International Economics Term Paper Example | Topics and Well Written Essays - 1250 words

International Economics - terminal figure Paper Examples and components which after being produced in ASEAN nations went to labor intensive countries for assembly and therefore final products reached the markets in Europe, America and Japan. This trade type started in IT products and expanded to other items too. Although ASEAN nations were integrating with the orbiculate economy, their intra regional integration was incomplete and was stagnating. In the past two decades the overall trade of ASEAN nations ontogenyd by 11% on annual note but intra regional export increased from 19% to 23% in the period 2000-2008.(Hanouz & Geiger,2010). In January 1992, the ASEAN nations signed ASEAN Free Trade Area (AFTA) for deeper economic integration which was to be obtained within fifteen years and it allow lead to extensive liberalization in trade.The objective of AFTA was to increase regional trade among ASEAN nations and thus achieving economic independence from the world market (Ahlstrom & Stalros, 2005). As the theory goes, remotion of intra regional tariff and non tariff barriers will lead to efficiency and as market size will increase investors will enjoy economies of scale. Here we will discuss about the role of AFTA in describing the purpose of trade in ASEAN nations.As per Balasaa, four different stages of economic integration can be apt(p) that are Free Trade Area (FTA), then a Customs Union (CU), a leafy vegetable Market (CM) and at last a Economic Union (EU). Preferential Trade Arrangements(PTA) encompass abase tariff rates for segment nations as compared to non members while a FTA is an regional integration which is formed by imposition of zero tariffs on trade among the member nations of FTA without any change of tariff on imports from non member nations.The traditional economic integration theories explain about the gains from trade and these are static analysis of economic integration. The first theory on economic integration was given by Viner in 1950. His trade being effect says that as two countries enter into trade, the