Economic Integration Toward Asian Union

Economic integration toward Asian Union

Introduction:

Over the past few years, readjustment of economic structure in many Asian countries has achieved initial success. Thanks to the accelerating industrial upgrading, Asian economies have grown by leaps and bounds. In the past 30 years, the annual growth rate of world economy remain stable at 3.1%, while the growth rate of economy in Asia surpass the average and reaches 4,1%. From 1976 to 2004, our proportion of global trade share has increased from 15% to 27% . Among the emerging economies, known as BRICs, 3 are Asian countries(Russia, India and China). It's fairly to say that Asia has become a new engine of world economic growth..

Preview statement:

Under the globalization, economic cooperation within Asian regions whether it's bilateral or multilateral is gradually deepening and extending to various field. It's a historical trend and ultimate choice to promote economic integration toward Asian Unions. To explain this, we would first like to review the basic economic integration theory, and then we'll present you with current economic cooperations in Asia and actual problems we have at the moment, at last we'll raise our proposition and analyze its feasibility.

Main body:

1. Definition and main stages for economic integration

 Basic definition: Economic integration refers to trade unification between different states by the partial or full abolishing of customs tariffs on trade taking place within the borders of each state. This is meant in turn to lead to lower prices for distributors and consumers (as no customs duties are paid within the integrated area) and the goal is to increase trade.--according to Wikipedia.

 Progress of economic integration:

i. Free trade area:

a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods and services traded between them.

ii. Customs union:

a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas.

iii. Economic union:

a type of trade bloc which is composed of a common market with a customs union. The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production (capital and labour) and share a common external trade policy.

iv. monetary union

is where two or more states share the same currency, usually funded