Amal

Introduction

In this part of the assignment I will discuss how could the three countries like Vietnam, Japan, and China establish such a trade agreement, in order to benefit from each other? Throughout discussing the export and the import value and products between the three countries. Also the impact of the trade agreement on the three countries.

The trade relation study is used to help evaluate the economic effects of a free trade agreement among China, Japan, and Vietnam on the world economy. This study is focused on estimating trade creation and diversion effects of the three countries. Results show that there are strong trade diversion effects between the member countries.

The world economy is far from free trade, although economists argue that free trade is the optimal trade policy in terms of welfare of the world population. Most countries, on one side, impose trade restrictions because of various reasons, including protection of their industries or political reasons. However, on the other side, countries seek to have unilateral, multilateral, and regional trade liberalization to increase their exports and also stimulate their economic growth.

There have been 254 free trade agreements around the world since 1948, and half of them came after 1995. Some of them are, for example, the European Union (EU), the Caribbean Community and Common Market (CARICOM), Southern Common Market (MERCOSUR), and the North American Free Trade Agreement (NAFTA). Recently the EU strengthened its operation by adapting a common monetary system among its member countries and also expanding its membership from 15 to 25 countries.

Establishing a Multinational Market Organization

Vietnam, China and Japan

There are similarities between these three countries. For example:-

1) Geographical location: as noted by a previous poster, all three countries are found in Asia.

2) Dynastic era: while Japan still has an Imperial family presence to this day and age, do not forget that both China and Vietnam used to have royal families too, albeit rather short-lived in Vietnam as Chinese emperors took over ruling. Chinese dynastic rule is legendary, lasted well into last century.

3) Religious believes: the main religion in all 3 countries is Buddhism, with influences of Taoism and Confucianism.

4) Food: rice and noodles are the main staples of the diet in all 3 countries. Vegetarianism is also very common, partly influenced by Buddhism.

5) International relationships: all 3 countries are members of the United Nations, and they're also part of ASEAN plus Three (although Vietnam is the only country among these 3 that has ASEAN membership).

6) Martial arts: like most Asian countries, all 3 countries have long traditions of martial arts, although the most prominent form of martial arts differs from one to another.

Compression of Economic Relations between Vietnam, China and Japan:

I. Trade Relations

a. Vietnam and China trade relations ( Exports and Import):-

Vietnam-China trade relations were strengthened during the period 2000-2008. During this period trade relations between Vietnam and China improved beyond expectation.

Between 2001 and 2008, the average growth rate of Vietnamese exports to China was 15.82%. Vietnam's 2000 exports to China were valued at about $ 1.5 billion. This increased to $ 4.5 billion.

The Exports from China to Vietnam increased quite roughly in the period 2000-2008. From US$ 1.4 billion to US$ 15.6 billion in 2008.

Vietnam exports more than 100 kinds of goods to China. Such goods are classified into four main groups:

• Raw materials (coal, oil, rubber, iron, ext.)

• Agricultural products (food, tea, vegetables, cashew)

• Fresh and frozen sea food (shrimp, crab, fish)

• Consumer goods (handicrafts, fine arts, shoes, high-quality household products)

Chinese import goods can easily meet Vietnamese production and consumption needs. Vietnam has used Chinese materials, chemicals and machines, among