Wednesday 25 March 2009

The next Great Wall: "Buy local" campaigns raise protectionist barriers in Asia.

Hello everyone. I know you are very busy at studying and posting comments in this fourth week. But remember your english skills are improving tremendously. Your hard work will be rewarded! And I have a new post for you to practice your english (again). Here you go!

Since the trade barriers have invisibly increased in Europe and America, the costs of exports from Asian countries have become less competitive than products nationally produced. Undoubtedly, the governments from Asian countries have responsed by raising retaliatory barriers in various forms. Vietnam and India increased import tariffs while Indonesia and China called for their local governments and offered attractive incentives for locals to buy local products. The Economist noted that such barriers would damage the economies of Vietnam, Thailand and Malaysia because those countries largely rely their incomes from their exports.


I think these barriers are likely to geared up when there is an economic crisis. I think most countries face the conflicts between how to protect their local industries and how to increase the income from selling products to foreign markets. Although, the international trade agreements such as ASEAN, AFTA have been long established to promote internatinal trade, the agreements have been slowly proceeded. Each country has its own products to sell and those products have to compete with similar products sold by other countries including the countries in the same agreements. When the economic choas occur, the conflicts seems to be increased. I don't know how these conflicts will be end or they will never end because we are in the competitive world.


I came across this issue few weeks ago and then I recalled it again when I decided the topic of my research paper. Please comment I need your ideas for my research paper.



References

The next Great Wall. (2009, March 12th). The Economist. Retrieved March 25, 2009 from http://www.economist.com/business/displaystory.cfm?story_id=13278289&CFID=48273238&CFTOKEN=80346700
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2 comments:

  1. Chatchai Mark Wangwiwattana25 March 2009 at 19:02

    It's interesting. I haven't through this point before. I'm using local products to be a supporting idea in my research papers. The products is OpenSource software. Although they are not made in Thailand, it must not buy commercial software from foreign countries.

    I agree with Economist that it absolutely affect Thais economy. Food may not be affect much, but other products such as shoes, garment, rummer and so no, might be troubled.

    This problem is difficult to find the best solution, because it affects to many economic entities if one thing changes. I will wait another comment and think about it again.

    ReplyDelete
  2. Waew28 March 2009 at 15:08

    Thanks Mark for your comment. The protectionism from China, Europe and USA is hurting Thailand's exports and eventually Thailand's economy as a whole. I think this crisis would last longer than the Tom Yum Kung crisis simply because many countries around the world are also facing their economic difficulties.
    Your comment made me curious again about the protectionism in Thailand. Are we currently have any strong protectionism now?

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