JAKARTA, KOMPAS.com – the launching of free trading pact between ASEAN and the six countries in Phnom Penh area, Kamboja, Tuesday (20/11/2012), including services sector. Foreign workers from the countries joining in this pact have a desire to work in ASEAN countries, including Indonesia.
Free trading pact which is called Regional Comprehensive Economic Partnership, launched on the last day of High Level Conference ASEAN 21th in Phnom Penh, 15-20 November.
Kompas journalists, FX Laksana Agung Saputra, Wisnu Dewabrata, and C. Wahyu Haryo PS, reporting from Phnom Penh, Tuesday, the pact involves the ASEAN member countries; China, South Korea, Japan, Australia, New Zealand, and India.
ASEAN pact Plus 6 is one of the biggest free trading pacts in the world. ASEAN Plus 6 has a gross domestic product (GDP) of about 23 billion U.S. dollars, or one-third of the world's GDP. A total of 3.5 billion inhabitants are involved in this trade pact or half of the world population.
ASEAN Secretary General Surin Pitsuwan stated, this pact is an umbrella that integrates five free trading pacts existing between ASEAN and its partners respectively.
According to Surin Pitsuwan, the concept is partnership of free trading between ASEAN and the six regional partner countries, with ASEAN as the central. Called comprehensive, among other things, because the scope of cooperation is not limited to only trafficking, but also about investment, services, and capacity building.
The principle, includes, respect the framework that is customized to each capability of domestic country. While the target framework is essentially a gradual liberalization by considering capability of each country to the eight sectors. The sectors among others are trading, ser...
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... workers going to be a spectator when the deal goes ASEAN market. Foreign workers will enter the Indonesian labor market that should be filled by local workers.
Labor inspection is weak due to regional autonomy led to many expatriates holding positions that should be filled by local workers. Understanding of the regional heads of the low labor problems made a lot of manpower department head positions filled by incompetent officials.
Explosion of labor unrest shipyard PT. Drydocks World Graha in Batam, Riau Islands, on April 23th, 2010 could be a lesson. Accumulated resentment occurred because many Indian expatriates who actually held the position can be filled with local workers sparked this uproar.
The company employs at least 270 expatriates, that supervisor position can be filled by local workers.
These gaps eventually lead to conflict. (The Human Rights)
In conclusion, the period from 1875 to 1890 brought many attempts at bettering the working conditions, but many of the working class’s attempts at being recognized went unnoticed. This resulted in violence, frustration, and unnecessary deaths. The series of failed strikes and attempts to receive government intervention resulted in heightened anger among the employees. Without an increase in wages, decrease in working hours, and improvement of working facilities, many workers left their jobs leaving the employer angry and in need of workers. None were available, however, because they were either protesting for better working conditions, signing a contract with a better company, or blocking rail and roadways in order to get their points across to the government.
against their employers, employees were able to go on strike and prove a point. Some
Free trade agreements are a group of countries that remove all trading barriers such as tariffs and quotas among them. Free trade agreements allow member countries to focus on exporting goods at which they hold competitive advantage and importing goods at which they have the competitive disadvantage, thus improving each country´s efficiency and enhancing overall economic welfare.
Some may wonder what a free trade agreement is. A free trade agreement or more commonly known as a FTA are international treaties that reduce barriers to trade and investment. FTA’s allows the participating countries to effectively drop tariffs, quotas, country specific
Lipsey, Richard G.. "Will there be a Canadian-American Free Trade Association? ." The World Economy 9 (2008): 218-238.
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
The first step in doing international business, this involves manufacturing and/or purchasing of components in different regions of the world and then putting them together to make the final product. The benefit of producing a product in a different part of the world is it can be done at a lower cost. For example Indonesia boasts among the lowest costs in the world, a big domestic market, and proximity to the rest of Asia. As a result, some companies are not merely sticking around they are expanding. Coca-Cola plans to open a new bottling plant next year. All told, over the past three years, the government has approved $26.2 billion in new foreign investment. Officials say foreign investors, apart from petroleum and financial-services companies, employ 3.5 million Indonesians, or 3.5% of the workforce.
Fourth, the formation of AFTA has agitated deep-rooted industries or factories which are already vulnerable to global competition. This trade will make their wages unable to compete with productivity of labour and also income differences will lead to an unexpected problems for the industries or factories.
...onal trade and investment agreements Thailand is more open than before but the production of dairy products, automobile engines and motorcycle assembly are still subject to local manufacturing content, Thailand restrictions.
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
“Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South.”
In the West Indies Yacht Club Resort, the firm was encouraged a lot by the local government to post available jobs for natives to come and work, yet the resort was timid in that situation because of strict employment laws once they were hired on. Due to turmoil among native and expatriate workers, senior officials were stuck with several problems: (1) the turnover ratio in managerial positions, the customer complaints, and the culture feud, which was at the center of their little problem. From the beginning of the resort until now, the resort has gone from the elite to mediocre due to growing competition and declining customer satisfaction. The organization of the resort is somewhat systematic although it doesn't have any extreme training programs. None of the managers have had extensive training except for what they had received at other places of business.
Asia-Pacific Economic Cooperation (APEC) began in 1989 in reaction to the developing interdependence among Asia-Pacific economies. At first this organization was a group that met unofficially. APEC now has become the crucial provincial conduit for encouraging open trade and realistic economic cooperation. It’s objective is to progress Asia-Pacific economic vitality and the essence of the people.
Tension between expatriate and the locals: mainly due to the cultural differences between them. Also the labour laws of BVI increase job protection to them, it is difficult to lay off an unqualified staff.
Since OAS’s creation, their main goal has been to create a hemisphere-wide trading zone, called Free Trade Area of the Americas (FTAA).