BBNG3103

INTERNATIONAL BUSINESS
JANUARI 2013

NAME

Jumratiah Binti Jaani

MATRIC NUMBER

760423125166001

IC NUMBER

760423125166

TELEPHONE NUMBER

017-8986475

E-MAIL ADDRESS

jumratiahjaani@yahoo.com

TUTORS NAME

Onchi @ Wisra Bin Maddo

LEARNING CENTRE

Tawau Learning Centre

TABLE OF CONTENT

CONTENT

1.0

PAGE

INTRODUCTION ON REI
Meaning

Five levels

2.0

OBJECTIVES OF AFTA

3.0

IMPACT OF AFTA

3.1 AFTA and Malaysian car industries

3.2 Sectoral Outputs and Trade Balance

4.0

COMPARATIVE ADVANTAGE THEORY

13

5.0

SUMMARY

16

6.0

BIBLIOGRAFI

17

1.0 INTRODUCTION ON REGIONAL ECONOMIC INTEGRATION (REI)

1.1 Meaning of REI
Regional economic integration is an agreement among countries in a geographic region to
reduce and ultimately remove, tariff and non tariff barriers to the free flow of goods or
services and factors of production among each others. It can be also refers as any type of
arrangement in which countries agree to coordinate their trade, fiscal, and/or monetary
policies are referred to as economic integration. Obviously, there are many different levels of
integration.
Free Trade Area: A free trade area occurs when a group of countries agree to eliminate tariffs
between themselves, but maintain their own external tariff on imports from the rest of the
world. The North American Free Trade Area is an example of a FTA. When the NAFTA is
fully implemented, tariffs of automobile imports between the US and Mexico will be zero.
However, Mexico may continue to set a different tariff than the US on auto imports from
non-NAFTA countries.
Customs Union: A customs union occurs when a group of countries agree to eliminate tariffs
between themselves and set a common external tariff on imports from the rest of the world.
Common Market: A common market establishes free trade in goods and services, sets
common external tariffs among members and also allows for the free mobility of capital and
labor across countries.
Economic Union: An economic union typically will maintain free trade in goods and
services, set common external tariffs among members, allow the free mobility of capital and
labor, and will also relegate some fiscal spending responsibilities to a supra-national
agency.Regional Economic Integration plays a major importance role in global trade. It
enhances trade among member through the elimination of customs barriers, and to quickly
and substantially improves the allocation of resources and general dynamism, by fostering
greater competition among the participating countries and by providing more incentives for
the introduction of new and rapidly changing technologies and production methods. It helps
to accelerate national investments and foreign direct investments in order to acquire
international competitiveness in the face of increasing globalization.
Regional Economic Integration stimulates economic growth in countries and provides
additional gains from free trade beyond international agreements such as GATT and WTO.
Economic interdependence creates incentives for political cooperation and reduces potential
2

for violent confrontation. Together, the countries have the economic clout to enhance trade
with other countries or trading blocs.

1.2 Five Levels of REI

Levels of Economic Integration There are about five additive levels of economic integration
impacting the global landscape:
Free trade.
Tariffs (a tax imposed on imported goods) between member countries are abolished or
significantly reduced. Each member country keeps its own tariffs in regard to third countries.
The general goal is to develop economies of scale and comparative advantages, which
promotes economic efficiency.
Custom union.
Sets common external tariffs among member countries, implying that the same tariffs are
applied to third countries. Custom unions are particularly useful to level the competitiveness
playing field and address the problem of re-exports (using preferential tariffs in one country
to enter another country).
Common market.
Factors of production, such a labor and capital, are free to move within member countries,
expanding scale economies and comparative advantages. Thus, a worker in a member country
is able to move and work in another member country.
Economic union.
Monetary and fiscal policies between member countries are harmonized, which implies a
level of political integration. A further step concerns a monetary union where a common
currency is used, such as with the European Union (Euro).
Political union.
Represents the potentially most advanced form of integration with a common government
and were the sovereignty of member country is significantly reduced. Only found within
nation states, such as federations where there is a central government and regions having a
level of autonomy.

