GLOBAL AND
APPLIED ECONOMY
Group Members
BEH HEE LENG
KONG CHUAN CHENG
LICIA TAN
SOH YEE SIN

SCM-023013
SCM-02250
SCM-022...
Economic integration
> Agreements between nations in a geographic
region to reduce, and ultimately remove, tariff
and non-...
The Levels Of Regional
Economic Integration
Can Asian countries
form Asian Union?
European union, the most advanced regional trade and
investment bloc in the world today.

Economic

Political

Asian
Union...
Asia Cooperation
Dialogue
> Intergovernmental organization
>Formed in 2002
> Promote Asian cooperation at a continental le...
Objectives of ACD
> Promote interdependence among Asian countries in all
areas of cooperation
> Enhance Asia's economic co...
Asia Map
Economic System
> Islamic economic system

> Mixed economic system
> Socialist economic system
> Communist economic system
Countries Debt in Asia
Countries Debt in Asia
Countries Debt in Asia
Current Account Balance
Advantages of an
Asian Union
Expansion of trade in goods and services

Increase in FDI
Improvement in infrastructure and
s...
Expansion of trade
> Potential increase in intra-regional trade from $0.5
billion to $2 billion
> Greater trade diversific...
Total trade gain
Integration boost FDI inflows:
The EU experience
Integration boost FDI inflows:
The NAFTA experience
Improvement in infrastructure
and services:
Regional Energy Trade
> Significant unutilized complementarities in energy
end...
India

Pakistan

• Electricity and gas imports
• Trading base-load power for peak power

• Gas imports
• Energy transit

N...
Improvement in infrastructure
and services:
Regional Transportation
> Increase inter and intra-regional connectivity
> New...
Challenges of Asian
Union
ASEAN
Brunei

Burma

Thailand

Singapore

Laos

Cambodia

ASEAN

Indonesia
Malaysia
Philipines

Vietnam
Asian Union

ASEAN

economic
giants

Asian
Union
Unable to achieve political and
economic unity
> Levels of economic development and democratic
government vary sharply bet...
Economic difference
> huge gaps between Asian countries.
Rich: Singapore (per capita income: $29,500)
Poor: Indonesia (per...
Country debt
Potential gap between
some Asian countries.
> Relationship of ASEAN with China changed dramatically
over past four decades...
Border Disputes
Border disputes among China and India.
> Chinese sent an unusual number of
military patrols into the mount...
Territory dispute
Territory dispute among China and Japan
A small uninhabited group of islands known as the Senkaku
in Japan and the Diaoyu in China are located in the East
China S...
Territory dispute among China and Japan

> China and Taiwan say the islands have been part of
Chinese territory for centur...
The role of EU
> For the economic size and political dominance in world
politics, the U.S. is still the most influential p...
> It has become an essential strategic objective to
obstruct projects like the Asian Union.

> USA is still the biggest co...
Conclusion…

> Asian Union is
not possible to
be formed.
Thank you
for
listening…
=)
References
Mankiw. (2008). Essential of Economics. Canada: South-Western
Cengage Learning.
Phiv, C. (2010, Jun 23). Asian ...
Alan Griffiths, Stuart Wall. (2013). Applied Economics. England:
Pearson Education Limited.
Bank, W. (2013). The World Ban...
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Is Asian Union possible to be form?

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advantage and disadvantage of forming Asian Union.
The challenges faced to form Asian Union.

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Is Asian Union possible to be form?

