Business Name: Institution: Focus on the American oriented activities of an Asian firm The economic performance of Asia has increased the interest of American firms in the region. This is evident in the article “Production Networks in East Asia: Strategic Behavior by Japanese and U. S. Firms”. The article explores the strategic behavior of firms in the U. S. And Japan considering the eastern Asia production networks. The article achieves this by comparing the behavior of firms in the aforementioned countries, in East Asia and Latin America.
It is evident that there are strategic similarities in East Asia by the two factions but a significant difference in their approach towards the Latin American market. For instance, the firms from both countries show a similarity in the link between arms length fragmentation and geographical proximity. The different strategies employed for the two regions can be attributed to their diversity. These differences have crucial implications for the policymakers in the American firms venturing into East Asia.
Despite the sentiments against foreign direct investments (Fids), it is evident that the strategy of American firms to use this approach has some positive outcomes for the region. Some of the concerns against FAD is that there is resource exploitation and the substitution of imports. This results in unwelcome political economic tendencies for countries. Despite this, the scenario in East Asia has shown the development of economic strategies that are new. This is due to the support of the required economic climate. This has resulted in the developments witnessed in the region by American firms and their activities.
International Trade International trade has influenced economic growth significantly. These are the sentiment of the article International Trade and its Effects on Economic Growth in China, where the author explores the influence of global trade on china. According to the article, it is evident that the Chinese economy has experienced considerable growth. The growth has made the country a target for the world as a market. The article uses the perspective of production to analyze the economic growth of the country.
The economic reforms to open the Chinese market have been cited to be some of the factors, which have bolstered economic growth. Some of the industries in the region acquired specialization due to their comparative advantages. Considering tans, ten economic development AT ten region coalesces Walt International trace. There are static benefits realized by China due to international trade. This includes imports, which have an embodiment of high technology. The dynamic effects of international trade are the enhancement of human capital.
Despite the politeness experienced by China due to international trade, there are several problems experienced by the country in the economic perspective. For instance, there is a deficiency of intellectual property that is considered independent. In addition, there are development patterns that are unstable. Finally, the absorptive capability in the region is significantly low hence an issue for economic growth. Despite these challenges, it is evident that the development of international trade has been instrumental in the economic progress expensed in China.
References And M, Arrant S W. And Kumara F. (2006). Production Networks in East Asia: Strategic Behavior by Japanese and U. S. Firms. Conference Japan Center for Economic Research. Sun, P and Hesitate A. (2010). International Trade and its Effects on Economic Growth in China. Institute for the Study of Labor. United States International Trade Commission. (2010). Small and Medium-sized Enterprises: U. S. And EX. Export Activities, and Barriers and Opportunities Experienced by U. S. Firms. United States International Trade Commission.