Globalization, New Asian Economic Area (AEA): Implications on Economic Reform and Development

Abstract

Recent experiences in Asia provide an empirical evidence that countries in the process of integration are increasingly exposed to internal and external economic environment. In addition, this new emerging economies in Asia has the potential effects on multinational corporations to treat these economies as a single regional market. To explore the extent to which MNCs can integrate their business operations in the Asian Economic Area (AEA), this research examines the extent of economic and social integration within AEA. It further discusses the variations and disparities among them in macro-economic environment, consumer characteristics, marketing infrastructure and human resources, and presents a regiocentric approach to the AEA markets with strategy implications for MNCs.