University of Phoenix
MGT 448 Global Business Strategies
January 25, 2012
John O’Brien, MBA
“ Describe the advantages and disadvantages of regional integration and relate the stage of economic development of the economically integrated region to potential business opportunities.”
In the following paper will attempt to convey both the advantages and disadvantages of regional integration demonstrated by various global trading blocs, analyze the economic development of several countries in the ASEAN bloc, and its effect on potential business opportunities.
“Regional economic integration refers to agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other” (Hill, 2009 Ch. 8).
Association of Southeast Asian Nations (ASEAN)
“The Association of Southeast Asian Nations (ASEAN) was established as a regional organization in 1967 to accelerate economic growth, promote regional peace and stability, and enhance cooperation on economic, social, cultural, technical, and educational matters among Southeast Asian countries. The five founding countries Indonesia, Malaysia, the Philippines, Singapore, and Thailand were later joined by Brunei Darussalem (Brunei) in 1984, Vietnam (1995), Laos (1997), Burma (1997), and Cambodia (1999),” (United States International Trade Commission, 2010, Pub. 4176).
According to United States International Trade Commission (2010), “Located in a region of the world with rapidly expanding economies, ASEAN has a combined population of 550 million people largely characterized by rising incomes. As such, the ASEAN nations are already an important market for U.S. companies,...