2.0 OBJECTIVE FOR THE FORMATION OF AFTA

In considering ASEAN's objectives in forming AFTA, Bowles and MacLean identify three
main factors. These are (i) the changes in the international political economy during the
1980s; (ii) the rise in influence of business interests throughout the ASEAN region and their
general predisposition towards regional trade liberalization measures; and (iii) ASEAN's
desire to maintain its position as an important organization in a region experiencing change
and a proliferation of new regional bodies, both proposed and actual.
For the purposes of the present discussion, I will simply note the role played by
business organizations, most notably the ASEAN-CCI, in making AFTA acceptable to their
members and promoting it to their governments. ASEAN's relationship with other regional
organizations, such as APEC, will be discussed in the next section and here I will restrict my
comments to a summary of the changes underway in the international political economy of
the 1980s, and ASEAN's response to them, which made the formation of AFTA in 1993 an
attractive proposition.
As a background to the changes of the 1980s it is important to note than in most of the
1960s and 1970s the four largest ASEAN nations (Indonesia, Malaysia, the Philippines and
Thailand) had pursued import substitution policies. The moves towards economic integration
within ASEAN in this period must be seen against this background. Economic cooperation
schemes and the Preferential Trading Agreement were attractive to ASEAN members
because they offered the possibility of a larger market to support domestic industries but were
problematic in that each nation jealously wished to guard its internal market for its own firms,
and therefore cooperation schemes were often bogged down at the implementation stage as
market-sharing compromises proved difficult to reach. The world economic slowdown in the
early 1980s, the international debt crises and the associated reduction in North-South capital
transfers, the rise of protectionist sentiment in the United States, and the continued recession
of 1984-85 after a brief recovery in 1982-83 posed fundamental challenges for the ASEAN
countries. At the same time, the international financial institutions became more powerful and
able to gain greater influence in domestic policy-making circles as the price paid for
continued borrowing privileges. All of the ASEAN-4 needed to find ways of boosting exports
and maintaining foreign exchange earnings.

One possible route was to attempt, in the face of a stagnant world economy, to expand
intra-ASEAN trade by further cooperation measures. This was formally proposed by the
Philippines at the ASEAN Economic Ministers Meeting in Manila in 1986 with the proposal
being for a phased reduction in intra-ASEAN tariffs and an external common tariff (i.e., a
customs union). The proposal was rejected by Indonesia on the grounds that no deadlines
should be involved and Singapore objected to a customs union on the grounds that it did not
want to raise its external tariffs. Undoubtedly, the low volume of intra-ASEAN trade, at
around 20 percent, and the heavy reliance of ASEAN members on external markets played a
role in making the customs union unacceptable to ASEAN members. Thus, in 1986 regional
trading arrangements were still viewed, as they had been in the 1960s and 1970s, as ways for
groups of developing countries to reduce their dependence on the world trading system, and
trade with developed countries in particular. That is, regional trading arrangements were seen
as alternatives to dependence on the world market, and the conditions for ASEAN to realize
such an alternative were absent in the judgement of most ASEAN members.
A mere five years later, however, with intra-ASEAN trade even lower, Thailand's
proposal for an ASEAN Free Trade Area was unanimously adopted. Changes to the
international political economy in the latter half of the 1980s help to explain why this was the
case. But before coming to these changes let us briefly note that the response of the ASEAN
countries to the global economic conditions of the early- mid 1980s and to the policy advice
of the international financial institutions was to engage in trade liberalization, albeit at their
own pace rather than collectively, and to shift towards policies more conducive to export
promotion. In addition, individual countries also adopted policies more favourable to Foreign
Direct Investment (FDI) in an effort to attract the foreign capital needed to spur continued
industrialization.
These policies were fortuitous in that Japanese firms were expanding overseas rapidly
in response to the massive appreciation of the yen which followed the Plaza Accord in 1985,
an accord which was to have major implications for the region. Japan's FDI grew at an annual
average rate of 62 percent over the 1985-89 period, driven in large part by the yen's
appreciation and by the fear (realized or not) of growing protectionism in U.S. and European
markets. Simulatenously, the East Asian Newly Industrializing Countries (NICs) were also
investing heavily overseas with the ASEAN-4 and China being the primary host countries for
NICs' FDI. The result of these trends was a rapid increase in FDI's importance, in all ASEAN

