Business

Topics: Economics, Economy of the People's Republic of China, United States Pages: 2 (589 words) Published: July 2, 2013
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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 (FDIs), 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 FDI is that there is resource exploitation and the substitution of imports. This results in unwelcomed 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...

References: Ando M, Arndt S W. and Kimura F. (2006). Production Networks in East Asia: Strategic Behavior by Japanese and U.S. firms. Conference Japan Center for Economic Research.
Sun, P and Heshmati 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 EU Export Activities, and Barriers and Opportunities Experienced by U.S. Firms. United States International Trade Commission.
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