DE-FACTO INTEGRATION OF EAST ASIA COMPARED

Kiyoshi Abe

Authors

Kiyoshi Abe

Keywords:

Economic integration, Japanese MNCsSMEs, FDI, East Asian Economy, Southeas Asian Economy, ASEAN, Japanese companies in Germany and the USA, ELI.

Abstract

Despite many barriers, there has been a rise of intra-East-Asia trade. Japanese multinational companies are significant promoters of the de-facto integration, enhancing local procurements and orchestrating the mutual-supply network throughout East Asia. All that a Southeast Asian country needs to do is to plug in the intricate rise of intra-East-Asia trade. Japanese multinational companies are significant promoters of the de-facto integration, enhancing local procurements and orchestrating the mutual-supply network throughout East Asia. All that a Southeast Asian country needs to do is to plug in the intricate production network led by the MNC. Market dynamics functions well in East Asia, whereas political decisions prevail in the ELI. When Japanese MNCs relocate, so does their vertical relationship. Many informal business relationships are active and interwoven in East Asia unlike the ELI.

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