with the expectation of trade
These types of treaties seek not only to promote growth in the economy between countries, there are different levels of integration although stimulate trade is the main, it is also important to make an exchange in factors of production, seeks to take advantage of what is known As comparative advantages between each participating region or country which would result in a more efficient development in its different markets and an improvement in the economic
Zhang, Jianhong, Arjen van Witteloostuijn, and J. Paul Elhorst. "China's Politics and Bilateral Trade Linkages." Asian Journal of Political Science 19.1 (2011): 25-47. Academic Search Premier. Web. 13 Dec. 2013.
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s
Supporters of FTAs between countries believe that if a country has enough capacity and capability to produce a marketable product it gives them a competitive advantage to supply that product at a lower cost. Other countries that then have the capacity and capability to produce alternate products competitively can then trade with the other country for mutual benefit.
http://www.uoc.edu/symposia/caixamanresa/jornadaeconomia/eng/vicky_hu.pdf> Naughton, B (2007) The Chinese Economy: Transitions and Growth, Cambridge, Massachusetts: MIT Press. Stoltenberg, Clyde D. "China's Special Economic Zones: Their Development and Prospects. " Asian Survey. 6th ed.
Wei-Wei Zhang. (2004). The Implications of the Rise of China. Foresight, Vol. 6 Iss: 4, P. 223 – 226.
Inkenberry, John. “The Rise of China and the Future of the West.” Foreign Affairs. The Council of Foreign Relations. Jan 2008. Web. 9 Mar 2014.
…world economic expansion should be least robust in a multipolar world where countries cannot be sure of stable alliances, more robust in a bipolar world because alliances are more predictable, and most robust in a unipolar or imperia...
Fedman, David. "Rethinking Asia: “Smart Power” and US-China Policy." The Olive & Arrow. The Word Press, 8 Mar. 2009. Web. 18 Nov. 2011. .
China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the area of trade, three major strengths of China are 1) it is the single most important challenge for the European Union (EU) trade policy, 2) China is the second trade partner behind the U.S., and 3) it is the EU’s biggest source of imports by far with the dramatic increase in the EU-China trades over the recent years. The EU exports of goods to China were 113.1 billion Euros and in imports was 281.9 billion Euros in 2010. The service exports were 18 billion Euros and in imports were 13 billion Euros in 2009. China has also established trades with Australia. Recently, the two countries have been cooperating and assisting each other in industries such as agriculture, energy and minerals as they continue their free trade agreements (Jia Qinglin).
During the twentieth century, the world began to develop the idea of economic trade. Beginning in the 1960’s, the four Asian Tigers, Hong Kong, Singapore, South Korea and Taiwan, demonstrated that a global economy, which was fueled by an import and export system with other countries, allowed the economy of the home country itself to flourish. Th...