countries. For the ASEAN-4 between 1985 and 1990, FDI as a percentage of GDP
quadrupled from 0.6 percent of GDP to 2.4 percent and FDI's contribution to gross domestic
capital formation nearly tripled from 2.5 percent to 7.1 percent.
The increasing importance of FDI in the economies of the ASEAN countries,
especially the ASEAN-4, reflected the reorganization of the (greater) East Asian economy in
response to the currency appreciations which affected both Japan and the NICs as well as the
changed development strategies of the ASEAN-4 themselves. Trade in the East Asian region
is often characterized as following a "Flying Geese" pattern in which the most
technologically advanced products are exported from Japan, skilled-labour-intensive products
from the NICs and labour-intensive products from the ASEAN-4 and China. Such a pattern
stresses the inter-industry specialization within the region. However, this misses the
importance of intra-industry trade much of which is intra-firm trade (i.e., trade taking place
within the multinational enterprises). In this case, the international division of labour is more
a process, than a product, division. It is significant that intra-industry trade within the
ASEAN-4 has increased considerably during the 1980s. Fukasaku estimates that an index of
intra-industry trade increased by 91 percent for the Philippines, 90 percent for Indonesia, 85
percent for Thailand and 64 percent for Malaysia during the 1979-88 period.

3.0 IMPACT OF AFTA ON MALAYSIAN ECONOMY

AFTA has a potential to produce a wealth of benefits, but faces a rocky road ahead. It was
signed to benefits the Malaysian consumers and local companies in the domestics market but
the real situation is some what different. There is a low rate of tax imposed on the raw
material of the products, to encourage the free flow of products and make them cheaper, but
due to the enforcement of taxes on the consumers, products prices are indirectly increasing.
Prices suppose to be decreased as it was predicted, but consumer products are still expensive.
There is also an increase in intra-ASEAN competition from lower cost producers. Turning
ASEAN region into single market will damage these producers in terms of competition and
giving benefit to larger organization.
Free flows of man power also harm the labour of rich countries like Malaysia,
Singapore and Indonesia. Comparatively Viet Nam, Laos and Cambodia have cheap labour as
compare to other ASEAN countries. Companies in rich countries can hire cheaper labour
from these countries, leaving the local Malaysian labour unemployed. This will increase the
unemployment rate in the long-run in Malaysia.
3.1 AFTA and Malaysian car industries
Proton and Perodua are really going to feel the threat of AFTA if they are not prepared by the
year 2005. Government has helped them by deferring the AFTA from 2003 to 2005. So now
it is up to the local manufacturers to come out with their own remedies to face AFTA. The
truth fact is that nobody can escape from liberalization of car industry in this region.
From my opinion, Proton has already started preparing for AFTA. But is it enough?
Sales have been projected to drop significantly for Proton once AFTA is implemented. One
of the measures taken by Proton is in R & D sector. They have come up with first Malaysian
design car. This is a milestone in Proton, which was realized using latest technology like
Rapid Prototyping and commitment by the employees. Proton is also doing research and
development with Lotus engineering and Petronas-Sauber Formula 1 team to come up with
own engine. This moves in R &D sector is very important for them. Now they can show their
own identity to the world rather than copying prototype of Mitsubishi cars. They have
changed to a new logo that will give them more precise identity. Perodua still lack in this
field, they still come out with Daihatsu prototype cars to manufacture in Malaysia.

