ASEAN Free Trade Area

relations between countries. This explains how countries trade with each other, the way labor and capital flows freely among different nations of the world. Globalization is also described as the growth in exchange and interdependence among the nations of the world. As a result, capital flows, production, commercial and technological developments among different countries have attained international recognition.It also increases the free flow of goods,labour and technogy. Say for example the…

competitive in international trade and there is no way to other countries but protect their economies from foreign competition. However many economist explained the cheap labor argument as “fallacy”. According to the law of comparative advantage, countries should specialize in which they have comparative advantage (more efficient in production) and export it and import the goods in which they have comparative disadvantage (less efficient in production). Mutual beneficial trade occur when two…

1. Introduction (1530) “Culture eats Strategy for breakfast” - Peter Drucker The on-going globalization and the rise of China and India as economic superpowers have led to huge global changes of economic, political, social and cultural nature. These changes call for an increased importance of reciprocal knowledge exchange. The impacts of global collaborations affect virtually everyone in every organisation and on different levels. Individuals that do not travel can still be affected through…

Trade tends to shift the incidence of environmental effects. Trade geographically separates production from consumption. When environmental effects are national and not cross-border in their incidence and instead are mainly associated with production, trade may shift the environmental effects around the globe. In addition, where consumption produces waste that has become an important part of the ecological cycle (Example: When the nutrients are returned to the farmer’s fields in other words when…

American foreign policies went through many changes between 1865 to the 1980s. Many of the policies seemed most fitting for the time period and its convenience. That being said, a lot of the strategies that would have worked during 1865 wouldn't have the same effects in the 1980's. Though America has always been seen as a land of new beginnings, for immigrants, with time the entering to the states became more difficult. The policies during 1865 to1900’s, focused more on the expansion of the…

The Commerce Clause is here to prevent states from establishing laws and different regulations that would hinder trades and commerce among other states. The commerce clause has the greatest impact on business in general than any other provision in the constitution. As stated in the Gibbons vs Ogden case of 1824 it says that before the commerce clause the states tended to restrict commerce within and beyond their borders and the reason it made it so costly and not well planned out is because they…

According to the doctrine of Adam Smith, free trade is to best policy between two nations in the case of that trade between two countries is based on an absolute advantage. When one country is more efficient in producing one commodity but is less efficient in producing another commodity than other country, the gains from trade will be achieved for both countries through specializing in in the production of the commodity which has an absolute advantage, and exchange with other country for the…

As volumes of trade increased, a newer theory was offered in the 18th century by Adam Smith, who introduced the concept of absolute advantage. Smith was the first to point out that unrestricted trade and free international competition benefit a nation more than the Mercantilist thinking (Schumacher, 2012): according to Smith, specialisation and concentration of workers on a single task in a factory would lead to greater skill and overall higher productivity than what would be achieved if these…

Research Paper Wednesday, May 24th 2017 During the Classical era with empires such as Greece, Rome,China, and India were all apart of 6 major trade routes in which all intersected with these three continents Africa, Asia and Europe in which allowed the trading of goods to be quick and Efficient because of these trade routes connected most major civilizations.Only focusing on 3 which are the Silk Road,Indian Ocean,Tran-Sahara.These trading routes focused on trading items…

As President Franklin D. Roosevelt once said, “Prosperous farmers mean more employment, more prosperity for the workers and the business men of every industrial area in the whole country.” Although the height of his success came after the Industrial Revolution, his words still manage to resonate with the general message of industrialization. However, the one thing his quote does not mention are the people that partially suffered from the effects of industrialization. The era of Industrial…