A comparative analysis of investment and trade performance between two selected Asian countries
Comparative Analysis 4
А Соmраrаtivе Аnаlysis
The Name of the School (University)
The City and State where it is located
А СОMРАRАTIVЕ АNАLYSIS ОF INVЕSTMЕNT АND TRАDЕ РЕRFОRMАNСЕ BЕTWЕЕN TWО SЕLЕСTЕD АSIАN СОUNTRIЕS
The purpose of his essay is having a comparative analysis of the different investments and trade performances between two selected Asian countries. The year 2013 saw business growth continue to weaken especially in the areas of Asia and the Pacific. Investment analysts said at the rate of growth for exports and imports in the region had gone below average for the first time in almost ten years. However, the slowdown seemed not to affect the ambition of the area, and it grew to be one of the largest trading regions globally. The Asia-Pacific economies account for almost 40 percent of the world trade (Lefèvre, 2010).
A country like China is the second-largest merchandise exporter in the Asian region and the third-largest merchandise in the globally. Around the Asian region, more than ten other developing economies have risen and around ten areas have grown to become global leaders rising to be the top 25 exporters and importers in the area (Susan et al., 010). One of the most recognized countries that have experienced exponential growth is Japan. Risk analysts have continually said that the overall economic performance of the region has continued to outpace the other parts of the world. As such, Japan has grown to be among the developing economies of the area.
One of the bodies that help to study the trade zones is the Asia-Pacific Trade and Investment Report. The body conducts analysis and provides an analysis of the developments in the following areas;
There is a study of the intraregional trade in goods and services.
There is a study in the foreign direct investment
There is a review of the trade facilitation measures
There is a study in the trade policy measures
There is a study in the preferential trade agreements.
The exponential growth in the Russian Federation to other countries like Singapore and the Philippines. Analysis of individual countries has also led to the study relating to the most otherwise trading economies in Asia and the Pacific that temporarily experience performance slowdown from the same period in 2013 hence a country like China never experienced trade stagnations during the first five months of 2014. The Asia-pacific regions have also experienced stagnation in their economies hence opted to export from India since it had grown to be one of the most populous countries with its exports rising from 1.9 percent to 13 percent. It is recommended to be in conjunction with other nations that have a higher rate in their business (Li and Zhang, 2010).
The essence of an intraregional trade has increased within the past two decades mainly on the export side. The share of having intraregional exports did increase from 44 percent of the total Asia-Pacific exports to over 50 per cent in the year 2013 (Deng et al., 2011). It is also recommended that having intraregional trade patterns is not known to be uniform especially considering the labor and resource-intensive exporters registered in the export growth in 2013. Some of the other nations that have been included in the resource-intensive exporters include Afghanistan, Myanmar, Uzbekistan, and Viet Nam. The increase in Intraregional trade has grown in importance during the past decade.
The export performance is expected to improve in the year 2015 reaching a growth rate of 7 percent in real terms. There have been repercussions. The major report is in the Intraregional importation dependency by the Asia-Pacific economies in the year 2012. No region is not immune to global economic uncertainties, and there is need to focus on long-term strategies that are meant to increase competitiveness to achieve greatness. The countries have policies that are expected to have secure benefits regarding trade. The systems are made to encompass the growing connections between countries that are supposed to increase the global value chains (GVC). It is no secret that a dispersed production across many locations is fuelling both from the intermediate inputs and rising demand for services. Regardless of the gross exports, and value-added exports can lead to a misguided trade and industrial policies hence acts as an indicator for the revealed comparative advantage in the total domestic producers. The policies have led to the entry of the international production networks hence increasing globalized production.
China- Market Structure
In China, there is the study of the automobile industry hence the need to study on the market fragmentation. For example, there is the realization that the Chinese industry is made up of 120 full vehicle manufacturers with over 1,800 auto parts with component enterprises. The Chinese government aims to make sure that the companies in China achieve and maintain their competitive advantage. Having a competitive edge is crucial in making sure that their active component is vital to ensuring the tariffs need to reduce significantly (Berkman et al., 2011). The Chinese government tends to make sure that there are plans to make sure that the government needs to provide consolidation to tackle the ever growing over capacity to ensure that policies are followed. The Chinese government decided not to concentrate on gradually establishing new facilities, and the government needs to aim to increase their state productions continuously. Having and enjoying such advantages is crucial to making sure that there is a Golden Period era in the Chinese automobile market. The benefits have also led to the industrial policies that are meant to make adjustments in vehicle customs about the petroleum prices.
Policies are the biggest influencers that affect the Chinese auto industry. Other factors are also constant should there be the revitalized industrial systems in the year 2006. Such policies are also relevant to the development of economical cars that are commercial friendly and lead to other increase opportunities. It is pertinent to understand that realizing growth opportunities is crucial to the increase in the output and sales of passenger vehicles regardless of China’s growth opportunities in the automobile industry. Other companies have also followed the need to exploit their growth opportunities where growth companies have all maintained their competitive advantage.
As an industry, the whole automobile industry tends to speed up and reorganize their investment options. What this means is that having a related industry needs several roles that are relevant to playing pivotal roles in the process of reorganizations (Berkman et al., 2011). However, the organization also experiences difficulties since no company can go without its shares of problems. However, it should be noted that the labor activity in China is far less than that of other countries, and production development needs to be continually revisited to ensure positive results are maintained.