Local manufacturers have to come with their own identity or brand if they want to
penetrate the ASEAN market. In order to have own identity, they need to come out with their
own model that is not available from other auto manufacturers. Daihatsu have already
manufacturing base in Indonesia. So for Perodua it will be difficult task to penetrate the
ASEAN market. Definitely their sales in Malaysia will drop in 2005. So to compensate that,
they better penetrate other ASEAN countries car market.
Another main core thing that should be taken action is cost competitiveness. Cost
control is very important. Our local cars cost is very high compare to the actual price of
foreign car without tax and tariffs. Even Datuk Seri Rafidah Aziz has urged Proton to cut cost
of the local production. If they want to be global distributor than their price should be
competitive among car giants. Even though our capacity is small compare to other car giants,
but if they want to challenge them then they have to cut the cost. Proton has informed that the
new model Proton WAJA parts are 90 percent locally made. This is a good sign for local part
manufacturers. However are the local parts cheap compare to foreign suppliers. However
they should get alternative choice to reduce cost. Maybe they can buy some parts from other
countries that are significantly cheap compare to local parts.
Another main thing that Proton should consider is quality of the car and its parts.
Currently our car quality is not even par with foreign cars. So how are they going to go
global? Quality is very important because most consumers will look into the quality of the car
before purchasing them. They should improvise their quality of car. They should be strict in
quality control. Even to maintain the local sales they have to maintain the quality and upgrade
them to be higher than foreign cars. Proton car owners knew the quality of Proton cars before
they buy the car. They didn't consider the quality because the cost was more important to
them. Since Proton and Perodua was the cheapest and economical, they bought the car.
Finally before penetrating other ASEAN countries, local manufacturers have to have a
well planned marketing strategy to sell the car in the ASEAN region. They should come up
with some partnership in these ASEAN countries to market their cars. Local distributors in
ASEAN countries are more reliable and trustable since they know their market well. The
collaboration should be enhancing the marketing strategy and method to penetrate this
ASEAN region. From my opinion, I think R&D with own design, cost control, quality
control and marketing is the four main items that local car manufacturers should concentrate.
They should use all four management principles, which is planning, controlling, organizing
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and leading to implement these tasks. The principles are very important for them to
implement their plans and run them successfully.
Lastly I would like to say that AFTA is a threat to local manufactures but it is an
opportunity to many new Malaysian companies. They can actually negotiate with foreign
giants to invest in Malaysia and open up a joint venture company. With joint venture it would
be a win-win situation where both local and foreign companies can benefit from the project.
Honda Motor Corporation just formed a joint venture project with DRB-HICOM and Oriental
Industries in July 2000. Both local companies have 51 percent share while HONDA has 49
percent. DRB-HICOM is actually a parent company for Proton but they are planning to sell
the stakes to PETRONAS. This is because their debts are very high. Now they have formed
an alliance with HONDA so that they are not out of the car industry. This is considered a
good move because this joint venture project will benefit all parties involved. I think some
other companies can follow this footstep to form a joint venture company with other auto
giants like Toyota, Ford, Volvo and others. If they don't offer themselves than Thailand will
grab these entire joint venture project and gain most from AFTA.

3.2 Sectoral Outputs and Trade Balance

Impacts on Malaysian sectoral outputs and trade balance are given in Table 1

.
Under a full fledge AFTA, the outputs for textile industry (TEXT) and the processed food
(FOOD) sectors are expected to increase substantially by 9 and 7 percents, respectively.
These are also accompanied by strong increases in trade balance. On the other hand, outputs
and trade balances for the agriculture sector (AGRI), extraction industry (EXTR), and
especially manufacturing (MANU) and services (SERV) sectors contracted substantially.

