ASEAN was founded on 8 August 1967 in Bangkok, Thailand by Indonesia, Malaysia, Philippines, Singapore and Thailand. The main purposes of this establishment are:
Ø Speed up economic development
Ø To help to improve regional peace
Ø To maintain regional and international cooperation and reinforce it
Ø To promote southeast Asian studies
In addition to these countries, china just jointed this group. The Chinese’ government is very optimistic to play an important role in this establishment. With regards to this foundation, there are some advantages and disadvantages for countries that are the members of these establishments.
The main upside would be related to restrictions on trade. Naturally, there would be no limitation in front of commercial activities between those countries. However, things are not that easy all the time. Although it is really great to have trade with no limitation, sometimes countries should pay off for taking these opportunities.
Paying attention to European Union as an example, it could be understood that joining a group always does not have advantages. As a way of illustration, Greece is experiencing a critical economic situation right now. It is bankrupt and it is the European Union members’ responsibility to help it to figure the problem out. Only Germany has to pay 200 billion dollars to help Greece.
Hence, it is not illogical to investigate all of downsides a well as upsides. Without saying, to have a free trade and open economy, nations have to develop their relations with other countries but, reviewing potential risks would prevent countries from paying off for their decisions later on.
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