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Business Relationships with East Asia: The European by Jim Slater

By Jim Slater

This quantity analyses the enterprise surroundings in East Asia on the subject of alternate and funding flows in the quarter and among East Asia and Europe. targeting the two-way circulate of administration principles, funding and expertise, this learn highlights the way either side can profit.

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

Sample text

These should be consistent with the relative importance of the factors examined above. 2% of Korea’s investment in Europe, respectively. Among the European countries invested in, it turns out that the UK is the favourite even though cumulative investment to date has favoured Germany. The deciding advantages seem to be language and access to financial markets, outweighing the pure locational advantages of Germany. 4 Criteria for selection of location within Europe *Diversification of sales network, strategic alliances in Europe, expectation of growing market, etc.

So, what are the policy implications of the above analysis? As Hansson (1992) and Jacquemin and Sapir (1991) argue, there is some evidence that the formation of the European single market may lead to mergers and collusive activity as firms adopt strategies to maintain their profit margins. If this is the case then the welfare of consumers will be reduced and the hoped for benefits of the single market may not be fully felt. Viewed in this light, increased import competition from East Asia should be welcomed as it acts as a disciplinary device which will prevent the abuse of market power by domestic oligopolies.

The Chinese State in the Era of Economic Reform, London: Macmillan. Jacquemin, A. and Sapir, A. (1991) ‘Competition and Imports in the European Market’, ch. Winters (eds), European Integration: trade and industry, Cambridge: Cambridge University Press. R. (1992) Foreign Trade and Economic Reform in China 1978–1990, Cambridge: Cambridge University Press. —— (1994) China in the World Economy, Washington DC: Institute for International Economics. Z. ’, ch. , Chicago: University of Chicago Press.

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