Recall that this study deals with aggregate sectors. It is possible that certain individual
commodities, for instance vegetable oils (aggregated under AGRI) may see a gain. However,
such precise analyses of sectoral impacts would require greater disaggregation of sectors.
Nevertheless, it has been clear the increase in Malaysian GDP would come mainly from
increases in value adding activities in the textile and processed food sectors.

Bilateral Exports and Imports

Table 8 and 9 below show how bilateral exports and imports, respectively, by Malaysia may
be affected by AFTA

Results indicate Malaysian imports may increase very substantially from countries which
have been subjected to significant import tariffs prior to AFTA (Table 8). Likewise, for
Malaysian exports. Interestingly, textile products (TEXT) represent the only Malaysian sector
that shows increases in both imports and exports in the ASEAN markets. Processed foods
(FOOD) will also make greater inroads, especially into the Thai and Vietnamese markets.
Malaysian exports to Indonesia and Thailand for all sectors except SVCS are expected to
improve. Exports of agricultural goods to Cambodia, Thailand and Vietnam will also show a
profound increase of some 107, 118 and 39 percents, respectively. Most strikingly, imports of
agricultural products from Cambodia and the Philippines will be magnified greatly by more
than 3000 and 8000 percents, respectively. On the other hand imports of FOOD from
Cambodia and Lao PDR are poised to decline markedly.
10

Changes in bilateral exports and imports give rise to the net effect on trade balance for the
individual sectors, as depicted in Table 7 earlier. By merely comparing the percentage
changes between both imports and exports, without considering the changes in absolute
values may not readily provide any clue on the likely trade balance effects. Interested readers
are referred to Appendix III to have an appreciation of the magnitude and differences in
absolute values between pre and post AFTA simulation for each commodity sector.

Domestic and Export Market Share Changes

Table 10 compares the domestic and export market share between the pre and post AFTA
simulation scenario for each commodity sector. Clearly, only two sectors FOOD and TEXT
reflect a marked change in both domestic and export demand shares. For the two sectors,
domestic and export market demand share declines and increases, respectively. Results
strongly suggest that changes in market demand structure for processed food and textiles and
consequently output augmentation have been strongly induced by export demand, i.e., the
removals of the intra-ASEAN trade protectionism measures. However, for the overall
economy both market shares appear to be stable in the AFTA scenario.

Overall, intra-ASEAN free trade is likely to produce a small effect on member countries
GDP including Malaysia due to the particularly small existing intra-trade between them.
Nevertheless, it is expected Malaysias GDP and overall national welfare would gain the
most relative to other ASEAN member countries. The direction and magnitude of impacts for
each sector are projected to be considerably different. Increased outputs and exports are
expected to be seen for textiles and processed food while other sectors would experience
11

marginal contraction. However, the agriculture sector is anticipated to enjoy the highest
welfare gains (EV) followed by processed food. Generally, an AFTA is beneficial to
Malaysia. However, more comprehensive studies are warranted in order to access the
repercussions on individual disaggregated commodities and especially to take into account
emerging issues such as agricultural multi-functionality, trade-environment effects and the
so-called development box which has taken the limelight in recent trade negotiations.

12

4.0 APPLICATION OF COMPARATIVE ADVANTAGE THEORY

The theory of comparative advantage is perhaps the most important concept in international
trade theory. It is also one of the most commonly misunderstood principles. There is a
popular story told amongst economists that once when an economics skeptic asked Paul
Samuelson (a Nobel laureate in economics) to provide a meaningful and non-trivial result
from the economics discipline, Samuelson quickly responded with, "comparative advantage."
The sources of the misunderstandings are easy to identify. First, the principle of comparative
advantage is clearly counter-intuitive. Many results from the formal model are contrary to
simple logic. Secondly, the theory is easy to confuse with another notion about advantageous
trade, known in trade theory as the theory of absolute advantage. The logic behind absolute
advantage is quite intuitive. This confusion between these two concepts leads many people to
think that they understand comparative advantage when in fact, what they understand, is
absolute advantage. Finally, the theory of comparative advantage is all too often presented
only in its mathematical form. Using numerical examples or diagrammatic representations are
extremely useful in demonstrating the basic results and the deeper implications of the theory.
However, it is also easy to see the results mathematically, without ever understanding the
basic intuition of the theory.

