The Political Risks Of Regional Integration : The Case Of Asean

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Date
2015-05
Authors
Sulong, Rini Suryati
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Publisher
Universiti Sains Malaysia
Abstract
This research began with the understanding that today’s international business environment is characterized by the growing openness of national economies and increased interaction among diverse economic and socio-political systems. For most countries this has translated into greater regional integration initiatives that involved the cooperation of diverse countries within a geographical proximity. In Southeast Asia, the governments of the ten countries that make up the region established the Association of Southeast Asian Nations (ASEAN) to push for greater economic, social, and security cooperation aimed at promoting peace and regional solidarity. Although much study has been done to prove the economic benefits of regional integration, lesser emphasis has been given on studying its effects on political risk conditions among them. Hence, this dissertation took a qualitative approach to analyze the changes that ASEAN integration has had on the factors of political risks that exist in the region. Through the use of a collective case study approach, the occurrences and sources of political risks were identified and analyzed in order to answer four specific investigative questions to study the effects of integration on political risks. It was found that the number of years of being a part of an integrated regional group did not influence the reduction of political risk conditions within and among its member states. These factors were also found to have the ability to affect regional market stability and are unaffected by the efforts of regional integration because the conditions or events occur on a national level. This research is particularly relevant for international firms, as businesses need to be aware of changes occurring both nationally and internationally that can affect their operations in order to fully assess the opportunities and risks of a new market.
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Keywords
ASEAN, Political Risk , Regional Integration
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