University of Phoenix
February 20, 2006
Asia-Pacific Economic Cooperation, or APEC, is the premier opportunity for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC promotes global business and there are several advantages and disadvantages of this regional integration. There are numerous ramifications of APEC's economic development for global business and these will be discussed below. APEC
APEC was established in 1989 to further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community (APEC, 2006). APEC is the only inter governmental grouping in the world working on the basis of non-binding commitments, open dialogue and equivalent respect for the views of all participants. APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments that are undertaken on a voluntary basis. APEC also works to create an environment for the safe and efficient movement of goods, services and people across borders in the region through policy alignment and economic and technical cooperation. APEC has worked to lessen tariffs and other trade barriers across the Asia-Pacific region, creating competent domestic economies and significantly increasing exports. Free and open trade and investment helps economies to grow, creates jobs and provides greater opportunities for international trade and investment. In contrast, protectionism keeps prices high and fosters inefficiencies in certain industries. Free and open trade helps to lower the costs of production and thus reduces the prices of goods and services, which is a direct benefit to all. Asia-Pacific Economic Cooperation (APEC) works in three broad areas to meet the Bogor Goals of free and open trade and investment in the Asia-Pacific by 2010 for developed economies and 2020 for developing economies (APEC, 2006). Regional...