An increase in global competition requires Malaysia to examine where its comparative

advantage lies. Comparative advantage refers to the ability of a country to produce goods at
lower cost than the other countries and thus should specialize in producing the good in which
it has a comparative advantage. In the literature, several studies have been undertaken using
the concept of revealed comparative advantage developed by Balassa (1965) to measure
competitiveness of countrys particular sectors and majority of these studies use data on
export shares. Various approaches are undertaken to study revealed comparative advantages
(RCA), some of which use RCA to identify competitiveness of a particular sectors export to
another country. Some of these studies have combined RCA with other methods and indices
to identify countrys competitiveness against other competitors.
Batra and Khan (2005) used RCA, at both the sector and product level, to identify the pattern
of RCA for India and China. By using Balassa's (1965) index for the two and six digit level
of Harmonized System (HS) classification, the study finds that the pattern of comparative
advantage varies at different levels of commodity disaggregation. In analyzing comparative
advantage according to factor intensity, the study shows large similarities in the structure of
13

comparative advantage for India and China. Both, India and China enjoy comparative
advantage for labour and resource intensive sectors in the global market. However, no
evidence is found on the structural shift for the manufacturing sector as a whole for both
countries except for sectors within manufacturing. In an earlier study, Yue (2001) studies the
change in China export patterns. Employing RCA index, the study reveals how China exports
pattern have changed in accordance to its comparative advantage and that there are apparent
differences in export patterns between the coastal regions and the interiors in China.
Bender and Li (2002) analyze the structural performance and shift of exports and RCA of the
East Asian and Latin American regions over the period 1981-1997. The study is carried out to
examine the existence of changes in the export pattern among different regions and whether
the changes were related to shifts in comparative advantage. Ferto and Hubbard (2002)
investigate the competitiveness of Hungarian agriculture in comparison with European Union
by using four indices of RCA. All four indices revealed that Hungary has RCA for 11 of the
22 product groups. Another study that focused on agriculture sector has been undertaken by
Serin and Civan (2008). The study analyses the competitiveness of Turkeys fruit juice, olive
oil and tomato industries in relation to EU market over the period 1995 to 2004. The study
uses the revealed comparative advantage (RCA) and the comparative export performance
(CEP) index. The findings suggest that Turkey has a comparative advantage in the fruit juice
and olive oil sectors, but not in the tomato sector. Seyoum (2007) examine developing
countries' comparative advantages in selected services for the period 1998-2003 such as
business, financial, transport and travel services in relation to that of the rest of the world.
The study uses three indices of RCA and the findings show that there exist strong
comparative advantages for many developing countries in transport, and travel services while
financial and business services can be improved. However, it appears that their comparative
advantages have weakened over the years due to trade liberalisation and insufficient
preparations. The study also find no evident of any fundamental shift in the structure of their
comparative advantages.
Many studies have assessed the competitiveness of Malaysian commodity exports, namely
Palm Oil (Fatimah and Roslan, 1988, Mohamad, Fatimah, Abdul Aziz, 1992), Cocoa and
rubber (Md Nasir, Mohd Ghazali, Othman, 1993) and all Malaysian manufacturing product
(Amir 2000) as reported by Nik Maheran and Haslina (2006). Amir (2000) calculate RCA
index to examine Malaysias export specialization pattern between 1994 and 1998. From his
14

