The Political Risks Of Regional Integration : The Case Of Asean
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Date
2015-05
Authors
Sulong, Rini Suryati
Journal Title
Journal ISSN
Volume Title
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.
Description
Keywords
ASEAN, Political Risk , Regional Integration