Regional Assessment Asia Essay

1322 words - 6 pages

Wikipedia, an internet encyclopedia source, defines globalization as "a social change, an increased connectivity among societies due to transculturation; the explosive evolution of transport and communication technologies to facilitate international cultural and economic exchange" (Wikipedia, 2006). In other words, globalization pertains to the connectivity that allows businesses around the world to interact thus move beyond domestic markets to other markets around the globe. A major influence on moving towards a global economy has been progressive trend toward the use of regional economic integration agreements. According to the text it "refers to the merging of historically distinct and ...view middle of the document...

Additionally, the creation of railroad lines, linking the countries together thereby improving transportation methods in countries such as Japan, China, and India has greatly helped to improve the economies in those countries.Located in Eastern Asia, China is the most populous country in the world with approximately one-fifth of the world population (Wikipedia, 2006). The country is bordered on the west by Pakistan and Afghanistan, on the east by Russia and North Korea, on the north by Mongolia and Russia and on the south by India and Vietnam. The country also has readily available access to many water routes via the Yellow, East China, and South China Seas. China is a member of several trading blocs which include the World Trade Organization, WTO the Association of South East Asian Nations, ASEAN and the Asia-Pacific Economic Cooperation, APEC.China has experienced tremendous but fluctuating economic growth since the 1970s. Since the late 1970's the Chinese government has worked to change the economy to become more market oriented. This type of economy allows economic decisions such as pricing of goods and services to be decided by the economy's participant's and manifested by trade versus the original planned economy where decisions where made by one central agency (Wikipedia, 2006). This decentralization of control led to industrial growth for the country especially in regards to the production of consumer goods. In the 1990s, the Chinese government introduced legislature such as the opportunity for foreigners to become chairpersons of joint venture boards, which helped to enhance the country's image with other countries.The Chinese government has taken many steps in an effort to invoke progressive changes in its economy. In fact, the government has put a considerable amount of emphasis on improving global trade and investment relations in an effort to improve its standings. Primary trading partners for China include Japan, United States, and Hong Kong. 1999 IMF data shows that China's global trade stood at $363 billion with a $36 billion trade surplus.The Republic of India is the second most populous country in the world with over one billion people (Yahoo, 2006). The country is located in south Asia near Indian Ocean trade routes. Similar to China, India also participates in several regional trade blocs such as South Asian Association for Regional Cooperation (SAARC), the Indian Ocean Rim Association for Regional Cooperation (IORARC), and ASEAN. Trading partners include countries such as the United States, Japan, and European Union countries.Unlike China, India has continued to see robust growth in its economy since the 1990s. This has occurred in large part due to the governments efforts to ease restrictions and liberalize the economy as well as responding to a severe foreign exchange policy (Wikipedia, 2006). These efforts have allowed the company to develop into the 12th largest economy in the world with a GDP of $568 billion....

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