  1. 1. GLOBAL AND APPLIED ECONOMY Group Members BEH HEE LENG KONG CHUAN CHENG LICIA TAN SOH YEE SIN SCM-023013 SCM-02250 SCM-022667 SCM-022868
  2. 2. Economic integration > Agreements between nations in a geographic region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other
  3. 3. The Levels Of Regional Economic Integration
  4. 4. Can Asian countries form Asian Union?
  5. 5. European union, the most advanced regional trade and investment bloc in the world today. Economic Political Asian Union Strategic Social
  6. 6. Asia Cooperation Dialogue > Intergovernmental organization >Formed in 2002 > Promote Asian cooperation at a continental level and to help integrate separate regional organizations i.e., ASEAN, SAARC and Gulf Cooperation Council
  7. 7. Objectives of ACD > Promote interdependence among Asian countries in all areas of cooperation > Enhance Asia's economic competitiveness in the global market > Serve as the missing link in Asian cooperation Transform the Asian continent into an Asian Community
  8. 8. Asia Map
  9. 9. Economic System > Islamic economic system > Mixed economic system > Socialist economic system > Communist economic system
  10. 10. Countries Debt in Asia
  11. 11. Countries Debt in Asia
  12. 12. Countries Debt in Asia
  13. 13. Current Account Balance
  14. 14. Advantages of an Asian Union Expansion of trade in goods and services Increase in FDI Improvement in infrastructure and services (eg. Energy and transportation)
  15. 15. Expansion of trade > Potential increase in intra-regional trade from $0.5 billion to $2 billion > Greater trade diversification, given that SAARC countries do not trade as much with each other, as they do with the rest of the world > Switching of trade from informal to formal channels will increase consumer welfare, reduce efficiency losses and increase government revenue
  16. 16. Total trade gain
  17. 17. Integration boost FDI inflows: The EU experience
  18. 18. Integration boost FDI inflows: The NAFTA experience
  19. 19. Improvement in infrastructure and services: Regional Energy Trade > Significant unutilized complementarities in energy endowments > National energy systems are autarchic > Fast increasing demand, driven by economic growth and access expansion, will further increase the opportunity costs of keeping the national energy systems isolated
  20. 20. India Pakistan • Electricity and gas imports • Trading base-load power for peak power • Gas imports • Energy transit Nepal and Bhutan Bangladesh • Hydropower exports • Base-load electricity generation imports • Gas exports
  21. 21. Improvement in infrastructure and services: Regional Transportation > Increase inter and intra-regional connectivity > New transit routes to Central Asia, China and NE India > Reduced border crossing times and costs > Increase transport asset utilization leading to lower costs and lower tariffs > Allowing cross-border movement without transshipment > Improved port systems
  22. 22. Challenges of Asian Union
  23. 23. ASEAN Brunei Burma Thailand Singapore Laos Cambodia ASEAN Indonesia Malaysia Philipines Vietnam
  24. 24. Asian Union ASEAN economic giants Asian Union
  25. 25. Unable to achieve political and economic unity > Levels of economic development and democratic government vary sharply between them Eg. Myanmar is attempting to introduce democracy after 50 years of military rule. Indonesia and the Philippines which have gone much further down the road to democracy.
  26. 26. Economic difference > huge gaps between Asian countries. Rich: Singapore (per capita income: $29,500) Poor: Indonesia (per capita income $1,600) Poorest: Myanmar (per capita income $200)
  27. 27. Country debt
  28. 28. Potential gap between some Asian countries. > Relationship of ASEAN with China changed dramatically over past four decades. > Chinese sponsored communist insurgencies were one of the greatest threats to the security of Thailand, Malaysia, and, Cambodia. > Cold wars among Asian countries.
  29. 29. Border Disputes Border disputes among China and India. > Chinese sent an unusual number of military patrols into the mountains of Ladakh, a remote high-altitude desert at the northern tip of India. > Indian military officials protested. > China foreign ministry denied.
  30. 30. Territory dispute Territory dispute among China and Japan
  31. 31. A small uninhabited group of islands known as the Senkaku in Japan and the Diaoyu in China are located in the East China Sea between Japan.
  32. 32. Territory dispute among China and Japan > China and Taiwan say the islands have been part of Chinese territory for centuries and were seized by Japan in 1895 at the end of the Sino-Japanese war. Japan refuses to acknowledge that the islands are even disputed.
  33. 33. The role of EU > For the economic size and political dominance in world politics, the U.S. is still the most influential power in the whole of Asia. > EU is trying to foster and develop its relations with the whole of the continent of Asia through ASEM, the AsiaEurope Meeting. > USA possesses its institutional link with the economies of Asia, and it does not want to be excluded from Asia by developments coming out of East Asia and lead by ASEAN.
  34. 34. > It has become an essential strategic objective to obstruct projects like the Asian Union. > USA is still the biggest counterbalance against rising China for many Asian countries.
  35. 35. Conclusion… > Asian Union is not possible to be formed.
  36. 36. Thank you for listening… =)
  37. 37. References Mankiw. (2008). Essential of Economics. Canada: South-Western Cengage Learning. Phiv, C. (2010, Jun 23). Asian Union and Interreligious Dialogue. Retrieved from eRenlai Magazine: http://www.erenlai.com/index.php/en/focus/2010-focus/march2010/3156-asian-union-and-interreligious-dialogue Tisdall, S. (2005, April 12). Hopes and fears of an Asian Union. Retrieved from The Guardian: http://www.theguardian.com/world/2005/apr/12/burma.tisdallbriefi ng Weiss, S. A. (2007, Nov 27). ASEAN to form Asian Union? Retrieved from Global Research: http://www.globalresearch.ca/a
  38. 38. Alan Griffiths, Stuart Wall. (2013). Applied Economics. England: Pearson Education Limited. Bank, W. (2013). The World Bank . Retrieved from World Bank: http://www.worldbank.org/ Colakoglu, S. (2012, July 10). Is an Asian Union Possible? Retrieved from The Journal of Turkish Weekly: http://www.turkishweekly.net/columnist/3645/is-an-asian-unionpossible.html Gravity. (2009, May 13). SINO + ASEAN = East Asian Unification? Not Quite Part I. Retrieved from Word Press: http://pmsol3.wordpress.com/2009/05/13/sino-asean-east-asianunification-not-quite-part-i/ HARRIS, G. (2013, May 2). Where China Meets India in a HighAltitude Desert, Push Comes to Shove. Retrieved from My New York Time: http://www.nytimes.com/2013/05/03/world/asia/wherechina-meets-india-push-comes-to-shove.html?_r=1&

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