The ASEAN in Cultural, Economic and Technological Orientations

2021-05-06 06:12:01
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Building economic alliances is important for countries to participate in global markets. It is known that the implementation of trade agreements leads to a reduction in trade barriers. Therefore, the continued growth in the South Asian region provokes existing trade blocs to consider friendly and enterprising relations that would propel the exchange opportunities amongst the participants. EU and FTA trade blocs have formed alliances with the South East Asian economies since the advent of the new Millennium. The length of the trade agreements often faces challenges due to the socio-economic diversities set by ASEAN Free Trade Area (AFTA) and the CEPT schemes. Further, the research will revise the contribution of other environmental aspects considered crucial in the contemporary business society (Das, Sen, & Srivastava, 2015). The proposed research will investigate the impacts faced by different sets of global economic blocs in executing substantial and mutual trade agreements with the South East Asian economies.

Problem statement, questions, and the purpose of study

The proposed research would delve the existing institutions within the South East Asian region with the motive to evaluate the hindrances, which in the past have barred the establishment of mutually beneficial agreements.

Questions

What economic attributes should nations expect from international free trade agreements?

Do the ASEAN schemes of AFTA-CEPT reflect those expectations to the external and domestic trade partners?

What issues exist in the ASEAN schemes and what impacts do they implement to the trading parties?

Hypothesis and purpose of the study

Apparently, a critical research study to evaluate and analyse the ASEAN (Association of South East Asian Nations) AFTA-CEPT schemes will denote the economic expectations expected by different global partners while trading with the members. The notion is that the consideration of the member states would establish the impacts created by the ASEAN bloc in the socio-cultural, economic, and technological orientations (Pang, 2007). Further, the research proposal perceives the legal and lingual diversities for additional issues that impose controls to the trade agreements between any global trading bloc and the South East Asian organization.

Literature review

Cold War tensions calmed in the 1990s; thus, marking the beginning of economic revolutions for success in the global market. However, the South East economies seemed impenetrable following the creation of biased trade barriers. According to Steven, et al. (2015), WTO recognizes the imposed barriers set by the ASEAN trade bloc towards its global partners as inconsistent the creation of equitable economic benefits. A comparative review conducted by the authors on African, American, European, and American trade blocs impose variations on free trading agreements compared to the East Asian and South East Asian trade agreements.

According to Sally Razeen, trade agreements to form bilateral agreements target to preserve lucrative free trade opportunities for partners (2006). Such expectations seem bleak when implemented with the South East Asian economies (Pang, 2007). Through the ASEAN bloc, the member states create a regionalism barrier to austere the perceived success in economic transactions at the expensive of the external partners. Such hindrances guarantee more economic benefits for the ASEAN domestic entities while degrading the foreign exchange value of the external partners activities (Sally, 2006).

Limitations of the literature

The proposed research acknowledges the existence of such impacts in the creation of trade agreements with the Asia-Pacific nations. On the contrary, research will evaluate and analyze the impact of socio-cultural and technological aspects to declare whether additional issues exist within the countries environment that hinder the anticipated business relations (Kaur & Sandhu, 2014).

Literature materials

The following is a list of the literature that will be applied in the research. The proposed materials are sourced from independent studies; hence, the information is reliable for academic research.

Das, S. B., Sen, R., & Srivastava, S. (2015). AEC Vision Post-2015: Is an ASEAN Customs Union Feasible?.

Kaur, S., & Sandhu, M. S. (2014). Internationalisation of born global firms: Evidence from Malaysia. Journal of the Asia Pacific Economy, 19(1), 101-136.

Pang, E. S. (2007). Embedding security into free trade: The case of the United StatesSingapore free trade agreement. Contemporary Southeast Asia: A Journal of International and Strategic Affairs, 29(1), 1-32.

Sally, R. (2006). Free trade agreements and the prospects for regional integration in East Asia. Asian Economic Policy Review, 1(2), 306-321.

Stevens, C., Irfan, I., Massa, I. and Kennan, J. (2015). The Impact of Free Trade Agreements between Developed and Developing Countries on Economic Development in Developing Countries: A Rapid Evidence Assessment. London: Overseas Development Institute.