findings, he observes that even though the overall electronic and electrical manufacturers
retained their importance in the manufacturing sector, the sliding down in the RCA index in
some product groups in this category (e.g., Office Machines and Radio Broadcast
Receiver) suggest that rising competition resulting from regionalization (AFTA) and
globalization is eroding Malaysias strong position. In a more recent study, Mahani and Wai
(2008) analyze RCA for Malaysia in selected manufacturing goods between 2001 and 2005.
Their result indicates that the overall RCA index for machinery (except electrical) was
slightly above 1 and showing a small indication of a falling pattern. They conclude that the
share of manufacturers of machinery goods in the countrys exports was slightly above the
worlds average. Within the subsector, Malaysia does not possess a comparative advantage in
most of the product groups. RCA indices for textile, clothing, and footwear indicate that the
country has no comparative advantage in these three industries. The countrys export share
was less than the worlds average for most of the product groups. In addition, Malaysia does
not have a comparative advantage for the manufacturing of metal as well.

15

5.0 SUMMARY
At the Macro level, Malaysia has benefited from AFTA as Intra ASEAN and Foreign Direct
Investment (FDI) from ASEAN into Malaysia have increased tremendously. Nevertheless,
from the view of small farmers and fisher folks, they believe that in order to survive in the era
of globalization, they need continuous support from the government and trade policies should
favor them.
The challenges from economic downturn and the need to put Malaysia into a high
income economy have put requirement for improvement in the nations export competition as
one of the main items of focus. Despite the heightening shift in policy towards greater
specialization and market specialization, the countries direction of trade for the last three
decades continues to be concentrated to the traditional partners, of which Singapore is one of
them. In order to face the challenges, the trend in comparative advantages of manufacturing
products exported by Malaysia to Singapore is analyzed in this study based on RCA indices
for three main groups SITC 6, 7 and 8 for the period from 2000 to 2009. The results indicate
that Malaysia has both lost and gain in her comparative advantage to trade with Singapore,
and this loss/gain depends on the product subsectors. In the overall, the SITC 6 which has its
based from agricultural resources has lost its dominance in the top 25 ranking of RCA
indices. The emerging subsectors in 2009 are from the SITC 8 semi-manufactured products
from iron, steels and zinc, as well as from textiles. What can be gathered from this short
analysis is that, to be competitive, Malaysia needs to pay particular attention to the
development of these subsectors in the effort to strengthen export competitiveness to
Singapore.
Generally, an AFTA is beneficial to Malaysia. However, more comprehensive studies
are warranted in order to access the repercussions on individual disaggregated commodities
and especially to take into account emerging issues such as agricultural multi-functionality,
trade-environment effects and the so-called development box which has taken the limelight
in recent trade negotiations.

16

BIBLIOGRAFI
Define what is regional economic integration.. (2005, March 25). In Write Work.com.
Retrieved 10:59, March 04, 2013, from http://www.writework.com/essay/define-regionaleconomic-integration
http://www.freerepublic.com/focus/f-news/1101717/posts
AFTA: The upcoming challenges to the Malaysian automotive industry AFTA and Malaysian
car industries : http://www.venkateswaran.20m.com/custom.html
Bowles and MacLean, "Understanding Trade Bloc Formation."

The rest of this section is a summary of the discussion contained in Bowles and MacLean,
"Understanding Trade Bloc Formation."
7 K. Fukasaku, "Economic Regionalisation and Intra-Industry Trade: Pacific-Asian
Perspectives," OECD Development Centre, Technical Papers, No. 53 (1992), p. 28. See also
C. Primo Braga, and G. Bannister, "East Asian Investment and Trade: Prospects for Growing
Regionalisation in the 1990s," Transnational Corporations, vol. 3, no. 1 (1994), and J.
Menon,
"The Dynamics of Intra-industry Trade in ASEAN," Asian Economic Journal vol. 10, no. 1
(1996), for further details of the rise in intra-industry trade in ASEAN.
Revealed Comparative Advantage Of Malaysian Manufacturing: Malaysia And Singapore
Mawar Murni Yunus, Zunika Mohamed, Jamilah Mohd Mahyideen, Ruhaida Saidon

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