Rising competition and increasing global trade are some of the reasons why the global distribution system has been affected. Such has led to the developed countries see the need to have a shift of the production bases while searching for effectively and efficiency. Achieving what is known as a competitive global market requires individuals to understand that many factors lead to positive globalization (Feintrenie et al., 2010). The establishment of mergers among the major partners has also led to success in the countries above. Asia has been known to be a hub of very active business activities, and states that have merged have achieved success since they have the same goals.
Another pattern worth investigating is the evaluation of the growth model especially in the ownership structures, trade patterns and what the role of governments is when achieving success. Selected Asian countries have always sought after what is known as perfection especially considering the exports and imports available to a country. In a rapidly growing continent, one of the most important concepts to consider is making sure that any comparisons regarding profits are controlled. There is a lot of competition in the Asian countries as the main sectors for technology and automobile compete on who has the most profits.
The countries that have been discussed in this essay have in fact in common with each other. All the countries that have been considered have one always been led by the concept of foreign direct investment (FDI). FDI mainly affects the two largest sectors in the Asian countries known as t Automotive and export & import sectors (Berkman et al., 2011). The two factors have a lot of logistics involved in that relevant issues that accrue to the success of the group is primarily affected and needs to be regularly checked and discussed. There is a strong position taken by the sectors as mentioned earlier regarding whether they need to congregate the other areas to maximize profits.
Within the countries mentioned, two major concepts need addressing. The two concepts include competition and customer demands. Customer’s needs are very crucial as they dictate the different ways that business will be affected. Customers are the major influencers of the profit-loss margin hence the supply chain is mostly concerned and constantly needs modification (Marks, 2010). Product architecture is also very essential as it helps to map out what products are to be promoted to the customer and whether there need to be any relevant changes made. There is a variety of outputs that the Asian countries have and ensuring that the clients receive only high-quality products.
The major concept that tends to hinder the success of the two concepts mentioned above is the issue of standardization. Understanding the problem of standardization allows the control of prices where customers receive only the best services and products (Berkman et al., 2011). Concepts like modification and localization profoundly influence the rate of sale is not adversely affected. Employers and employees are the biggest influencers of the profits, and the idea of standardization is a critical concept that significantly promotes physical development of the said product. Depending on the strategies deployed, the measures that have been adopted are meant to reduce the cost and increase the efficiency. All the goods are supposed to ensure that all the standardized interfaces about the modularization are the major components of the designs.
In the countries above, the customers tend to look at the production levels of the said components depending on the product. The customers will look at the make of the machines, the model of the product and whether it is relevant to the client regarding benefits. Each customer wants to have a product that can be in the use of and regardless of being inexpensive, it is impromptu to have the best options on the best products (Deng et al., 2011). Depending on the product being sold, it is essential to have an adoption of the best strategy as a way of positioning themselves as a major global power.
It is imperative for each of the companies have the need to know the difference between the different products. Having a knowledge of the different products is crucial in understanding the risks that one might be involved in since each country is concentrated on maximum profits. Such leads to the deployment of new solutions that are meant to help the organizations that are existent in their countries mentioned when dealing with their problems. The new deployment solutions include system supply, module assembly, and supplier management. The concepts should also be observed by the management teams in the most influential companies in the organization above.
A Chinese automotive vehicle producers area unit capable of exploiting the value advantage because of low-cost labor and a decent quantity of localization, however, they are unable to try and do thus because of little demand and low level of productivity. A smart business plan will also involve the concept of understanding why supply chains exist to make sure that supply and demand inquiries are investigated. Another concept that is worth investigating is the design of the different elements of the products about the players, investors, and stakeholders (Berkman et al., 2011). Suppliers are needed to ensure that business runs smoothly and any hindrances that might affect the sales. Understanding exactly what is required in a business and any components that may need to be read is crucial to the success of the companies that are existent in the countries being studied.
Constant restructuring of the various departments in an organization is also important to understanding exactly what is needed to ensure success. Some procedures need to be followed to make sure that companies follow the correct protocol to ensure success. There arises the need to have the need for businesses ensure growth in the manufacturing industries. Researchers have termed the concepts of efficient business through the initiatives of independent and quasi-independent strategies.
As railcar possession has been discouraged through progressive -taxes, and since utility vehicles area unit like-minded to natural usage patterns, or so eightieth of the market is formed from business vehicles and MPVs (Chen, et al., 2011). Automobile makers across the world area unit competitive in Indonesia, however, domestic maker’s area unit microscopic over assemblers for foreign car manufacturers. The key assembly program is P.T. Astra International, whose subsidiaries build cars and trucks for Toyota, Daihatsu and Isuzu, and motorcycles for Honda.
The purpose of having the above analysis is making sure that investment options are studied, and the success factors analyzed. The 2008 and 2009 global crisis did indeed cast a shadow over the trade prospects of Asia and the Pacific and developments in 2013 and 2014 shows the prolonged consequences between Asia and the Pacific. The essence of intraregional demand is evidently the most vulnerable considering the momentous ongoing economic slowdowns. It is expected that having growth of merchandise trade by developing Asia-Pacific economies that have received an exponential growth of more than 5 percent in real terms.
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