Business Relationships with East Asia: The European by Jim Slater

By Jim Slater

This quantity analyses the company surroundings in East Asia with regards to alternate and funding flows in the quarter and among East Asia and Europe. concentrating on the two-way movement of administration principles, funding and expertise, this research highlights the best way each side can gain.

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Extra resources for Business Relationships with East Asia: The European Experience (Routledge Advances in Asiapacific Business, Vol 4)

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3). 4). 3 East Asian shares of EU imports 1958–93 Source: Eurostat, External Trade Statistics. 4 East Asian shares of EU exports 1958–93 Source: Eurostat, External Trade Statistics. Trade relations with the other East Asian countries have followed a different course. Since 1971 the EU has offered tariff preferences on manufactured goods imported from developing countries as an encouragement to their economic development. Most of the East Asian countries benefited from this arrangement. However, as their manufactured exports took off, so the EU introduced ceilings on tariff-free treatment of particular items, ostensibly to benefit other newly industrializing countries but also in response to complaints from European manufacturers about lowcost competition.

However, the use of more disaggregated data suggests that the lowering of trade barriers within the EC is in fact likely to be more effective in lowering price-cost margins than previously thought, as long as mergers and collusive behaviour between firms in the EC may be 36 Robert Hine and Peter Wright avoided, since the Southern European Countries in particular have a strongly disciplinary effect on behaviour. This effect is likely to be larger than that derived from lowering trade barriers with the NICs as they appear to specialize in sectors which are already fairly marginal in the United Kingdom.

The data which will be used in this study is 4 digit industry data taken from the Report of the Census of Production summary tables for 1983, 1988 and 1991. Imports and exports are categorized on the same basis and by country of origin/destination. 10 and, as can be seen, the results presented largely concur with what would be expected from the previous discussion. Imports from outside the EC and OECD have a statistically significant disciplinary impact on price-cost margins, as do imports from Japan and the Asian NICs.

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