Liberal economic reform The collapse of the communist regime and the emergence of globalization. Making global capitalism spread to cover almost all parts of the world. The expansion of international trade. The rise of international capital. The economy of the regions Interconnected and interdependent, more countries take a liberal economic reforms to prepare for a competitive economy deteriorating. Socialist countries to plan and control the global economy. Reforms have opened the country to foreign businesses to invest. The application of market mechanisms such as China's policy to date. Vietnam policy reform (Doi Moi) is a country where capitalism. It is economic reforms in the areas of trade and finance by reducing restrictions. For more liberal To create opportunities for funding. Capital mobility As a result, the cost of production and lower earnings. To compete effectively in the economic integration in the region. Due to increased competition. Many countries are not convinced that there is sufficient capacity to compete in the free trade system, some countries have taken measures to protect trade. Many countries are trying to find an economic alliance. Expand economic cooperation The establishment of regional economic groups such as the European Economic Community (EEC) to strengthen cooperation to establish a single market in 1999, the United States, Canada and Mexico for Economic Cooperation established the North American Free Trade Area (NAFTA) in. While the Southeast Asian nations cooperate. ASEAN Free Trade Area (AFTA) and it has been in the Asia-Pacific Cooperation (APEC), the economic integration of these. Could lead to a trade war tensions, trade or not. If a conflict of interest can not be compromised. In addition to the regional groups already. Some countries are trying to collaborate on a small scale in the region, such as economic cooperation triangle. Between Indonesia, Malaysia and Thailand (Indonesia Malaysia Thailand Growth Triangle: IMTGT) and the Economic Cooperation squares (Quadangle Cooperative) between Thailand, Laos, Myanmar and southern China by each country to take advantage of each other. To increase the competitiveness of the economy. Changes in the global economic environment is leading to a restructuring of the global economy, which has 3 terminals are Europe, Asia and America's global economy, it is currently the third column formation. Which are both competition and cooperation. As can be seen from the cooperation between Asia and Europe (Asia Europe Meeting: ASEM) was the liberalization of finance and trade. The economy and foreign goods flow freely around the world. The internationalization of capital and currency. Which have occurred since the end of World War 2, resulting in a capital inputs, which can be transferred back and forth freely. Movement of capital in the world from the point of low returns. To the point that a higher return. Caused by speculation in the market instability. The capital controls have to be in an advantageous position altogether. When the economy is integrated together. Capital can flow to the pieces. Which allows them to spread the cost out to the outside as much as possible. The result was the transfer costs from local to international investors. During this economic crisis will happen to the country's leading foreign capital in the service. Whether a country's economic performance. However, it is It is the movement of large fund inflows and outflows, fast , automated production systems. The changes in the production By applying computer technology to control production. It is characterized by a specific application which uses a shorter production period. Consumes less than the parts may be produced in many countries, be attributed to the car in another country. Then shipped worldwide The very nature of this style of multinational companies, which are typical of globalization. As a result, financial, banking, insurance, securities must be adapted to accommodate businesses with globalization. The factory will produce this major system change continuously over time. Financial system will be adjusted to provide the same. Flow in Exchange And financial transactions through the bank all the time in the second. Electronically Current competition, trade and markets, which progresses quickly. Become a truly multinational.
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