A Look at How the ASEAN Free Trade Agreement, ASEAN Preferential Trading Arrangements, and the ASEAN Industrial Joint Venture Scheme Affect Whirlpool Southeast Asia
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This dissertation will examine how the ASEAN Free Trade Agreement (AFTA), ASEAN Preferential Trading Arrangements (APTA), and the ASEAN Industrial Joint Venture (AIJV) will affect Whirlpool Southeast Asia in its operations within ASEAN; whether there are any significant long term and/ or short term benefits to be derived from these treaties for the Whirlpool Corporation's Operations in Southeast Asia and more specifically in the ASEAN countries. When ASEAN began, it was a group of five developing countries. Now most of the ASEAN countries are in or entering the transitional stage from developing countries to newly industrialized countries (NICs), with the exception of Singapore which already is a NIC. ASEAN is an emerging international economic region. Since the 1960s, it has been rapidly expanding its economic clout and standing. It is now the most rapidly growing economy in the world. Because of its emerging importance in the economic world order, corporate presence is important as well as necessary. AFTA, APTA, and the AIJV Scheme are treaties which ASEAN has created to increase their competitiveness in today's world of regional economics. These treaties provide such incentives as a large reduction in tariff rates and increased government cooperation to those who invest in ASEAN. For ASEAN, they also provide the added security of being a regional block that can compete with the North American and European blocks. A general overview of the potential advantages and disadvantages of these ASEAN treaties as they apply to the Whirlpool Corporation's expansion into Southeast Asia have been explored. It is the Author's opinion that an increased presence in Southeast Asia is to the benefit of Whirlpool.
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