Methodology

Quantitative research designs

The proposed research would employ quantitative research designs to measure the foreign exchange value earned by the ASEAN member states compared to its external partners. The notion is that the financial framework, which would depend on the nature of imported and exported commodities, would serve to establish any disguised constraints to the trade activities. Besides, the quantitative design would influence the choice of survey samples across the European, Eurasia, African, and American continental fronts. The move would yield empirical results to ascertain whether the ASEAN regionalism and other disguised barriers aim to curb or control business agreements from specific regions over others. The preexisting knowledge is that the countries perceive foreign taxes as valuable assets to the gross domestic and national products (GDP and GNP) respectively. With such propositions, the proposed research would engage in qualitative research designs that would evaluate the dynamics reflected in per capita income and living standards within the ASEAN states.

In-depth, open-ended, and online survey for qualitative empirical and independent data

The prospected occupations would relay real-time information from the interviewees in the South East Asian nations. With the use of online-based questionnaires, the respondents would offer independent responses. Subsequently, the data would reflect the ASEAN practices, and the extent at which the domestic population perceives the existence and impact of such economic trends (Stevens, et al. 2015). Further, the respondents will answer closed-ended questions to state whether the disguised barriers are necessary to their economic and social prowess (Pang, 2007). On the other hand, the research would review EU, NAFTA, and FTO blocs free trade approaches. Given that the ASEAN bloc imposes the AFTA (a free trade area), which allows members to evaluate the nature of products, and impose tariffs in accordance with the rule of origin. The forecasted data would invoke intellectual outcome on the effectiveness of the AFTA and the subsequent CEPT (Common Effective Preferential Tariff) scheme. Against odds, the proposed research would indicate the socio-economic benefits of the free trade agreements for the ASEAN bloc and its economic partners.

Expected results and findings

The proposed research is crucial in forecasting the future economic turnout in the ASEAN bloc with its free trade practices under the AFTA scheme. Critically, the alliance guarantees its member states of increased competitive edge and additional investments from potential foreign multinationals. It is realistic that cross-cultural conflicts remain high and evident in Japan, Myanmar, Vietnam, and Thailand among its ten member states (Kaur & Sandhu, 2014). Since such conflicts challenge the operations of multinational corporations, it is probable that the unbalanced growth shifts evident in Japan, Singapore, and Malaysia over the other member states would worsen with time.

Without inflicting bias to the research, the research shall decipher fathomable data and analysis to indicate the injurious or beneficial effects of the AFTA scheme. Subsequently, the research would accredit value to the ideal effects that should be embraced by the member states to create equitable wealth for profound socio-economic growth (Pang, 2007). Additional issues that impact the free trade agreements emerge from socio-political, legal, and technological diversities. The distraught population in the least-developed member states would face challenges or accrue benefits from the lifting of the free trade barriers.

Conclusion

To that effect, the proposed research would impose results based on the economic forecasts with the existence of shifts in demand and supply, productivity, revenue creation, and marginal consumption (Kaur & Sandhu, 2014). The trend will be measured against the domestic and foreign production and pricing aspects that would indicate the comparative advantages of the economic bloc. Eventually, the research would cultivate conclusive evidence to support and criticize issues existing within the major bloc impacting the expected results from free trade agreements between the ASEAN economic bloc and other global parties. Lastly, the study would implement the limitations faced while stipulating the need for other research activities on the AFTA scheme.

 

References

Das, S. B., Sen, R., & Srivastava, S. (2015). AEC Vision Post-2015: Is an ASEAN Customs Union Feasible?.

Kaur, S., & Sandhu, M. S. (2014). Internationalisation of born global firms: Evidence from Malaysia. Journal of the Asia Pacific Economy, 19(1), 101-136.

Pang, E. S. (2007). Embedding security into free trade: The case of the United StatesSingapore free trade agreement. Contemporary Southeast Asia: A Journal of International and Strategic Affairs, 29(1), 1-32.

Sally, R. (2006). Free trade agreements and the prospects for regional integration in East Asia. Asian Economic Policy Review, 1(2), 306-321.

Stevens, C., Irfan, I., Massa, I. and Kennan, J. (2015). The Impact of Free Trade Agreements between Developed and Developing Countries on Economic Development in Developing Countries: A Rapid Evidence Assessment. London: Overseas Development Institute.

 

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