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Arrival of the Asean

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Submitted By visal17
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Topic: What pros might Cambodia get from ASEAN?

Nowadays, it is well known that Cambodia is going to join with the ASEAN Economic Community in 2015, making every organization of the country are eager to develop and prepare in various ways to a par with international economics, politics, education and culture. It was also featured on the cultures of neighbouring countries. The majority point of ASEAN wants people, business, and many others organization in south East Asia become one. So, at this time, each country in south east Asia have to learn about ASEAN, but what is going to happen when ASEAN has started? , and is it good for people or business in Cambodia? So, they are sure that the prediction of ASEAN will be very great for almost every business in every single countries member. However, Cambodia is not ready for AEC in 2015 given its development status compared to the six older ASEAN members, because there are many constraints that Cambodia needs to address if it wants to have a successful integration into AEC 2015. While the quality of the Kingdom’s agricultural products and garments and textiles is sufficient, the quality of some other products is not so good. So, what pros might Cambodia get from ASEAN?

First of all, human Resource in one nation is very important to develop the nation. After Khmer Rouge regime, nearly two million Cambodians including intellectuals, skilled workers, and ordinary people were killed and died of diseases and starvation. Also, the civil wars still existed for another decade long. Consequently, Cambodia has lacked human resources which are catalysts for development and modernization. Moreover, compared to ASEAN members, Cambodia human resources are still vulnerable and have a certain, specific limitation for regional economic competition. Simply put, lack of human resources leads to lack of skilled labour forces and technological advancement. For Example Cambodian nation are important to join in social activities to develop Cambodia, Cambodian People’s salary is a revenues of Cambodia. The arrival of ASEAN Free Trade Area (AFTA), human resources is very special to the increase the economics. They will compete with each other to find the high salary. So how the one nation educated the people? In all ASEAN Nation must considerate with the education system. ASEAN Free Trade Area will open wide border to exchange the labour in this community. After the implementation of ASEAN FTA 2015, Cambodia and other nine more countries will become a province of ASEAN, with issue one charter with the law reinforcement for all people in this community. The main focus of the economics in this situation might focus on GNP (Gross National Product). So, to increase this economics index, education and skill for the people in those countries need to build up and increase too. Education can help people to find a good job and high salary. When they specified in one skill, they will have enough ability to find money to support their family and life. People in one nation have a high salary, GNP also increase through tax and another factor. After, they have enough ability, government can completed the

Unemployment reduction in one nation it’s also a high problem that we need to solve.

Second, not only human resource, but also technical and technology resource. Because after we build up one nation with full of the human resources, Research and development is very important progress their product and can compete with other product in the regional market. That’s what we can technical resource. Technical resource is happen after the human resource, because human resource is a main step to start the development of our nation. Technical resources provide us to be a high standard of production and creation. ASEAN Free Trade Area 2015 can attract to the investor to invest in our country. The called culture changed too, in this case culture referred to the new way of living so the new technology is the new thing that can provide us a new culture. Technical and Technological resources is important to make our product have a high standard. For example: the product of rice that grows in Cambodia with simple packed. And Thailand rice with a high technology to packed in high standard. Thailand can import this rice to Japan in higher price than Cambodian rice. Technology and Technical always stand in the first agenda in new era. So, all nations in ASEAN Nation needs the technical Resource and Technology to make their countries can compete with other nation in the regional and international forum.

Last, Free trade is the process of liberalize of market from government interventions. Under free trade policy, all economic resources from all countries involved are subject to price as a reflection of supply and demand, thus making price as the sole determinant for resource allocations. And what are the characteristic of free trade?

The characteristic of free trade are:

1. Trade of goods without taxes or any kind of barriers.

2. The free movement of labor between countries involved in the agreement.

3. The free movement of capital between and within countries involved in the agreement.

4. Free access to markets…,etc.

On the other hand, within this theory, ASEAN free trade area would cause trading activities among ASEAN countries to be more competitive in term of price, quality, capital, and management. However, Cambodian Small and Medium Enterprises currently have limited production capacity and financing supports and other challenge which contribute to the low competitiveness while many of the SMEs from neigh boring countries are more competitive with their accession to superior infrastructure, higher skilled human capital, and face fewer bureaucratic barriers If any SMEs cannot maintain their competitiveness, they will result in the loss of market share and finally bankruptcy. According to Mr. Chy Sila, CEO of CBM Corp, “this will create opportunities for local businessmen to partner with the franchises, but it will be a challenge for local businessmen as well. “Within ASEAN Free Trade Area, Cambodian Government cannot intervene to impose imported tariff to protect domestic products anymore, but SMEs themselves must be ready with this high competitive market. Therefore, there are reasons to believe that ASEAN free trade area will negatively affect Cambodian Small and Medium Enterprise in 2015. This paper is intended to give you an insight understanding on how ASEAN Free Trade Area would hurt Cambodian SME by comparing the competitiveness of Cambodian SME and other ASEAN member countries SME. To get a share of the free-trade prize, then, Cambodia has to find more products ASEAN countries want and start manufacturing domestically more of the products it currently gets within the region. That’s much easier said than done.

In my option, I think that after the arrival of the ASEAN Free Trade Area in the year 2015, Cambodia and other Country must prepared and develop the Human, Technical Resources, through the educated people and promote them to have enough ability to compete with other nation. If Cambodia has enough human, technical Resources, and other technology, Cambodia might face with the growing in economics. AFTA bring the ASEAN Nation a wide open border in export and import, But one country with low productivity and export capacity might become a market, which mean that those nation will strongly depend on the regional economics. One nation depends on the regional market is always face with high risk, such as inflation, Unemployment, Less development, and change through the regional trend and economics like a domino.

Reference

1. http://www.lawteacher.net/international-law/essays/asean-and-history-of-cambodias-membership-international-law-essay.php

2. http://www.cambodiadaily.com/archives/cambodia-braces-itself-for-asean-free-trade-35526/

3. http://debatewise.org/debates/1053-poorer-countries-should-abandon-free-trade-agreements/

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